Full Project-THE USEFULNESS OF ACCOUNTING STANDARDS IN THE PREPARATION OF FINANCIAL STATEMENTS
Click here to Get this Complete Project Chapter 1-5
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
There has been quite a lot of criticisms in recent years about accountants and the financial report which they prepare. A lot of people have had to question the validity of the profit measuring procedures applied in arriving at the profit measuring procedures applied in arriving at the profit disclosed in the published accounts. Consequently, the profession has found it necessary to do a re-appraisal of the accepted procedures, which had found it necessary to do a re-appraisal of the accepted procedures, which had hitherto dominated accounting field in profit measurement. Quite a member of proposals have made an attempt in reforming the methods generally in use. This has resulted in the coming together of different countries with a view to working out modalities for the standardization of these profit measuring and reporting procedures. This gave birth to the International Accounting Standards Committee (IASC) and local bodies like the Nigerian Accounting Standard Board (NASB) for Nigeria. The International Accounting Standards (IAS) to be followed by all member countries of which Nigeria is one. Nigeria on the other hand produces additional Statements of Accounting Standards on Accounting Standards (SAS) in an attempt to make the International Standards meet local conditions. The Nigerian Accounting Standard Board (NASB), which was inaugurated in September 1992, was charged with the following responsibilities.
a) To formulate and publish in the public interest accounting standards to be observed in the preparation of financial statements and to promote the general acceptance and adoption of such standards by prepares and users of financial statements.
b) To promote and sponsor legislation when necessary in order to ensure that standards developed and published by the board received nation-wide acceptance adoption and compliance.
c) To review from time to time the standards developed by the board in the light of change in the social, economic and political environment. since 1982 till date, the board has issued statements of accounting standards and two dras at completion stages. The standards so far issued by the board are:- SAS
1 – Disclosure of Accounting Policies SAS
2 – Information to be disclosed in financial statements SAS
3 – Accounting for property, plant, and equipment SAS
4 – On stock SAS
5 – On construction contracts SAS
6 – On extra-ordinary items and prior year adjustment SAS
7 – On foreign currency conversion and transactions SAS
8 – On accounting for employees retirement benefits SAS
9 – On accounting for depreciation SAS
10 – Accounting by banks and non-bank financial institution (part 1). SAS
11 – On leases SAS
12 – On accounting for deferred taxes SAS
13 – On investment SAS
14 – On petroleum profit This work intends to analyze and examine usefulness of these standards in the financial statements with particular emphasis on Guinness Nig. Plc Enugu City.
Guinness (Nig) Plc, is one of the biggest breweries in Nigeria today. It is a quoted company in the Nigerian Stock Exchange Commission (SEC). Guinness (Nig) Plc is an associated of Guinness overseas ltd, with headquarters at Dublin in England. The journey of this company to Nigeria started in 1950 when the company was incorporated to import and distribute Guinness Stout from Dublin for sale in Nigeria. In 1962, the stout brewery in Ikeja Lagos, was commissioned. This station was the third of it kind in the world and the first outside the British Isles. A second brewery in Nigeria was commissioned in Benin and from 1982 other breweries stations was commissioned including in other states. The company share capital is made up of 60% ordinary share owned by Nigerians and 40% ordinary shares owned by Guinness overseas limited. The Enugu Department which happens to be over study interest has a sta strength of about 10000 workers including both skilled and unskilled workers. The accounts section of the brewery share of the total sta strength is about 200 workers. The accounting department which is charged with the responsibility of providing management with relevant financial information that enable her (management) make decisions, also maintains and keep proper books of accounts which are summaries of the daily financial activities of the company. Another major responsibility discovered within this accountant department is the preparation of the financial statements annually, which most be in compliance with the requirement of statements of Accounting Standards which external auditor must confirm and report on.
1.2 STATEMENT OF PROBLEMS
“Good accounting practice” means that the accounts must be prepared in compliance and in line with the Statements of Standards Accounting Practice (SSAP), International Accounting Standards (IAS), and Statement of Accounting Standard (SAS). Thus, the burden of this investigation is to find “Good Accounting Practice” is being adhered to in the preparation of the financial statement and its benefits. The researcher’s aims at achieving this by conducting special investigation on the requirements of the accounting standard and then relates it to the activities of preparing financial statement at Guinness (Nig) Plc.
1.3 PURPOSE OF THE STUDY
The objective of accounting and financial statements is to provide reliable information about the economic resources and obligation of the business enterprises. This information is important in order to evaluate the company’s strengths and weaknesses. Its information indicates the various resource based available to export opportunities and make future progress.
In summary therefore, the account gives information about the economic resources and obligation of a business enterprises, which is needed to form a judgment about the ability of the business to survive, grow, adapt, and prosper a mid harsh economic conditions. Another major purpose is that of providing information about the change in the net resources of the business organization, that is resources less obligations. If these objectives of accounting are to be achieve then the financial statements must be understood by its readers or users. This would only be possible if, they are prepared in accordance with the generally accepted accounting principles. Those principles are derived from authoritative guidelines and standards. Thus, the overall objective of research is to unveil the benefits or usefulness of the accounting standards in published financial statement oat Guinness (Nig) Plc. Other objectives or purposes of the study includes:
a. The effects of the standards on the Nigerian economy
b. To determine the extent of compliance of the financial statement in the accounting standards.
c. The benefits or uses of the standards in other areas like students and lecturers.
1.4 RESEARCH QUESTIONS The researcher formulated the following research questions to enable her carry out this research work:
1. What are the effects of accounting standards on the Nigeria economy?
2. To what extent has the Nigerian companies complied with accounting standards in the preparation of financial statement?
3. what are the benefits of the use of accounting standards in other areas of the economy?
4. How significant is accounting standards in the preparation of financial statement?
1.5 SIGNIFICANCE OF THE STUDY
The accounting standards are developed to ensure a high degree of standardization in the published financial statements. They provide the necessary information about low accounting information should be prepared, presented on order to enhance the value of its contents and facilities thorough understanding. The significance of this study to the academic world cannot be over-emphasized as this topic is becoming more important to students of accounting and allied courses and they are usually subject of examinations. For example, many examination questions of Institute of Charted Accountants of Nigeria (ICAN) and other bodies like the Institute of Bankers are directly based on the contents of these standards and their applications in preparing financial statements. This study is intended to be benefit to the “prepares and users” of accounting information who interpret and proper understanding of the financial statement and use the information to derive decision in making managerial decisions for the interest of the organization. This study is also intended to highlight the significance of accounting standards in the Nigeria economy. One most important significance of this study is revealed to the management of Guinness (Nig) Plc, Enugu City on the importance and economic effect of applying accounting standards in preparation of financial statements and also to act as guide to the accounting staff of the organization, its usefulness and compliance procedures. Infact, this work would be very valuable to all accounting officers in their task of preparing financial statements. Finally, this study would also serve as reference literature to further researchers on usefulness of accounting standards.
1.6 STATEMENT OF HYPOTHESIS
Hypothesis according to O.K. Olakunori (1997) “is a statement which guides an investigation by providing a tentative solution to the research problems. After the research problem has been stated, the next thing to do in the research process is to give focus on direction to its solution. Also, Orji .J. (1996) said that hypothesis is a proposition put forward as a basis for reasoning a supposition formulated from providing data and presented as temporary explanation of occurrence as in science in order to establish a basis for future research. In order to analyse the usefulness of Accounting Standards in the preparation of financial statements of any firm, considering the validity and reliability of the information gathered the following hypothesis were formulated.
1. H0: Accounting standards have not played useful role in the preparation of financial statement of the company.
HA: Accounting standards have played useful role in the preparation of financial statement of the company.
2. H0: Accounting standards have no benefit in the Nigerian economy.
HA: Accounting standards have benefits in the Nigerian economy.
3. H0: Accounting standards does not aid the users of financial statements to understand the financial statement to get better understanding of it.
HA: Accounting standards aid the users of financial statements to understand the financial statement to get better understanding of it.
Get the Complete Project
This is a premium project material and the complete research project plus questionnaires and references can be gotten at an affordable rate of N3,000 for Nigerian clients and $8 for International clients.
Click here to Get this Complete Project Chapter 1-5
You can also check other Research Project here:
1, Accounting Research Project
- Adult Education
- Agricultural Science
- Banking & Finance
- Biblical Theology & CRS
- Biblical Theology and CRS
- Biology Education
- Business Administration
- Computer Engineering Project
- Computer Science 2
- Criminology Research Project
- Early Childhood Education
- Economic Education
- Education Research Project
- Educational Administration and Planning Research Project
- English
- English Education
- Entrepreneurship
- Environmental Sciences Research Project
- Guidance and Counselling Research Project
- History Education
- Human Kinetics and Health Education
- Management
- Maritime and Transportation
- Marketing
- Marketing Research Project 2
- Mass Communication
- Mathematics Education
- Medical Biochemistry Project
- Organizational Behaviour
- Other Projects
- Political Science
- Psychology
- Public Administration
- Public Health Research Project
- More Research Project
- Transportation Management
- Nursing
Need a Project Writer for a Different Topic
- MSC PROJECT WRITING SERVICES
- MBA RESEARCH PROJECT WRITING SERVICES
- Research Project Writing Services in Lagos Nigeria (Professional Writers) -Law, MSc, MBA,PhD, Dissertations, Thesis, Assignment, Speech
- Masters Research Project Writer in Lagos Nigeria
- MBA Research Project Writer in Lagos Nigeria
- LOOKING FOR A WRITING SERVICES FOR AN URGENT ASSIGNMENTS OR PROJECT WORK
- PROFESSIONAL WRITING SERVICES IN LAGOS NIGERIA (TERM PAPER, SPEECH WRITING, ASSIGNMENT, THESES, DISSERTATIONS, RESEARCH PROPOSAL, PROJECT WRITING SERVICES etc)
- BUSINESS ADMINISTRATION RESEARCH PROJECT WRITER IN LAGOS NIGERIA
- CONSULT A RESEARCH PROJECT WRITER IN LAGOS NIGERIA (PH.D, MBA, MSC, M.ED, BSC)
- MANAGEMENT RESEARCH PROJECT WRITER IN LAGOS NIGERIA
- Education Research Project Writer in Lagos Nigeria
- Environmental Sciences Research Project Writer in Lagos Nigeria
- Guidance and Counselling Research Project Writer in Lagos Nigeria
- Human Kinetics and Health Education Project Writer in Lagos Nigeria
- Early Childhood Education Research Project Writer in Lagos Nigeria
- Christian Religious Studies(CRS) Research Project Writer in Lagos Nigeria
- Educational Administration and Planning Research Project Writer in Lagos Nigeria
- Political Science Research Project Writer in Lagos Nigeria
- Accounting Research Project Writer in Lagos Nigeria
- Economics Research Project Writer in Lagos Nigeria
- Management Research Project Writer in Lagos Nigeria
- Marketing Research Project Writer in Lagos Nigeria
- Public Administration Research Project Writer in Lagos Nigeria
- MBA Research Project Analysts
- In Need of MBA Research Project Writer in Nigeria
- MBA Dissertation Research Project Writer
- MBA Project writer
- EDUCATION DEPARTMENT PROJECT WRITING SERVICES
- BACHELOR OF SCIENCE (BSC) DEGREE PROJECT WRITING SERVICES(B.ED,B.A,B.SC)
- MASTER OF BUSINESS ADMINISTRATION (MBA) RESEARCH PROJECT WRITING SERVICES
- MASTER OF SCIENCE (MSC) RESEARCH PROJECT WRITING SERVICES
- POST GRADUATE RESEARCH PROJECT WRITER
- POST GRADUATE DIPLOMA (PGD) RESEARCH PROJECT WRITER
- MASTER RESEARCH PROJECT WRITER
- MASTER DEGREE RESEARCH PROJECT WRITING SERVICES
- POSTGRADUATE RESEARCH PROJECT WRITING SERVICES
- MASTERS RESEARCH PROJECT WRITING SERVICES
- RESEARCH PROJECT WRITER
- EXPERT IN RESEARCH PROJECT/THESIS/DISSERTATION WRITING SERVICES IN LAGOS NIGERIA
- HIRE A PROFESSIONAL BSC/HND RESEARCH PROJECT WRITER
- HIRE A PROFESSIONAL MBA/MSC RESEARCH PROJECT WRITER
- HIRE A PROFESSIONAL THESIS WRITER IN LAGOS NIGERIA
- SC/M.SC/MBA/PGD RESEARCH PROJECT WRITER IN LAGOS NIGERIA
- Master Degree Research Project Specialist/Writer in Lagos, Nigeria
- Hire A Research Project Writer in Lagos Nigeria
- Research Project Specialist in Lagos, Nigeria