Research Framework

Research Framework

Content of Proposal

Over the years there has been a lot of development in the implementation of the international accounting standards in the United States of America. Thus a research report has been conducted in order to find out the accounting developments in US. The report has frame worked hypothesis that will be either accepted or rejected after the research has been conducted. The hypothesis developed for this report is:

H1; Attitude of international and domestic firms towards implementation of international accounting standards have positive impact on US Companies;

H2; Implementation of international accounting standards have positive impact on the political, cultural and social factors; and

H3; Implementation of international accounting standards will have negative impact on all the US Companies internationally and domestically.

The research data will be collected related to the above hypothesis in order to find out that either these hypothesis will be accepted or rejected. The research will be done on the basis of the variables identified. The variables identified for the above research are independent and dependent variables.

The independent variable of this research will be the factors that will either have a positive or a negative effect on the firms operating internationally and domestically. The dependent variable of the research will be the implementation of international accounting standards by all the US Companies.

The data collected through primary and secondary sources regarding the independent and dependent variables will help in finding out the hypothesis that are accepted and the ones that are rejected.

Synopsis of the Research Proposal

The main aim of conducting this research is to find out the response of all the US companies that are operating internationally and domestically towards the accounting developments in the world. The research will also enable us to find out the changes in the accounting methods, principles and procedures adopted by different firms due last few years. It will also try to find out that has there any change occurred in the accounting functions of the organization due to the changes occurring in the legal environment. Thus the research will help all the stakeholders like shareholders, creditors, suppliers and etc. to rely on the information that it is accurate and transparent. All the organizations operating in the economy of US have two follow two kinds of accounting standards. The most generally used accounting principle is GAAP which means Generally Accepted Accounting Principle and the other one is IAS meaning International Accounting Standards. Recently globalization has spread all over the world and thus it is necessary for organizations that are involved in global business that they should implement both or either one of the accounting principles in order to ensure that all the activities are transparent and fair. If organizations were only involved in running their operations in only US then they would only have to implement GAAP while practicing accounting in their organizations but due to development of international trade thus international accounting standards need to be followed.

In US, 99% of the companies are involved in international operations therefore both accounting ...