Assessing the Impact of International Accounting Standards: RH Amar

This business project investigates the impact of International Accounting Standards (IAS) on small business development, using RH Amar, a UK-based food and grocery distributor and importer, as a case study. The report begins with an introduction outlining the research's overview, background, rationale, aim, objectives, and research questions. Chapter 2 provides a comprehensive literature review, exploring the concept of IAS, its evolution, and its importance for financial reporting, particularly for small businesses. The review covers various IAS standards and the role of the International Accounting Standards Board (IASB). The study also defines small businesses, their characteristics, and the challenges they face. Chapter 3 outlines the research methodology, while Chapter 4 presents the data analysis, followed by a discussion and conclusion summarizing the findings. The project aims to analyze the positive and negative impacts of IAS on small business development and provides insights into the practical implications of adopting international accounting standards. The report concludes with a list of references.

Business Project
Contents
TITLE..............................................................................................................................................2
Chapter 1: INTRODUCTION..........................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................9
CHAPTER 4: DATA ANALYSIS................................................................................................11
Discussion......................................................................................................................................18
Conclusion.....................................................................................................................................19
REFERENCES..............................................................................................................................21

TITLE
“Impact of International Accounting Standards on Small Business Development”. A Case study
assessment of RH Amar.
Chapter 1: INTRODUCTION
Overview of research
In accounting world, companies have to apply specific guidelines and principle in order to prepare
essential statements and authentic reports that are known as International Accounting Standards. These
are further replaced by international accounting standard board (IASB) into IFRS international financial
reporting standard (Beaumont, 2015). The concept of IAS was first developed in 1973 by IASC with the
main purpose to compare companies in different part of world, raise transparency and believe in reports
and improve foster international trade and investment. In recent time as economy is becoming more
international and global thus business activities of companies are also expanding. Therefore, they need
for globally accepted framework is greater which help in proper preparation of financial report and
records. These reports must be consistency, comparable, reliable and transparent at global and domestic
level so that meaningful decision are made for improvement. Each kind of organisation either small,
medium or big require accounting standard so that companies would be able to present financial
statements and promote business al global market.
Background of research
RH Amar is one of the best and growing food and grocery distributor and importer in UK. There are
around 68 employees selling around 1200 products and dealing with 40 brands. Company have effective
marketing and distribution channels that use to provide desired food to respective customer across
different part of UK (About RH Amar, 2019). The company is a full-service distributor and importer,
substance skills and expertise in marketing, brand management, sales, logistics, category management,
IT support, food technology and much more. Company use to represent some most popular UK brands
that basically includes Del Monte, Starbucks, Nando’s, Schwartz, Kikkoman, Crespo, Mutti and Kuhne. It
was also involved in The Original Waffle Company brands which is Cooks & Co, Mary Berry’s.
Rationale of Research
It is observed that work of a researcher is dependent on the impact of International accounting standard
on small businesses, thus it is necessary to reduce any error or gap in the literature review and which
enables in making of proper and described plans to conduct research. This particular piece of work deals
with defining of the actual and entire influence of International Accounting Standards on the business of
small-medium size companies. (Brooks and Oikonomou, 2018)
Research Aim
The business project primary aim must be authentic, clear, meaningful and appropriate and which help in
disclosing the suitable results to the topic. The main aim of this research is the Impact of international
accounting standards on small business development, a case study on RH Amar

Objective
It is understood that the objective of investigation must be reliable, clear, related and specific to topic so
that meaningful outcome can be ascertained. The certain objective related to the basic aim of business
project is as follows:
 Analyse the concept of international accounting standards.
 To assess and understand the current business environment of small businesses.
 Evaluate the negative as well positive impact of international accounting standards on small
business development.
Research Questions
The main role of researcher is to define the question related to the particular topic selected for
research (Brusca and Martínez, 2016). These question might be abbreviated, clear, related to topic so
that answer can be made as per the requirement. In research study all the specific question are related
with existent aims and objective. The crucial questions are stated below:
1. What is the main concept of international accounting standards?
2. Evaluate the actual and current situation of small businesses in present time?
3. Critically elaborate the negative and positive impact of IAS on functioning small business
development and growth?

CHAPTER 2: LITERATURE REVIEW
The process associated with rational analysis and appropriate evaluation of sensitive data,
supported by credible sources that help decide any lack of basic knowledge and infrastructure. It helps to
evaluate the appropriate knowledge which also helps to increase the study topic's best appropriate output
(Cleary and Quinn, 2016). The analysis of literature also helps to generate a more in-depth knowledge of
the particular subject through appropriate papers, published journals, academic paper, etc. This segment
is considered to be the most important part of the study and is linked to the development of the greatest
thoughts and ideas that could give a quick knowledge of the corresponding research. A literature review is
also described in a specific topic region as information published and in a defined vulnerable region within
a defined period of time. Data was collected through sources such as books, magazines, articles,
scholarly papers, papers in this chapter. In general term, it is defined as the detailed, analyses summary
of the active evidence in context to specific topic area of research.
Analyse the concept of international accounting standards.
According to Robin Jarvis, 2017, regulations for preparing and presenting the financial
statements that were first developed by International Accounting Standards Committee (IASC) in 1973. In
the recent time, the international accounting standard board create accounting standard that were
accepted all over the world which are known as IFRS (IFRS’ Impact on SMEs, 2017). There are
different types of IAS standard that were issued for the purpose of making reports more authentic and
accurate so that they can easily describe the overall image of business. Some common International
accounting standard are IAS1 that are related with presenting of financial statements that was issued in
2007, IAS 2 which was relevant to recording of inventories which was published in 2005, IAS 3 that
relates to consolidation of financial statements, IAS 4 which shows depreciation accounting and many
more. Every Standard have its own importance in context to any business either small or big as it helps
internal managers to sort information in meaningful manner and present to external stakeholder which
makes easy for them to take respective investment decision.
In recent times, around 2001, the board IASB developed the independent standard IRFS having
the main objective:
 To establish single high quality, reliable, high quality, understandable and globally accepted IFRS
standard that are depended upon clear articulated framework. These norms should involve
strong-quality, consistent and similar data in annual reports and other accounting to assist
shareholders, other stakeholders in investment markets as well as other business information
participants in making economic choices.
 Promoting the implementation and strict implementation of these norms.
 To meet the strategies of (1) and (2), take into account the requirements of a variety of sizes and
kinds of organisations in a variety of economic configurations, as applicable.
 Promoting and facilitating the implementation by the Board of IFRS standards and interpretations,
through the happening of international accounting standard and IFRS regulation.

In accounting terms, the IFRS is accounting standard that help to organise and report financial data and
recently it is one of the most necessary accounting standard that is being followed in approx 120 nations.
It generally allows companies to post annual results and define the financial status and strength by
applying the basic concept and rules in order to reduce any fraudulent of manipulation so it makes easy
for external stakeholder to compare and contrast financial outcome for that specific year (Fang, 2015).
Companies mainly implement IFRS for reporting their financial outcome anywhere in the world except few
countries such as the United states as GAAP is the only accounting framework that is used in US. IFRS
primarily cover huge array such as:
 Presentation of financial statements.
 Employee benefits.
 Revenue recognition.
 Borrowing costs.
 Income taxes.
 Investment in subordinate companies.
 Inventories.
 Fixed assets.
 Intangible assets.
 Leases.
 Retirement benefit plans.
 Business combinations.
 Foreign exchange rates.
 Operating segments.
 Recording to consequent events.
 Industry-specific accounting, like mineral and agriculture resources.
The entire concept of IFRS is mainly developed by International accounting standard Board that
use to work closely with expertise from finance department all around the globe which includes analysts,
investor, functionary controller, business leader and responsible accountant that put valuable inputs
(Fields, 2016). There are basically 6 steps of IFRS development these are as follows:
 Fixing the agenda and accounting criteria.
 Effective planning for project.
 Establishing and familiarising exact discussion documents with the aim to define public
consultation.
 Creating and publishing the disclosure draft involving public consequent.
 Publishing and development standard that ease to produce statements.
 Defining a procedure after publishing an IFRS.

To understand the current conditions of small businesses.

In the opinion of Hillary, 2017, small business is defined as the small scale independent business
entity that are mainly controlled, managed and funded by its proprietor. These kind of companies mainly
have small or limited staff, assets and resources as compare with other companies. In this type of
business company owner have to bear or contribute maximum contribution, efforts or capital as they do
not have large number of employee and as a result they have to bear all risk and are entitled to profit.
Company is small in size and willing to expand business in different part of world, thus it is crucial for
internal manager to implement best accounting standard that are accepted at international level (Fischer-
Pauzenberger and Schwaiger, 2017). This would help interested parties to gain the actual position and
financial strength of company during an accounting year and allows them to make investment to attain the
desired profit.
Small business are generally have both qualitative and quantitative aspect or criteria such as qualitative
criteria says that proprietor makes important decision own their own as they are not accountable to
anyone and these business have smaller market share at domestic level. On the other side, quantitative
variables are used to define the actual strength of employee, salaries and wages, legal framework,
valuation of fixed assets, share of ownership which is held by management. Small companies are
organizations operated separately that necessitate very little equity, less labour force less or no
equipment. These companies are perfectly suited for small-scale operations to represent a local people
and provide earnings to the shareholders of the company. There are some of the crucial effective
characteristic of small companies that are listed below:
Limited investment: Capital is provided by a person or a tiny set of people in a tiny company. According
to a survey related to low-scale units it is ascertained the majority of tiny businesses are run as sole
ownership and relationship.
Owner management:
These kinds of companies are identified with its owner those are the manager and risk taker. They have
the main work to motivate the employees and make them comfortable to put maximum efforts so that
desired goals can be accomplished (Gitman, Juchau and Flanagan, 2015).
Labour Intensive:
For the most part, small companies are manpower-intensive. Different kinds of small business depend
mainly for their operating on labour. Small businesses' main nature will be more physical job participation
than academic job. The absence of equipment helps handle the activities of the staff manually.
Community Based:
Mainly small company have the main purpose of satisfying the demands and requirement of customer
living in local community. The management use strategies and target smaller demographic areas so that
they can easily make out the actual demand and requirement of clients and produced goods and services
accordantly. As respective company is currently target demographically little area

Shoestring Budget:
Small business is run by a single owner or a tiny group of individuals. These firms sometimes conduct
business on 'short string budget, which means that tiny firms conduct business on a very limited budget
(Hillary, 2017). It is noticeable that small companies faced number of problem in within in functioning that
has a major impact on growth and development. These can be either financial or other problem related
with business term. Financial problems can be major problem to business as if company do not have
enough funds than they would not be able to meet its working and fixed capital. In addition, in case of
insufficient funds small company is not able to implement latest technology, there might by problem within
management and workforce, problem of promotion and advertising that can impact the entire business
operation (Hoyle, Schaefer and Doupnik, 2015). Other problem might be related with ineffective
planning, shortage of raw material and lack of other infrastructural facilities, improper marketing
techniques and lack of special and professional staff member.
Negative and positive impact of international accounting standards on small business development
According to Cordazzo, 2008, small and medium-sized enterprises (SMEs) are being seen as main
players in every country for financial growth, job creation, export advancement and entrepreneurial
development. As market is growing and increased market globalization, the difficulty of trade and
company participation in international competition also resulted to an even bigger in need of international
standardisation. Highly competitive climate needs businesses to develop a viable business approach, and
reporting must be part from this approach as it enables private businesses attain their goals and
objectives. International accounting standards are worldwide forms of developing integrated company
information structures and are capable of harmonizing economic systems globally. There are number of
positive impact or benefit of implementing IAS on small companies like that is discussed below:
Facilitates Ethics Compliance: The advantages of worldwide accounting standards is that they
contribute to ethics are that they sometimes involve recommendations from accounting experts worldwide
(Ji, 2017). It enables company owners in distinct areas of the globe to conform to those same rules by
having a standardized code of accounting principles.
 Improves International Investment: It is more suitable for investors as well as other participants
to measure their performance of the company with other global businesses so that they can make
investment. IAS enables them to review overseas company financial records that they might want
to engage in or at least build relationships with as both are operating on the very same range of
accounting rules. This prevents a lot of controversy when it comes to producing a final choice
about whether or not the economic position of that firm is sufficiently strong to merit their
consideration.
As implementations of IAS have number of advantages or positive influence on business of SMEs, at the
same it also creates some issues or might have negative influence on business performance. Such as:
They have very little chance of influencing the international accounting standard procedure (Kallamu and
Saat, 2015).

 Their economic and business conditions cannot be conscientiously depicted by the worldwide
standard's recommended accounting processes
 They may experience elevated expenses of altering from one set of practices without any
corresponding advantages.
In the modern time, it is determined from the above market growth and increasing market integration have
developed in an even stronger need for international standardization due to the difficulty of trading and
client involvement in international competition. Global accounting rules are specific ways of the creation of
unified business information frameworks and are supportive of mutual harmonization of market
economies. IAS allows them to examine financial records from foreign companies that they may regularly
engage in or at least create interactions with, as both operate within the same range of accounting
standards.

CHAPTER 3: RESEARCH METHODOLOGY
According to the study context, this is regarded to be the main component of the feature of the inquiry as
it enables the Research to properly perform the activities of the inquiry (Lin,Yang. and Wang, 2018). For
most of the aspect, it includes the accumulation of multiple strategies and norms linked to a subdivision of
understanding and training as a preoccupied research.
Research types: A research work relies on two special types of research that are quantitative and
qualitative. These are discussed below:
Qualitative research: This technique is objective, non-numeric and implements reasoning and phrases to
obtain the detailed description of the subject of the study and to actually create genuine decisions for
better outcomes. This method of research is used in this particular research work so that results are
extracted appropriately and more meaningful decision are made for improvement and increasing
performance of respective firm.
Quantitative research: It primarily involves mathematical or geometry numbers, pre-descriptive numbers
and an algebraic method for evaluating helpful proof. It allows to reveal the preceding outcomes in table
format in order to be definitive and justifiable and to definitely make meaningful decisions in appropriate
topics.
Quantitative instrument has been used in the present Research piece of job, making it the best hotspot to
achieve appropriate results by guiding detailed assessment of important subject.
Approach for Research: This is an integral part of the research scheme that involves two types of
categorization, like inductive and deductive research strategy. The deductive approach relies on creating
fresh or advanced speculations that support the hypothesis on the other end inductive research help in
gathering data by executing an appropriate estimate of available data with truths or assumptions that go
beyond the particular subject. The inductive study strategy has been used by the researcher in this
present research project.
Philosophy of Research: The philosophy of research is described by two distinct parts of interpretation
and positivism. Researchers are more concentrated in the framework of present research job on
interpretation methodologies that promote qualitative report which further assist in analysing collective
information in different ways. To conduct this particular research interpretivism philosophy is selected that
is mainly concerned with the assessment of differences among different individual selected for the survey
and their social factors related with particular topic.
Data Collection Tools: There are two vital types of data gathering systems accessible for research, such
as primary and secondary data gathering applications (Loughran and McDonald, 2016). Both main and
secondary sources are used in the study in the present research study to explain real data and
information. In this way, the primary device is thrilling in guiding a survey with the help of the genuine
question set. Questionnaires, auxiliary tools such as books, diaries and papers, previous study
undertakings, articles etc. are all effective in carrying out literature reviews with the assistance of the
authors ' viewpoint.

Data sampling: Research will be carried out with the assistance of a purposeful inspection method, so it
is essential for them to decide on the appropriate population instance. 30 workers from RH Amar have
been selected as the example in order to gain the understanding of the implementation of reliable
accounting standard which bring authenticity in respective reports and statements.
Ethical Consideration: Problems and conflicts may arise under any circumstances, there can be some
research-related problems also within an organisation and for this reason it is essential that a Research
rearranges certain objectives with respect to their defeat. They are used to fabricate a research
framework where all workouts can be performed appropriately. Among the study, their participants will
also be guaranteed not to request any kind of individual information that would harm their sense of
making significant decisions (Maskell, Baggaley and Grasso, 2017).
Time Scale: It is linked to the real moment taken to complete an activity or study program in order to
obtain precise outcomes in line with the organizational position and conditions. In particular, measured in
relation to any wider amount of time, the amount of time in which decisions and actions occur or are
planned to happen.

CHAPTER 4: DATA ANALYSIS
In the company situation, the technique of measuring and assessing suitable information using various
logical and perceptive instruments and the explanation of why all elements of the obtained information are
better analysed is regarded as data analysis. It is noted that information is gathered, post-checked and
examined for a particular subject in order to arrive at a workable solution or judgment (O'Leary, 2017).
There are numerous helpful techniques including data mining, data visualization, text analysis and
database management to perform the data analysis mechanism that assist obtain the highest results
appropriate to a specific subject. This part of study is intended as being the most necessary element that
properly shows the project's purpose and consequences. For the current studies, the idea of data
analysis is essential as it comprises multiple stages that assist to draw meaningful results. These phases
are data cleaning, quality assessment, quality assessment and results stabilization, use of statistically
meaningful methods and adequate representations of information. There are some main components that
demonstrate the overall need and requirement of data analysis:
 Gather Hidden Insights: Data hidden perspectives are collected and then evaluated for company
demands.
 Generate Reports: Reports are produced from the information and are transmitted to the
corresponding groups and people to address further activities for strong company growth.
Perform Market Analysis: Market Forecasting can be done to know opponents' strengths and weaknesses
(Outa, Ozili and Eisenberg, 2017).
 Improve Business Requirement: Data analysis enables business to be improved on client
demands and understanding.
THEME 1: Concept of IAS
Q1) Do you have any idea about the concept of international accounting
standards?
Frequency
 Yes 20
 No 10
Interpretation: On the basis of above questionnaire, two columns that define the exact frequency
relevant to understanding of concept of IAS. It is clearly ascertained that researcher states that out of 30
candidates 20 are those which have proper and clear understanding about the actual concept of
International Accounting Standard. They know the idea behind implementing right and correct accounting
standard within company has it will enable number of advantages in approaching time. As it will beneficial
for company to reduce time, cost and efforts by making single financial statement which would be
acceptable at worldwide. From the selected member 10 members are not familiar with the idea of IAS as
they work only limited area within RH Amar and do not have proper accounting knowledge. It is very
crucial for each member of accounting team to have a subsequent knowledge about international

accounting standard which help in forming and preparing accounting statement according to standard that
are accepted all over the world.
THEME 2: Circumstance of small businesses.
Q2)What are the actual and current situation of small businesses in present
time?
Frequency
 Little equity 12
 Less labour force 10
 Less equipment 8
Interpretation: Based on the above question, the above table clearly defines the real and
present conditions of small companies in the current business situation. The Researcher identified that 12
individuals believe that small companies have few or little equity due to which they are unable to attract
the number of stakeholders. It is also determined that interested parties used to analyse the financial
statement about the equity position of a company and in the context of small companies, they get clear
information about the issue as compared to any large business entity. It is noticed that 10 respondents
assume that the main reason for slow success for a small firm is less about the number of workers they
have at a specific time. Labour is required in every part of a business as they are the standard pillar of
business with the shortage of skilled labour company fails to conduct different crucial function. From the 8
candidates sees those which have a gut feeling that due to lack of proper and effective equipment the firm
remains small in size.
THEME 3: Implementation of IAS
Q3) What are the International Accounting Standards followed by company? Frequency
 IAS1 7
 IAS 2 5
 IAS 3 8
 IAS 4 6
 All of the above 4
Interpretation: On the basis of above questionnaire, it has been identified that employees of RH
Amar have a positive believe that company is already implementing number of IAS, but are not sure the
about the exact standard. By conducting research, the researcher determine the following results such
as 7 from the 30 selected people thinks that management of company apply IAS1 while preparing reports,
5 thinks that they are more focused on IAS 2. Out of 30 the maximum number of employee i.e 8 assume
that company is implementing IAS 3 in order to prepare financial reports on the other side 6 individual