Financial accounting in banking industries - Myassignmenthelp.Com

Question: Discuss about the Financial accounting in banking industries. Answer: Introduction The modern world has various organizations that are operating successfully and are undertaking transactions and communications with other firms in order to sustain their operational activities. With the advent of globalization, companies from various parts of the world have been interacting with each other and have been undertaking transactions in order to make the business more appropriate and thereby expanding their business. In order to make the world a worldwide market International Accounting Standard Board (IASB) has constructed various accounting standards in order to establish uniformity in the aspect of accounts globally (Chen, Ding and Xu 2014). Accounting is one of the key components with the help of which individuals and organizations are able to maintain a record of their financial transactions thereby establishing their business successfully. The process of convergence refers to the coming together or the explanation of the direct relationship between two trends which can be price or any other indicator. In the current time period with the development of various standards in the global accounting system, there has been a need for undertaking convergence of several accounting standards in order to make it easier for the international traders and marketers to perform in the global economy. With the advent of globalisation, there has been a rise in the level of international trading and in order maintain a healthy accounting and transactional activities, it is essential to maintain an accounting system that would be helpful for both the parties who are undertaking the business. The need is more extensive in case for the manufacturing industries has they are the one who undertake several kinds of import and export activities and thereby interact with other organizations from other countries. The greater focus on convergence i s an outcome of the waves of globalization that has been riding along throughout the globe. Most of the organizations are transforming to multinational firms and therefore have their functions and operations in several parts of the world with a rise in the subsidiaries franchises and joint ventures. The capital market that is existent in various continents has become interweaved. The stakeholders and the investors now have additional access in the financial market and international organizations than previously (Wang 2014). It is essential to maintain the development in the effectiveness of the markets in order to keep them healthy. Conversely, the major concern has been the existence of different regulatory standards in many countries for the purpose of financial reporting. Therefore, the interpreting the financial statements from one kind to the other is troublesome as it is time consuming and costly. The investors look to be aware of the variations when assessing the internationa l firms and this misrepresents the consistency and comparability. The financial statements become unusable to the investors when they are not comparable completely. Therefore, it creates the chance that international investors restrict themselves from undertaking investments in foreign organizations as they are unable to understand the financial statements of the firm (Oulasvirta 2014). These circumstances can be observed mainly in the manufacturing industries where there have been several kinds of business and financial interactions and thereby it makes it difficult for the organizations to maintain an accounting statement that will be acceptable in any country. It is due to this factor that convergence of the accounting standards is crucial in order to make the investors satisfied and thereby improve the operational activities of the industries. This proposal therefore looks to assess the convergence of accounting standard and how it can improve the operational activities of manuf acturing industries as they are the main concern in this research proposal. Background of the Study The proposal concentrates on the convergence of the accounting standards that are existent in the global economy and how it has an impact on the manufacturing industries. The process of convergence and harmonisation explains the application of various approaches for the purpose of accounting for the purpose of integration among the accounting methods. Harmonisation addresses the similar accounting policies incorporated by the organizations all over the globe (Tschopp and Nastanski 2014). The rate of adoption of any sort of policies in the process of accounting increases, the convergence of the accounting policies rises. The examination of the origin of the differences among the accounting standards in various countries is essential prior to the explanation of convergence. Political factors are the key reason for the differences in the accounting standards in various countries. For instance, Germany and France always had significant influence on the regulations of accounting. The government of the country was hugely concerned about safeguarding the creditors and hence accounting standards that have been constructed is based on the historic cost and that looked to minimise the assets and profits (Bushman 2014). In countries like USA and United Kingdom, the independent accounting boards are accountable for the regulations with the focus on the protection of the investors. Conversely, there has been numerous studies that have addressed that cultural factors have influenced the differences among the national standards of accounting (Apergis, Christou and Miller 2014). The studies have explained that differences in the accounting standard is unavoidable as they are existent in different environment and answer to different directives and is an outcome of the various standard constructing processes and structures. The method of convergence is a significant challenge and the success of convergence is dependent on the relentless compromise among the key accounting standard boards. The first step towards convergence was undertaken by the European Union. In the year 2001, the European Commission declared a regulation that the companies that are listed within the European Union had to incorporate the international standards for the consolidated financial statements (Carraher 2014). This was an answer to the capital market of the European Union losing their competitiveness as many organizations thought if undertaking investments in the capital market of USA as the capital market of the country is integrated and larger. There are various countries globally who have incorporated the use of the international standards. The main aim of convergence has not been to accomplish similar statements but look to attain compatible statements where there are no deviations on how to account for similar transaction s. In spite of the various issues that have been faced by the convergence project, there have been key achievements that have been attained. One of the key achievements for convergence was the developments made in association to the accounting of goodwill (De Simone 2016). IASB even changed their IAS 22 with IAS 36 that restricted the goodwill amortization. This transformation aligned the international standard towards goodwill more relatively with the SFAS 141 of FASB with respect to which the goodwill is examined frequently for impairment and losses in impairment is identified in the same manner. The other instance that was observable has been that the conceptual framework that is available in USA and IFRS are quite similar and therefore has been converging with the existing efforts by the FASB and the IFRS. In US GAAP, the conceptual framework is just a guide for the standard setters in disseminating the standards of accounting. In IFRS, the conceptual model is not utilised as a guid e for creating the standards but even provides a foundation for the practitioners to undertake judgments related to accounting in circumstances when the other IFRS standards are not applicable. The difference that has been existent is that IASB looks make use of the one step process to an impairment examination in comparison to the two-step process of FASB (Young and Zeng 2015). There are key approaches in enhancing the level of consistency of IAS and US GAAP. Additionally further work needs to be undertaken for the special purpose entities and the joint ventures. A significant issue with respect to the special purpose entities that requires to be explained is the definition of when an organization has authority and control over another. The main reason for selecting this research topic is due to the fact that with the advent of liberalisation and globalisation, there have been several companies that have been operating internationally and have been facing difficulties in undergoing business. The difference in the accounting standards due to various related factors in a country has forced to the process of accounting standards. This is a key topic of concern and therefore an assessment on this topic would be helpful in creating knowledge and answer that would be helpful in determining the significance of the convergence of the accounting standards and their impact on the manufacturing industries. The other factor for selecting this topic has been because of the fact that this is an accounting topic and therefore research on this topic would be helpful in gaining additional knowledge on accounts and accounting standards. The research that would be undertaken would be a primary research and therefore the data that woul d be used in order to discover whether convergence of accounting standards is good for an economy would be known with the help of the responses that would be received from the selected respondents. The primary research and use of primary data can be helpful in attaining the new and fresh ideas and feelings and thereby would be able to gain an insight on the current scenario and what the respondents feel about convergence of accounting standards. Secondary research is not applied in this topic because of the fact that accounting standards change along with time and there have been incorporation of several accounting standards and therefore reactions on these standards and whether convergence of these standards would be helpful for the accounting perspective would be known with the help of the primary research and not secondary research. Rationale of the Research The topic that has been taken into consideration is one of the key concerns for the International Accounting Standards Board (IASB). There have been various researches that have been undertaken earlier in accordance to which there has been an observation that convergence of the accounting standards is required in order to globalise the accounting standard and thereby improving the financial statements and the functional activities of the organizations globally (Phang and Mahzan 2017). There are various other aspects with respect to which the accounting standards need to be assessed and thereby convergence of the accounting standards can be useful with the help of which the organization can improve their current financial scenario. Furthermore research is required as changes have been taking place in the economy and accordingly changes have been taking place in the accounting standards implied in various countries which makes the investors and the multinational companies confused. The assessment of the process of convergence is essential in order to understand whether it can have an impact on the companies that are functioning in the world. Research Aims and Objectives The research aims and objectives look to assess the aspects that are associated with the accounting standards and thereby understand the requirement of convergence. The objectives explain the elements on which assessment has to be taken with the help of which impact of accounting standard convergence can be attained. The research aims and objectives are as follows: Undertake a comparison of the various accounting standards with the IASB To examine the challenges and the risks associated with the incorporation of the accounting standards that provides knowledge about the language of financial reporting To undertake a comparison of the profitability of the organizations converging their accounts with the accounting standards To provide recommendations towards the successful incorporation of the convergence of the accounting standards. Structure of the Proposal The research proposal that is being constructed tries to explain the impact on accounting standard convergence on the operational activities of the organizations. The introduction section explains what accounting standard is and how it has an impact on the financial statements and reporting of the organizations. The background that is associated with the convergence of the accounting standard is even addressed in order to have an idea about the various accounting standards that are existent globally and what actions has been taken in order to converge the accounting standards globally. The research aims and objectives explain the course the researcher will undertake in order to complete the paper in an authentic and precise manner. Literature Review Introduction This section of the paper looks to assess the journals and the researches that have been undertaken by other researchers on the same and on similar topics previously. The review of literature evaluates the suggestions given by researches and makes a comparison with the help of which an idea can be attained and accordingly this research proposal can move forward. Nature of Convergence The accounting standard convergence explains the exertions to minimise the key differences among the International Financial Accounting Standard and the national standards of accounting for the manufacture of effective financial statements. The process of convergence of accounting explains both the path and the goal that has to be taken in order to attain it. The belief of FASB has been that the ultimate aim of convergence is an individual set of improved quality, accounting standards that are international in nature that organizations globally would exploit for the cross border and the domestic financial reports (Ball, Li. and Shivakumar 2015). The course towards that goal is the combined efforts of the IASB and FASB to enhance the IFRS and US GAAP and mitigate the differences that is existent among them. The global convergence of the standards of accounting has gained much consideration in the professional and academic literature of accounting. There have been debates that the differences in the organizational environment and culture among the developing and developed nations are so huge that one set of standards can be helpful to both sorts of nations (Beatty and Liao 2014). The others have cited that if the international standards are elastic enough to permit for the variations in the business practices and culture among the countries then a single set of accounting guidelines may be helpful for the developing and developed countries. Benefits of convergence of accounting standards The advantages of the accounting standard convergence would mean decreased cost of transactions of the constructors of the financial reports as they would be able to conform to an individual set of accounting standards in the replacement of the multiple sets. Furthermore, the following key advantages are projected to ascend as an outcome of the accounting standard convergence: The common network externalities that flow from the extensive utilisation of the general standards Enhanced comparability among the various financial statement entities Network Externalities The network externalities addresses the situation when the benefit of every individual profits from making use of a specific standard set rises with respect to the number each entity who even use the similar set of standards. Accordingly, if the multiple users stick to the similar accounting rule, the average benefits to all the users will rise with respect to the sum of the private benefit of the individuals (Chen, Ng and Tsang 2014). This direct externalities take place because of the extensive use of a single set of standards saves the users of the financial data, energy and time of having to gain knowledge about applying it and translate the multiple standard sets. If there was a non-existence of the externalities, every firm would follow their own need and rules for the standards would be dismissed. It is generally agreed that the network externalities are applicable to the accounting standards. Therefore, the existence of the uniform domestic accounting standards would look to be an evidence of the fact. Comparability The next key benefit which is offered regularly as the most driving justification for the accounting standard convergence is that it will improve the comparability among the entities. This advantage is fundamentally a network externality (Semenova and Hassel 2015). It is explained that the capability of the investors to assess the entities with the help of comparison is impaired when the entities subscribe to the numerous accounting standards. Hence, the common standards would help the managers and the investors when undertaking decisions in the capital markets. This signifies that a financial statement of a firm is appreciated not as an information source about that specific organization, but even as a reference point against which the other firms in the similar industry may be assessed. According to Moran and Wood (2014), there are various potential advantages to be attained from the accounting convergence standards. Convergence reduces the costs of undertaking the business along the borders by minimising the requirement for the supplementary data. They make the data furthermore comparable and therefore improving the analysis and assessment by the users of the financial reports and decreasing the user expenses (Biddle et al. 2016). The internationally converged standards also assist in maintaining the financial reporting credibility to the entities and raise the effectiveness of auditing the data. Camfferman and Zeff (2015) debates that a financial reporting mechanism of the international standard is a requirement for enticing foreign as well as prospective and current investors at home similar that could be attained through the accounting standard convergence. Costs of convergence of accounting standards An assessment that is qualitative in nature of the anticipated costs of convergence among the domestic standards and convergence must be undertaken prior to convergence. However, currently no such comprehensive cost projections are available which is likely to have an impact on the fact that such information is challenging to obtain. Convergence would create both one-off provisional cost and the on-going expenses of maintaining a setting of a standard for the worldwide principles of accounting (Jamal and Sunder 2014). In the short run, positive convergence would associate protracted debates among the local standards and IFRS along with the numerous national standard regulators and constructors, professionals who are interested and government officials who have vested interest in taking participation in the process of convergence. This would need the expense of a large amount of money and time. The direct cost of compliance may even arise as an outcome of the requirement of the audito rs, users and regulators to interpret and apply the global standards that are converged (Lattemann 2014). The national standards of accounting constructers would experience additional direct expenses as an outcome of the decreased demand for their services and publications. Convergence would even levy a cost over the issuers by grudging them of the capability to select to function in the authorities where the rules of accounting appropriately reflect the characteristic of the business (Guthrie, Evans and Burritt 2014). A huge body of empirical proof assists the theory that the organizations look to follow the portfolio of the accounting principles that enhance their contractual scenarios, specifically in association to the remuneration of the management and debt and that the companies could thereby maintain their substantial expenses if compelled to stick to the new rules of accounting. Additionally, convergence would have an impact of substituting the two distinct standards setting of the monopoly provided by the international standard creators that would be a product of the political compromise rather than the most suitable outcome of accounting (Vogel 2014). The construction of the accounting standards is a concern of political interest as a new standard will beneficially transfer the wealth from one sector of the community to the other. This transfer of wealth impact generates financial incentives for the private groups to set aside the standard setters or the government that actually manages and controls the standards in order to have an influence on the process of standard setting. In accordance to the convergence of the accounting standards, it is unavoidable that the most economically and politically influential countries would look to capture or dominate the process of standard setting to make sure that the standards are constructed in accordance to their national interests than the general interests of the worldwide capital markets (Steinbach and Tang 2014). Therefore, precise and authentic internationalization of the standards may not be viable in practicality and additional expenses may come up as an outcome of the probable capture of the international standard setter. In a similar way, Dandago and Rufai (2014) cited that accounting standards convergence have some in born issues. This is due to the rival perspective of various countries along with the general tendency to repel transformations. Empirical Studies Various numbers of researches and studies have revealed the empirical evidence that which looks to assist the convergence of the accounting standards. Crawford, Lont and Scott (2014) has compared the features of the accounting values for organizations that have incorporated IFRS with a sample that is matched for the firms that did not implement and discover that the previous evidence less the earnings management, more precisely loss of identification and increased value that is relevant in the accounting values than the latter. Grenier, Pomeroy and Stern (2015) have disclosed that the financial statement disclosure quality was improved materially by the implication of IFRS. The disclosure quality, significant aspects of transparency is assessed by the experimental users of the financial statements in numerous business articles and journals in various nations. The outcomes have indicated that the quality of the disclosure as looked upon by the professionals in their annual report rati ngs have risen significantly. Steiner-Khamsi (2016) have put forth a similar answer that enhanced disclosure of the value precise accounting data will minimise the cost of information additionally for the foreign investors and hence would decrease their data disadvantages. Kaya and Koch (2015) have explained that in China the accounting standard convergence has been an outlet to the accounting convergence practices. Brief history of convergence and accounting standards The convergence of the accounting standards is not an innovative idea. The convergence concept initially developed during the late 1950s for an answer to the post World War II economic incorporation and associated rises in the cross-border flow of capital. The initial exertions concentrated on the harmonization that would lower the differences between the principles of accounting that is utilised in key capital markets around the globe. By the year 1990, the perception of harmonization was substituted by the idea of convergence and the development of a single set of increased quality, international standards of accounting that would be exploited in most of the key capital markets (Fang, Maffett and Zhang 2015). The International Accounting Standards Committee established in the year 1973 was the primary international standard setting organization. It was restructured in the year 2001 and then became an independent setter of international standards known as the International Accounting Standards Board (IASB). From then, the utilisation of the international standards has developed progressively. During the year 2009, the European Union and other nations either need or permit the usage of the international financial reporting standards (IFRS) that has been disclosed by the IASB or any domestic variant of them (Bodie, Kane and Marcus 2014). The IASB and FASB have been operating together from the year 2002 to converge and improve the IFRS and the US Generally Accepted Accounting Principles (GAAP). From the year 2009, China and Japan have been working in order to converge their standards with the IFRS. Conversely, there is a chronology of certain events in the development of the international con vergence of the accounting standards. There has been a development of the convergence of the accounting standards from the year 1960 when answers for the international accounting standards was initiated in order to control the international financial reporting. This shows that the progress report on the International Accounting Standards Boards (IASB) and the Financial Accounting Standards Board (FASB) work to converge the standards of accounting internationally for various countries to apply in the construction of the quality and the authentic financial statements (Dudin et al. 2015). Accounting Standard Crawford et al. (2014) has explained that accounting standards ate the policies that have been issued by the identified skilled accounting bodies in association to the numerous elements of treatments, measurements and the revelations of the accounting events and transactions in association to the systematisation of the Generally Accepted Accounting Principles. Conversely, various countries with different standards of accounting makes the evaluation very complex and this means that the extra costs of financial reporting but even causes the issues to the multinational organizations in the way in which they make transactions. According to Dye, Glover and Sunder (2014), it is pretty possible that a transaction to give out profit under a single accounting standard, whereas it may need an adjournment under the other standard. The incorporation of various standards of accounting causes problems in undertaking relative assessment of the organizational performance. Hence, these issues of acco unting standard divergence have given the platform for the professionals and academics to argue on the requirement of accounting standard convergence. As cited by Habib (2015), convergence should lead to a more effective allocation of the capital and enhanced cross-border investment and with the help of which they would be able to promote the expansion and development in the business and employment in Europe. It is vital to make a note that much discussed accounting standard convergence from the developed nations to the developing nations requires effective assessments and diagnosis for the complete incorporation of the IFRS. Conversely, Cai, Rahman and Courtenay (2014) explained that if the international accounting standards are elastic enough to permit for the variations in the business approach and cultures among the countries, then single set of the regulations of accounting can be helpful for the developing and developed nations. Hence, convergence if the accounting standards e ncourage credibility and comparability of the financial reports mitigates the expenses of undertaking business across nations by mitigating the requirement for supplementary data. The promoters of accounting standard convergence require having an understanding that the negotiation in the compromise of the standards generally lead to an approach that is known as the lowest common denominator (Preiato, Brown and Tarca 2015). The idea is often that any contract is better than having no contract. This generally may lead to the development of the suboptimal standards. The International Financial Reporting Standard Board has been facing these problems and issues in trying to converge the accounting standards. Research Methodology Introduction The research methodology has the idea of highlighting the mechanism that would be utilised for the purpose of collecting the data a precise way and accordingly concludes the proposal in accordance to the aims and objectives of the proposal. The method of collecting the data has a crucial function as it assists the researcher to obtain the information that is essential for this proposal and thereafter mitigating any opportunities of the usage of the false data that is available in the economy. This section of the proposal would comprise of the understanding the research objectives, research philosophy, design approach, data gathering approach, strategy, sample, ethical issues and the limitations to the research, which the researcher can make use of in order to have an understanding of the effectiveness of convergence of accounting standards for the industries. Justification for the choice of methodology used There are two sorts of methodologies that are available in the economy and it depends on the mind-set of the researcher to select the type of research that is suitable for this topic. The two kinds of research methodology that the researchers can make use of are qualitative research method and quantitative research method. It is known that this paper, is associated with understanding whether convergence of accounting standards is good for the manufacturing industries and therefore, the researcher has utilised the quantitative research method as the data that would be received from the responses of the selected participants would be converted into numerical data and thereafter assessment of the same would be undertaken. This kind of process is undertaken with the help of quantitative research method and therefore quantitative research method would be implied. Research Objective The research objective as explained in the first chapter of the proposal tries to highlight the aspects on which this topic would move ahead and accordingly the issues that have been highlighted can be assessed. The objectives are as follows: Undertake a comparison of the various accounting standards with the IASB To examine the challenges and the risks associated with the incorporation of the accounting standards that provides knowledge about the language of financial reporting To undertake a comparison of the profitability of the organizations converging their accounts with the accounting standards To provide recommendations towards the successful incorporation of the convergence of the accounting standards. Research Philosophy The philosophy of the research is associated with the basis, kind and progress of the data with the assistance of gathering. The explanation of the research perspective is inclusive of the being aware and construction of the beliefs and the projections in accordance to the research topic. The pragmatic philosophy grants the concepts that are relevant and there only accepts the supportive actions. According to this philosophy, the research questions are the most key aspects of the research philosophy. It is able to syndicate the interpretivism and positivism scenario with one research paper according to the characteristics of the research questions (Chatterji et al. 2016). The philosophy of positivism ensures that the gathering of the data factual data with the help of observation. The philosophy of interpretivism aids in the collection of the communally constructed data, which is even associated to reality. The philosophy of realism is dependent on the ideas of independence of the re ality in the mind of the individuals. The subjective and the social characteristic of Interpretivism can create biasness of the gathered data. Conversely, positivism philosophy aids in the collection of the real data, which can improve the quality of the research end result. Hence, positivism philosophy will be chosen for the undertaking of this research. Research Approach The approach of the research is the most effective process for collecting extensive knowledge in accordance to the research topic. The variety of the effective exploration process is reliant extremely on the topic of exploration along with the research variables. The two kinds of research approaches are generally used in guiding the research. The two kinds of approaches involve the deductive and the inductive process. The inductive method specifically leads to the inductive implication, where the known boundaries are exploited for creating unexamined completion of the research proposal. The inductive method needs the generation of innovative models and theories for the evaluation and gathering of the data associated to the topic of the proposal (Tschopp and Huefner 2015). The deductive method aids in generating implications that are deductive in nature. In this process, the completion of the research is authentic when the boundaries of the research are precise. This process permits t he use of the past frameworks and theories for collecting authentic data that is in accordance to the examination theme. It aids in incorporating several models and theories which are generally associated to the research variables. The inductive process necessitates the creation of innovative frameworks and theories for gathering precise information around the investigation theme. Subsequently, the inductive process needs extensive amount of money for the generation of the models and the theories. Therefore, this process raises the time period and the budget of the research paper. Deductive approach on the other hand aids in the usage of the past models and philosophies for gathering significant data about the research topic. In this manner the deductive approach would be undertaken for this research as this process saves budget and time of the research paper. Research Design The research design explains the methods and the procedures for the collection and the assessment of the action variables which are highlighted under the research issues and objectives. It even gives a model for gaining precise solution to the research questions. The success for the conclusion of the research study is increasingly vital on the effective understanding of the topic. The accurate understanding of the research topic is reliant on collecting the knowledge about the research variables (Grabinskia, Kedziora and Krasodomska 2014). There are significantly three kinds of research design and they are inclusive of the exploratory research design, explanatory research design and descriptive research design. In accordance to this research proposal the design that is suitable is the descriptive research design as in this processes both quantitative research design can be utilised. This design will be useful for gathering both the explained subjective data and precise objective data about the research topic. Research Strategy The research strategy highlights the guideline to the ideas and the thoughts which aids in the undertaking of the research study in a systematic manner. It even explains the strategies towards the collection of the precise research data about the research topic. The most significant kind of research strategies are inclusive of the focus group, case study, interview and survey etc. In this research, the researcher would select the survey strategy for the gathering of the most precise data that is concerned with the issue of the research (Brandt, Ma and Rawski 2014). The survey strategy aids in the collection of the most dependable and precise objective information about the research topic. Data Collection Method The process of data collection is the most extensive activity for the collection of the facts in accordance to the research study. The gathering of the precise data is dependent highly on suitable selection of the data gathering process. The secondary and the primary data is extremely vital for the gathering of the effective research data. The primary data involves the collection of the data from active individuals who acts as participants for the researcher in order to gather authentic data from them. Secondary data on the other hand, involves collection of the data from the journal articles, electronic journals, books, internet etc with the help of which the researcher can collect data that would be true and authentic. Primary data is new and first hand data, which can mitigate the probability of biasness in the research process. Hence, this process of data gathering can give out the most precise data that is in consideration of the research topic, which can improve the quality of the research results. Hence, primary data process gathering will be selected carefully for the collection of the precise data about the research proposal. Population The population of the research explains the well explained individual gathering which have similar features. 80 employees from the organizations that are operating in Ireland would be selected with the help of which the issue regarding the effectiveness of the convergence of the accounting standard for the industries can be understood. The process of questionnaire survey would be undertaken in order to gather the responses from these selected employees. The questionnaire that would be constructed would comprise of close ended questions with the help of which the respondents would be able to answer all the questions independently and can even answer without any hesitation. A quantitative data analysis process would be undertaken with the help of which the researcher would be able to gain the valid and precise result in accordance to this topic. The sample that would be constructed would be subset of the population size. Furthermore, the sample will be the illustrative of the populatio n in order to provide precise information in accordance to the research topic. Sample Out of the 80 employees, 50 employees from the organizations operating in Ireland will be chosen as the participants for the quantitative data gathering. The process of simple random sampling will be exploited for undertaking the research study. In this process of the research, the participants will be attained at a suitable place for gathering precise research data. This process will even develop the level of participation of the respondents and improving their willingness for answering to the survey questions and giving out the most precise data about the topic of the research. Data Analysis Method The process of data analysis explains the process that would be used by the researcher in order to assess the data that would be gathered from the respondents. The efficient examination method of the data eases the transformations of the overall data about the topic of the research. In accordance to this paper, SPSS software would be used in order to assess the collected data and discover the frequencies, descriptive statistics, regression and correlation. Ethical Consideration The ethics of the research proposal tries to answer the data that will be collected for the completion of the proposal with the assistance of the codes of ethics that are accessible in the environment so that the information that has been exploited can be authentic and fair (Bamber and McMeeking 2016). This mitigates the likelihood of the present of any fraudulent data in the proposal and hence authentic outcome can be attained. Limitations of the Research There are various restrictions that are observable in any research. In accordance to this paper, the time limitation has played a key role as the data had to be gathered within a stipulated time period all the process had to be completed within the same. The availability of additional time would have helped in making the paper much more extensive and effective by looking for more information and making the paper vaster. The other issue has been the expenses that have been associated with the paper as the cost associated with the undertaking of the research has restricted the researcher from making use of more innovative and costly mechanisms. Gantt chart Summary of the Methodology The summary of the methodology explains the kind of methodology that would be used by the researcher and the approaches, philosophy, design and strategy that would be undertaken by the researcher in order to gather data and evaluate the same in an effective manner. The methodology initially explains the objectives of the research with the help of which an idea is given to the respondents with respect to the kind of data that is needed to be gathered. The researcher has chosen positivism philosophy with the help of which the effective level of data can be gathered with the help of which the analysis of data can be initiated. Deductive approach has been selected by the respondent as the research would be based on the existing frameworks and models and the researcher would make use of the same in order to create the questionnaire and gather the data. The researcher has selected descriptive research design as quantitative data analysis would be undertaken with the data that would be rece ived from the respondents. The collection of the data with the help of the survey questionnaire and selection of the sample for the purpose of forwarding the questionnaire is done by the researcher by taking assistance of various analytical tools. 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