Identifying the Impact of Globalisation on Accounting Standards: HSBC

This report investigates the impact of globalisation on accounting standards, focusing on HSBC Bank. It explores the effects of globalisation on professional accounting practices, the relationship between globalisation and accounting standards influencing financial services, and how this relationship can create value in the retail banking sector. The research includes an introduction to globalisation and international accounting standards, a literature review examining the impact of globalisation, and a discussion on the relationship between globalisation and accounting standards. The report further delves into research methodology, including research philosophy, approaches, and design. The study analyzes the ways in which globalisation and accounting standards interact within the context of HSBC Bank, considering standards like GAAP and IFRS. The conclusion synthesizes the findings, offering recommendations and references for further study. This report is a comprehensive analysis of how accounting practices evolve in response to the increasing interconnectedness of the global economy, providing insights into the challenges and opportunities for financial institutions operating internationally. The research is designed to understand the evolving landscape of accounting in a globalized world.

Research

Table of Contents
Topic of the research - “To identify the impact of globalisation on the profession of accounting
standards”. A study on HSBC bank.................................................................................................3
INTRODUCTION ..........................................................................................................................3
LITERATURE REVIEW ...............................................................................................................4
Identify the impact of globalisation on professional accounting ...........................................4
Determine the relationship between globalisation and accounting standards that influences on
the financial services .............................................................................................................4
The way that relationship between globalisation and accounting standards can be used to
create value in retail banking sector ......................................................................................5
RESERACH METHODOLOGY ....................................................................................................6
DATA ANALYSIS .......................................................................................................................10
DATA INTERPRETATION ........................................................................................................13
REFLECTION ..............................................................................................................................22
RECOMMENDATION ................................................................................................................23
CONCLUSION .............................................................................................................................23
REFERENCES..............................................................................................................................25
.......................................................................................................................................................26

Topic of the research - “To identify the impact of globalisation on the
profession of accounting standards”. A study on HSBC bank
INTRODUCTION
Globalisation is defined as the process by which different companies across the world
come together and exchange of products and services takes place. It is necessary for each and
every company to go global in today's world as this helps in increasing profit and money. There
are several standards which are made so that there is ability of easy functioning of all business
activities. International accounting standards are accounting standards and they are issued by
International accounting standards which were issued by accounting standards committee. The
accounting standards helps in promoting transparency, efficiency and accountability in financial
market across the world (Hoyle, Schaefer and Doupnik, 2015). This helps in enabling market
participants and investors in making informed economic decisions regarding opportunities and
risks of investment. These standards are helpful in reducing regulatory cost for companies
operating at global level. The company considered in this research is HSBC bank. This is a
British multinational investment bank and financial service holing organisation. This is the
seventh largest bank in the world and largest in Europe. The research will help in analysing the
need of standards while working at global level. This report will consists of various topics related
to globalisation and following various standards of working in different countries.
Research Rationale
The purpose of carrying out study is to understand the concept of globalisation along with
the impact it creates on the ways in which accounting operations are being carried out by the
organisation. Globalisation leads to relevant emergence within industries that are carrying out
their operations in the global market. This leads to understanding with respect to accounting
standards while dealing with different countries. Through this, accounting standards can be
promoted in terms of efficiency, accountability and transparency in the financial world.
Research Objectives
 To identify the impact of globalisation on professional accounting
 To determine the relationship between globalisation and accounting standards that have
influences on the financial services

 To analyse the way that relationship between globalisation and accounting standards can
be used to create value in retail banking sector
Research Questions
 What is the impact of globalisation on professional accounting?
 What is the relationship between globalisation and accounting standards that have
influence on the financial services ?
 What are the ways that relationship between globalisation and accounting standards can
be used to create value in retail banking sector ?
LITERATURE REVIEW
Identify the impact of globalisation on professional accounting
As per the viewpoint of De Simone, (2016), Globalisation has become a significant issue
in today's world as there are almost all companies which have started to work at global level for
earning more and more money. There are different factors by which firms get affected while
working at global level. Globalisation includes various economic as well as financial integration
by adding abolition of capital control. Basically globalisation is linked with the mobility of
services, goods, information, commodities, communication and people across frontiers. The
accounting standard setters of the world thinks that it is important to develop and maintain high
quality standards for financial reporting and accounting. Globalisation is defined as the process
of expansion of business in International market for gaining more profit and sustaining in market
for longer period. This involves fusion of economy, people, government and company of
different countries. For large organisations, it is very important for them to go global as this
helps in earning more profits (Vallišová and Dvoáková, 2018). The accounting standards is
known as defining and describing fundamental policies and practices of accounting. These
standards are useful for preparing financial statement of the company. Globalisation has large
affect on the way of conducting business. The different companies operating at global level are
responsible for involvement of customers and understanding culture, political, social and
economic norms of different countries. Accounting is also affected by the change in globalisation
as it affects market. The main standards GAAP and IFRS are two main standards which are
considered while working at global level. The main focus is on external reporting and this
consists of preparing financial auditing and statements. The market at global level keeps

changing with time, thus future accountants are needed to have perspectives which affects
internal as well as external reporting. Global market is keep on changing and accounting is also
affected by this. GAAP is adopted by businesses and this is a guide used for constructing
financial information and producing statements.
Determine the relationship between globalisation and accounting standards that influences on the
financial services
According to the viewpoint of Warren , Moffitt and Byrnes, (2015) , jurisdictions and countries
across the world reflects that financial statement of an organisation is prepared by adopting
International Financial Reporting Standards (IFRS). The audits must be conducted according to
International standards on auditing. These standards are used in different countries for operating
business. As the economy is going global, there are several accounting firms that which have to
meet several clients and customers in which they operate in domestic country and also foreign
countries. The needs can be transferred to auditing international. The affiliates can be used for
different set of principles of accounting. There is a need of various auditing standards for firms
to be clear about accounts and finance. The IFRS is defined as set of financial and accounting
reporting standards which are developed by IASB. These can be used at global level by different
type of economies like developing countries or emerging countries. The main objective of IFRS
is to give financial statement users with information around different borders. As per IFRS
foundation, these standards are approved legally for using in different countries around the world
(Peterson, Schmardebeck and Wilks, 2015). The relationships between globalisation and
accounting standards affects internal accountants of the company for driving cost of services in
order to rationalise whole cost accounting process. The IFRS and Financial accounting have been
started working for convergence of international standards. There are many places where FASB
and IASB have worked in convergence projects and collaboration is done. There is fundamental
area of divergence between standards of accounting. This is due to the enhancement of focus on
value measurement of liabilities as well as assets in IFRS. The private issuers are preparing
financial statements for IFRS filing. The standard setting is supported by IFAC and the members
of this are recognised for professional accountancy organisations.

The way that relationship between globalisation and accounting standards can be used to create
value in retail banking sector
According to the thoughts of Flower, (2015) , when any organisation works at global
level then there are several factors which affects it's functioning and operations. It is essential
for each and every organisation to expand it's business across the world for increasing profit and
money. The relationship between globalisation and accounting standards is used for creating
value in banking sector (Mayne, 2017). The financial system of banks has adopted some
principles for their functioning. The different liabilities and assets are financial contracts and
balance sheets which are made for analysing profit and loss earned by banks. There are several
standards given by International Financial Reporting Standards (IFRS ) These are very important
for different retailing banks as because of their strong focus on fair value accounting, portfolio of
bank is driven through markdowns and mark-ups. The IFRS depends upon annual reports of
banks and reviews of consultants. When banks are working globally and operating in different
countries, there must be presence of some standards which will help in making operations and
functions easy. The financial system of every country is different and thus for working at global
level it is essential to follow standards. In UK, all companies working globally will have to adopt
standards and make working easier. It is essential for all companies that they must follow
different standards in order to attain goals and objectives. Also it is seen that many organisations
working at global level, it is essential for these in order to make profits and work without any
problems, they must follow accounting standards. This helps in synchronising accounting
planning and budgets and makes work easier. Also, it is important to work according to these
standards for avoiding any problem or hindrance.

RESERACH METHODOLOGY
Research Philosophy: Research philosophy is a common phenomenon dealing with
different ways of collecting data, analysing and further analysing it. Secondary & primary data
is collected according to feasibility of the researcher. A specific research is always affected by
some practical implications. Every stage in a research process is based on some assumptions
which is related to formation of a research strategy. Research philosophy consists of different
branches which are related to wide disciplines (Kim and Zhang, 2016). Every research
philosophy involves a particular method of data collection which is selected by researcher
according to requirement of research work. There are four main types of research philosophies
such as:
Pragmatism: In this method both qualitative and quantitative method is used by the researcher in
research work.
Positivism: This is a highly structured form of research philosophy, in this method large samples
are used. Measurement is on quantitative basis but researcher can use qualitative method also to
some aspects.
Illustration 1: Research Onion

Realism: in this method chosen must be according to subject of research. Both quantitative or
qualitative method can be used by the researcher according to requirement of research.
Interpretivism: in this approach of research philosophy, small samples are used by the researcher.
In most of cases qualitative method is used by researcher and investigation is conducted.
Research approaches: The viewpoint of researchers while conducting research denotes
the approaches that are being executed through them. This comprises of different types of
approaches like inductive as well as deductive. Depending upon the requirement of researcher,
approach can be utilised by investigators for attaining specified outcome. Deductive approach is
top to down method which is based on theory driven hypothesis and renders support for
collection of data as well as its analysis. Furthermore, it comprises of patterns for starting with
with theory then carrying out hypothesis, observation as well as its confirmation. Inductive
approach involves bottom up method in which research questions are being formulated &
empirical data is gathered which is being used for creation of hypothesis along with theory. To
carry out the research on globalisation, inductive approach is being utilised for having precise
results accordingly.
Research design: It renders the ways for carrying out specified research with respect to
specified area like in this case it is globalisation. This involves different designs, they are:
exploratory, meta-analytical, descriptive and experimental. It is crucial for researcher to identify
the perfect research design depending upon the demand of the project so that affirmative &
accurate results can be derived. Descriptive design will render appropriate description related
with figures & facts. Furthermore, exploratory comprises of criteria associated with exploring
new ideas or utilisation of models for carrying out appropriate study. Apart from this,
experimental designs makes use of mathematical or scientific analysis for bring in new theories.
Moreover, meta-analytical research makes use of statistical approaches for accumulation of
results through wide studies by which outcomes can be improvised. In this case, researcher is
making use of descriptive research design as it will render in depth knowledge about
globalisation and factors associated with it so that investigation can be carried out as per desired
standards.
Research strategies: This denotes step-by-step plan of actions that is liable for giving
direction to efforts that are made and thoughts for carrying out research in systematic as well as
on schedule by which quality results can be attained. With respect to this, researcher have the

option for selecting them like experiments, surveys, case studies, action research, grounded
theory, ethnography and archival research. With respect to globalisation, questionnaire is being
carried out so that all the specified objectives can be attained.
Research choices: This illustrates the method of selection by which data can be
understood in so that decisions can be formulated in an appropriate manner. This aids within
attainment of goals of research as per the required standards. Research choices involves mono,
mixed and multi method. While carrying out this research, researcher has made use of mixed
method. This involves collection, analysis and integration of research for having appropriate
results.
Time horizons: This denotes the length of time above which investment is being carried
out before this is liquidated. They varies from a time frame of seconds. This involves cross-
sectional and longitudinal time horizons. For carrying out this research, researcher is making use
longitudinal as in this data is collected for specified subject in continuity over a specified time
duration. This can even extend for years. This will lead researcher to gather the entire
information from decades and formulate decisions accordingly.
Techniques & procedures: They illustrates the ways in which information is being
collected or gathered for carrying out analysis of data. This has been illustrated below:
Data collection methods: Techniques & tools that are being utilised for collection of
information for carrying out research on specified topic. This involves secondary & primary data
collection methods. They are illustrated below:
Primary Data: This is first hand or original form of data collected by the researcher to
conduct his research. There are different types of ways in which this data can be collected like
face to face interviews, questionnaire, personal observations, market surveys and many others.
This method consists of original and first hand information but it has a demerit that it is very
time consuming. Also, this method involves lot of time and cannot be used when researcher is
having limited time.
Secondary Data: in some cases population size is very large that it is not possible for the
researcher to use primary method to collect data. In such a case secondary method is used. This
method data is not original in nature and is originally collected by some other source. Different
methods used for this method is journals, articles, websites, government publications and many

other related sources (Smith, Brännström and Jansson, 2015). This method is less reliable in
comparison to primary method of collecting data.
Sampling: Sampling basically a process in which researcher lays emphasis on choosing a
sample and then conducting the whole research on that particular research. Various methods
have been developed by scientists to select a sample size such as cluster sampling, simple
random sampling, snowball sampling, quota sampling, stratified random sampling and many
more. According to researcher a particular topic is selected and then research is conducted.
Sample Size: Sample size consists of number of respondents used by researcher in his
research work. Researcher always aims that they the number of respondents they have taken will
be able to justify their research work and thy will be able to draw effective result from that
sample size. Also, it is made sure that sample size has all features and characteristics of the
original data. In this research project investigator has taken 40 respondents.
Questionnaires: Questionnaire is a set some questions which a researcher makes in
order to gather information from there respondents. It is type of feedback in some cases where
companies want to know whether they have been successful in meeting expectations of their
customers. It is type of research instrument or research tool. There are two types of questions
every questionnaire ha open ended and close ended (Enomoto, Kimura, and Yamaguchi, 2015).
Long questions are generally avoided in questionnaires as this sometimes ,leads to ambiguity for
respondents and they are not able to understand actual meaning of question. There can be both
qualitative and quantitative types of questions included in a questionnaire.
Gantt Chart: A Gantt chart commonly also referred as bar chart is used to denote
schedule of project. This chart lists down various tasks on vertical axis and time is denoted on
the horizontal axis (Kaufhold, 2015). A relationship between activities and time can be easily
denoted using a Gantt chart. This is based on a approach of start time which means that another
activity has to be started a soon as previous activity is completed in a company. This helps in
maximizing the float time available for different tasks. Earlier these Gantt charts were made and
drawn on paper but as development of technology took place these charts were entirely redrawn
(Vasarhelyi, Kogan and Tuttle, 2015). These are now considered as one of most commonly used
tool across all countries for project scheduling and controlling of activities. These are different
types of Gantt charts such as Progress Gantt chart, linked Gantt charts etc. there are different
types of questions which can be answered from a Gantt chart which includes starting and ending

time of each activity, time duration of each activity, where are different activities overlapping,
and any other information can be easily depicted using a Gantt chart.

Work Break down structure: Work break down structure is also a management tool
used in every project. In this method work is break down in smaller parts or structures and then it
is managed. This method is used to simply complex tasks and then increase effectiveness in
overall project. It is a framework which is used for estimation of cost in detail and then
performing controlling function. Each activity is assigned to one terminal in a work break down
structure this is most differential feature of this structure. This structure is mostly developed at
the starting of the project and after that other planning and strategies of whole project is made by
the researcher (Tschopp and Huefner, 2015). This Untitled 1converts very complex projects into
smaller and manageable units. This method also helps in estimating time, cost and risk involve in
the whole project. Scope of project can also be laid down using this method. Nowadays, project