THE USEFULNESS OF ACCOUNTING STANDARD IN THE PREPARATION OF FINANCIAL STATEMENT
TABLE OF CONTENT
1.1 Statement of problem of accounting standards
1.2 How accounting standard come to be in the developed world
1.3 How accounting standard come to be in Nigeria
1.4 Various bodies that regulate the development of accounting standard and accounting statesman they prepare
2.1 The usefulness of accounting standard in the preparation of financial statement
2.2 The procedure for the issuance of accounting standards
2.3 Relevance of accounting statement to auditing
2.4 Effectiveness of accounting statement
3.1 Summary of finding
As a result of increased commercial activities through out the world, many big business expand beyond their countries to have a share of the world market.
Therefore, established branches are translated accordingly based on exchange rates existing and at the end set of financial statements are prepared and published.
In preparing these financial statement normal accounting practices and procedures must be followed and a number of legal and other requirement observed.
In the international market, it was observed that it was possible for accounting policies to differ in one single transaction.
For instance, in a group involving foreign subsidiaries, the method of valuing stock may not be same if the Nigerian company for example use last – in – first – out (LIFO) and the other seas company uses first – in – first – out (FIFO) the result will differ.
In addition to accounting policies reporting formats and disclosure requirement may not be the same there is therefore the need for accounting policies and disclosure requirement to be international comparable and acceptable.
Accounting standard like, internationally accounting standard (IAS) statement of standard accounting practices (SSAP) financial reporting standard etc.
Constitute a set of definitive principle to be followed when preparing financial statement departures from principles and practice enunciated in these standard are permissible in exception circumstance only where adherences would fail to give a true and fair view in a specific instance or because the accounting standard world be obviously inappropriate or because exemption from disclosure is spanted by status.
1.1 STATEMENT OF PROBLEM OF ACCOUNTING STANDARD’S
Nigeria accounting standard board has issue statement of accounting standard which has compliance with international accounting standard.
The following standards has been issued in Nigeria and each of them has a particular IAS it complies with
SAS 1 – disclosure of accounting policies