ACCM 4600 Accounting theory and contemporary issues Assessment

Case Study Details: 

You work for a large accounting and consultancy firm. Part of the role of your department is to advise  governments and regulators around the world on issues concerning the convergence and adoption of  International Financial Reporting Standards (“IFRS”). 

Indonesia’s current policy is of the gradual convergence of Indonesian Financial Accounting Standards to  IFRS. 

The Indonesian government, through the Ministry of Finance (“MoF”) has been lobbied by organisations  both in support of and against the adoption of IFRS. Some of those against adoption have referenced  the outcome of the recent US presidential election and the UK’s ‘Brexit’ as evidence of a ‘retreat from  globalisation’ which undermines arguments in favour of IFRS.  

The MoF is considering several options put to them by the different lobby groups including: 

• suspending the convergence program and retaining their own separate standards
• continuing the same current approach of ‘gradual convergence’ 
• adopting IFRS fully as soon as possible 

The Indonesian MoF have contacted your firm and requested help with their deliberations over this  important matter, which is proving problematic as different individuals within the ministry have different  opinions. To help them make a decision the MoF would now like an impartial report, including  recommendations. 

Two of the partners of your firm, Mrs A.D. Option and Mr Con Vergence, have identified you as ideal to  lead a team writing the report. The team you lead will include non-accounting graduates from the  consulting arm of your business. The partners request that you first provide a report plan (Part 1) before  completing the report (Part 2). They inform you that not all relevant staff at the MoF are accountants and  as such your report should be understandable to both accountants and non-accountants. 

The MoF have requested that the report contains (but is not necessarily restricted to) responses to the  following aspects:  

1. Briefly outline the origins, history and expansion of IFRS. 
2. Briefly provide the current and likely future position of IFRS globally in terms of coverage and any  major alternative accounting rules in use. 
3. Arguments for and against fully adopting IFRS; what are the costs and benefits to the Indonesian  economy, the Indonesian government and other parties? A recommendation is required. 
4. If Indonesia did decide to fully adopt IFRS, provide arguments for and against a one-off adoption  (as opposed to a more gradual convergence). A recommendation is required. 

You are aware of some excellent literature on the expansion of IFRS in developing and other  countries that you will also incorporate in this report. You can include any information in the report which you think will assist the MoF to make these important decisions. You must support your  arguments and hence use at least ten resources to inform your discussion. The library databases  (http://elearning.kbs.edu.au/course/view.php?id=159) will provide many useful journal articles on  this topic.  

After you have submitted the report plan (Part 1) to the partners, they will provide some feedback on  your work to assist you with the final report (Part 2). 

REQUIRED: 

You need to provide this information requested above in a report format in two stages as outlined below. 

Part 1: Evaluating information resources and research plan

detailed  instructions: 

1) Based on the above scenario, answer the following questions: 

1. a) What is the purpose of your report? 
2. b) What is the audience for your report?  
3. c) What are the (key) decisions to be made?  
4. d) What information would help you to make these decisions?  
5. e) When you search for relevant information (in a database for example) what keywords  will/are you using? 

2) Identify 10 sources relevant to the project (e.g. journal articles, textbooks, websites etc.). At least 4 of  these must be academic journal articles but there should be a variety of different sources used. 

3) Complete a source analysis on 3 of the 10 sources with full bibliographic references. At least 2 of  these sources must be academic journal articles. Refer to the source analysis template. 

4) Provide a full plan of main and sub headings of the report (include appropriate numbering). 

Resources to help you understand these requirements and in particular the source analysis template are provided on Moodle, including explanatory documents, marking rubrics and slides (which  accompany a presentation by your lecturer in week 2). 

Part 2: Final Business Report 40% comprising - 

Business report technical content

Business report format, language and presentation

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