AASB Research Center - Case Study Example

Research Methods Name Date Course Research Methods Introduction AASB Research Center is responsible for providing leadership and carrying out research on the accounting and financial aspects. The research is usually used for improving accounting and financial standards as well as addressing the issues facing the sector. One of the researches that were carried out by the center is the AASB Research Report No. 1. The research raises the questions of adequacy with regards to the financial reporting in Australia (Carey, Potter & Tanewski, 2014). It also highlights the failure of some of the organizations to meet the accounting standards in terms of full disclosure of the accounting information. Obtaining information about the accounting standards usually requires a thorough and accurate research. Different research methods are usually used for obtaining the information. The research methods that are in use include qualitative, research, quantitative research and mixed methods research. Each of the research methodology has its own strengths and weaknesses. The nature of information required is also a factor that determines the method of research to be used. This is due to the differences in terms of how the information is collected and analyzed through the use of each of the research method. The paper discusses the quantitative research methodology concepts that were used in the AASB Research Report No 1. Part A Quantitative Research Quantitative research concepts have been used in the development of the report. The mathematical concepts as well as models have been employed for the purposes of analyzing the data collected. A random sample of 1546 companies has been used in the development of the report. Statistical tables as well as data have been used in the analysis of the data. The use of numeric data is common in the quantitative research model. The use of statistics in the analysis of the data is also one of the important aspects of quantitative analysis. Unbiased results have been generalized in the report through the use of quantitative research method. Generalization of information is also common when using the quantitative research concepts (Creswell, 2013). This is because of the large research sample that is usually used through the quantitative research. When using the quantitative research method, a huge a sample size can be analyzed. The scientific methods are important during the development of the quantitative research. Quantitative research method also utilizes hypothesis as well as the experimental control and manipulation variables. The collection of empirical data is also required for the purposes of ensuring that detailed research is obtained during the research. The data collected during the repot is based on the hypothesis as well as theory. This is mainly with regards to the use of accounting standards. Verification as well as the validation of the data has been carried out in the research report which is an important aspect of quantitative research. Advantages of Quantitative Research Method The analysis of the data can be made easy through the generalization of the study findings based on the information gathered. The generalization of the information has been utilized in the research report. This is through the use of statistical data as well as percentages leading to the conclusion of the study. The generalization of the study findings is important in terms of ensuring that a huge amount of data is analyzed. More than a thousand companies has analyzed in the report. Quantitative research can utilize a sample of organization or population whose results would be a representative of the population being studies (Ragin, 2014). In Australia, there are thousands of companies which utilize the financial reporting system. However, the research has used as a representative sample of 1546 companies. The findings from the representative sample have been used for the purposes of making conclusions with regards to the financial reporting and standards in Australia. This has played an important role in terms of ensuring that the practices within different organizations are highlighted. Quantitative research method plays an important role in terms of highlighting the structural factors that may lead to inequalities. This may involve the size of the companies as well as their financial resources. This plays an important role in terms of ensuring that the finding is accurate. The accuracy of the findings is an important aspect during research. Eliminating the inequalities is important in terms of promoting the accuracy of the results. When using the quantitative research method, it is possible to control the effects of extraneous variables which might result to misleading interpretations. The levels of accuracy in the research have been improved in the research report through the control of variables. A standardized approach is usually used in quantitative research. This means that the research can be replicated in different areas over time. It is for this reason that the research has also heighted information from previous studies. The ability to replicate the studies is important in terms of ensuring that it can be used in future. When using the quantitative research method, the clear documentation can be provided with regards to the content and application of the survey. Clear documentation can be used for the purposes of assessing the validity of the findings (Jensen, 2013). The validity of the research has played an important role in terms of improving on the accuracy of the research. The quantity estimates can be obtained with regards to the magnitude and distribution of the impacts. It is through quantitative estimates that the report has been able to makes some estimates with regards to the standards and financial reporting in the country. The estimates can also be made through the cost benefit interventions. It is for this reason that the research has been able to handle a huge amount of data from different organizations located in different parts of the country. The quantitative research methods are therefore important in terms of ensuring that the huge amount of data can be analyzed. Disadvantages of quantitative research method Although the quantitative research methods have advantages, it also has some disadvantages. Self reporting information is at times used in quantitative research. This has partly been used in the development of the report. The levels of accuracy when using the self reporting may be low and hence negatively influencing the quality of the report. The information regarding the contextual factors may be lacking in some instances when using quantitative research. The contextual factors are usually important in terms of interpreting the results as well as explaining different variations (Jensen, 2013). The economic as well as demographic characteristics can be explained through the use of the contextual factors. The lack of contextual factors has negative impacts on the ability of the research to explain some of the trends with regards to the financial standards and reporting in Australia. The research has not been able to adequately explain the trends with regards to the failure of the organizations to provide accurate information during the process of financial reporting. The unstructured questionnaires are at time used in the quantitative research. The use of the unstructured questionnaires has a potential of alienating some of the respondents. This is especially common when dealing with sensitive information such as financial reporting. Quantitative research is quite expensive and time consuming. This can be attributed to the high amount of data that needs to be analyzed as well as the data analysis methods used. It may require a lot of human as well as financial resources. A lot of expertise is also required in order to ensure that the analysis of the data is accuracy. The research instruments used during the quantitative research cannot be modified once the research has begun. This negatively influences the flexibility of the quantitative research. This has the potential of affecting the quality of the research. The findings may fail to reflect some of the changes that may take place in the course of carrying out the research. Loss of information usually occurs during the process of reducing the data into numbers. This is considering that quantitative research mainly utilizes statistical data and mathematical calculations. The underlying cause of realities may be ignored or masked when using the concepts of quantitative analysis (Ragin, 2014). This is as a result of the correlations that are usually produced after the analysis of the data. This also impacts negatively on the findings of the research. The quantitative research method usually utilizes hypotheses which have to be tested. Any errors in the hypotheses are likely to impact negatively on the whole research. The credibility of the research is therefore affected by the errors in the development of the hypotheses. Statistical significance has to be determined when using the quantitative research concepts. Errors during the process of selecting the statistical significance have the potential of resulting to errors. Any use of untested variables may also result to errors during the analysis of data. The use of quantitative research is therefore prone to errors in case the appropriate procedures are not used. Errors may also arise during the calculations and hence impacting negatively on the outcome of the research. Alternative Research Method The quantitative research method that was used in the research report failed to provide adequate information regarding financial reporting and standards in Australia. The alternative research method could be the use of mixed research method. The mixed research method involves the use of both the qualitative as well as the quantitative research methods. The use of this method ensures that any weaknesses in one of the research method are substituted by the use of the other method (Creswell, 2013). This therefore plays an important role in ensuring that the level of accuracy is improved. This method could have been used during the research in order to ensure that proper explanations are provided with regards to the theoretical aspects of financial reporting. The mixed research method could have played an important role in improving on the accuracy of the research. Mixed research method enables the researcher to obtain more detailed information. The likelihood of errors is reduced when using the mixed research method. This is considering that the quantitative method used in the report is prone to a lot of errors as a result of the mathematical data being used. Qualitative research provides theoretical information that can be used for the purposes of testing the findings of the research. This alternative research method is therefore important in terms of ensuring that the weaknesses in the quantitative research methods are eliminated. The research method is therefore important used is therefore important in terms of ensuring that the required information is accurately obtained. Part B The purpose of the definition is to explain the concepts of a reporting entity and to establish the minimum required quality of financial reporting for entities. The definition however fails to consider the techniques of accounting that is used in the financial reporting process. Control is one of the words that has been defined and used in the statement. The definition of control is satisfactory as it considered the concepts and aspects of accounting standards. Economic entity as well as entity has also been defined clearly and hence making it simple for the statement to be understood. In the report, a reporting entity has been defined as entities with users dependent on general purpose financial reports for information to prepare such reports (Public Sector Accounting Standards Board, 2001). The limitation of the definition is that it is not detailed and specific in nature. The indicative factors have been defined as the factors which determine whether an entity is a reporting entity. The definition as outlined in paragraph 19 is clear and easy to understand. However, the limitation of the definition is also the lack of further details that may differentiate reporting entity from non-reporting entities. The major limitation in the definition used is mainly on lack of clarity. Some of the concepts that have been used in the definition are not clear and have left out important aspects of accounting and financial reporting. The definitions also needs to b e more specific in order to address the different accounting and financial standards. Conclusion In conclusion, it is evident that quantitative research method has been used in the research. The use of quantitative method mainly involves mathematical models as well as statistical models in the analysis of the data. It is evident that the method has both advantages as well as disadvantages. The main advantage of the quantitative research method is the ability to handle a huge amount of data as the research involves 1546 organizations. It is also evident that the quantitative research method is able to generalize the information collected from a huge data representative sample. It is also evident that the method has some weaknesses. The main weakness in the use of quantitative research method is on the levels of accuracy which is impacted negatively by the lack of theoretical information. It is evident that the mixed research method is a perfect alternative and it involves the use of both qualitative and quantitative method. It is evident that the definitions are also good but it requires moiré details in order to provide specific information. List of References Carey, p., Potter, B. & Tanewski, G., 2014, AASB Research Report No. 1: Application of the Reporting Entity Concept and Lodgement of Special Purpose Financial Statements, Australian Accounting Standards Board. Public Sector Accounting Standards Board, 2001, Definition of the Reporting Entity. SAC 1. Creswell, J. W., 2013, Research design: A qualitative, quantitative, and mixed method approaches, Sage publications, London Ragin, C. C., 2014, The comparative method: Moving beyond qualitative and quantitative strategies, Univ of California Press. Jensen, K. B., 2013, A handbook of media and communication research: qualitative and quantitative methodologies, Routledge, London. Read More