Our Archives

Call 08068929770 or 08122972656 for any enquiries.

Project Topic:

ACCOUNTING STANDARD AND THE QUALITY OF FINANCIAL REPORTING IN NIGERIA

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 105 ::   Attributes: Questionnaire, Data Analysis,abstract, table of content, references ::   1,161 people found this useful

Project Body:

ABSTRACT

This study is motivated by a desire to examine the influence of accounting standards on financial reporting in Nigeria banking sector. In light of the empirical review and other discussions, a number of questions arose as to whether the effects of the various accounting standards issued by the NASB on financial reporting in Nigeria and to check the level of compliance to standards issued by the NASB by business entities in Nigeria. Questionnaire was administered to some selected staff of the sampled respondents in Nigeria. Data was collected and analyzed using the simple percentage, descriptive statistics and chi-square statistical tool. This study revealed among other things that the NASB should ensure that its standards suit the Nigeria business environment so as to meet up with our local reporting needs. It is recommended that the standards should be continuously reviewed in the light of relative charges in the environment to make them relevant in financial reporting.

TABLE OF CONTENTS

                                                                                               

 

CHAPTER ONE: INTRODUCTION

  1. Background of the Study                                                        
  2. Statements of the Problem                                                      
  3. Research Objectives      
  4. Research Hypotheses                                                              
  5. Scope of Study                                                                        
  6. Limitations of Study                                                               
  7. Significance of the Study                                                        

References                                                                             

 

 

CHAPTER TWO: LITERATURE REVIEW

2.1     The Need for Financial Reporting                                           

2.2     Characteristics of Useful Accounting Information                   

2.3     Forms and Contents of Financial Statements                         

2.4     Regulation of Financial Reporting                                          

2.5     Accounting Standards                                                            

2.6     Conceptual Framework for Accounting Standards                 

References                                                                             

 

CHAPTER THREE: RESEARCH METHODOLOGY

  1. Introduction                                                                           
  2. Research Design                                                                     
  3. Sources and Methods of Data Collection                                
  4. Research Instruments                                                             
  5. Characteristics of the Population                                            
  6. Sampling and Sampling Design                                             
  7. Data Presentation                                                                   
  8. Data Analysis and Statistical Tools                                         

 

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.0     Introduction                                                                           

4.1     Analysis of Questionnaires by Respondents                           

4.2     Testing of Hypothesis                                                             

CHAPTER FIVE:  SUMMARY, RECOMMENDATION AND CONCLUSION

  1. Introduction                                                                           
  2. Summary of the Findings                                                       
  3. Discussion of the Findings                                                     
  4. Recommendation for Future Research                                    
  5. Conclusion                                                                             

Bibliography                                                                          

Appendix                                                                      

 

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

Prudent business decision-making thrives on the availability of reliable financial information. The items of financial information relied upon by economic decision-makers are contained in corporate financial reports (including income statement/profit and loss account, balance sheet, cash flow statement and value added statement). The decision-makers are many and varied in their goals. They can be classified into separate interest groups. There is the equity investor group, including existing and potential shareholders and holders of convertible securities, options or warrants. The second group consists of the loan creditor groups, including existing and potential holders of debentures and loan stock and providers of short-term secured and unsecured loans and finances. In the third group is the employee group; this is made up of analyst-advisers, including financial analysis and journalists, economic, statisticians, researchers, trade unions, stockbrokers and other providers of advisory services such as credit-rating agencies. The fifth group consists of the business contact group. These are customers, trade creditors and suppliers and, in a different sense, competitors, business rivals including those interested in mergers, amalgamations, departments, agencies concerned with the supervision of commerce and industry, with local authorities. The final group comprises the public, including taxpayers, rate payers, consumers and other communities as special interest groups, such as political parties, consumers, environmental protection agencies, local and regional pressure groups (Alexander and Britton, 1988).

          A striking feature of these is that their information requirements are sometimes in conflict with one another, when attempt is made to satisfy them simultaneously, in a single financial report. For example, government’s requirement for financial information for purpose of taxation may be incompatible with the management’s decision to minimize tax liability. Although tax avoidance is legitimate, sometimes, management’s evasion, which is an illegal act. Tax evasion is a deliberate action to refuse to pay tax and is regarded as a criminal offence. Environmental agencies (like Federal Agency) are interested in the protection of the environment in which the business organization operates, thereby entailing huge corporate capital expenditure, whereas the business organization naturally aspires to maximize profits and cash inflows by minimizing costs. The maximization of corporate cash outflows towards improved conditions of service as part of the staff welfare package is a constant item on the agenda of trade union, but management would always like to postpone upward wages and emoluments review for as long as possible. Ordinary shareholders with short-term focus may not be supportive of transferring profits to reserves. They would rather prefer the firm to apply a substantial portion of the profit to pay immediate dividends. Each group of users, therefore, tends to perceive the reliability of financial statements from its own narrow interest.

          However, the International Accounting Standards Committee (1989) is of the opinion that:

While all the information needs of all these users cannot be met by financial statements, there are needs which are common to all users. As investor are providers of risk capital to the enterprise, the provision of financial statements that meet their needs will also meet most of the needs of other users that financial statements can satisfy (Hendriksen and Ven Breda, 2001:146).

Also, it has been noted that ownership is different from management: hence there is a need to ensure that owners’ interests do not suffer in the hands of selfish management through unscrupulous manipulation of results reported in financial statements. The issues involved are captured in agency theory (Jensen and Mecking, 1976; Van Horne, 2001).

  1. STATEMENTS OF THE PROBLEM

Investors are becoming worry of the Nigerian corporate accounting environment, based on the negative reports of the influential Transparency International (www.Transparency.org/cpi/2005), which ranked Nigeria the second most corrupt country in the world for 2003, the third most corrupt in 2004; and the sixth most corrupt in 2005, if necessary research effort is not spared, the lack of trust in corporate financial reporting could worsen with Nigeria losing  out in the stiff international competition for foreign direct investment. The generous fiscal incentives directed at attracting large portfolios of foreign direct investments to Nigeria appear to yield only marginal results because of inadequacy of financial reporting system (Adeyemi and Arowomole, 2004).

          Due to competition, globalization and the challenge of technology, the changing landscape of corporate financial reporting has probably led to aggressive financial reports, which fail to comply with the disclosure provisions, as specifically required by the accounting and reporting standards. The need to comply with the laws and standards is generally acknowledged as a problem.

          Professional indiscipline on the part of the preparers of financial statements and possible collusion of the parties involved in managing an organization’s financial reporting may be a problem. Current thinking in accounting now centre upon the need for the international harmonization of financial reporting.

Against this backdrop, the following research questions are raised:

  1. How have standards issued by the NASB affected financial reporting in Nigeria?
  2. How has the NASB ensure strict compliance to its standards by business entities in Nigeria?
  3. What are the grey areas in financial reporting that have not been adequately addressed by the NASB through its standards?
  4. How have standards issued by the NASB affected the uniformity and comparability of financial reports in Nigeria?

 

  1. RESEARCH OBJECTIVES

The broad objective of this study is to examine the effect of the Nigerian Accounting Standard Board (NASB), on financial reporting in Nigeria.

Specifically, the objectives of this study include:

  1. To study the effects of the various accounting standards issued by the NASB on financial reporting in Nigeria.
  2. To check the level of compliance to standards issued by the NASB by business entities in Nigeria.
  3. To identify grey areas in financial reporting that have not been adequately addressed by the NASB via its issued standards.
  4. To check the impact of standards issued by the NASB on the  uniformity and comparability of financial reports in Nigeria

 

  1. RESEARCH HYPOTHESES 
    1. HO:    There is no relationship between quality of financial reporting and standards issued by the NASB.

          HI:     There is a relationship between quality of financial reporting and standards issued by the NASB.

  1. HO:    There is no relationship between adequacy in measures put in place and compliance to standards.

          HI:     There is a relationship between adequacy in measures put in place and compliance to standards.

  1. HO:    The standards are deficient in terms of area of coverage in financial reporting and as a result to do meet up with lime challenges.

          Hi:     The standards are not deficient in terms of area of coverage in financial reporting and meet up with time challenges.

  1. HO:    There is no relationship between uniformity and comparability of financial reports and standards issued by the NASB.

          HI:     There is a relationship between uniformity and comparability of financial reports and standards issued by the NASB.

 

  1. SCOPE OF STUDY

The study is focused on examining the effects of the various standards issued by the Nigerian Accounting Standards issued by the Nigerian Accounting Standards Board (NASB) on financial reporting in Nigerian, and it is restricted in terms of the following:

  1. Sample size: The research study is focused on the NASB, the preparers and users of financial reports, and the sample size is selected using the probability method of sampling.
  2. Geographical coverage: This research study examines the influence of standards issued by the NASB on financial reporting in Nigeria from its inception to date (1982 to 2010).
  3. Situs: This research study  was carried out in Benin City.
  4.     SIGNIFICANCE OF THE STUDY

This study should enhance the understating and reliability of management and financial analysts’ forecasts of corporate earnings, thereby stimulating capital market operations. It has the potential of assisting stakeholders in knowing what is being disclosed, and why, in assessing the impact of compliance or non-compliance on the usefulness of financial statements. It is also hoped that the study will enhance the understanding of firm-level disclosures and compliance across industries in Nigeria. This will enable regulatory bodies to focus on areas of challenges and reduce information asymmetry. The study should also facilitate the functioning of directors of companies of all sizes, managers who have to deal with fixed assets, stock, work-in-progress, foreign currency, intangibles and other organizational resources, and accountants who need to update their knowledge of the impact of accounting standards.


Get The Complete Project »

Project Department:

MORE ACCOUNTING FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

Instantly Share this Project On Social Media:

CLOSELY RELATED ACCOUNTING FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   8199 engagements

CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 75 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   6578 engagements

ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »

AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 78 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   4270 engagements

HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »

APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   4458 engagements

2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »

ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   3874 engagements

ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »

ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 86 ::   Attributes: Questionnaire, Data Analysis  ::   3315 engagements

THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »

What are you looking for today?

TESTIMONIALS:

  • 1. Mohammed A.B from Veterinary Laboratory, Zanzibar ,Tanzania said "You are doing good job to assists in research. God bless you.".
    Rating: Very Good
  • 2. Grace Madu from IMT enugu said "Thank you so much; i will tell my friends about you guys!!! Please give them a good job just like mine!!! God bless you!!!".
    Rating: Excellent
  • 3. Favour Adeoti from Unimaid said "For the good deeds and help to students like me, may God almighty continue to bless u and empower you to do more. Thank u very much...".
    Rating: Excellent
  • 4. Saddiq Abubakar Shuaibu from ESAE BENIN UNIVERSITY said "I check your site because I want you to help do this project thank you".
    Rating: Excellent
  • 5. Temitope Olumide from UAM makurdi said "I can not believe i could trust online platforms but you prove to me that there are still some good people out there. Thank you Mr Donald".
    Rating: Excellent
  • 6. Topeola Atinuke from the bells said "hmmmm, not sure yet about all dis comment still working on dem yet....tank u".
    Rating: Average

Paper Information

Format:ms word
Chapter:1-5
Pages:105
Attribute:Questionnaire, Data Analysis,abstract, table of content, references
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives