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Module: Global Issues for the Finance ProfessionalHuman Computer Interaction
Please take careful note of the following points:
• The coursework draws upon selected issues from Theme 1: Selected issues in
Sustainability (topics 1, 2, 3), Theme 2: Harmonization of Accounting
standards (topics 4, 5, 6) and selected issues from Theme 3: Tax Avoidance
• You must ensure that you cite references consistently. Harvard referencing system is
Preferred.
• No appendices (other than the list of references) are allowed.
• Figures, diagrams, tables will count as part of your word count
• At the end of your response you should state your word count, excluding your list of
references.
Penalties for exceeding the word count
• There are penalties for exceeding the specified word count.
• The maximum word limit for this coursework assignment is 4,000 words (excluding
the list of references).
• You may use less than 4,000 words but in so doing you may be penalizing yourself as
it is likely to be challenging to respond to the coursework brief.
• You MUST state an accurate word count (excluding the list of references) at the end
of your work. If you do not state an accurate word count your mark will be reduced
by 5 marks.
• Diagrams and pictures and charts are not counted within the word count but any
list(s) of words or any other form of narrative should be placed in Tables in the main
text and will be included in the word count.
• If you submit more than 4,000 words the following penalties apply:
a. up to 10% more than 4,000 words – your mark will be reduced by 5 marks;
b. for more than 10% than 4,000 words you will receive zero marks for this work.
Mark range

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5. The Coursework Task
There is one requirement in this section. The response to the requirement should be
submitted in no more than 4,000 words. Penalties apply for exceeding the word count. No
formal penalties apply for using fewer than 4,000 words but in so doing you may be penalizing
yourself as it is likely to be challenging to respond to the requirement in less than 4,000 words.
Context
This coursework reflects appropriate elements of Themes 1 and 2 in the core study materials.
Each of the four core readings1 in Topic 4 in Theme 2 articulate a number of the potential
benefits – at least theoretical benefits – of IFRS in general and of harmonization of IFRS
specifically, whilst identifying some associated issues. The potential benefits include
improvements in the rigour and quality of financial reporting, not least in the determination
of earnings in a financial period. Other research literature reflects the benefits and
challenges2.
Each of the two core readings3 in Topic 3 in Theme 1 focus on tax avoidance by corporations
and the implications for such corporations espousing and declaring adherence to corporate
socially responsibility4. Implicitly major contributions to achieving tax avoidance are actions
by senior managers to report earnings at lower levels than they might be without such
earnings management5.
The essence of the two paragraphs immediately above could be viewed as engendering a
dichotomy: IFRS should improve financial reporting quality, and yet despite the presence of a
number of standards and their applications, it is still possible for some corporations to
undertake earnings management with the deliberate intention of reducing tax liabilities,
1 Barlev, B. and J.R. Haddad ‘Harmonization, comparability, and fair value accounting’ , Journal of Accounting,
Auditing & Finance 22(3) 2007, pp.493-509. • Eaton, S.B. ‘Crisis and the consolidation of international
accounting standards: Enron, the IASB, and America’, Business and Politics, 7(3) 2005. • Tarca, A. ‘The case for
global accounting standards: arguments and evidence’ , Report to the Trustees of the IFRS Foundation, 22
October 2012. • Tweedie, D. and T.R. Seidenstein (2004). ‘Setting a global standard: the case for accounting
convergence’ , Northwestern Journal of International Law and Business 25(3) 589
2 Illustratively (not a module core reading): Chua, Y. L., Cheong, C. S., & Gould, G. (2012). The impact of
mandatory IFRS adoption on accounting quality: Evidence from Australia. Journal of International Accounting
Research, 11(1), 119-146.
3 • Dowling, G.R. ‘The curious case of corporate tax avoidance: is it socially irresponsible?’ , Journal of Business
Ethics 124(1) 2014, 173-84. • Sikka, P. ‘Smoke and mirrors: corporate social responsibility and tax avoidance’,
Accounting Forum 34(3) 2010, pp.153-68.
4 Christensen S. and Murphy R. (2004) ‘’The Social Irresponsibility of Corporate CTA: Taking CSR to the bottom
line’’, Society for International Development 1011-6370/04.
5 Illustratively (not a module core reading): Davidson, W. N., Jiraporn, P., Kim, Y. S., & Nemec, C. (2004). Earnings
management following duality creating successions: Ethnostatistics, impression management, and agency
theory. Academy of management journal,47(2), 267-275.
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exposing themselves to accusations of playing games within the corporate social
responsibility arena.
Required
Identify and explore the tensions that exist between the applications of international
financial reporting standards designed to improve financial reporting quality and earnings
management designed to avoid corporation tax liabilities.
Set your considerations against the drivers for and nature of corporate social responsibility.
Articulate your conclusions in the context of advice you would offer to a corporation’s senior
management team interested in satisfying the needs of typical key stakeholders.
In so doing draw upon references from relevant theories and, where appropriate, illuminate
your analysis, argument(s) and justification by using examples and illustrations. You should
identify typical key stakeholders and their interests, and assess the implications of the
tensions you identify and explore for them.
In responding to this requirement, you should certainly refer to relevant Themes 1 and 2 core study
materials, but you should also draw upon other materials such as, for example, other journal articles,
trade association publications, and annual reports, thus enacting independent research.