Effectiveness of IFRS in UK Businesses: A GAAP Comparison Study

This report presents a comparative analysis of International Financial Reporting Standards (IFRS) and UK Generally Accepted Accounting Principles (GAAP), focusing on the effectiveness of IFRS in meeting compliance requirements for businesses in the United Kingdom. The study delves into the background of IFRS, its development, and the call for global accounting integration, contrasting it with the UK's GAAP, which emphasizes rule-based accounting. The research objectives include identifying the effectiveness of IFRS, examining the differences between IFRS and GAAP, identifying challenges in adopting IFRS by UK organizations, and providing recommendations. The research design employs a quantitative method, using questionnaires for data collection from managers and a literature review. The report includes a time-scale Gantt chart and references, providing a comprehensive overview of the research process and findings, including the significance of IFRS in global business, challenges in adoption, and potential improvements in accounting practices.

Proposal

Table of Contents
A. Title : “To assess the effectiveness of IFRS pertaining to meet compliance requirements by
the businesses in United Kingdom: A comparative study on IFRS V/s UK GAAP” ....................1
B. Introduction and background......................................................................................................1
C. Literature Review........................................................................................................................1
D. Research Objectives and Questions ...........................................................................................2
E. Research design ..........................................................................................................................2
F. Data collection and Analysis ......................................................................................................3
G. Time-scale ..................................................................................................................................3
H. REFERENCES............................................................................................................................7

A. Title : “To assess the effectiveness of IFRS pertaining to meet compliance requirements by
the businesses in United Kingdom: A comparative study on IFRS V/s UK GAAP”
B. Introduction and background
Over two decades ago, the call for integration within the world of business came to light.
Many foundations and organizations were developed in order to confront the spread of
international investment activity and cope with its new issues or challenges. These businesses
consisted the International Accounting Standards Board (IASB), International Accounting
Standards Committee Foundation(IASCF), Commission of the European Union (EU), the
International Federation of Accountants (IFAC), Securities and Exchange Commissions (SEC),
the International Organization of Securities Commissions (IOSCO) (Dimitras, Gaganis and
Pasiouras, 2018).. United Nations Intergovernmental Working Group of Experts on International
Standards of Accounting and Reporting (ISAR), the Organization for Economic Cooperation and
Development Working Group on Accounting Standards (OECD Working Group), the Basel
Committee, the World Bank, and the International Monetary Fund (IMF). For years, these
foundations have worked effectively towards globalization by issuing, implementing, and
encouraging directions in order to evolve a single set of high quality enforceable
understandable and globally recognized financial reporting standards based upon clearly
articulated principles. As the world market has become progressively incorporated, enormous
difficulties have raised in the domestic markets, particularly rising markets because of the
deviations in environmental variables including, religious, cultural, social, and local accounting
activities. UK and US on the other hand give more importance to Generally Accepted
Accounting Principles (GAAP), it is mainly rules bases whereas IFRS is based on principles. In
this research, examiner will identify the effectiveness or pertaining IFRS in order to meet
compliance needs of organisations in UK (d'Arcy and Tarca, 2018).. It will be done through
various research methodologies and techniques used for collecting, analysing and interpreting
data or information collected in a research study.
C. Literature Review
International Financial Reporting Standards (IFRS) are important standards issues by the
IFRS foundation and the international accounting standards board for providing a common goal
language for affairs related to businesses so that accounts of organisation are comparable and
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understandable across international boundaries (Elbakry and et.al., 2017).. These standards are
developed due to the growing global shareholding and trade as it is very essential for the
companies dealing in various countries to follow these standards. Due to some reason or
criticism UK and US are not adopting IFRS, they have specific principles of accounting known
as GAAP which are applied by business in these countries to manage and maintain their accounts
or transactions. Generally Accepted Accounting Principles (GAAP) refers to the standard
framework, processes and principles utilized by the organizations for financial accounting, these
principles are issued by Financial Accounting Standards Board (FASB). The major difference
between the concept so accounting followed by business is that GAAP is a set of accounting
procedures and guidelines, utilized by the organizations to set up their financial statements
(Conway, 2017). On the other hand IFRS is the universal business language followed by the
companies while reporting financial statements.
D. Research Objectives and Questions
Aim - “To analyze the effectiveness of IFRS pertaining to meet compliance requirements by the
businesses in United Kingdom”
Objectives :
 To identify effectiveness of pertaining IFRS in businesses
 To examine differences between IFRS and GAAP
 To identify the challenges or issues in adopting IFRS by UK and US organizations To provide effective recommendations related to the study.
Research questions
1. What is the importance of pertaining IFRS in business?
2. What are the major differences between IFRS and GAAP?
3. What are the challenges and issues in adopting IFRS in UK and US businesses?
4. How accounting can be improved in companies?
E. Research design
Research design refers to the methodologies used in order to collect, analyze
and interpret data related to the subject or topic of the research. In this study
researcher will used quantitative method as it is useful for analyzing numerical
values and interpreting it effectively to obtain best outcomes and achieve research
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goals or objectives. Researcher will develop a questionnaire for the managers
working in different organizations in various countries to collect primary research
data that is highly valid and reliable. Literature review will be also created with
different themes using information from various previous studies, articles, books
and journals.
F. Data collection and Analysis
Data collection is very essential for conducting a research study, in the present research
examiner will collect primary data by developing a questionnaire for managers in various
organizations. Questionnaire method is very effective in collecting primary data which can be
helpful in achieving research outcomes in most appropriate manner. Primary data collection is
very essential for a research as it helps in gathering valid and reliable information related to the
topic or subject of the study. Analysis of data will be performed b y making different themes
with graphical representation and its interpretation.
G. Time-scale
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Illustration 1: Work Breakdown Structure
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Illustration 2: Gantt chart
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A Gantt chart present practices that assist in obtaining aims and objectives of a project according
to current market situation & position. This work of research will assist in distinguishing
activities and their presentation which may assist in accomplish aims and objectives on a
particular deadline.
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Illustration 3: Networking Plan

H. REFERENCES
Elbakry, A.E., Nwachukwu, J.C., Abdou, H.A. and Elshandidy, T., 2017. Comparative evidence
on the value relevance of IFRS-based accounting information in Germany and the
UK.Journal of International Accounting, Auditing and Taxation, 28, pp.10-30.
Dimitras, A.I., Gaganis, C. and Pasiouras, F., 2018. Financial reporting standards' change and the
efficiency measures of EU banks. International Review of Financial Analysis, 59,
pp.223-233.
d'Arcy, A. and Tarca, A., 2018. Reviewing IFRS Goodwill Accounting Research:
Implementation Effects and Cross-Country Differences. The International Journal of
Accounting,53(3), pp.203-226.
Conway, E., 2017. A study of adoption rates and financial effects of IFRS for SMEs.
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