Research Proposal On Wesfarmers And Woolworths Essay


Discuss about the Research Proposal on Wesfarmers and Woolworths.


Research Topic

Impact of Contemporary issues in Accounting Standards on financial reporting of Wesfarmers Limited and Woolworths Limited


This research proposal deals with understanding of the impact of various contemporary issues prevailing in accounting standards in both the ASX listed Australian firms named as Wesfarmers Limited and Woolworths Limited. In this particular research proposal, literature review is explained by rendering proper theoretical concepts on accounting conceptual framework of Wesfarmers Limited and Woolworths Limited (Woolworths Online 2016). Later, proposal conducts hypothesis, aims and objectives of the present study that signifies the impact of related contemporary issues in accounting pertaining to business. This study mainly focuses on preparation of proposal for pilot study based upon two Australian listed companies named as Wesfarmers Limited and Woolworths Limited. Woolworth’s non-compliance to AASB standards leads towards demolition of reputation in present competitive world. On the contrary, AASB standards of Wesfarmers Limited are compared with Woolworths Limited following conceptual framework throughout its business activities ( 2016). In the research methodology section, researchers tend in using positivism philosophy as it contains scientific data assumptions. The researcher will use deductive approach because study requires using of previous existing theories and tools for research purpose (Tarca, Morris and Moy 2013). Researchers will be using secondary sources for collecting of information for research purpose such as annual reports from company websites of Wesfarmers Limited and Woolworths Limited (Woolworths Online 2016).

Literature Review

Financial analysis of any accounting firm requires better business reporting as well as shift from current compliance standards. It mainly focus on integrated as well as holistic business reporting approach for improving the communication with markets and contributes towards better capital allocation decisions (Tarca 2012). This particular proposal examines better business reporting series and focus on immediate steps organization need to take for enhancing strategic as well as forward-looking aspects of financial statements and informing the investors. Some of the popular examples from leading ASX listed entities such as Wesfarmers Limited and Woolworths Limited ( 2016).

Samkin and Deegan (2012) believe that enhancing financial reporting provides an opportunity for Wesfarmers and Woolworths for communicating in clear form regarding important investment drivers. It helps in delivering information with high level of credibility as well as reliability and consistency in accordance with current financial reporting and assurance framework at the same time ( 2016). Both the Australian Listed firms uses the AASB framework in their accounting activities and this is one of the prime factor emphasizing on the major implications in present study. It is important to consider the fact that this part of the study explains the theoretical concepts used based upon the research topic.

Rahman (2013) opines better business reporting provides enough support for improving in the investor decision-making process. Financial analysis requires extreme amount of work that needs professional knowledge. Compliance to AASB standards helps in providing sturdiness for Australian firms and enhances in the standards at stages of the firm. Preiato, Brown and Tarca (2015) argued that comparative study mainly aims at highlighting the effects of non-compliance guidelines with the AASB guidelines from Australian-listed firms. Some of the norms of social responsibility involves salary of employees as well as influences over shareholders in the present study. On critical analysis, it has been found that conceptual framework helps Australian firms in developing various concepts and highlighting main purpose of financial reporting. AASB standards help in bringing high level of consistency and promoting the understanding of financial statements for the users.

As opined by Kang and Gray (2013), annual reports of Wesfarmers and Woolworths indicates in a comprehensive reports for accounting activities from previous years. It helps in gaining information for the shareholder of the Australian listed firms for increased financial performance and activities for specified organization. From the annual reports of Wesfarmers Limited and Woolworths Limited, it was easy to gather facts regarding ASSB compliance in relation with conceptual framework.

Research Questions and Hypothesis

Research Questions

  1. What are the major impact of accounting standards framework present in companies like Wesfarmers Limited and Woolworths Limited?
  2. What are various factors behind increased contemporary issues in accounting for Wesfarmers Limited and Woolworths Limited?
  3. How implications of accounting standards help in developing future accounting activities prevailing in Wesfarmers Limited and Woolworths Limited?


H0: There is impact of Contemporary issues in Accounting Standards on financial reporting of Wesfarmers Limited and Woolworths Limited

H1: There is no impact of Contemporary issues in Accounting Standards on financial reporting of Wesfarmers Limited and Woolworths Limited

Operational Definitions and Management

Dependent variable: Financial reporting process in the Australian-listed companies named as Wesfarmers Limited and Woolworths Limited

Independent variable: Contemporary issues in accounting standards in Australia

The above variables explain the direct relationship of usage of AASB conceptual framework by both the Australian listed company ( 2016). Dependent variable revolves around understanding the facts regarding the financial reporting process for Wesfarmers Limited and Woolworths Limited. This means variables are dependent and persistent to change for the listed companies. On the contrary, independent variables deal with discussion on various contemporary issues in AASB accounting standards (Giner and Arce 2012).

Research Methodology: Data Collection and Analysis

Sampling Techniques

In this particular research, purposive sampling will be used by the research. This is because selected study is conducted for specific issues regarding contemporary issues in accounting (Deegan 2013). Purposive sampling is one of the non-probability sampling techniques in the final research process. The researcher conducts this type of sampling mainly focus on sampling techniques whereby units are investigated and judgment at the same time. Researchers will conduct secondary data collection method whereby data will be collected from secondary sources such as academic journals, books as well as annual reports from company websites of Wesfarmers Limited and Woolworths Limited (Deegan 2012).

Methods of Analysis

Research Philosophy

As rightly indicated by Chen, Ding and Xu (2014), the learners primarily adopt the research philosophy of positivism with the intention and purpose of introduction of different interconnected subjects that in turn aligned with the present research topic. As such, this particular research philosophy of positivism can help the learner in estimation and evaluation of the outcomes of the study on “Impact of Contemporary issues in Accounting Standards on financial reporting of Wesfarmers Limited and Woolworths Limited” (Woolworths Online. 2016). Therefore, it is important for the learner to minimize the errors to attain greater accuracy. The selection of the research philosophy of positivism is warranted as it aids the learner in understanding and selecting the research topics (Samkin and Deegan 2012). In addition to this, the philosophy of positivism also helps in the substantiation of the particular topic that in turn can help in earning scientific data.

Research Approach

As rightly put forward by Brown, Preiato and Tarca (2014), the method of analysis involves adoption of appropriate research approach, research strategies, process of collection and analysis of the data. As rightly put forward by Adibah Wan Ismail et al., (2013), there are essentially two different types of research approaches, namely, the inductive and the deductive approach. The inductive approach helps in development of the hypothesis for a study that can be tested in the course of the study. However, the deductive approach refers to the process of analysis of the research topic under consideration by taking into account different theoretical notions, models and frameworks (Woolworths Online. 2016). Out of the two research approaches, the learner can consider selection of the deductive approach for the current study as this particular approach can help in arriving at conclusive outcomes by employing different theories as well as concepts of research topic (Chen, Ding and Xu 2014).

Research Process

Process of collection of data

There are different methods for collection of data that can be associated to the overall process of conducting the research. For the purpose of the present study, the learner can consider the collection of the secondary data from available from different sources that includes the official company websites, published literature on the operations of the company, journals, books and many others (Chen, Ding and Xu 2014).

Process of evaluation of data

As rightly indicated by Brown, Preiato and Tarca (2014), the learner can adopt different processes for the analysis that includes the quantitative and the qualitative processes. The quantitative technique refers to the process of evaluation of the data by making use of different mathematical and at the same time statistical techniques such as the percentages, charts, tables and diagrams. However, the qualitative process of data interpretation indicates the procedure of descriptive assessment of the amassed data. In this particular case, the learner intends to adopt both the quantitative as well as the qualitative procedures for the assessment of the acquired data for the current study (Samkin and Deegan 2012).

Ethical Consideration

Researchers require carrying out the research work in ethical ways. They should collect all the authentic data by secondary sources like annual reports of company websites (Tarca, Morris and Moy 2013). In this particular study, researchers should conduct secondary data collection for researching on the accounting standards on Australian listed companies named as Wesfarmers Limited and Woolworths Limited. Researchers should not use any unethical means for retrieving the data from secondary sources. Researchers should take help from previous research work presented in the online sites (Samkin and Deegan 2012).

Accessibility Issues

Researchers requires in assessing the data and concerns as main job for them at the time of conducting the research on the present study. Usage of data has the ability in changing the structure of present project (Chen, Ding and Xu 2014). There are even websites that do not allow in assessing the information from research purpose.

Limitations of the study

Researcher failed to conduct in-depth analysis on the present topic due to time constraint. Other factor involves lack of financial resources that required in assessing the paid sites for research purpose (Tarca, Morris and Moy 2013). Researchers had made access to the authentic websites and annual reports of company mentioned in the current study.

Expected Outcomes

Researchers will try to minimize the error and limitations of the study in the next research work. They will enhance and dedicate more amount of time and arrange for financial resources for making more authentic research work. Some of the concepts of accounting framework related to the companies are yet to be discussed in the next research work (Chen, Ding and Xu 2014). Future research work has the ability in conducting analysis on other Australian listed companies and their method of accounting standard used in the business activities.

Reference List

Adibah Wan Ismail, W., Anuar Kamarudin, K., Van Zijl, T. and Dunstan, K., 2013. Earnings quality and the adoption of IFRS-based accounting standards: Evidence from an emerging market. Asian Review of Accounting, 21(1), pp.53-73.

Brown, P., Preiato, J. and Tarca, A., 2014. Measuring country differences in enforcement of accounting standards: An audit and enforcement proxy. Journal of Business Finance & Accounting, 41(1-2), pp.1-52.

Chen, C.J., Ding, Y. and Xu, B., 2014. Convergence of accounting standards and foreign direct investment. The International Journal of Accounting, 49(1), pp.53-86.

Deegan, C., 2012. Australian financial accounting. McGraw-Hill Education Australia.

Deegan, C., 2013. Financial accounting theory. McGraw-Hill Education Australia.

Giner, B. and Arce, M., 2012. Lobbying on accounting standards: Evidence from IFRS 2 on share-based payments. European Accounting Review, 21(4), pp.655-691.

Kang, H. and Gray, S.J., 2013. Segment reporting practices in Australia: Has IFRS 8 made a difference?. Australian Accounting Review, 23(3), pp.232-243.

Preiato, J., Brown, P. and Tarca, A., 2015. A comparison of between?€ђcountry measures of legal setting and enforcement of accounting standards. Journal of Business Finance & Accounting, 42(1-2), pp.1-50.

Rahman, A.R., 2013. The Australian Accounting Standards Review Board (RLE Accounting): The Establishment of Its Participative Review Process. Routledge.

Samkin, G. and Deegan, C., 2012. New Zealand financial accounting. McGraw-Hill Education Australia.

Tarca, A., 2012. The case for global accounting standards: Arguments and evidence. Available at SSRN 2204889.

Tarca, A., Morris, R.D. and Moy, M., 2013. An investigation of the relationship between use of international accounting standards and source of company finance in Germany. Abacus, 49(1), pp.74-98. (2016). Home. [online] Available at: [Accessed 20 Aug. 2016].

Woolworths Online. (2016). Woolworths Supermarket - Buy Groceries Online. [online] Available at: [Accessed 20 Aug. 2016].

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