Research Proposal: Convergence of Accounting Standards Effects

This research proposal investigates the convergence of accounting standards and its effects on the manufacturing industries. The proposal begins by explaining accounting standards and convergence, then delves into the background and rationale for the study. It outlines the research aims, objectives, and questions, followed by a literature review that explores concepts related to accounting standards and convergence. The methodology section details data collection processes and appropriate data types for the research. The proposal includes a table of contents, background of the study, rationale, objectives, research questions, structure, literature review, methodology, and a Gantt chart. The study aims to assess the impact of convergence on manufacturing, considering globalization's influence and the need for uniform accounting practices for international trade. The research will employ primary data collection to gather insights into the topic, and the proposal also addresses ethical considerations and limitations.

Running head: RESEARCH PROPOSAL
Convergence of Accounting Standards is good for the Industry
Name of the Student:
Name of the University:
Author’s Note:

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Abstract
This paper looks to assess the effect of convergence of the accounting standards for the
manufacturing industries that are operating in the economy. The proposal has the intension of
creating a guideline and the action course with the help of which an extensive research can be
undertaken on this topic. The proposal initially provides an insight on the explanation of
accounting standards and the meaning convergence. Thereafter, the background of the study
along with the rationale for undertaking this research is even explained. The aims and objectives
in accordance to which the research would move forward is even mentioned in this segment of
the proposal. The literature review on the other hand explains the various concepts and the ideas
that are associated to accounting standards and convergence and what other researchers have
suggested on these aspects. The methodology section of the proposal addresses the process of
data collection and the kind of data that is suitable in order to complete research on this topic.

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Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.1 Background of the Study.......................................................................................................6
1.2 Rationale of the Research......................................................................................................9
1.3 Research Aims and Objectives..............................................................................................9
1.4 Research Questions..............................................................................................................10
1.5 Structure of the Proposal.....................................................................................................10
Chapter 2: Literature Review.........................................................................................................12
2.1 Introduction..........................................................................................................................12
2.2 Nature of Convergence........................................................................................................12
2.3 Benefits of convergence of accounting standards...............................................................13
2.3.1 Network Externalities...................................................................................................13
2.3.2 Comparability...............................................................................................................14
2.4 Costs of convergence of accounting standards....................................................................15
2.5 Empirical Studies.................................................................................................................16
2.6 Brief history of convergence and accounting standards......................................................17
2.7 Accounting Standard...........................................................................................................18
Chapter 3: Research Methodology................................................................................................20
3.1 Introduction..........................................................................................................................20
3.2 Justification for the choice of methodology used................................................................20

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3.3 Research Objective..............................................................................................................21
3.4 Research Philosophy............................................................................................................21
3.5 Research Approach..............................................................................................................22
3.6 Research Design..................................................................................................................23
3.7 Research Strategy................................................................................................................23
3.8 Data Collection Method.......................................................................................................24
3.9 Population............................................................................................................................24
3.10 Sample...............................................................................................................................25
3.11 Data Analysis Method.......................................................................................................25
3.12 Ethical Consideration.........................................................................................................26
3.13 Limitations of the Research...............................................................................................26
3.13 Gantt chart.........................................................................................................................27
3.14 Summary of the Methodology...........................................................................................27
Reference List................................................................................................................................29
Appendix........................................................................................................................................34
Questionnaire.............................................................................................................................34

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Chapter 1: Introduction
The modern world has various organizations that are operating successfully and are
undertaking transactions and communications with other firms in order to sustain their
operational activities. With the advent of globalization, companies from various parts of the
world have been interacting with each other and have been undertaking transactions in order to
make the business more appropriate and thereby expanding their business. In order to make the
world a worldwide market International Accounting Standard Board (IASB) has constructed
various accounting standards in order to establish uniformity in the aspect of accounts globally
(Chen, Ding and Xu 2014). Accounting is one of the key components with the help of which
individuals and organizations are able to maintain a record of their financial transactions thereby
establishing their business successfully.
The process of convergence refers to the coming together or the explanation of the direct
relationship between two trends which can be price or any other indicator. In the current time
period with the development of various standards in the global accounting system, there has been
a need for undertaking convergence of several accounting standards in order to make it easier for
the international traders and marketers to perform in the global economy. With the advent of
globalisation, there has been a rise in the level of international trading and in order maintain a
healthy accounting and transactional activities, it is essential to maintain an accounting system
that would be helpful for both the parties who are undertaking the business. The need is more
extensive in case for the manufacturing industries has they are the one who undertake several
kinds of import and export activities and thereby interact with other organizations from other
countries. The greater focus on convergence is an outcome of the waves of globalization that has
been riding along throughout the globe. Most of the organizations are transforming to

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multinational firms and therefore have their functions and operations in several parts of the world
with a rise in the subsidiaries franchises and joint ventures. The capital market that is existent in
various continents has become interweaved. The stakeholders and the investors now have
additional access in the financial market and international organizations than previously (Wang
2014). It is essential to maintain the development in the effectiveness of the markets in order to
keep them healthy. Conversely, the major concern has been the existence of different regulatory
standards in many countries for the purpose of financial reporting. Therefore, the interpreting the
financial statements from one kind to the other is troublesome as it is time consuming and costly.
The investors look to be aware of the variations when assessing the international firms and this
misrepresents the consistency and comparability. The financial statements become unusable to
the investors when they are not comparable completely. Therefore, it creates the chance that
international investors restrict themselves from undertaking investments in foreign organizations
as they are unable to understand the financial statements of the firm (Oulasvirta 2014). These
circumstances can be observed mainly in the manufacturing industries where there have been
several kinds of business and financial interactions and thereby it makes it difficult for the
organizations to maintain an accounting statement that will be acceptable in any country. It is
due to this factor that convergence of the accounting standards is crucial in order to make the
investors satisfied and thereby improve the operational activities of the industries. This proposal
therefore looks to assess the convergence of accounting standard and how it can improve the
operational activities of manufacturing industries as they are the main concern in this research
proposal.

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1.1 Background of the Study
The proposal concentrates on the convergence of the accounting standards that are
existent in the global economy and how it has an impact on the manufacturing industries. The
process of convergence and harmonisation explains the application of various approaches for the
purpose of accounting for the purpose of integration among the accounting methods.
Harmonisation addresses the similar accounting policies incorporated by the organizations all
over the globe (Tschopp and Nastanski 2014). The rate of adoption of any sort of policies in the
process of accounting increases, the convergence of the accounting policies rises.
The examination of the origin of the differences among the accounting standards in
various countries is essential prior to the explanation of convergence. Political factors are the key
reason for the differences in the accounting standards in various countries. For instance,
Germany and France always had significant influence on the regulations of accounting. The
government of the country was hugely concerned about safeguarding the creditors and hence
accounting standards that have been constructed is based on the historic cost and that looked to
minimise the assets and profits (Bushman 2014).
In countries like USA and United Kingdom, the independent accounting boards are
accountable for the regulations with the focus on the protection of the investors. Conversely,
there has been numerous studies that have addressed that cultural factors have influenced the
differences among the national standards of accounting (Apergis, Christou and Miller 2014). The
studies have explained that differences in the accounting standard is unavoidable as they are
existent in different environment and answer to different directives and is an outcome of the
various standard constructing processes and structures.

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The method of convergence is a significant challenge and the success of convergence is
dependent on the relentless compromise among the key accounting standard boards. The first
step towards convergence was undertaken by the European Union. In the year 2001, the
European Commission declared a regulation that the companies that are listed within the
European Union had to incorporate the international standards for the consolidated financial
statements (Carraher 2014). This was an answer to the capital market of the European Union
losing their competitiveness as many organizations thought if undertaking investments in the
capital market of USA as the capital market of the country is integrated and larger. There are
various countries globally who have incorporated the use of the international standards. The
main aim of convergence has not been to accomplish similar statements but look to attain
compatible statements where there are no deviations on how to account for similar transactions.
In spite of the various issues that have been faced by the convergence project, there have
been key achievements that have been attained. One of the key achievements for convergence
was the developments made in association to the accounting of goodwill (De Simone 2016).
IASB even changed their IAS 22 with IAS 36 that restricted the goodwill amortization. This
transformation aligned the international standard towards goodwill more relatively with the
SFAS 141 of FASB with respect to which the goodwill is examined frequently for impairment
and losses in impairment is identified in the same manner. The other instance that was
observable has been that the conceptual framework that is available in USA and IFRS are quite
similar and therefore has been converging with the existing efforts by the FASB and the IFRS. In
US GAAP, the conceptual framework is just a guide for the standard setters in disseminating the
standards of accounting. In IFRS, the conceptual model is not utilised as a guide for creating the
standards but even provides a foundation for the practitioners to undertake judgments related to

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accounting in circumstances when the other IFRS standards are not applicable. The difference
that has been existent is that IASB looks make use of the one step process to an impairment
examination in comparison to the two-step process of FASB (Young and Zeng 2015). There are
key approaches in enhancing the level of consistency of IAS and US GAAP. Additionally further
work needs to be undertaken for the special purpose entities and the joint ventures. A significant
issue with respect to the special purpose entities that requires to be explained is the definition of
when an organization has authority and control over another.
The main reason for selecting this research topic is due to the fact that with the advent of
liberalisation and globalisation, there have been several companies that have been operating
internationally and have been facing difficulties in undergoing business. The difference in the
accounting standards due to various related factors in a country has forced to the process of
accounting standards. This is a key topic of concern and therefore an assessment on this topic
would be helpful in creating knowledge and answer that would be helpful in determining the
significance of the convergence of the accounting standards and their impact on the
manufacturing industries. The other factor for selecting this topic has been because of the fact
that this is an accounting topic and therefore research on this topic would be helpful in gaining
additional knowledge on accounts and accounting standards. The research that would be
undertaken would be a primary research and therefore the data that would be used in order to
discover whether convergence of accounting standards is good for an economy would be known
with the help of the responses that would be received from the selected respondents. The primary
research and use of primary data can be helpful in attaining the new and fresh ideas and feelings
and thereby would be able to gain an insight on the current scenario and what the respondents
feel about convergence of accounting standards. Secondary research is not applied in this topic

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because of the fact that accounting standards change along with time and there have been
incorporation of several accounting standards and therefore reactions on these standards and
whether convergence of these standards would be helpful for the accounting perspective would
be known with the help of the primary research and not secondary research.
1.2 Rationale of the Research
The topic that has been taken into consideration is one of the key concerns for the
International Accounting Standards Board (IASB). There have been various researches that have
been undertaken earlier in accordance to which there has been an observation that convergence
of the accounting standards is required in order to globalise the accounting standard and thereby
improving the financial statements and the functional activities of the organizations globally
(Phang and Mahzan 2017). There are various other aspects with respect to which the accounting
standards need to be assessed and thereby convergence of the accounting standards can be useful
with the help of which the organization can improve their current financial scenario. Furthermore
research is required as changes have been taking place in the economy and accordingly changes
have been taking place in the accounting standards implied in various countries which makes the
investors and the multinational companies confused. The assessment of the process of
convergence is essential in order to understand whether it can have an impact on the companies
that are functioning in the world.
1.3 Research Aims and Objectives
The research aims and objectives look to assess the aspects that are associated with the
accounting standards and thereby understand the requirement of convergence. The objectives
explain the elements on which assessment has to be taken with the help of which impact of

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accounting standard convergence can be attained. The research aims and objectives are as
follows:
 Undertake a comparison of the various accounting standards with the IASB
 To examine the challenges and the risks associated with the incorporation of the
accounting standards that provides knowledge about the language of financial reporting
 To undertake a comparison of the profitability of the organizations converging their
accounts with the accounting standards
 To provide recommendations towards the successful incorporation of the convergence of
the accounting standards.
1.4 Research Questions
The research question is constructed in order to have an idea about the elements that
would be taken into consideration in order to have an idea about the convergence of the
accounting standards. The research questions are as follows:
Q1. What are the risks and the challenges that are related to the convergence of the accounting
standards globally?
Q2. How does convergence of the accounting standard have an impact on the profitability of the
organizations?
Q3. How is the accounting standards associated with the policies laid down by the International
Accounting Standard Board?
1.5 Structure of the Proposal
The research proposal that is being constructed tries to explain the impact on accounting
standard convergence on the operational activities of the organizations. The introduction section

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explains what accounting standard is and how it has an impact on the financial statements and
reporting of the organizations. The background that is associated with the convergence of the
accounting standard is even addressed in order to have an idea about the various accounting
standards that are existent globally and what actions has been taken in order to converge the
accounting standards globally. The research aims and objectives explain the course the
researcher will undertake in order to complete the paper in an authentic and precise manner.

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Chapter 2: Literature Review
2.1 Introduction
This section of the paper looks to assess the journals and the researches that have been
undertaken by other researchers on the same and on similar topics previously. The review of
literature evaluates the suggestions given by researches and makes a comparison with the help of
which an idea can be attained and accordingly this research proposal can move forward.
2.2 Nature of Convergence
The accounting standard convergence explains the exertions to minimise the key
differences among the International Financial Accounting Standard and the national standards of
accounting for the manufacture of effective financial statements. The process of convergence of
accounting explains both the path and the goal that has to be taken in order to attain it. The belief
of FASB has been that the ultimate aim of convergence is an individual set of improved quality,
accounting standards that are international in nature that organizations globally would exploit for
the cross border and the domestic financial reports (Ball, Li. and Shivakumar 2015). The course
towards that goal is the combined efforts of the IASB and FASB to enhance the IFRS and US
GAAP and mitigate the differences that is existent among them.
The global convergence of the standards of accounting has gained much consideration in
the professional and academic literature of accounting. There have been debates that the
differences in the organizational environment and culture among the developing and developed
nations are so huge that one set of standards can be helpful to both sorts of nations (Beatty and
Liao 2014). The others have cited that if the international standards are elastic enough to permit
for the variations in the business practices and culture among the countries then a single set of
accounting guidelines may be helpful for the developing and developed countries.

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2.3 Benefits of convergence of accounting standards
The advantages of the accounting standard convergence would mean decreased cost of
transactions of the constructors of the financial reports as they would be able to conform to an
individual set of accounting standards in the replacement of the multiple sets. Furthermore, the
following key advantages are projected to ascend as an outcome of the accounting standard
convergence:
 The common network externalities that flow from the extensive utilisation of the general
standards
 Enhanced comparability among the various financial statement entities
2.3.1 Network Externalities
The network externalities addresses the situation when the benefit of every individual
profits from making use of a specific standard set rises with respect to the number each entity
who even use the similar set of standards. Accordingly, if the multiple users stick to the similar
accounting rule, the average benefits to all the users will rise with respect to the sum of the
private benefit of the individuals (Chen, Ng and Tsang 2014). This direct externalities take place
because of the extensive use of a single set of standards saves the users of the financial data,
energy and time of having to gain knowledge about applying it and translate the multiple
standard sets. If there was a non-existence of the externalities, every firm would follow their own
need and rules for the standards would be dismissed. It is generally agreed that the network
externalities are applicable to the accounting standards. Therefore, the existence of the uniform
domestic accounting standards would look to be an evidence of the fact.

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2.3.2 Comparability
The next key benefit which is offered regularly as the most driving justification for the
accounting standard convergence is that it will improve the comparability among the entities.
This advantage is fundamentally a network externality (Semenova and Hassel 2015). It is
explained that the capability of the investors to assess the entities with the help of comparison is
impaired when the entities subscribe to the numerous accounting standards. Hence, the common
standards would help the managers and the investors when undertaking decisions in the capital
markets. This signifies that a financial statement of a firm is appreciated not as an information
source about that specific organization, but even as a reference point against which the other
firms in the similar industry may be assessed.
According to Moran and Wood (2014), there are various potential advantages to be
attained from the accounting convergence standards. Convergence reduces the costs of
undertaking the business along the borders by minimising the requirement for the supplementary
data. They make the data furthermore comparable and therefore improving the analysis and
assessment by the users of the financial reports and decreasing the user expenses (Biddle et al.
2016). The internationally converged standards also assist in maintaining the financial reporting
credibility to the entities and raise the effectiveness of auditing the data.
Camfferman and Zeff (2015) debates that a financial reporting mechanism of the
international standard is a requirement for enticing foreign as well as prospective and current
investors at home similar that could be attained through the accounting standard convergence.

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2.4 Costs of convergence of accounting standards
An assessment that is qualitative in nature of the anticipated costs of convergence among
the domestic standards and convergence must be undertaken prior to convergence. However,
currently no such comprehensive cost projections are available which is likely to have an impact
on the fact that such information is challenging to obtain. Convergence would create both one-
off provisional cost and the on-going expenses of maintaining a setting of a standard for the
worldwide principles of accounting (Jamal and Sunder 2014). In the short run, positive
convergence would associate protracted debates among the local standards and IFRS along with
the numerous national standard regulators and constructors, professionals who are interested and
government officials who have vested interest in taking participation in the process of
convergence. This would need the expense of a large amount of money and time. The direct cost
of compliance may even arise as an outcome of the requirement of the auditors, users and
regulators to interpret and apply the global standards that are converged (Lattemann 2014). The
national standards of accounting constructers would experience additional direct expenses as an
outcome of the decreased demand for their services and publications.
Convergence would even levy a cost over the issuers by grudging them of the capability
to select to function in the authorities where the rules of accounting appropriately reflect the
characteristic of the business (Guthrie, Evans and Burritt 2014). A huge body of empirical proof
assists the theory that the organizations look to follow the portfolio of the accounting principles
that enhance their contractual scenarios, specifically in association to the remuneration of the
management and debt and that the companies could thereby maintain their substantial expenses
if compelled to stick to the new rules of accounting.

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Additionally, convergence would have an impact of substituting the two distinct
standards setting of the monopoly provided by the international standard creators that would be a
product of the political compromise rather than the most suitable outcome of accounting (Vogel
2014). The construction of the accounting standards is a concern of political interest as a new
standard will beneficially transfer the wealth from one sector of the community to the other. This
transfer of wealth impact generates financial incentives for the private groups to set aside the
standard setters or the government that actually manages and controls the standards in order to
have an influence on the process of standard setting.
In accordance to the convergence of the accounting standards, it is unavoidable that the
most economically and politically influential countries would look to capture or dominate the
process of standard setting to make sure that the standards are constructed in accordance to their
national interests than the general interests of the worldwide capital markets (Steinbach and Tang
2014). Therefore, precise and authentic internationalization of the standards may not be viable in
practicality and additional expenses may come up as an outcome of the probable capture of the
international standard setter.
In a similar way, Dandago and Rufai (2014) cited that accounting standards convergence
have some in born issues. This is due to the rival perspective of various countries along with the
general tendency to repel transformations.
2.5 Empirical Studies
Various numbers of researches and studies have revealed the empirical evidence that
which looks to assist the convergence of the accounting standards. Crawford, Lont and Scott
(2014) has compared the features of the accounting values for organizations that have
incorporated IFRS with a sample that is matched for the firms that did not implement and

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discover that the previous evidence less the earnings management, more precisely loss of
identification and increased value that is relevant in the accounting values than the latter.
Grenier, Pomeroy and Stern (2015) have disclosed that the financial statement disclosure quality
was improved materially by the implication of IFRS. The disclosure quality, significant aspects
of transparency is assessed by the experimental users of the financial statements in numerous
business articles and journals in various nations. The outcomes have indicated that the quality of
the disclosure as looked upon by the professionals in their annual report ratings have risen
significantly. Steiner-Khamsi (2016) have put forth a similar answer that enhanced disclosure of
the value precise accounting data will minimise the cost of information additionally for the
foreign investors and hence would decrease their data disadvantages. Kaya and Koch (2015)
have explained that in China the accounting standard convergence has been an outlet to the
accounting convergence practices.
2.6 Brief history of convergence and accounting standards
The convergence of the accounting standards is not an innovative idea. The convergence
concept initially developed during the late 1950s for an answer to the post World War II
economic incorporation and associated rises in the cross-border flow of capital. The initial
exertions concentrated on the harmonization that would lower the differences between the
principles of accounting that is utilised in key capital markets around the globe. By the year
1990, the perception of harmonization was substituted by the idea of convergence and the
development of a single set of increased quality, international standards of accounting that would
be exploited in most of the key capital markets (Fang, Maffett and Zhang 2015).
The International Accounting Standards Committee established in the year 1973 was the
primary international standard setting organization. It was restructured in the year 2001 and then

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became an independent setter of international standards known as the International Accounting
Standards Board (IASB). From then, the utilisation of the international standards has developed
progressively. During the year 2009, the European Union and other nations either need or permit
the usage of the international financial reporting standards (IFRS) that has been disclosed by the
IASB or any domestic variant of them (Bodie, Kane and Marcus 2014). The IASB and FASB
have been operating together from the year 2002 to converge and improve the IFRS and the US
Generally Accepted Accounting Principles (GAAP). From the year 2009, China and Japan have
been working in order to converge their standards with the IFRS. Conversely, there is a
chronology of certain events in the development of the international convergence of the
accounting standards. There has been a development of the convergence of the accounting
standards from the year 1960 when answers for the international accounting standards was
initiated in order to control the international financial reporting. This shows that the progress
report on the International Accounting Standards Boards (IASB) and the Financial Accounting
Standards Board (FASB) work to converge the standards of accounting internationally for
various countries to apply in the construction of the quality and the authentic financial statements
(Dudin et al. 2015).
2.7 Accounting Standard
Crawford et al. (2014) has explained that accounting standards ate the policies that have
been issued by the identified skilled accounting bodies in association to the numerous elements
of treatments, measurements and the revelations of the accounting events and transactions in
association to the systematisation of the Generally Accepted Accounting Principles. Conversely,
various countries with different standards of accounting makes the evaluation very complex and
this means that the extra costs of financial reporting but even causes the issues to the

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multinational organizations in the way in which they make transactions. According to Dye,
Glover and Sunder (2014), it is pretty possible that a transaction to give out profit under a single
accounting standard, whereas it may need an adjournment under the other standard. The
incorporation of various standards of accounting causes problems in undertaking relative
assessment of the organizational performance. Hence, these issues of accounting standard
divergence have given the platform for the professionals and academics to argue on the
requirement of accounting standard convergence. As cited by Habib (2015), convergence should
lead to a more effective allocation of the capital and enhanced cross-border investment and with
the help of which they would be able to promote the expansion and development in the business
and employment in Europe. It is vital to make a note that much discussed accounting standard
convergence from the developed nations to the developing nations requires effective assessments
and diagnosis for the complete incorporation of the IFRS. Conversely, Cai, Rahman and
Courtenay (2014) explained that if the international accounting standards are elastic enough to
permit for the variations in the business approach and cultures among the countries, then single
set of the regulations of accounting can be helpful for the developing and developed nations.
Hence, convergence if the accounting standards encourage credibility and comparability of the
financial reports mitigates the expenses of undertaking business across nations by mitigating the
requirement for supplementary data. The promoters of accounting standard convergence require
having an understanding that the negotiation in the compromise of the standards generally lead to
an approach that is known as the lowest common denominator (Preiato, Brown and Tarca 2015).
The idea is often that any contract is better than having no contract. This generally may lead to
the development of the suboptimal standards. The International Financial Reporting Standard
Board has been facing these problems and issues in trying to converge the accounting standards.

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Chapter 3: Research Methodology
3.1 Introduction
The research methodology has the idea of highlighting the mechanism that would be
utilised for the purpose of collecting the data a precise way and accordingly concludes the
proposal in accordance to the aims and objectives of the proposal. The method of collecting the
data has a crucial function as it assists the researcher to obtain the information that is essential
for this proposal and thereafter mitigating any opportunities of the usage of the false data that is
available in the economy. This section of the proposal would comprise of the understanding the
research objectives, research philosophy, design approach, data gathering approach, strategy,
sample, ethical issues and the limitations to the research, which the researcher can make use of in
order to have an understanding of the effectiveness of convergence of accounting standards for
the industries.
3.2 Justification for the choice of methodology used
There are two sorts of methodologies that are available in the economy and it depends on
the mind-set of the researcher to select the type of research that is suitable for this topic. The two
kinds of research methodology that the researchers can make use of are qualitative research
method and quantitative research method. It is known that this paper, is associated with
understanding whether convergence of accounting standards is good for the manufacturing
industries and therefore, the researcher has utilised the quantitative research method as the data
that would be received from the responses of the selected participants would be converted into
numerical data and thereafter assessment of the same would be undertaken. This kind of process
is undertaken with the help of quantitative research method and therefore quantitative research
method would be implied.

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3.3 Research Objective
The research objective as explained in the first chapter of the proposal tries to highlight the
aspects on which this topic would move ahead and accordingly the issues that have been
highlighted can be assessed. The objectives are as follows:
 Undertake a comparison of the various accounting standards with the IASB
 To examine the challenges and the risks associated with the incorporation of the
accounting standards that provides knowledge about the language of financial reporting
 To undertake a comparison of the profitability of the organizations converging their
accounts with the accounting standards
 To provide recommendations towards the successful incorporation of the convergence of
the accounting standards.
3.4 Research Philosophy
The philosophy of the research is associated with the basis, kind and progress of the data
with the assistance of gathering. The explanation of the research perspective is inclusive of the
being aware and construction of the beliefs and the projections in accordance to the research
topic. The pragmatic philosophy grants the concepts that are relevant and there only accepts the
supportive actions. According to this philosophy, the research questions are the most key aspects
of the research philosophy. It is able to syndicate the interpretivism and positivism scenario with
one research paper according to the characteristics of the research questions (Chatterji et al.
2016). The philosophy of positivism ensures that the gathering of the data factual data with the
help of observation. The philosophy of interpretivism aids in the collection of the communally
constructed data, which is even associated to reality. The philosophy of realism is dependent on
the ideas of independence of the reality in the mind of the individuals. The subjective and the

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social characteristic of Interpretivism can create biasness of the gathered data. Conversely,
positivism philosophy aids in the collection of the real data, which can improve the quality of the
research end result. Hence, positivism philosophy will be chosen for the undertaking of this
research.
3.5 Research Approach
The approach of the research is the most effective process for collecting extensive
knowledge in accordance to the research topic. The variety of the effective exploration process is
reliant extremely on the topic of exploration along with the research variables. The two kinds of
research approaches are generally used in guiding the research. The two kinds of approaches
involve the deductive and the inductive process. The inductive method specifically leads to the
inductive implication, where the known boundaries are exploited for creating unexamined
completion of the research proposal. The inductive method needs the generation of innovative
models and theories for the evaluation and gathering of the data associated to the topic of the
proposal (Tschopp and Huefner 2015). The deductive method aids in generating implications
that are deductive in nature. In this process, the completion of the research is authentic when the
boundaries of the research are precise. This process permits the use of the past frameworks and
theories for collecting authentic data that is in accordance to the examination theme. It aids in
incorporating several models and theories which are generally associated to the research
variables.
The inductive process necessitates the creation of innovative frameworks and theories for
gathering precise information around the investigation theme. Subsequently, the inductive
process needs extensive amount of money for the generation of the models and the theories.
Therefore, this process raises the time period and the budget of the research paper. Deductive

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approach on the other hand aids in the usage of the past models and philosophies for gathering
significant data about the research topic. In this manner the deductive approach would be
undertaken for this research as this process saves budget and time of the research paper.
3.6 Research Design
The research design explains the methods and the procedures for the collection and the
assessment of the action variables which are highlighted under the research issues and objectives.
It even gives a model for gaining precise solution to the research questions. The success for the
conclusion of the research study is increasingly vital on the effective understanding of the topic.
The accurate understanding of the research topic is reliant on collecting the knowledge about the
research variables (Grabinskia, Kedziora and Krasodomska 2014). There are significantly three
kinds of research design and they are inclusive of the exploratory research design, explanatory
research design and descriptive research design.
In accordance to this research proposal the design that is suitable is the descriptive
research design as in this processes both quantitative research design can be utilised. This design
will be useful for gathering both the explained subjective data and precise objective data about
the research topic.
3.7 Research Strategy
The research strategy highlights the guideline to the ideas and the thoughts which aids in
the undertaking of the research study in a systematic manner. It even explains the strategies
towards the collection of the precise research data about the research topic. The most significant
kind of research strategies are inclusive of the focus group, case study, interview and survey etc.

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RESEARCH PROPOSAL
In this research, the researcher would select the survey strategy for the gathering of the
most precise data that is concerned with the issue of the research (Brandt, Ma and Rawski 2014).
The survey strategy aids in the collection of the most dependable and precise objective
information about the research topic.
3.8 Data Collection Method
The process of data collection is the most extensive activity for the collection of the facts
in accordance to the research study. The gathering of the precise data is dependent highly on
suitable selection of the data gathering process. The secondary and the primary data is extremely
vital for the gathering of the effective research data. The primary data involves the collection of
the data from active individuals who acts as participants for the researcher in order to gather
authentic data from them. Secondary data on the other hand, involves collection of the data from
the journal articles, electronic journals, books, internet etc with the help of which the researcher
can collect data that would be true and authentic.
Primary data is new and first hand data, which can mitigate the probability of biasness in
the research process. Hence, this process of data gathering can give out the most precise data that
is in consideration of the research topic, which can improve the quality of the research results.
Hence, primary data process gathering will be selected carefully for the collection of the precise
data about the research proposal.
3.9 Population
The population of the research explains the well explained individual gathering which
have similar features. 80 employees from the organizations that are operating in Ireland would be
selected with the help of which the issue regarding the effectiveness of the convergence of the
accounting standard for the industries can be understood. The process of questionnaire survey

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RESEARCH PROPOSAL
would be undertaken in order to gather the responses from these selected employees. The
questionnaire that would be constructed would comprise of close ended questions with the help
of which the respondents would be able to answer all the questions independently and can even
answer without any hesitation. A quantitative data analysis process would be undertaken with the
help of which the researcher would be able to gain the valid and precise result in accordance to
this topic. The sample that would be constructed would be subset of the population size.
Furthermore, the sample will be the illustrative of the population in order to provide precise
information in accordance to the research topic.
3.10 Sample
Out of the 80 employees, 50 employees from the organizations operating in Ireland will
be chosen as the participants for the quantitative data gathering. The process of simple random
sampling will be exploited for undertaking the research study. In this process of the research, the
participants will be attained at a suitable place for gathering precise research data. This process
will even develop the level of participation of the respondents and improving their willingness
for answering to the survey questions and giving out the most precise data about the topic of the
research.
3.11 Data Analysis Method
The process of data analysis explains the process that would be used by the researcher in
order to assess the data that would be gathered from the respondents. The efficient examination
method of the data eases the transformations of the overall data about the topic of the research. In
accordance to this paper, SPSS software would be used in order to assess the collected data and
discover the frequencies, descriptive statistics, regression and correlation.

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RESEARCH PROPOSAL
3.12 Ethical Consideration
The ethics of the research proposal tries to answer the data that will be collected for the
completion of the proposal with the assistance of the codes of ethics that are accessible in the
environment so that the information that has been exploited can be authentic and fair (Bamber
and McMeeking 2016). This mitigates the likelihood of the present of any fraudulent data in the
proposal and hence authentic outcome can be attained.
3.13 Limitations of the Research
There are various restrictions that are observable in any research. In accordance to this
paper, the time limitation has played a key role as the data had to be gathered within a stipulated
time period all the process had to be completed within the same. The availability of additional
time would have helped in making the paper much more extensive and effective by looking for
more information and making the paper vaster. The other issue has been the expenses that have
been associated with the paper as the cost associated with the undertaking of the research has
restricted the researcher from making use of more innovative and costly mechanisms.

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RESEARCH PROPOSAL
3.13 Gantt chart
Month 1 Month 2 Month 3
Milestones Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12
Introduction
Designing Problem
Designing Research Objectives
Research Structure design
Literature Review
Analyzing concepts and models
Developing critical analysis
Identifying the issues from the industry
Methodology
Designing research approach
Designing tools and techniques
Primary data collection
Findings and analysis
Developing Themes
Interpreting data
Conclusion
Sumamry of the research
Suitable recommendation
3.14 Summary of the Methodology
The summary of the methodology explains the kind of methodology that would be used
by the researcher and the approaches, philosophy, design and strategy that would be undertaken
by the researcher in order to gather data and evaluate the same in an effective manner. The
methodology initially explains the objectives of the research with the help of which an idea is
given to the respondents with respect to the kind of data that is needed to be gathered. The
researcher has chosen positivism philosophy with the help of which the effective level of data
can be gathered with the help of which the analysis of data can be initiated. Deductive approach
has been selected by the respondent as the research would be based on the existing frameworks
and models and the researcher would make use of the same in order to create the questionnaire
and gather the data. The researcher has selected descriptive research design as quantitative data
analysis would be undertaken with the data that would be received from the respondents. The

28
RESEARCH PROPOSAL
collection of the data with the help of the survey questionnaire and selection of the sample for
the purpose of forwarding the questionnaire is done by the researcher by taking assistance of
various analytical tools. The methodology therefore addresses the process and the tools that are
used in order to collect valid and authentic data.

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RESEARCH PROPOSAL
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Appendix
Questionnaire
Q1. Age group
 Below 25 years
 25-34 years
 45-54 years
 55-64 years
 Above 65 years
Q2. Gender
 Male
 Female
Q3. Tenure of service in the organization
 0-4 years
 5-9 years
 10-14 years
 15-19 years
 Over 20 years
Q4. Educational Background
 Undergraduate
 Graduate
 Post Graduate

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 Professional Qualification
Q5. Area of Specialization
 Accounts
 Audit
 Taxation
 Others
Q6. Knowledge about the accounting standard that is existent in the country
 Yes
 No
Q7. Accuracy & reliability of accounting information will be enhanced with the help of
convergence
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q8. Convergence makes internal audit easier and less costly for a firm
 Strongly Agree
 Agree
 Neutral
 Disagree

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RESEARCH PROPOSAL
 Strongly Disagree
Q9. Convergence of accounting standard harmonizes internal and external reporting by creating
a single accounting language
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q10. Better information for decision making is possible through convergence
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q11. Convergence aids in more affecting regulatory oversight and enforcement of higher
standards of financial disclosures
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

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RESEARCH PROPOSAL
Q12. Convergence leads to self-enforcement by companies
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q13. Convergence of capital market regulatory will be easier
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q14. Convergence will improve analysis of information for decision making
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree
Q15. Convergence of the accounting standard will reduce the cost of capital
 Strongly Agree
 Agree

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 Neutral
 Disagree
 Strongly Disagree
Q16. Convergence of the accounting standard will save time in the assessment of the financial
reports
 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree