Research Project Introduction and Justification
Today’s business environment is becoming more competitive, dynamic, innovative and globalized for all the types of business firms including small and large. This competitive and globalized business environment is playing a key role in creating a wide range of issues and challenges in the front of the companies or corporation. For case, several kinds of issues are faced by the business firms in the market that negatively affects the success, growth, profitability, and productivity of a company. In addition to this, it should also be noted down that, in the present time, the most challenging problem encountered by the global firms is directly or indirectly related to accounting. It means global organizations are facing several types of accounting challenges that not only have adverse impact on the revenue and profit of the global companies but also have major impact on the accountability, creditability, flexibility and organizational reputation (Adagey, Azagaku, and Umbugadu, 2015). For example, it is also accessed that, Microsoft Corporation is one of the leading and fast growing company that is also facing different challenges and issues related to the accounting. These issues negatively affected the individual and organizational productivity of the company. Moreover, it should also be noted down that, the selected research topic is a current and challenging issue for all the business firms so this topic is selected. Moreover, this research topic is also contains the strategies to deal with certain accounting issues. Hence, the topic to analyze and access the challenges of Accounting in Global Organizations: In the context of Microsoft Corporation is selected.
According to Romanus (2014), global companies have added subsidiaries in different countries, formed cooperative alliances with different nations firms, listed shares on multiple stock exchanges overall the world, engaged in exchange currency with many countries, use global cross-border debt financing, and set up business centers that created accounting challenges. Different nations have their different rules and regulations that required following by global company that is challenging task of the business. Moreover, different nations have different accounting rules, principles and standards that followed by global companies that created accounting challenges of them. In the words of Arnold (2009), different nation’s different accounting standards and principles created challenges of the global companies’ financial managers and accountants to follow them while group financial reporting and prepare consolidated financial statements that are very difficult task of accounting. For example, the United States organizations need to follow the rules and regulations of Generally Accepted Accounting Principle (GAAP), while the United Kingdom follows International Financial Reporting Standards (IFRS). Each nation has its own set of accepted accounting standards and meets the accounting requirements or standards are the main challenges of accounting in global organizations.
In addition, Unegbu (2014) stated that different nations have different business tax rates that calculations is challenging task of accounting and adjustment of each country tax paid in the consolidated financial statement of global company is also created challenges related to accounting. Saudagaran (2009) contributed in this through stated that different states in a nation also have their different corporate or business tax rate that calculation and paid taxes is also challenging tasks for accountant and financial managers in a global company. Ali (2011) also expressed similar viewed as stated that each company required to pay national and states tax on their earning of the business or operations in particular state or nation. Calculation of taxes and paid of taxes and their adjustment in the consolidated financial statements is challenging task of the accounting otherwise its impacts on the profit & loss statements of the global companies.
According to Kavanagh and Drennan (2008), global companies those engaging in global business face some accounting reporting challenges that are related to consolidate global subsidiaries and accounting of global transactions denominated in alternative currencies. Subsidiary corporation financial statements is prepared in the local currency that required to changes financial statement in parent’s country currency to prepare consolidated financial statements that also challenge for finance of the global companies. Althrough, Trigo, Belfo and Estebanez (2014) expressed that currency fluctuation sometimes changed the subsidiary corporation profit while prepare parent consolidated financial statements that is challenging task of accounting for global companies. Currency exchange value fluctuation changed transaction value of the subsidiary that not present accurate consolidated financial statements of parent’s global company (AICPA, 2017). In addition, Black and Morrison (2014) described that accounting software would be used by global companies to deal with these accounting challenges that they faced in the global market.
Generally, this research is mainly focus on the accounting issues/challenges faced by today’s global organizations. Moreover, in the current time of globalization and competitive business era, a wide range of accounting challenges are faced by the global companies that have major impact on the total success of the global business firms. With regard to this research topic, the main aim of this study is to discuss different accounting challenges faced by global business firms and access their impact on the organizational reputation, profitability, productivity and customer satisfaction. Moreover, the main objectives that will be targeted in this study are:
- To identify and evaluate the major roles of accounting in the total success of a global company: in the context of Microsoft Corporation
- To access the importance of theoretical, economical and practical knowledge for the global organizations in solving complex accounting and business problems
- To evaluate the roles and significance of informational technology in maintaining the professionalism in the organization: In the context of Microsoft Corporation
- To analyze the impact of accounting challenges on the global business firms and their accountants
- To investigate the key accounting challenges faced by the accountants of global companies in developing knowledge and skills
- To suggest various ways and methods to overcome accounting challenges
- To evaluate the impact of accounting challenges on functioning of Microsoft Corporation
- To analyze the roles of financial accounting standards in avoiding global accounting challenges
On the basis of identified research aim, objective and research problem, the following are the major research questions associated with this research such as:
- How accounting challenges are affecting the functioning and success of global business organizations?
- What are the major accountings challenges are faced by the Microsoft Corporation in the global business environment?
- Are accountings challenges influencing the overall success and growth of Microsoft Corporation?
- What are the different types of global accounting standards used by Microsoft Corporation to deal with accounting issues or challenges?
- How accounting challenges are affecting the individual productivity of accountants of Microsoft Corporation?
- What are the fundamental strategies, methods, and techniques utilized by the Microsoft Corporation to overcome the impact of accounting challenges on the organizational performance?
Research Methodologies and Techniques
Research methodology is the way to select best research methods for a particular research. This research methodology is helps the researchers to successfully complete the study by maintaining reliability and credibility of research outcome. Research methodology is a significant part of a research that justifies the reason behind the selection of a particular research approach, philosophy and design from the available options or methods (Whitbeck, 2011). In the context of this research, the following research methods will be applied to finish study:
Research Approach and Philosophy:
The research philosophy is based on the individual perceptions, beliefs and values of an researcher, so research philosophies are essential to develop a clear understanding about the research problem. A researcher is utilizes a particular philosophy as per the nature of research problem to conduct this research. For example, interpretive, positivism and realism philosophies are most valuable research philosophies that used by the researchers to investigate the business issue. For case, this research study is based on the accounting challenges for the global firms. Moreover, interpretive philosophy is based on critical analysis. In contrast, realism is based on reality or science. But, positivism is based on positive approach on the research topic/issue. In the context of this research study, the interpretive philosophy would be appropriate to investigate the research problem because it is business related research topic. At the same time, by using this philosophy, the researcher would be able to use critical ways to develop knowledge on the selected topic by collecting accurate and real information (Yin, 2014). Moreover, by using the interpretive philosophy in the research, the researcher will focus on both the sides of the research problem. For case, the researcher would consider hypothesis in order to collect the information. The research approach justification is necessary and important to gather appropriate data according to the research subject or problem. Inductive and deductive are two types of research approaches that used in the research to solve the research problem. Inductive research approach is supports interpretive philosophy that is effective to investigate the current issue and topic. In addition, deductive approach is linked with realism and positivism approaches and helps the researcher to investigate existing theories concept and issue through collecting huge amount of data or information (Thomas, Nelson and Silverman, 2011). In this study, deductive research approach will not be effective and appropriate. So, inductive approach would be applied to collect the specific and accurate information about the research in order to attain the research objectives.
Use of Research design in the research is also essential because data collection methods depend on the research design. Qualitative and quantitative research designs are two significant ways of research design that used in the research study on the basis of research problem, nature of research, application of research approach and research philosophy. Inductive approach is requires quality and real data, while deductive approach needed the huge amount of the data to investigate the selected topic. Qualitative design is appropriate to evaluate the human behavior and realistic problem, while quantitative design is effective to investigate the old concept or scientific approach (Punch, 2013). In this study, a mixed method of research design would be used to collect current and existing data, facts and figures through primary and secondary sources. This would help the researcher to develop his knowledge and understanding about the research issue and outcome.
A Project Plan
A project plan is also play a fundamental role in the research and assists the researcher to accomplish the aim and objectives of the research in a systematic manner. A project plan can be defined as a Gantt chart or time schedule that provides direction to the researcher regarding the appropriate way of conducting the research study (Pickard, 2013). In the context of this business filed research, the Gantt chart or time schedule and milestones are as follow:
The below horizontal chart is shown the Gantt chart of this study:
Questionnaire Formation & Distribution
Collection of Responses
Analysis of Data
Relating Research Objectives with the Findings
Conclusion and Recommendations
The milestone is linked with time schedule or Gantt chart because without time schedule, the researcher would not able to achieve milestones of the project. This project/research related main milestone is as follow:
- Week 1: Introduction
- Week 6: Literature Review
- Week 7: Research Methodology & Technique Selection
- Week 8: Questionnaire Formation & Distribution
- Week 10: Collect response of participants
- Week 12: Data analyzed
- Week 13 Presentation of data findings
- Week 14: Conclusion
Research Process Description/Research Structure
A research process is give clear direction and ideas to the researcher to conduct the study appropriately and effectively. Moreover, a research process is assists the researcher to complete study with time schedule. Research process is provides guidelines regarding the way of maintaining credibility of the study. The project plan is suggesting that this research study is divided systematically into five parts. The first step or chapter is introduction that describes the topic background, research topic, objective, aim and objectives, topic selection justification, scope and significance of the study, project plan or timeline and ethical aspects of the research (Miller and Tsang, 2011). Introduction chapter provides basic guidelines to the researcher about how to attain research objectives.
Moreover, the second step/chapter is literature review by which the researcher is critically analyse research topic/problem by representing the views of different authors or scholars views on the research problem. Moreover, the secondary sources of information are used to collect secondary data. For example, articles, scholars, journals, books, company website, company annual report, government reports or statistics, and authentic online sources are used to conduct the literature review. In addition, the third step/chapter is research methodologies and technologies that justify the selection of the research methods/approaches to attain the goals of the research (Bryman, 2012). On the other hand, research methodology is also explains research methods, approach, philosophy, methods of data collection, sampling techniques technique used in conducting the dissertation/research.
Moreover, fourth step or chapter is data presentation by which data and information is presented in the form of table, charts and graphs to effectively understand the research. Data analysis and presentation section represents main findings of the primary and secondary data (Gerrish and Lacey, 2010). Furthermore, the final step or chapter is conclusion that shows the main outcome of the overall research process and significance of the research outcome for practical world.
Data Collection & Analysis
Primary and secondary are the two specific and innovative ways of data collection that generally used to solve research issues and conduct research. In this research study, both the data collection method would be applied in this study to collect data, facts & figures. The primary data/information will be collected through the use of questionnaire survey technique. In this, 10 open-ended questions will be selected and then 100 questionnaires were send to accountants of global companies to collect the data and information about the research topic. In addition to this, in the context of this research study, the researcher will use random sampling way to select 100 managers for questionnaire survey (Bendat and Piersol, 2011). The literature review would be conducted by using secondary data to analyze the impact of accounting challenges on the success of global firms. Moreover, content analysis method would also be used to present the outcome of primary and secondary data collectively.
The findings of the research indicates that, global business firm are facing the issues related to the accounting. Moreover, these challenge negatively affecting the total success of the global organizations. At the same time, it can be said that, global business firms should adopt specific accounting standards, methods and techniques to deal with such accounting issues and challenges.
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