Research Proposal: Value Relevance of Accounting Information Post-IFRS

This research proposal investigates the value relevance of accounting information in New Zealand following the adoption of International Financial Reporting Standards (IFRS). It employs a quantitative research method, including surveys with 100 participants, to assess the impact of IFRS on financial reporting. The study explores the advantages of IFRS, the limitations of domestic accounting standards, and the importance of value relevance in reliable financial reporting. Key research questions address the comparability, transparency, and consistency of financial reporting under IFRS, as well as the implications for banks and investment organizations. The proposal includes a literature review, research methodology, and potential limitations, aiming to contribute to the understanding of IFRS implementation and its effect on accounting information.

Running Head: Research Proposal on Accounting system 1
Business Research Proposal

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Contents
Title of the project.......................................................................................................................................3
Statement of purpose (or problem statement)...........................................................................................3
Research Significance..................................................................................................................................4
Literature review.........................................................................................................................................5
Research methodology................................................................................................................................5
Problems & Limitation.................................................................................................................................5
References...................................................................................................................................................6

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Title of the project
“An Analysis of Value Relevance of Accounting Information within the Nation after Adoption
of International Financial Reporting Standards”
Statement of purpose (or problem statement)
The study is based on the quantitative research method in which various approaches and
strategies are considered by taking consideration of the quantitative research. The research will
show the effective outcome of the research topic with the help of survey in which 100
participants will be participated to make the research more effectual. The description of all
people will be elaborated by taking the effective method of sampling which will be helpful to
understand the concepts of the research in a sophisticated manner.
 Research Question 1: What are the advantages of having superior quality internationally
recognized financial reporting standards?
Sub Question 1: Is the financial reporting of the companies is comparable, transparent
and is consistent?
Sub Question 2: What are the limitations that exist in the domestic accounting standards
of New Zealand?
 Research Question 2: What are the impacts of IFRS implementation in New Zealand?
Sub Question 1: Why banks along with the investment organizations in New Zealand
need to develop their financial statements?

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Sub Question 2: What accounting standards are issued by New Zealand to regulate the
accounting practices within the nation?
 Research Question 3: What is the importance of value relevance in reporting
reliable financial information?
Sub Question 1: Why relevance is considered as among the major qualitative
characteristics of the companies accounting information?
Sub Question 2: What significant implications are present in the relevance of accounting
information?
Hypothesis
H0. Adoption of International Financial Reporting Standards helps the organization to the
analysis of Value Relevance of Accounting Information within the Nation.
H1. Adoption of International Financial Reporting Standards does not help the organization to
the analysis of Value Relevance of Accounting Information within the Nation.

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Research Significance
There are meeting and coordination of international financial reporting standards along with the
accepted principles of accounting. It has been observed that there is enhanced use of accounting
standards through organizations in the making their financial statements. Moreover, the
application of accounting system makes comparability of the accounting information which
makes the huge complexity. These issues can be considered as an issue that defined the
differences in accounting standards across nations which moreover reduces the quality and the
relevance of the accounting information. It has been found that there is limited research that
determines the effect of IFRS execution in New Zealand.

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Literature review
According to Li, (2015), there are vital regulatory authorities in Auckland business sector, the
central bank along with authority of raw materials. It has been stated by Ball, Li & Shivakumar,
(2015), that the businesses of New Zealand must develop the cash flow statement, statement of
changes, financial statement and balance sheet to maintain the account in more efficient manner.
It is not essential for the financial companies but also for the non-financial companies in which
they have to prepare the annual report within the 2-3 months towards the end of the financial
year. It has been found that the Auckland Accounting Standards Framework utilizes International
Financial Reporting System which develops in the profit entities that are bound to prepare
financial structure that comply with the standards issued by XRB. It has been found that in the
year of 2002, the New Zealand Accounting Standards Review Board (ASRB) announced the
listed companies of every city of New Zealand has to adopt International Financial Reporting
Standards (IFRS) by 1 January 2007 (Wang, 2014).
The adoption of IFRS is predicted as a move that will facilitate in developing the quality of
accounting and offer an effective likeness of economic certainty, but the perceptions of the
academic community are varied. Cascino & Gassen, (2015), argued that the effects of the capital
market from the adoption of IFRS are different which depends on the enforcement of standards
and the financial reporting incentives for more earnings with the transparent feature. Moreover,
they argue that the consequences of IFRS adoption will be not larger for Auckland due to fewer
differences between local IFRS and GAAP due to an earlier meeting strategy (Rainsbury &
Walker, 2010). According to the IFRS, accounting information it has been found that the
investors should take a distinct decision from one intended is considered as specific information.

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Christensen, Lee, Walker & Zeng, (2015), explained that these kinds of information can have
among the confirmative as well as predictive value. Substantiation within the accounting
literature also symbolized that the research within the significance of accounting information has
noteworthy implications (Kargin, 2013). It has been argued that the recent and effective
accounting information influences the capital market efficiency.
In the context of potential financial reporting, it is apparent that the acceptance of IFRS can alter
the arrangement and content of financial statements. It is predictable that the acceptance of new
set of IFRS may amend the reported results and financial position of reporting entities. As per
DeFond, Hung, Li & Li, (2014), the correlation between the earning and share return which
indicate the increased correlation between two variables. It has been suggested by this researcher
that the term of Value relevance has an effective connection with the accounting information
represented by the companies in their work. Significantly, various definitions are shown in the
accounting literature in relative to the value significance of the financial information (Martínez‐
Ferrero, Garcia‐Sanchez & Cuadrado‐Ballesteros, 2015).
Research methodology
Research methodology is a significant part of the research that helps to understand the tools,
methods, and techniques to make the research in a systematic manner. There are two kinds of the
method and for implementing this research proposal, quantitative research method is being
chosen.
Research design
There are three kinds of research designs that noteworthy facilitates researcher to decide the
research design. The research design includes descriptive, exploratory and casual research

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design. Exploratory research design shows the initial research in which researcher gets facilitated
to develop the research issues with the help of hypothesis. This design has an effective feature
that facilitates to gather the information regarding the viewpoints or perception of the
participants in relation to research topic in more significant manner.
Research strategy
The research strategy is one of the crucial components of the research that helps the researcher to
examine the research concerns in a systematic manner. Survey research strategy will be used by
the researcher to gather the information about the benefits of adoption of international financing
reporting standards. Survey strategy is effective as it enables the researcher to get data in less
time and cost that increase the reliability of the research among the key stakeholders.
Population and Sampling technique
Sampling technique defines to the selection of the appropriate participants for the study of the
research to attain the aim and objectives of the company for providing the answers of a
questionnaire for accomplishing the research. Probability sampling method will be evaluated for
this research in which the random sampling techniques will be taken to accomplish the research.
100 participants will be selected from the population who has experienced the implementation of
International Financial Reporting Standards within the nation (Taylor, Bogdan & DeVault,
2015). The table will be made by taking consideration of the random numbers. The intended
population is residents of Auckland and includes individuals of diverse socioeconomic races and
backgrounds. Participants will be asked if their age is 18 or older and must be at least the age of
18 to participate in the survey. Under age of 18 will not be contributing in the survey as their

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inability to vote in national as well as local elections. The sample size is 100 participants with a
5.0% margin of error and a 40% rate of response.
Data collection
The effective strategy of collecting the data regarding the research topic develops the knowledge
about the research issues. Primary and secondary are two kinds of data collection method and for
this research proposal, primary data is being considered. Primary data is the data which is
collected very first time at the time of the research by the researcher (Kuehlewein, Sadda &
Sarraf, 2015). The researcher will use survey, questionnaire and action research to gather the
information regarding the research topic. In the context of data gathering plans, the instruments
will be used to collect the data in a significant manner in which the simple instruction sheet will
be made. This sheet will comprise the age, gender and other description of the population so that
the survey can be done in a more efficient way.
Data analysis
After accumulating the information regarding the research topic, it is vital for the research to
develop the valid and reliable results in regarding the research issues. There is a number of
research analysis methods that can be used for this research (Serrador & Pinto, 2015). These are
content analysis, thematic analysis, statistic analysis, disclosure analysis and conversational
analysis. For this research study, first will give the entire description of the sample from which
data is collected, descriptive information on gender and age and along with that, the detail
information regarding residential setting will be defined. For analyzing the data, statistical data
analysis method will be utilized and by this, the researcher will enable to show the descriptive
statistics of the data in which correlation, cross tabulation, and regress included. To implement

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this in an effective manner, MS Excel and SPSS software are utilized to show the data in tabular
and graph form to increase the better understanding about the findings and respondents about the
International Financial Reporting Standards.
Concluding Remarks
Noteworthy, it is anticipated that the research study will make at least two contributions in the
area of implementation of IFRS. Initially, the research will contribute in increasing the
knowledge base of self directed learning. Second, this research study will try to use SPSS tool
with a sample of 100 person of population. Along with that this research will contribute in
making better understanding about the concept of the research topic.
Problems & Limitation
The research may face a number of difficulties which may give negative impact and influence
over the study and its outcomes. There are some limitations to the study such as generalizability
to the total older adult population. It is necessary for the sample to be quiet diverse. There is a
lack of time which is the big limitations that is why the random sampling technique is chosen by
the researcher so that population gets equal chance to get selected. The monetary constraints is
another limitation for the research because of less funding, the researcher might be not able to
access the huge range of data sources from various different geographic locations to gather
specific information regarding the research topic. Lack of authenticity and reliability in the
research can break the trust of the readers and the population that involve in the sample of this
research. However, the researcher will spoil all data after gathering the information for the
research so that the personal information of the population cannot be revealed.

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References
Ball, R., Li, X., & Shivakumar, L. (2015). Contractibility and transparency of financial statement
information prepared under IFRS: Evidence from debt contracts around IFRS
adoption. Journal of Accounting Research, 53(5), 915-963.
Cascino, S., & Gassen, J. (2015). What drives the comparability effect of mandatory IFRS
adoption?. Review of Accounting Studies, 20(1), 242-282.
Christensen, H. B., Lee, E., Walker, M., & Zeng, C. (2015). Incentives or standards: What
determines accounting quality changes around IFRS adoption?. European Accounting
Review, 24(1), 31-61.
DeFond, M. L., Hung, M., Li, S., & Li, Y. (2014). Does mandatory IFRS adoption affect crash
risk?. The Accounting Review, 90(1), 265-299.
Kargin, S. (2013). The impact of IFRS on the value relevance of accounting information:
Evidence from Turkish firms. International Journal of Economics and Finance, 5(4), 71.
Kuehlewein, L., Sadda, S. R., & Sarraf, D. (2015). OCT angiography and sequential quantitative
analysis of type 2 neovascularization after ranibizumab therapy. Eye, 29(7), 932.
Li, X. (2015). Accounting conservatism and the cost of capital: An international
analysis. Journal of Business Finance & Accounting, 42(5-6), 555-582.
Martínez‐Ferrero, J., Garcia‐Sanchez, I. M., & Cuadrado‐Ballesteros, B. (2015). Effect of
financial reporting quality on sustainability information disclosure. Corporate Social
Responsibility and Environmental Management, 22(1), 45-64.

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Rainsbury, L., & Walker, L. (2010). Evidence on the impact of International Financial Reporting
Standards in New Zealand. Retrieved from:
http://docs.business.auckland.ac.nz/Doc/Evidence-on-the-impact-of-international-
financiMartínezMartínezal-reporting-standards-in-New-Zealand.pdf.
Serrador, P., & Pinto, J. K. (2015). Does Agile work?—A quantitative analysis of agile project
success. International Journal of Project Management, 33(5), 1040-1051.
Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Wang, C. (2014). Accounting standards harmonization and financial statement comparability:
Evidence from transnational information transfer. Journal of Accounting Research, 52(4),
955-992.