Harmonizing to Barry and Jamie ( 2004 ) , Accountancy is the art of communicating of fiscal information on a concern entity to users such as stockholders and directors. Today, accounting dramas a major function on mundane concern, because it is the chief thrust for describing fiscal information about a concern entity, to the stockholders, creditors, fiscal analyst, economic systems, authorities and besides other users in the demand of fiscal information. In order to fulfill each user, the presentations of the fiscal statements are in fact really of import.
How could anyone bury the twelvemonth 2001, where the universe was shook, with what seems like re-run episodes of fiscal information frauds, with the ill-famed Enron together with one of the five largest accounting house Arthur Andersen. This followed by WorldCom, Qwest, Sunbeam merely to call a few. These extremely promotion event has resulted on revamping on the auditing ordinances, corporate administration rules and besides the effectivity of accounting criterion. Harmonizing to Astrid and Giancarlo ( 2006 ) , The Enron dirt has resulted on the building of new ordinances to heighten the dependability of fiscal coverage, and to increase transparence in showing fiscal statements.
Due to these factors, The International accounting criterions boards ( IASB ) was born. The IASB is based on London, England and was found on April 1, 200 and was responsible for developing International Financial Reporting Standards ( IFRS ) otherwise known as International Accounting Standards ( IAS ) . Today, more than 100 states are already on IFRS. States such as India, Korea and Canada are be aftering to meet by 2011.
Malaysia Accounting Standard Board announced their program to to the full convergence with IFRS by 1 January 2012. The program to to the full meet was announced on 1 August 2008. Thong Foo Vung, Technical spouse of KPMG Malaysia, commented, “ The full convergence would reason that all public listed company in Malaysia will be standing at the same degree compared to other international companies in footings of the fiscal statements describing. ” The thought towards meeting into IFRS would let investors to hold a deeper, thorough, a comprehensive consciousness of fiscal statements prepared by the companies here, in Malaysia and leting them to do a wiser pick of investing.
This move is able to convey more benefits to transnational companies and those who wish to raise financess from the international market. Furthermore other advantages would be enhanced transparence and comparison, besides a more inclusive, better – quality in fiscal information for stockholders and other users of fiscal statements. The constitution of the IFRS model is important to conform that Malaysia is non left out from the globalisation by seting Malaysia on the map. ( Thong Foo Vung, Technical spouse, KPMG, 2008 )
The chief purpose of this undertaking is to look into on the procedure of execution of IFRS on Malayan companies towards the planetary convergence by 2012. The procedure of execution would able to supply appraisals on where presently the companies stand in accomplishing planetary harmonisation.
This survey is specifically undertaken to:
Determine whether the companies are either on the manner of convergence or to the full converged
Determine the perceptual experience of the companies on the application of the IFRS as the footing of fiscal coverage system.
Indicate on the grade of consciousness as how good equipped is the company while traveling towards the just value model.
Methodology is used to intend the ways in which techniques are chosen to turn to a peculiar job, the ways in which jobs are chosen, methods of techniques, the modeling procedure and besides the chronological planning of events ( Lehaney & A ; Vinten, 1994 )
Harmonizing to Janes ( 1999 ) the chief intent of directing out a study in a signifier of questionnaires, is to happen out on the existent state of affairs, perceptual experience of peoples, and to compare on the alterations that occurs. It is the lone manner to acquire a clearer thought on the province of a group, a community, an organisation, a set of corporations and even a profession. In many instances, these studies can be compared to images taken at a certain period of clip.
A assortment of methods is planned to be used to roll up and bring forth informations. The information collected will be analyzed utilizing qualitative and quantitative methods.
To find the perceptual experiences of the Malayan companies towards Global convergence, a research in the signifier of questionnaires study will take topographic point. The sample size would be of 300-400 of all companies listed on the chief board and 2nd board of Bursa Malaysia. The questionnaires will be sent through electronic mail, to the Head of the Accountant section or to any forces who would be involved with the acceptance procedure in their companies.
Questionnaire study will be sent through electronic mail to have responses from the respondents. It is believed that directing the questionnaires through electronic mail is cost and clip salvaging. It is predicted that 100s of questionnaires can be sent within a few yearss, and responses are expected to be received rapidly. The e-mail reference can be found in Bursa Malaysia web site, and besides the several company ‘s official web sites.
The questionnaires are expected to be divided into a few subdivisions. It will most likely divide into inquiries utilizing a five point Likert evaluation graduated table. The scope of replies will be from 1 = strongly agree to 5= strongly disagree. An analysis of the Likert Scale information would enable to find the perceptual experiences of the Malayan companies in implementing the IFRS towards Global Convergence.
The population selected is from the companies listed in Bursa Malaysia. The companies will be chosen from both the Main Board and the Second Board. The sample size will be of 300-400 from all the companies listed. The questionnaires will be sent to the Head of the accountant section or any forces who are familiar with the convergence procedure in the companies.
Restrictions of the research
Several restrictions might happen in the procedure of transporting this research paper. It is assumed the undermentioned factors listed below might act upon on the truth and cogency of the research paper.
The 2nd portion of put to deathing the research would be about 12 hebdomads continuance. Which is will be taking topographic point from the month of May 2010 until July 2010. It will be difficult to guarantee all questionnaires that have been emailed to respective companies would be received within the peculiar clip period. This is nevertheless, although the method of having feedback is a fast one which is by electronic mail, the premises that some feedback might necessitate a longer clip period should be made. Therefore, such a clip restraint may take to a research paper missing item as sufficient informations would non hold been obtained within a short clip span or the analysis of informations may necessitate a longer clip period.
Lack of information of resources
It will be difficult to roll up sufficient information which is related to the research subject or analyze old literature due to the deficiency of resources in the UCSI University library and database. Furthermore, digital library that could be accessed, are limited and do non let farther entree to necessary literature. This restriction proves to be a hard as could take to analyze to be less than accurate and deficiency of needed information.
Another restriction that could happen will be due to fiscal restraints that could forestall from buying relevant diaries, mention stuffs and besides books associated with the research survey.
Fiscal statement is the chief facet of concern coverage. It gives a clear image on the fiscal state of affairs of a company over a period of clip. That being said, the presentation of fiscal statement should be of choice fiscal coverage, and supply with utile information, to let a broad position for the users of fiscal statement to do an accurate determination.
Therefore, it is really of import and besides really important to hold standardized fiscal statements that can assist companies to better the understand ability of their fiscal statements within emerging economic systems.
Definition of standardisation
Standardization is a procedure by which all members agree to follow the same or really similar accounting patterns. ( L.L. Tay, 2007 ) . The benefit of standardisation can be due to fiscal, economic and political. It has been suggested that companies, creditors, investors would prefer a convergence of accounting criterions with international accounting criterion to make a quality fiscal coverage model ( A.Sawani, n.d. ) . British Prime curate, Gordon Brown ( 2008 ) has addressed his sentiment on this to the Unites Nations, saying that ;
“ Transparency and improved accounting criterions adapted by all states, will be critical to stoping a civilization of irresponsibleness ”
Definition of Harmonization
Harmonization is a procedure of increasing the compatibility of accounting patterns by puting bounds on the grade of fluctuation ( L.L.Tan, 2007 ) .
The convergence program
Entities are required to fix a statement of fiscal place, a statement of comprehensive income, a statement of alterations in equity, statements of hard currency flows along with notes to histories to explicate the significance of the accounting policies that have been used. These stairss are taken topographic point in order to advise users of fiscal statements about the entity fiscal place, public presentations throughout the accounting twelvemonth, and besides their fiscal place ( Veets, n.d. )
The demand for planetary accounting criterion makes a great impact when there a deficiency of equality that could be present among legion states in accounting for such points such as fixed assets, pensions, rentals, stock list, depreciation, fiscal statement consolidations, and fiscal revelation demands ( Jacob and Madu, 2004 ) . Therefore the harmonisation of accounting criterions will carry investors to put in foreign stocks and to besides prosecute in other signifiers of foreign direct investings ( J.J. Asongu, 2008 )
Start thought of research thoughts
Traveling through aggregation of research thoughts
Seeking appropriate literature related to thoughts
Early on February
Discoursing with lector on research thought
Choosing research rubric
Submiting outline entry
Presentment on the blessing of supervisors
Collection of suited literature and other appropriate stuff
Final authorship of proposal study
Printing and binding of proposal study
Early on May
Discussion with supervisor on Proposal
Roll uping inquiries for questionnaires
Collection of companies e-mail and individual in charge
Early on June
Sending out questionnaires
Final aggregation of questionnaires and analysis of informations
Sending out request/e-mail to companies with no feedback
Completion of first bill of exchange of research undertaking
Early on July
Final authorship of undertaking study
Completion of last bill of exchange of research undertaking
Submission of research undertaking