This workstream aims to investigate why companies fail and the role of internal control and corporate governance in mitigating failures. This includes exploring internal mechanisms (such as the board and audit committee) and external mechanisms (such as the regulator, market and social actors) that play a role in preventing failures. ICAEW's Corporate Governance Committee has identified internal control failings as a significant contributor to corporate failures, particularly surprise failures, where risks leading to failure are not appropriately portrayed in financial statements. We are interested in investigating dynamic approaches like out-of-the-box thinking and reverse stress testing to anticipate failure in changing markets.

In 2023, ICAEW invited scholars to submit proposals for a literature review. Read more about:

• initial analysis that highlighted three key areas to strengthen corporate governance against the risk of unexpected failure; and 
• insights from a recent ICAEW round table that offer a practical guide for businesses navigating the complexities of corporate governance, resilience and risk management in uncertain times.

On 16 December 2024, ICAEW co-hosted the 18th International Accounting Policy Forum with the journal Accounting and Business Research at ESMT Berlin. The first day of the forum considered corporate failure and how regulation could help reduce the risk of disorderly failure.

Despite the effort that goes into producing and auditing local government accounts, they are little used or understood. This initiative in partnership with academic journal Public Money and Management (PMM) aims to explore ways in which financial statements can enhance local government effectiveness and accountability. Read our Insights article to find out more about the call for papers and potential research topics.

ICAEW will be sponsoring the 20th Comparative International Governmental Accounting Research Network conference, which will be held at Athens University of Economics and Business in Greece from 25-27 June 2025.

In 2024, ICAEW called for the submission of research proposals addressing how the UK’s VAT system can be reformed to make it fit for the 2030s. Read more about the winning proposal.

This workstream aims to investigate the evolving role of corporate data resources within the digital economy era. It proposes a framework that categorises corporate data assets according to those used internally, those that are tradable and those of strategic value, emphasising their economic value-creation characteristics. The suggested approach involves the conditional recognition method for internally-used and tradable data assets in financial statements, with subsequent measurement under a mixed model. The findings will be valuable both to the standard-setting process and to businesses seeking to make better use of digital assets.

Read our Insights article on research by ICAEW and the China Accounting Standard Committee highlighting the challenges of accounting for corporate data resources and which suggests a new framework for their treatment in financial statements.

We are currently supporting six research projects in this area, including on:

• climate disclosure (part of a collaborative research series with the China Accounting Standards Committee);
• food waste reporting;
• sustainability and the profession;
• SDGs, where are we now?;
• senior female management: ESG reporting; and
• emissions reporting.