Business Research Methodology: Global Accounting Challenges Report

This report presents a research plan to identify challenges in accounting within global organizations, focusing on environmental and organizational factors. It explores the evolving role of management accountants, the impact of financial crises, changes in accounting standards, and the implications of fair value accounting. The research employs both qualitative (narrative research) and quantitative (regression analysis) methodologies to investigate these issues, including setting null and alternative hypotheses. The scope encompasses technological changes, business environment adaptations, and organizational influences. The report reviews relevant literature, outlines research limitations, and provides a time schedule for data collection and analysis, aiming to offer insights into the complexities faced by accountants in a global context, including unfair accounting practices and the impact of fair value accounting. The conclusion emphasizes the importance of understanding these factors for effective accounting practices.

Running head: BUSINESS RESEARCH METHODOLOGY
Business Research Methodology
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Introduction................................................................................................................2
2. Project Objective.......................................................................................................2
3. Project Scope.............................................................................................................2
4. Literature Review......................................................................................................3
5. Research Questions/Hypothesis.................................................................................5
6. Research Design and Methodology...........................................................................6
Qualitative research.........................................................................................................6
Quantitative research.......................................................................................................6
7. Research Limitations.................................................................................................7
8. Time Schedule...........................................................................................................7
9. Conclusion.................................................................................................................9
10. References................................................................................................................10

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1. Introduction
The management accountants in Global Organizations no longer relies on the traditional
methods of only focusing on aspects of accounting. The introduction of concept such as hybrid
accountants within the organizations is becoming more evident in nature, which are seen to be
responsible for addressing the different types of the needs associated to accounting. Some of the
important form of the challenges are considered to be evident in form of the continuous changes
in the business scenario. Companies are showing the need for a more proactive management
accountant who are readily accepting challenges and become a part of the management. The
important consideration discussed in the report is further seen to be identified with the
organizational and environmental factors, which is regarded as a major form of the contributor to
the significant challenges.
2. Project Objective
The report aims to propose a research plan for identification of the relevant issues
pertaining to the environmental and the organizational factors for portraying the challenges of
accounting in global organizations. The learnings of the research will consider various factors
which affects the accounting practices. The study will further aim at understanding the
theoretical and methodological gaps in accounting practices which are conducive in explaining
the rationale for failure to anticipate the changes in the business and respond to the same.
3. Project Scope
The main factors identified to pertain to the changes in the accounting practices will be
considered with the technological changes, adaptions to the changes in business environment,
financial crisis, role of the management accountants and organizational factors. Some of the
other factors are considered with the adherence to the changes in the financial standards. The

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scope of the project will be able to discuss the possible challenges faced by the accountants
during any publication of rulings or accounting frameworks. The research will identify both the
qualitative and quantitative findings to support the research paper.
4. Literature Review
Role of Management accounts
The present role of the management accountants is considered in terms of formulating the
financial strategies, explaining the financial consequences of the financial decision making and
monitor the expenses to maintain the profit margins. The management accountants are seen to
control the operational aspects of the company. The factors are understood to be causing most of
the challenges in terms of accounting practices. The formulation of the financial strategies takes
a considerable amount of time to formulate the financial strategies with the use of the sales
forecasts, budgets, job costing techniques and the use of the several types of the managerial
accounting tools. In addition to this, the changing role of the management accountant is inferred
with maintaining profitability, which in many situations involves performing complex business
functions such as weighing of sales against the fixed and variable costs (Bebbington, Unerman
and O'Dwyer 2014).
Financial crisis and Challenges of Accounting in Global Organizations
Financial reporting and the current practices of accounting affects the financial crisis in
number of ways. The most eminent financial requirement of reporting is considered with
governing of the asset valuation and the number of considerations associated to off-balance sheet
entities. The fair value accounting concepts require the companies for writing down the financial
assets in order to reflect the plunging values of the market during the financial crisis. There has
been several critics which states that the fair value accounting has contributed to excessive credit

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expansion and pro-cyclical risk factors. Ever increasing global expectations has let the
accountants to fill relatively complex roles and challenges which the organizations are facing at
present. Some of the more casual factors for the failure in the accounting system and the
challenges concerning the same is seen to be discerned in terms of the failure in the corporate
governance and several types of the risks associated to the same (Geppert, Matten and Williams
2016).
Changes in Accounting Standards and role of politics
The changes pertaining to the accounting standards is viewed as another aspect of the
challenge which is faced by the accountants globally. Some of the important considerations
pertaining to the implementation of the new standard is evident in terms of areas such as revenue
and leases. The introduction of a new accounting standard may involve identifying contract,
determination of the transaction price, identification of the separate obligations pertaining to the
contract along with recognizing the revenue and the entities which satisfies with the performance
obligations (Ebrahim, Battilana and Mair 2014).
The changes in the accounting standard is also seen to impact on the leases which will
result in changes in balance sheet. There are number of principles which guides on how these
amounts will be recorded. The leases in the balance sheet is considered with an important effect
on the leverage ratios. The changes pertaining to the accounting system will also lead to
significant amount of the changes in the aforementioned areas (Weng, Jowitt, Mudd and Haque
2015).
Changes in business and organizational environment
In serval instances it is discerned that the managers fail to anticipate and respond to the
changes in the business environment. In cases where managers do not notice the changes in the
business environment often lead to such unexpected results. There are studies which shows that

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managers may be aware of the significant nature of the changes in the organizational
environment however they may not be capable to interpret these appropriately. The relationship
between the competitive environment and the challenges pertaining to accounting is discerned in
form of the industry environments, corporate strategy, organizational structure, business
strategies and capabilities. The crucial aspect of the changes in the managerial behavior is
depicted with the rapidly changing environment which is considered as a cognitive process in
noticing and constructing the meaning of the environmental changes. Empirical evidence has
been able to suggest that the managers fail to depict the changes pertaining to the organizational
environment (Gereffi and Fernandez-Stark 2016).
Fair value accounting and its impact on Global Organizations
The financial instruments inclusive of derivatives is issued in accordance with the
changes in fair value which directly affects the net income and considers the changes pertaining
to short span of time. In addition to this, the consideration of fair value accounting is becoming
significantly important for fair value accounting which is one of the main reason for becoming
crisis in the global organizations. There has been significant amount of research which has
implied that the fair value accounting has set specific standards for accounting and used the same
in all the related areas. Several evidences of unfair accounting practices have been considered as
the main rationale for the challenges to the accountants globally. These are caused in instances
where the business seeks assistance on key audit matters from unqualified auditors (Lele 2017).
5. Research Questions/Hypothesis
The research hypothesis set for the study are listed below as follows:
 Null Hypothesis (H0): The main challenge of accounting in global organizations is not
seen in terms of changing Role of Management accounts

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 Alternative Hypothesis (H1): The main challenge of accounting in global organizations
is seen in terms of changing Role of Management accounts
 Null Hypothesis (H02): The main challenge of accounting in global organizations is not
seen in terms of Financial crisis
 Alternative Hypothesis (H2): The main challenge of accounting in global organizations
is seen in terms of Financial crisis
 Null Hypothesis (H03): The main challenge of accounting in global organizations is not
seen in terms of Changes in Accounting Standards and role of politics
 Alternative Hypothesis (H3): The main challenge of accounting in global organizations
is seen in terms of Changes in Accounting Standards and role of politics
 Null Hypothesis (H04): The main challenge of accounting in global organizations is not
realized in terms of Fair value accounting
 Alternative Hypothesis (H4): The main challenge of accounting in global organizations
is realized in terms of Fair value accounting
6. Research Design and Methodology
Qualitative research
The qualitative research technique will be implemented as per Narrative research
technique. This will include sequence of events taken from one or two individuals. The research
will further include in-depth interviews and involve reading of relevant documents.
Quantitative research
The quantitative research technique will comprise of the collection of the data from the
primary and secondary sources and performing regression analysis to test the hypothesis validity.
The primary source of the data will include responses will be taken from survey respondents.
The important factors taken from the secondary data sources has included relevant books,

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journals and authorized publications. The analysis tool for quantitative research will be taken
into account use of nominal, ordinal, cardinal, ratio and interval scales.
7. Research Limitations
The research will be considered as per the limiting factors based on role of Management
accounts, Financial crisis and Challenges of Accounting in Global Organizations, Changes in
Accounting Standards and role of politics, Changes in business and organizational environment
and Fair value accounting and its impact on Global Organizations. Some of the important
depictions made from the research has further limited the research aspects with qualitative
research such as narrative research technique and regression analysis.
8. Time Schedule
Sequential
Activities/ Period
Week 1 Week 2 Week 3 &4 Week 5 & 6
Research
planning and
Ideation process

Proceeding with
Designing of the
research

Data collection
and data
sampling
 

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Analysis of the
data collected

Publication
process


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9. Conclusion
The important discussions as per the research will be able to identify the
important factors affecting accounting in Global Organizations. The primary factors affecting the
companies will be identified with changing role of the management accounts, Financial crisis,
Changes in Accounting Standards and role of politics, Changes in business and organizational
environment and Fair value accounting. It needs to be further discussed that the that the
hypothesis of the research will be discussed as per the aforementioned factors. The application of
the research methodology will be implemented based on qualitative research technique such as
narrative research and quantitative research with regression analysis. The time schedule has
included the activities such as Research planning and Ideation process, Proceeding with
Designing of the research, Data collection and data sampling, Analysis of the collected data and
Publication process. In addition to this, the research will consider the significant amount of
research which has implied that the fair value accounting has set specific standards for
accounting and used the same in all the related areas. Several evidences of unfair accounting
practices have been the main rationale for the challenges to the accountants globally.