Essay theme
It is argued that the influence of the International Financial Reporting
Standards (IFRSs) in the form of adoption/convergence has greater economic
consequences for the emerging economies let alone the benefits the IFRSs are
perceived to bring to these countries.

REQUIRED
Reflecting upon the above argument, you are required to write a critical essay
of about 1,250 word-length* on ANY ONE of the following countries discussing
why this is the case:
 India
 China
 Indonesia
Note: For the country you choose to write your essay, you may consider, for the
purpose of demonstrating intellectual understanding and knowledge, some
important country-specific factors such as (1) culture and religion, (2)
macroeconomic situation, (3) political regime, and (4) existing
business/financial markets regulation and trends (4) professional accounting
regulation, etc.
{*Note: The word-length advised is 1,250 words. This, however, has a
permissible upward limit i.e., +10% range which is a maximum of 1,375 words
length. But your essay, given the critical theme, should not be less than 1,250
words. You are required to ensure this from the beginning when you start
working/planning. If your assignment exceeds the word count by more than
10% of the total (not including appendices), a 10% penalty will be applied to
the final mark.}

Guidance to develop your critical essay
What you need to explore, formulate, structure, and indeed, discuss
critically and coherently in your essay?
A. Identification of accounting system i.e., nature of accounting
system in the country
 What type of accounting system prevails in the country?
 Why is the accounting system like this? i.e., some history?
B. Reason(s) for your choice of country to study
 Some example (e.g., traditional, rudimental, modern, and one that may
have been influenced by some events/agreements- political, trade,
taxation, economic, etc.) that shows a stark or clear difference in the
trend with the existing international regime of accounting.
 Some economic indicators (GDP, size of market, etc.) could also form
part of the above.
C. Differences with IFRS i.e., any differences between the accounting
standards/system used in the country under review and
International Financial Reporting Standards (IFRS)
 Identification of some important differences by the way in which some
specific but important accounting is undertaken which is clearly
different than the IFRS mandate in that respect. For example,
accounting for (1) Goodwill; (2) Financial Instruments accounting
such as hedge accounting, derivative accounting, (3) long-term
biological assets, (4) pensions, (5) revenue recognition, (6) dividend
payment, etc.
 The identified difference(s) must be able to explain in a clear manner
the reason(s); as to why it is the case.
D. Major issues for stakeholders, i.e., whether you believe these
differences cause any major issues or concerns from the viewpoint
of global investors or stakeholders
 Who are these stakeholders? Clear identification
 Which differences concerns them? Some reasons.
E. Evaluation of convergence, i.e., whether the current position and any
near future changes are likely to lead to issues regarding the country in
achieving full convergence with IFRS.
 Based on the discussions, e.g., regulators and other important
agencies in the country, how is convergence process taking shape.
 Any relevant and or latest news would be helpful here to
demonstrate the politics or strategy initiated by the country; how
and why?
Please note that all the above points i.e., the discussion, must evidence a
good use of research literature- i.e., journal articles, regulators discussions,
policy discussions, strategic documents, stock market discussions, tax,
media etc. Overall, it should show a good and critical synthesis
demonstrating an interesting study.

The following can be taken as a guidance to develop your critical essay
from an academic quality perspective. You may give a “title” your essay and
show the following structure indicating the word- length for each section
clearly at the end of that section. (The example below discusses country X
as a choice of study. But you could well choose the one you can explore
and write very well.)

(1) Introduction (This has a 10% weightage)
In this section, you will introduce the topic theme in a clear manner. For
example, you may guide your reader – (See how the writer of this essay
has “briefly introduced the theme (of “IFRS” and “convergence”) and
clearly reflected/reasoned the motivation to choose Japan as the main
study for this essay!):
The International Accounting Standards Board (IASB) sets the global
accounting standards known as International Financial Reporting
Standards (IFRSs). The IFRSs are mandated by the European Union in
the form of “adoption” in order to standardise/harmonise the financial
reporting practice of public listed entities in the whole of Europe.
However, this objective, since 2005, has crossed the frontiers of Europe
requiring other countries to either adopt or converge to the IFRSs
(Perry and Nolke, 2006; Ball, 2006). Although an ambitious project in
scale and size, the “convergence” to the IFRSs has not been fully
accomplished in many countries. In this essay, I will aim to explore and
discuss the current position of the IFRS convergence in country X and
some of the reasons as to why it is argued that although useful for global
financial markets, however, the adoption or convergence to the
International Financial Reporting Standards (IFRSs) are considered
problematic for it.
(Above word length is 156 words. This covers one-half A4 page
when double-spaced)

(2)Relevant Literature discussion/review (This has a 20% weightage)
In this section, you should be able to discuss the various/critical factors
that govern the country X’s economy and the corporate sector in terms
of financial reporting regulation. Some example (e.g., traditional,
rudimental, modern, and one that may have been influenced by some
events/agreements- political, trade, taxation, economic, etc.) that shows
a stark or clear difference in the trend with the existing international
regime of financial reporting. Your discussion should chiefly focus on
the available literature on IFRS convergence in country X as well other
BEM economies. In order that your discussion is coherent enough, you
should be able to reflect/identify certain theories in support/against the
IFRS convergence. You can show this by relevant examples
demonstrating to some extent, a deeper and or providing some useful
“insight(s)” about country X’s financial reporting system for your reader.
(Expected word length is 600-625 words. This covers about two and-half A4 pages when double- spaced)

(3)Critical Discussion (theoretical/empirical) (This has a 40%
weightage)
Building on the above section, you should focus on certain critical issues
in country X, chiefly drawing attention to the various debates, noises,
concerns raised by stakeholders including policymakers and
professional bodies. Any relevant and or latest news would be helpful to
demonstrate the politics or strategy initiated by the country; how and
why? Care should be taken that you do not reproduce the work, but you
must “synthesize” it showing “your understanding” of the relevant
points.
As an engaged discussion strategy, you can support your discussion by
good examples and or some useful empirical data which may help
explain the position of convergence to the IFRSs (e.g., in terms of the
pros and cons of IFRSs) for country X’s economy. For instance, some
specific but important accounting is undertaken differently than the
IFRS. Example(s) might show treatment in respect of (1) Goodwill; (2)
Financial Instruments accounting (3) long-term biological assets, (4)
pensions, (5) revenue recognition, (6) dividend payment, etc.
(Expected word length 350-400 words. This covers one-and-three
quarters A4 pages when double- spaced)

(4) Conclusion (This has a 20% weightage)
In this section, you should be able to summarise your study providing
some logical arguments and discussion of the work overall. For
instance,
The IFRS convergence project in country X indeed has been more of a
delayed work since the
Country X’s government took a good review of the which clearly
suggest…. that (1) country X’s culture of …. and the (2) various…… …,
and (3)………………………………………………..This means that for country X
(especially for its domestic companies…….it will prove….) Also, the
changes in IFRSs in Europe and elsewhere, country X’s policymakers
apparently have taken a cautious, but systematic steps, strategically
speaking, in managing the sustainability of its socioeconomic activities.
(Expected word length 150-175 words. This covers one-half A4 page
when double-spaced)
Please note that for all of the above points i.e., the discussion, must
evidence a good use of research literature- i.e., journal articles,
regulator discussions, policy discussions, strategic documents, stock
market discussions, tax, media etc. Some useful references are also
listed at the end of this guide. Overall, the essay should show a good
synthesis of the topic demonstrating well a clear/researched course of
study.
Please also note that Plagiarism will be viewed very seriously.
You are required to train yourself well with DMU Harvard Referencing
style https://library.dmu.ac.uk/harvardguide as the same bears 10% of
the marks in this evaluation process including overall structure of your
essay piece.