Word length: 3000 words
Research topic: IFRS implementation in Malaysia
The use of fair value accounting has been debated in the current literature. Studies based in emerging economies, such as China (He et al., 2012, Yang et al., 2017), Romania (Albu et al., 2014), South Pacific Island countries (Chand, 2005), have consistently reported the challenge of using fair value accounting in those countries due to country-specific contextual issues. However, recent studies based in Malaysia (Gan et al., 2016; Ismail et al., 2016; and Madah Marzuki, and Abdul Wahab, 2016) did not repport any similar the issues in the use of fair value accounting in Malaysian companies.
1. Explain the concept and the underlying assumptions of fair value accounting according to IFRS 13 Fair value measurement.
2. Review relevant accounting research literature on the use of fair value accounting post IFRS harmonisation in Malaysia and a minimum of three other emerging economies in the Asia-Pacific countries.
3. Compare the disclosures on the use of fair value accounting in the annual reports of four companies (two are Malaysian listed companies, and the other two are Australian companies) for the most recent financial year (2016).
4. Discuss if your findings support (or reject) the view that the use of fair value accounting since IFRS harmonisation in Malaysia has improved the quality of information disclosure.
Albu, C. t. l. N., N. Albu, and D. Alexander. 2014. When global accounting standards meet the local context? Insights from an emerging economy. Critical Perspectives on Accounting 25 (6):489-510.
Chand, P. (2005) ‘Impetus to the success of harmonization: the case of South Pacific Island nations’, Critical Perspectives on Accounting, 16(3), pp. 209-226.
Gan, C. Y., Chong, L. L. and Ahmad, Z. (2016) ‘Impacts of FRS139 adoption on value relevance of financial reporting in Malaysia’, Managerial Finance, 42(7), pp. 706-721.
He, X., T. J. Wong, and D. Young. 2012. ‘Challenges for Implementation of Fair Value Accounting in Emerging Markets: Evidence from China’, Contemporary Accounting Research 29 (2), pp. 538-562.
Ismail, W. A. W., Kamarudin, K. A., Zijl, T. v. and Dunstan, K. (2013) ‘Earnings quality and the adoption of IFRS‐based accounting standards: Evidence from an emerging market’, Asian Review of Accounting, 21(1), pp. 53-73.
Madah Marzuki, M. and Abdul Wahab, E. A. (2016) ‘Institutional factors and conditional conservatism in Malaysia: Does international financial reporting standards convergence matter?’, Journal of Contemporary Accounting and Economics, 12(3), pp. 191-209.
Yang, H. H., Clark, C., Wu, C. and Farley, A. ‘Insights from Accounting Practitioners on China’s Convergence with IFRS’, Australian Accounting Review, doi:10.1111/auar.12182