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THE INFLUENCE OF ACCOUNTING STANDARD ON FINANCIAL REPORTING IN NIGERIA BANKING SECTOR

  • Type:Project
  • Chapters:5
  • Pages:126
  • Methodology:Chi Square
  • Reference:YES
  • Format:Microsoft Word
(Accounting Project Topics & Materials)
THE INFLUENCE OF ACCOUNTING STANDARD ON FINANCIAL REPORTING IN NIGERIA BANKING SECTOR
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: BACKGROUND OF THE STUDY
Introduction                            
Statement of Research Problem            
Research Objectives                    
Research Hypotheses                          
Scope of the Study                    
Significance/Relevance of the Study            
References                            
CHAPTER TWO: LITERATURE REVIEW
2.0    Introduction                             
2.1    The Nigerian Accounting Standards Board            
2.1.1    The Membership of the Nigerian Accounting Standards
    Board (NASB)                             
2.1.2    Governing Council of the Nigerian Standards Board (NASB)
2.1.3    Source of Finance for the Nigerian Accounting Standards
Board (NASB)                             
2.1.4    Standard Setting Process                
2.1.5    The Role of Users of Financial Statements in the
Development of Standards                         
2.1.6    Accomplishment of the Nigerian Accounting Standards
Board (NASB)                            
2.1.7 Functions of Nigerian Accounting Standard Board     
2.1.8 The Powers of NASB                    
2.1.9    Emerging Issues                        
2.1.10 How Does the Nigerian Accounting Standard Board (NASB)
2.2    The Relationship between Nigerian Accounting Standards
Board (NASB), and Institute of Chartered Accountants of
Nigeria (ICAN)                             
2.2.1    The Relationship between Nigerian Accounting Standards
Board (NASB) and the International Accounting Standards
Board (IASB)                          
2.2.4    Nature and Contents of Financial Report        
2.2.5    Objectives of Financial Reporting            
2.2.6 Qualitative Characteristics of Financial Reporting        
2.2.7 Users and User’s Need of Financial Reports         
2.2.8    Disclosure in Financial Reporting                
References                                
CHAPTER THREE: METHODOLOGY
3.0    Introduction                         
3.1    Population and Sample                        
3.2    Data Collection Method                     
3.3    Sources of Data                            
3.4:    The Research Instrument                
3.5    Data Analysis Method                    
3.6    Limitation/Study Constraints                
References                                
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.0    Introduction                         
4.1    Analysis of Questionnaires by Respondents    
CHAPTER FIVE:    SUMMARY, RECOMMENDATION AND CONCLUSION
Introduction                        
Summary of the Findings                    
5.2    Discussion of the Findings            
5.3    Recommendation for Future Research            
54    Conclusion                         
Bibliography                     
Appendix                     
CHAPTER ONE
BACKGROUND OF THE STUDY
INTRODUCTION
Financial accounting can be defined as the process of collecting, presenting and analyzing/interpreting financial information for the users of financial statements, (Igben, 2004). Financial statement of business  organization consist of balance sheet, profit and loss account, statement as cash flow, value added statement and historical  financial summary, (Nnadi, 2007).
These and other non – financial information are combined and presented in the form of annual reports.
Financial reports are the means of communicating to interested parties information on the resources, obligations and performance of the business entity, (Ilaboya, 2005). These are describe as the end product of accounting transactions or economic events aimed at providing qualitative and quantitative financial information for purpose of evaluating and predicting the performance of the business entity. The various users of financial reports need such statements for making informed business and economic decisions.
Accounting standards are the rules which govern the manner in which specific business transactions of registered companies must be reported to the public in corporate financial statements, (Nnadi, 2007). These standards are used by management in preparing financial reports and they provide a financial yardstick for business people to assess their financial situation and to plan for the future.
Accounting standards ensure uniformity in financial reporting, and this to a large extent enhances comparability between different business entities as well as the assessment of an organization’s performance for different financial periods.
In Nigeria, the body assigned the responsibility of developing and issuing accounting standards for the use of preparers of financial statements and parties having interest in the information contents of such statements is the Nigerian Accounting Standards Board (NASB) which was formally established on the 9th of September 1982. The NASB has been the body responsible for establishing standards of financial accounting and reporting in the Nigeria private sector and its primary role is to help ensure that published financial statements are uniform in content and in format and communicate precisely what they purport to convey.
Accounting standards issued by the board are essential because they lead to efficient allocation of resources in the economy such that more successful companies are better able to raise capital to finance their operations than are the less successful ones.
The National Assembly of the Federal Republic of Nigeria enacted the NASBF Act, 2003 on the 10th of July 2003, and it gave statutory existence to the NASB, and introduced statutory enforcement of accounting standards in Nigerian to date, the NASB has issued a total of 30 standards.
It should however be noted that there are other regulatory framework that business organizations must consider in the preparation of their financial reports. They include:
The General Accepted Accounting Practices (GAAP)
The Companies and Allied Matters Act, 1990 as amended.
Subsidiary legislations of CBN presidential guidelines and other statutory requirements such as insurance Decree, 1991, Banks and other financial institution act (BOFIA) 1991),
The focus of this research work therefore is to ascertain whether standards issued by the NASB reflects on the form and content of financial reports of business organizations in Nigeria and it is in the light of this that this study is being undertaken.
STATEMENT OF RESEARCH PROBLEM
The crux of this study is to find out the directional relationship between the Nigerian Accounting Standards Board (NASB), and financial reporting in Nigeria and how the NASB has affected the quality of financial reporting in Nigeria.
With regard to the above, the statement of research problems for this study therefore arises from questions such as:
How have standards issued by the NASB affected financial reporting in Nigeria?
How has the NASB ensure strict compliance to its standards by business entities in Nigeria?
What are the grey areas in financial reporting that have not been adequately addressed by the NASB through its standards?
How have standards issued by the NASB affected the uniformity and comparability of financial reports in Nigeria?
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:
To study the effects of the various accounting standards issued by the NASB on financial reporting in Nigeria.
To check the level of compliance to standards issued by the NASB by business entities in Nigeria.
To identify grey areas in financial reporting that have not been adequately addressed by the NASB via its issued standards.
To check the impact of standards issued by the NASB on the  uniformity and comparability of financial reports in Nigeria
RESEARCH HYPOTHESES  
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.
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.
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.
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.
SCOPE OF THE 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:
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.
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).
Situs: This research study  was carried out in Benin City.
SIGNIFICANCE/RELEVANCE OF THE STUDY
No matter how attractive a research is, it is useless. If it is not relevant to the environment in which it is carried out. After the completion of this research work, the parties listed below will find it very useful.
Investors: They rely on the information content of financial reports to determine whether to buy, hold or sell shares.
Nigerian Accounting Standard Board (NASB): This study will be useful to the NASB to address grey areas in financial reporting which will positively impact on the quality of the information content of financial reports.
Future researchers and readers: This study will provide information for future researchers and readers who would want to write on or broaden their knowledge on the impact of the Nigerian Accounting Standards Board (NASB) on financial reporting in Nigeria.
Finally all the various users of financial reports in Nigeria will find this study useful.   
REFERENCES
Ilaboya, J.O. (2005), Advance financial accounting Ibadan, Data prints and packaging limited.
Igben, R.O. (2004), Financial accounting made simple Lagos, ROL publishers limited.
Nnadi, G.S (2007), Due process for setting accounting standards in Nigeria, January 2007.
Companies and Allied Matters Act, 1990 as amended, Section 334.


THE INFLUENCE OF ACCOUNTING STANDARD ON FINANCIAL REPORTING IN NIGERIA BANKING SECTOR

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Details

Type Project
Department Accounting
Project ID ACC0712
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 126 Pages
Methodology Chi Square
Reference YES
Format Microsoft Word

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    Details

    Type Project
    Department Accounting
    Project ID ACC0712
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 126 Pages
    Methodology Chi Square
    Reference YES
    Format Microsoft Word

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