Professional Project BUSN20019 Assessment 1: project proposal Topic: Accounting for Infrastructure and consistency of Cost Benefit Analysis in the Assessment of Major Project Submitted by: Diplal Prasad Das Students ID: s0268545 Sydney Campus Table of Contents 1. Project Context 3 2. Project Proposal 5 Topic: 5 Background and Definition of the Issue/Problem 5 Justification for Relevance of Issue/Problem Accounting 6 Aim and Objectives/Research Questions 7 Aim 7 Objectives 7 Research Questions 7 Literature Review 7 Overview Project 8 Analytical Approach 8 Major Milestones 9 Gantt chart 9 References 10 1. Project Context The future profession to be expanded on in this paper is accounting. Accountancy describes practice field whereby a professional accountant offers measuring, recognizing, preparing, analysing as well as disclosure of the financial as well as pertinent non-financial information and auditing as well as rendering assurance services alongside services of advisory on financial information, as well as, where necessary, non-financial information (Chandler & Edwards, 2014). Managers, tax authorities, investors, alongside other decision makers need this information for decisions relating to allocation of resources. The accountancy field entails studying auditing, managing finances, accounting as well as tax. This paper paints the context of what it means to be a professional accountant. To understand what it means to be a professional accountant, it is only right to begin by laying the context for defining the professional accountant. The definition is anchored on three descriptive levels. The definition is arranged into 3 descriptive levels. On extreme and furthermost conclusive level, the definition posits the meaning of professional accountant by stressing certain procedure of authorized qualification (for instance, certification, education as well as chartering). On 2nd level, the definition asserts the roles or functions of a professional accountant by highlighting key errands which imply applications of kills in background of the prospects of the society (for example, demonstration of competency, Code of Ethics for Professional Accountants/IESBA Code’s compliance) alongside acts in public interest. On the 3rd level, (that remains optimal and contingent upon the individual jurisdiction’s features), the definition posit that professional accountants is distinguishable from each other by particular issues, including kinds of tasks (for example, professional accountant in corporate, auditors and accountants in public sector) alongside the level of official training as well as education commonly particular to jurisdictional regards. In staying with the above 3-level, descriptive structure, the meaning of professional accountant phrase can be presented (Flyvbjerg, 2014). A professional accountant, therefore, describes an individual with know-how in accountancy field, accomplished via official education as well as real-world experience, and who: (i) Exhibits as well as upholds competence; (ii) compliance with ethics code; (iii) is treated to an extraordinary professional standard; and, is hinged on enforcement by the organization of professional accountancy or additional regulatory approaches (Sommers-Flanagan & Sommers-Flanagan, 2015). The professional accountant is, therefore, distinguished from each other by certain aspects like services provided, competence and responsibilities. It can further be comprehended as an accounting field, outlined by a statutory professional organization of accountants, under the management of professional accountants. Particular samples of fields of professional accounting include, management accountancy, cost accountancy, chartered accountancy, company secretaryship, (Davies, 2016). Only accounting fields that pertain to statutorily recognized bodies are considered professional accounting fields. These professional bodies conduct courses as well as periodical examination that enable aspirants become professional accountants taking up the course as well as qualifying in the examinations. The professional accounting qualifications serve to distinguish one from just another accounting grad. The professional accountant must be determined, ambitious, and self-discipline to accomplish higher goals. A professional accounting qualification is required by doing a professional programme (Jones et al., 2014). The professional accountant has broadened horizons as skills gained as a professional accountant remain transferable across various industries and organisation. It also requires a high level of flexibility as one who can work in commerce, public practice and government gaining experience in several fields including risk management, audit, forensic accounting as well as information system consulting. Professional accountant requires more than reading a textbook or attending lectures as professionalism is never taught because it is an accumulation of attributes that require development over time rather than a mere skill. A professional accountant must showcase the following attributes: • Competency • Reliability and accountability • Honesty and integrity • Self-control • Flexibility • Respect for others • Professional image Specialized skills and knowledge are key attributes upon which accountancy professionals are evaluated backed up with accountancy qualification. It is expected and required that a professional accountant will keep essential skills as well as knowledge current all through his profession by doing regular continuing professional development (CPD) to deliver high quality work according to accounting standards and pertinent regulations and laws. Reliable and accountable professional accountant is expected and required to plan in advance and always turn up to meetings fully prepared for their clients. They must honour their commitments and able to be depended on to get the job done by delivering what they promise to deliver on a timely manner (Ashworth & Perera, 2015). They are never expected to have accuses but always do their best to put duties and projects back on track in case things do not go exactly as planned. 2. Project Proposal Topic: Accounting for Infrastructure and consistency of Cost Benefit Analysis in the Assessment of Major Project Background and Definition of the Issue/Problem Infrastructure remains crucial to enhancing the living standards and productivity of the Australians. Accounting plays a core role in how these projects are planned and paid for in Australia. The Australian Infrastructure Audit has highlighted a newfangled, strategic mechanism to assess the infrastructure requirements of Australia. This assessment has pointed towards the urgent need for the enhancements in the appraisal, selections as well as reporting of cost/benefit analysis (Auerbach et al., 2014). There is a need to examine the drivers of the forthcoming infrastructure demand, especially economic growth and population. The top-down valuation of value-add, and Direct Economic Contribution of infrastructure (DECI); regards the forthcoming demand for major infrastructure projects over the succeeding fifteen years, as well as conveys an evidence foundation for extended long term planning, gap analysis as well as forthcoming investment primacies. The AIA has discovered that in the absence of an effective accomplishment, the productivity alongside quality of life in Australia will remain tested, with populace as well as growth of economy set to escalate snowballing congestion as well as tailbacks (Davies, 2016). There is a need for major reforms to enhance the manner accountants plan these projects to shape effective government finance, construction, maintenance as well as operation of infrastructure to make sure it can reinforce advances in productivity in decades going forward, and back growth of economy. The key problem or issue to be investigated in this current study is the need to enhance the transparency alongside consistency of cost-benefit analysis that will culminate to the enhancement in infrastructure projects appraisal and selection (Haimes, 2015). Despite this problem being acknowledged in the Australian Infrastructure Audit as a critical to the creation of productive and sustainable infrastructure if Australia has to drive economic growth, increase employment and improve quality of life for every Australian, it has greatly remained a teething problem. Justification for Relevance of Issue/Problem Accounting The problem identified above is directly relevance to the accounting profession. It is further closely related to the topic of this study that generally examines the accounting for infrastructure as well as cost benefit analysis major project’s assessment in Australia (Laurance et al., 2015). By enhancing the transparency and consistency of cost-benefit analysis, it will automatically enhance infrastructure projects appraisal and selection among the professional accountants. Accounting profession is responsible for the undertaking the cost-benefit analysis and the appraisal and selection of the major projects in Australia. The law and regulations as well as ethical codes of accounting profession requires accountants to be generate transparent and consistent reports drawn from these cost-benefit analysis (Revesz, 2016). This means that the problem identified above seeks to improve the credibility and reliability of the reports generated by the professional accountants and hence there is a relevance of the problem to the accounting profession chosen for this study. Aim and Objectives/Research Questions Aim The aim of this study will be to look for the best mechanisms that will enhance the transparency and consistency of cost-benefit analysis in order to improve the infrastructure projects appraisal and selection by the professional accountants to allow Australia to create productive and sustainable infrastructure thereby allowing Australia to drive economic growth, increase employment and improve quality of life for every Australian. Objectives To enhance the transparency and consistency of cost-benefit analysis to enhance infrastructure projects appraisal and selection among the professional accountants. Research Questions How can transparency and consistency of cost-benefit analysis be enhanced to enhance infrastructure projects appraisal and selection by the professional accountants. Literature Review The key gap acknowledged in the literature is that notwithstanding this problem being recognized in the Australian Infrastructure Audit as a critical to the creation of productive and sustainable infrastructure if Australia has to drive economic growth, increase employment and improve quality of life for every Australian, there is no research that has been undertake to offer the best mechanism through which it can be resolved (Saad & Hegazy, 2015). The available accounting literature relating to Infrastructure Victoria has published a paper deliberating how enhancing cost benefit analysis has the ability to capture extra economic, social, as well as environmental impacts from projects of infrastructure. It has identified for professional accountants to move from evaluation to valuation as the initial in a series of research articles aiming at the improvements of how infrastructure projects are assessed as well as compared (Schwartz, 2016). The literature has identified that cost-benefit analysis remained a vigorous and transparent framework but recognized the need for its improvement to ensure increased consistency in its usability. The literature has also appreciated that cost-benefit analysis is significant as well as essential tool for the appraisal and comparison of infrastructure projects alongside policies on a consistent basis, but remains imperfect (Coates IV, 2014). The literature has acknowledge that the current cost benefit analysis of major transport projects does not incorporate all economic, social as well as environmental impacts such as failure to capture the impacts on amenity and biodiversity of urban but has unfortunately provided the way forward to improving and enhancing this transparency and consistency (Anderson et al., 2014). Overview Project The mixed exploratory quantitative and qualitative study design will be used to investigate how the transparency and transparency of cost benefit analysis can be enhanced among the accountants appraisal and selecting major projects in Australia. Secondary sources linked to the topic will be reviewed. The systematic review of literature will be used to gather the relevant data from the already published information on the topic. The scholarly articles will be included if they are published between 2010 and 2017. Only the peer reviewed articles will be included in the study. The unstructured interview will be used to gather information from the professional accountant based on their views on the how the transparency and consistency of cost-benefit analysis can be enhanced and the impacts of such enhancements on the appraisal and selection of major projects in Australia. Analytical Approach The thematic analysis will be used to analyse the data collected. The data will be cleaned and overlapping information removed. After this, thematic analysis will form the analytical basis to inform the interpretation of the information for effective conclusion and recommendations. Major Milestones task name Started week dates duration/days Task 1 week 4 3/04/2017 2 literature review 2 week 4 5/04/2017 1 selecting data 3 week 4 6/04/2017 4 selecting articles and review 4 week5 10/04/2017 3 data collection and analysis report 5 week 5 13/04/2017 2 cleaning data 6 week 5 15/04/2017 2 sorting data 7 week 6 17/04/2017 4 analysis data 8 week 6 21/04/2017 2 final research and submission Gantt chart References Anderson, J. L., Heidenreich, P. A., Barnett, P. G., Creager, M. A., Fonarow, G. C., Gibbons, R. J., ... & Masoudi, F. A. (2014). ACC/AHA statement on cost/value methodology in clinical practice guidelines and performance measures. Circulation, 129(22), 2329-2345. Ashworth, A., & Perera, S. (2015). Cost studies of buildings. Routledge. Auerbach, D. A., Deisenroth, D. B., McShane, R. R., McCluney, K. E., & Poff, N. L. (2014). Beyond the concrete: Accounting for ecosystem services from free-flowing rivers. Ecosystem Services, 10, 1-5. Chandler, R. A., & Edwards, J. R. (2014). Recurring Issues in Auditing (RLE Accounting): Professional Debate 1875-1900. Routledge. Coates IV, J. C. (2014). Cost-Benefit Analysis of Financial Regulation: Case Studies and Implications. Yale LJ, 124, 882. Davies, W. (2016). How assumptions influence the results of a cost benefit analysis. In ARRB Conference, 27th, 2016, Melbourne, Victoria, Australia. Flyvbjerg, B. (2014). What you should know about megaprojects and why: An overview. Project Management Journal, 45(2), 6-19. Haimes, Y. Y. (2015). Risk modeling, assessment, and management. John Wiley & Sons. Jones, H., Domingos, T., Moura, F., & Sussman, J. M. (2014). Transport infrastructure evaluation using cost-benefit analysis: improvements to valuing the asset through residual value—a case study. Laurance, W. F., Peletier-Jellema, A., Geenen, B., Koster, H., Verweij, P., Van Dijck, P., ... & Van Kuijk, M. (2015). Reducing the global environmental impacts of rapid infrastructure expansion. Current Biology, 25(7), R259-R262. Revesz, R. L. (2016). Cost-Benefit Analysis and the Structure of the Administrative State: The Case of Financial Services Regulation. Saad, D.A., & Hegazy, T. (2015). Enhanced benefit–cost analysis for infrastructure fund allocation. Canadian Journal of Civil Engineering, 42(2), pp.89-97. Schwartz, J.A., (2016). Approaches to cost-benefit analysis. Handbook of Regulatory Impact Assessment, pp.33-51. Sommers-Flanagan, R., & Sommers-Flanagan, J. (2015). Becoming an Ethical Helping Professional, with Video Resource Center: Cultural and Philosophical Foundations. John Wiley & Sons.