Why do managers use prefer consolidated financial statements

Reference no: EM13978612 , Length: 2000 Words

Topic:
Why Do Managers Use/Prefer Consolidated Financial Statements For Financial Decision-Making? (might be slightly changed)

No# of Pages:
8 pages (2,000 words)

Academic Level:
Under Graduate

Subject Area:
Accounting

Paper Style:
Harvard

No# of Sources Required:
5

Language:
English (U.K)

Details:
The Research Proposal is the first part of my Research Project based on my industrial placement experience in Company X (name can not be provided). The paper is about the importance/relevance of consolidated financial statements compared to parent company financial statements for internal decision making (financial decisions).

The proposal should be 2000 words maximum and should include: Abstract (little introduction), Literature Review, Methodology and Limitations.

This proposal will be based on fictitious data (fake interviews) as I can not provide any. So I would like you to make up fake interviews to add in the Methodology section.

I have attached a preferred proposal guideline and a proposal plan where I highlighted the main points I would like you to talk about. I also have attached 5 academic references (files: 100,101,102, Credit Manager, The Reporting Entity) which you could use for the literature review. However, I want you to include other academic references (using Harvard Referencing Style)PROPOSAL PLAN

ABSTRACT

In today global economy, many organisations are growing into large corporations by the process of establishing foreign controlled subsidiary spread out in many different countries. This strategy leads companies to gain several benefits such as expanding their market share, enjoy cost reduction, sharing the material supplies, product diversification or availing tax benefits. A company that owns control over one or more entities is defined as parent company. Within the European Union, parent companies are required to prepare and publish both consolidated and individual financial statements in their annual report. Working in the Finance Department of Company X has aroused my curiosity on he importance of consolidated financial statements for internal financial decision-making. According to the International Accounting Standard Board the objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. In this paper I will highlight how and why consolidated financial statement are useful/necessary for the financial decision-making process with reference toCompany X.

LITERATURE REVIEW

• Previous research has been carried out about the relevance of consolidated financial statements compared to parent company financial statements for investors and other external users --> I will provide yousome useful references (write their conclusions --> what they have found out from their researches)

• My research will instead focus on the importance of consolidated financial statements for internal users: finance department managers (I have not found any previous research - this will be the first paper about this topic)

METHODOLOGY

• I have interviewed 4/5 managers of Company X finance department including Treasury/Hedging manager, Tax manager, Credit manager and Finance Director (mainly responsible for Company's investments). Interviews were based on question about why these managers take managerial decisions by looking at consolidated financial statements instead of looking at single entity financial statements.

LIMITATIONS

• Because of data confidentiality reasons I could not include Company X financial statements in my research paper. This has prevented me to provide a financial quantitative analysis of both Company X parent financial statements and consolidated financial statements --> it would have been a strong evidence to support managers' interviews, adding knowledge to the research.

• This research has another limitation as it is addressed to only one single company. A similar research should be conducted by analysing a wider sample size i.e. industry/sector.
RESEARCH PROPOSAL
Please note that blue instructions (in italics) should be deleted and replaced by the appropriate entries. The word guides are a maximum. The proposal should include a list of references and a timescale plan.

1. Proposed Title
Give a clear and succinct title, indicating the problem area around which the research will be undertaken.

(Excluded from the word count)

2. Background or Rationale of the Project
Include a description of the background to your project. Explain why you have chosen the topic - give both academic and personal reasons.

Answer the following questions:

Why do you feel this research project is necessary?

What is the problem or issue that needs sorting out?

Why are you interested in the project? What has aroused your curiosity?

How will your project add new knowledge to the field?

approx. 200 words (10%)

3. Preliminary Review of the Literature
Give a brief critical review of the literature within your topic area and justify the need for your research.
Don't forget to give a list of key references used (a minimum of 5) - use the BLS Harvard Referencing Style.

Answer the following questions:

What research has already been carried out on your topic area?

How was the research carried out? What research methods had been used? Briefly comment on the currency, validity and reliability of the literature.

What are the key findings/results reported in the previous research?

What different opinions have emerged from different authors? Have you identified any areas of controversy in the literature?

What gaps in knowledge have you identified? Which specific area has still not been covered by previous research?

Have the authors made any recommendation for future research that you could consider for the project?

What is the justification for your research? What have not been adequately covered by previous research?

Have you cited all sources of references correctly using the BLS Harvard Referencing Style?

Have you covered a majority of key articles including the most recent studies (e.g. last 5 years)?

approx. 650 words (25%)

4. Research Questions and Objectives
Here you should write your research questions as they emerge from the background and critical literature review. Develop these into 3-5 specific research questions that begin with ‘what, why, how, etc.' and research objectives that begin with ‘To...' and use higher level verbs such as apply, analyze, evaluate etc. Alternatively, you may establish your research hypotheses for this project.
For each research question/objective/ hypothesis, provide your rationales and reasons why this is critical and of relevance to your research project.

(a) Research Questions (and/or Objectives)

(b) Hypotheses (if any)

approx. 150 words (10%)

5. Research Plan (Methodology)
This is the most important section and you should answer the following questions:

How do you plan to answer your research questions, to achieve your research objectives or to test your research hypotheses?

What is the main purpose of your research? Is it exploratory, descriptive or explanatory research?

What is your research strategy? Do you plan to use experiments, surveys, case studies, content analysis, historical research, or other strategies?

How will you justify for your choice of the above strategy? Is it the most appropriate to achieve your research objectives?

What is/are your data collection method(s)? Will it be based on questionnaires, interviews, observations, review of secondary data, or a combination of these methods?

What is the population you intend to study? How will you select the samples? Please indicate the sources from which you will select your samples.

Which countries, industries or companies do you plan to study? Who are your target participants? (e.g. accountants, auditors, directors, entrepreneurs, students, etc.)

What is your proposed sample size? (e.g. how many countries, industries, companies or people?)

How will the data be analysed and presented? How will you analyze the quantitative and/or qualitative data? Do you require any computer software for data analysis? (You may include this in Section 7 as one of special resources required)

Comment briefly on how you will meet the basic criteria for validity and reliability of data.

All research studies have their limitations. What are the limitations of your research? How will you handle these limitations?

The following sub-headings are suggested for this section:

(a) Research Design

(b) Data Collection

(d) Limitations

approx. 800 words (30%)

6. References
You are required to strictly follow the BLS Harvard Referencing Style. A minimum of FIVE key references that are closely relevant to your project must be included. You should obtain them from reliable sources/databases, e.g. academic journals.

(Excluded from the word count)

Reference no: EM13978612

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