A warm good (—) to one and all. I am here today to enlighten you on the importance of accounting research. First of all, let me brief you as to what accounting research is. Accounting research focuses on how accounting is employed by individuals, organizations, and government, including the consequences that these practices have.
Ranging from the idea that accounting both measures and makes visible certain economic events, accounting research has studied the roles of accounting in organizations and society, and also the consequences that these practices hold for people, organizations, governments, and capital markets. It withholds a broad range of topics which include financial accounting research, management accounting research, auditing research, capital research, accountability research, social responsibility research, and taxation research.
Accounting research is conducted by academic researchers and practicing accountants. It includes the assessment of current accounting practices, the development of new practices, and the development of the university curriculum.
Academic research holds an undeniably important role in an organization. According to Professor Jeffrey Unerman, “Academic research has an important role to play, both in assessing the extent to which existing practices are ‘fit for purpose’ and in developing new practices to address changing business, economic and societal needs. Research also informs the teaching curricula in universities, thus affecting the range of issues of which future generations will become aware and consider important”.
Lack of required information becomes a grave problem when the company goes through crises due to changes in the business environment. This is where accounting research serves its purpose.
The information obtained from accounting research helps the firm in making integral decisions as well as successful developmental plans. Such researches help in preparing, evaluating, implementing, and following up the plans made by the firm. Accounting research is required when environmental factors such as economy, social, legal, and political situations change. To keep up with the change, various researches are conducted which cover various aspects of accountancy. These researches contribute to economic development by providing the required integrated accounting information which is reliable and credible.
The accounting information obtained should have some qualifying features. It should have appropriateness, as the information may affect decisions made. It should also have predictability. The information should be objective so that the decision-maker can rely on it. Accounting research helps in accumulating knowledge in accounting theories. It also helps in comparing previous results and recent ones and through research, new methods can be adopted through experimentation.
Some of the accounting scientific research types are theses, arbitrated accounting researchers, continuous education researches, etc. Accounting research is mostly conducted in industry sectors, financial institution sectors such as banks, insurance companies, brokerage, and financial companies, government sector, and the service sector. Accountants have to adapt to changing economic conditions.
In conclusion, accounting research is important because it provides new information, it helps the users make optimal utilization of the information and the changing market. It has a key role in an organization’s decision-making, evaluation, and prediction.
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