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Impact: Improved awareness and development of professional practice related to the financial accounting of carbon, including: its addition to the Climate Disclosure Standards Board (CDSB) work programme and its designation by the International Accounting Standards Board (IASB) as a priority research project (both during 2012).
Significance and reach: The CDSB is a consortium of eight business/environmental organisations (including the World Economic Forum and the World Resources Institute). The IASB is the independent standard-setting body of the International Financial Reporting Standards Foundation.
Underpinned by: Research into corporate carbon accounting practices, undertaken at the University of Edinburgh (2008 onwards).
Aberdeen public sector accounting research into adopting accruals accounting, the application of international accounting principles and standards, the treatment of privately financed public assets and the basis of Whole of Government Accounts was used extensively by the principal researcher in advisory work for UK and devolved governments, international agencies, professional bodies and regulators. It contributed directly to changes in the way governments budget, manage and report the performance of resource use, to increased stakeholder awareness of public accounting issues nationally and internationally, and to improved public understanding of these complex issues. It mainstreamed accounting research into the public policy process.
Research on International Financial Reporting Standard 8 `Operating segments' (IFRS8), undertaken by academics in the University of Dundee's School of Business, has been used to frame the international debate concerning listed company reporting of disaggregated (segmental) information about business unit and geographic activities. Three bodies involved in regulation and compliance, have drawn on the research to inform their positions and strategies in relation to the standard. Firstly, the IASB's review of IFRS8 was informed by the research. Secondly, the key findings were fed into the Financial Reporting Council's proposals to amend IFRS8. Thirdly, the research underpinned the Institute of Chartered Accountants of Scotland's (ICAS) response to the IASB's request for information on how the standard was being applied, what challenges were encountered and associated costs.
Sheila Ellwood (at Bristol from 2006) examined how managerial freedoms created through the trend to decentralise public service organisations need to be tempered through `better' accounting. Her research has led to her appointment as a non executive director (2000-2005) and a Treasury Panel member (2009-11). The research impacts on both national policy and local financial management. Her impact is seen in the financial reporting policy in local public bodies; the policy on auditing local public bodies and in the costing/ pricing of healthcare. Her work has been used in UK parliamentary committees and incorporated into government accounting manuals. International recognition includes dissemination of her work by the Chinese Treasury.
A body of research carried out at Sheffield Hallam University has led to significant changes in the accounting requirements for charities in England and Wales. Two sets of impact are presented: (A) simplified audit requirements for smaller charities from 2008/09 through enhancement of an alternative regime of `independent examination' (IE), and (B) Government acceptance in 2012/13 of the case for further simplifications in charity regulation. Over the period 2009-13 at least £15 million of charity resources has been released from mandatory audits for charities to spend on work with beneficiaries. Further benefits to the sector will follow from the latest developments.
This case study details influence on professional accounting education, practice and policy on a global and national stage. The research team has undertaken a stream of research which has critically examined access to Chartered Accountancy training and subsequent assessment. Internationally, their work has underpinned the policy development of International Federation of Accountants (IFAC) in the education area. Nationally, the work with IFAC has led to further research for the Institute of Chartered Accountants of Scotland (ICAS) who have implemented a number of their recommendations. In this case we will focus on their influence on ICAS' policies for a) the development and assessment of non-technical skills in Chartered Accountants and b) the introduction of a school leaver route into the profession.
In the wake of the Enron Scandal in 2002, the global landscape of auditing practices radically changed, significantly transforming the UK regulatory system. University of Glasgow research into the high-level financial reporting interactions between UK companies and external auditors has influenced public debate in the House of Lords and prompted several recommendations of the Select Committee on Economic Affairs. It has also contributed to an ongoing Competition Commission investigation into the market concentration of audit companies, and shaped the working practices at Deloitte, one of the Big Four international audit firms, influencing the industry at a global level.
Unique research at the University of Manchester highlights the shortcomings of public accountability and the high cost, to the public purse, of PPPs and the Private Finance Initiative (PFI) using critical financial analysis. Lead researchers have been invited to engage in dialogue with national audit regulators, give evidence to parliamentary committees and contribute to policy debate through international roundtables. The work has been used to challenge government policy and has significantly influenced the national and international public debate about the costs, affordability and value for money of PPPs. The UK government has now renegotiated existing PFI projects to achieve cost savings, and we have given evidence by invitation to international committees concerned with public accountability and policy development.
For the past decade, a research programme led by Professor Noel Hyndman has investigated accountability and governance in the UK charity sector. Outputs from the research have shaped the national draft reporting and accounting framework, Statement of Recommended Practice (SORP), which provides a mechanism for charities to meet legal accounting requirements and provides consistency in the sector's interpretation of accounting standards. The new framework will apply to more than 200,000 charities in the UK, which have an estimated total annual income of over £60 billion.
The financial crisis has prompted a public policy debate about the appropriate regulatory framework for financial reporting and audit. Evidence produced by this research on the current regulatory system has informed and influenced this debate in the House of Lords, particularly regarding the respective roles of auditors and audit committees. Furthermore, findings have had a significant impact on the audit procedures of Deloitte, one of the Big Four global audit firms. Their National Audit Technical Partner stated that it had prompted a reconsideration of the timing of their audit processes and the nature of interaction with their audit clients.