global controversy

Required:Answer the following questions:
The case is about the global controversy around the adoption and application of International
Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board
(IASB). The specific debate in this case is about forcing the UK local authorities to adopt IFRSs for
their financial reporting. Australia has been one of the early adopters of IFRS. This case may have
major implications and ramifications for local authorities in Australia. Read the above case, examine
the arguments and counter-arguments, and research other relevant materials to answer the following
questions in your own words:
1. Murphy claims that the IASB does not act in the public interest. They are a private cartel
designed and promoted for the benefit of their biggest sponsors – who are the Big 4 firms of
accountants. Critically examine the validity of the above statement. What are the implications
for accounting in different countries if the above allegation is true? (10 marks= 750 words)
2. Based upon the arguments by Murphy should we have different accounting systems? For local
authorities? For different countries? (10 marks= 750 words)
3. Stewardship, financial performance, delivery of value for money and action over time – all
seem to be quite relevant and desired accounting attributes for local authorities. If IFRSs are
“wholly uninterested” in these attributes, then why are IFRSs being imposed on UK local
authorities? Who are the major beneficiaries of this move? How are they likely to be
benefitted? (10 marks= 750 words)
4. Search for a recent case involving a Big 4 audit firm where they played an important role in
proving Murphy’s arguments correct. Discuss the lapses of judgement, fiduciary oversights
and the consequences for the audit profession as a whole. (10 marks= 750 words)

Your work should be in a logical and cohesive essay with a brief introduction and conclusion.
Please clearly make headings for each task.
General Instructions & Format:
1) This is an individual assignment that you should be writing on your own.
2) The word limit for this assignment is 3000 words (+/- 10%); excluding graphs and tables.
3) The assignment must be submitted on time (a soft copy to be uploaded on MyClass) to be
considered for evaluation.
4) Assignments submitted after the deadline will be penalised by deducting 5% of the overall
mark for each day up-to 6 days; assignments will not be graded or accepted after 6 days.
5) If you face any problem, please make sure to contact your lecturer before the due date.
6) You are expected to support your work with sources from the literature and use Harvard
referencing style as appropriate, in text and in the list of references at the end of your
assignment.
7) Assignment related questions may be asked in the final exam.
8) Format:
a. Font: Times New Roman
b. Use double spacing and sufficient margins (3-4 cm)
c. Headings & subheadings font size: 14 points; the rest of the text: 12 points
d. All pages should be numbered; include a table of content