THE INFLUENCE OF ACCOUNTING STANDARD ON FINANCIAL REPORTING IN THE NIGERIAN BANKING SECTOR
ABSTRACT
The study examines the influence of accounting standard on financial reporting in the Nigeria banking sector, using a sampling size of 14 banks out of all banks quoted in the Nigerian stock exchange as at third quarter of 2012. The survey design was adopted in this study and a total number of 50 questionnaires were administered but 47 copies were returned completely. The t-statistics was adopted in carrying out the analysis of data. From the analysis of data collected, the result reveals that there is a positive relationship between accounting standards, its contents and presentation of financial statement in the banking sector. Based on these findings, some recommendations among others were made that proper accounting standards be put in place by the relevant accounting standard setting bodies so as to ensure the preparation of high quality financial report or statement in the Nigerian banking sector.
CHAPTER ONE
Introduction
1.1 Background to the Study
Section 33 5(1) of the companies and allied matters act CAMA 1990 as amended stipulates that the preparation of financial statement, shall comply with the accounting standards’ issued from time to time by the Nigeria Accounting Standard Board.
Financial statements are described as the end product of accounting transactions or economic events aimed at providing qualitative and quantitative financial information to evaluate and predict the performance of an organization to permit informed judgment and decision making, (Illaboya,2005, p.167).
In Nigeria, the; standard setting body was the Nigeria Accounting Standard Board (NASB) which is presently referred to as the Financial Reporting Council of Nigeria (FRCN) which was passed into law On 18 May 2011 and was signed into law on 20 July 2011. The financial reporting council of Nigeria like all standard setting bodies in the world is independent of the profession of accounting. The council identifies areas where a measure of uniformity is required so as to bridge the variation in reporting practices and ensure a high level of uniformity which is panacea to corporate compatibility, (Illaboya,2005, p.169).
The need for an accounting standard setting body in Nigeria became urgent when the Nigeria enterprise promotion decree was promulgated to transfer ownership of companies to Nigerians. Foreigners exploited the lack of uniform accounting procedures in valuing their equities in companies affected by the decree. Those companies, whose parents were resident outside Nigeria, followed the dictate of their parents. At the end of it all, there were as many accounting practices reflected in the account as there were companies in Nigeria, (Nnadi, 2007, p.32).
Whenever an auditor challenged a company on the appropriateness of its accounting practices, management was usually quick to as the auditor to produce the law prohibiting such practice. The Nigeria accounting standard board presently known as the financial reporting council of Nigeria was therefore ‘established in order to ensure that these conditions did not persist, (Nnadi, 2007, p.38).
The Nigeria Accounting Standard Board (NASB) presently referred to as Financial Reporting Council of Nigeria (FRCN) has been the body responsible for establishing standards of accounting and reporting in the Nigeria business enterprises. The board help to ensure that the published financial statements are uniform in content and format and communicate precisely what they purport to convey. These standards are in effect rules governing the preparation of financial statements. 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 the less successful one, (Nnadi, 2007, p.45).
The development of new accounting standards involves a long process usually referred to as “due process”. The due process ensures that all interested parties get the chance to make some contributions towards the proposed standards. The process begins with the selection of an area of accounting to be standardized. An accounting problem must be sufficiently significant in terms of its effect on the financial statements. If problems do not create significant difficulties, the cost of the due process may be justifiable. Any individual or organization can write to the financial reporting council (F1C) to suggest an issue for standardization, (Nnadi, 2007, p.45).
Accounting standard is a statement issued by the appropriate standard setting body locally or internationally on a specific area or topic in financial accounting, the acceptance and application of which is mandatory for prepares and users of financial statement, (lgben,2004,p.41).
Accounting standards are issued at the international level by the International Accounting Standard Committee (IASC) while they are issued in Nigeria by the financial reporting council of Nigeria. The standards issued by the (IASB) are known as international accounting standard (IAS) while those issued by the (FRCN) are known as statement of accounting standard presently know as International Financial Reporting Standard (IFRS). Both IAS/IFRS are applicable except that: if an IAS is inconsistent with an SAS, the IAS/IFRS would be inapplicable to the extent of the inconsistency. This implies that on any matter on which an IAS and an SAS make conflicting pronouncements, the SAS shall, supersede the IAS in Nigeria, (Igben, 2004, p.4l).
1.2 Statement of Problem
Our national accounting standard (SAS) are partly based old IAS, some of which have since been amended or withdrawn by IASB. Furthermore, the local standards do not cover all the aspects of financial reporting encountered by prepare of financial statements. We think it is fair to admit that our standards are partly out of date and are not sufficiently comprehensive to form a basis for the preparation of high quality financial statements.
1.3 Research Question
Is there a positive relationship between accounting standards, its contents and the presentation of financial statement?
1.4 Objective of the Study
To find out if there is a positive relationship between accounting standard and the content in the presentation of financial statements.
1.5 Statement of Hypothesis
Ho: There is no positive relationship between accounting standard andthe content and presentation of financial statements.
HI: There is a positive relationship between accounting standard and the content and presentation of financial statements.
1.6 Significance of the Study
This study will be relevant tousers of financial statement. Examples are investors, shareholders, employees, government etc. Every business organization uses financial statement to communicate information about its performance, resources and obligation and interested parties. The report, are prepared in such away to meet different needs of the parties. It is expected that at the end of the research work solutions would be provided to the problems and recommendations on the content and presentation of financial statement and the influence of standards on financial statement in the Nigeria banking sector.
1.7 Scope of the Study
The fact is that this study attempts to access and eva1uate the influence of accounting standards on financial statements in the Nigeria banking sector. The study covers the statement of accounting standard (SAS), the Nigeria accounting standard board (NASB) now referred to as Financial reporting council of Nigeria (FRCN), the relevant international accounting standard board (IASB) and the international financial reporting standard (IFRS).
The study shall be focused on 14 banks in Nigeria and shall be concentrated in Benin City, Edo State.
1.8 Limitations of the Study
The scope of the study would have been more enlarged in terms of looking at more banks but the inability to go round the banks in Nigeria has limited the researcher to just 14 banks all in Benin City, Edo State. Data were extracted from published information obtained from books, financial statements, seminar papers and the internet.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
The Influence of Accounting Standard on Financial Reporting in the Nigerian Banking Sector can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "The Influence of Accounting Standard on Financial Reporting in the Nigerian Banking Sector" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "The Influence of Accounting Standard on Financial Reporting in the Nigerian Banking Sector" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Is the topic “Design and Implementation of Computer Based Scheduling System for a Transport Company” recommended for Computer Science (CS) Project?
Yes it is highly recommended — Scheduling System for Road Transport permits a customer to observe the information about seat reservation, bus schedule and ticket sales as well as bus time of dispatch. The aim of this study is to design and implement a Computer Based Scheduling System for a Transport Company. In achieving this aim, the following specific objectives were laid out to design a workable computer based Scheduling System for a Transport Company that will eliminate completely the above mentioned problems, create a system that can be used to record transportation scheduled records to database, design a system that can be used to accurately compute transportation bills, and design a system that can be utilized to obtain reports of transportation records. The motivation that …
Can the material for “Design and Implementation of a Computerized Card Based Security Verification Gateway System” be used as a guide for Computer Science (CS) Project?
Yes it can be used — Card Based Security Verification Gateway System has always played a vital role in the stability of a nation. The aim of the study is to design and implement a Computerized Card Based Security Verification Gateway System using Oceanic Bank as a case study. In achieving this aim, the following specific objectives were set out to compare and contrast the difference between cards based security and manual based and create information security conscious. The motivation that led to the implementation of the new Computerized Card Based Security Verification Gateway System is that, keeping security information manually in the existing system can hinder some defense program and delay passage of security information to the appropriate body and the manual documentation of security …
Can the material for “Evaluation and Production of Enriched Fried Unripe Plantain Cake (Akara)” be used as a guide for Microbiology Project?
Yes it can be used — The study evaluates the Production process of Enriched Fried Unripe Plantain Cake (Akara). In achieving this aim, the following specific objectives were laid out to evaluate the produced enriched fried unripe plantain cake, prepare cakes from plantain composite flour blends, analyze the quality characteristics of the produced plantain cakes this included the physical, chemical and sensory properties of the product and evaluate the composition of cake produced from different ratios of plantain. Nutrient composition, organoleptic attributes and overall acceptability of plantain cake were evaluated. Plantain fingers in stages 2 (URP) and 5 of ripeness (RP) used in this study were washed, peeled, sliced into small pieces, sun-dried for five days and milled separately into flour. All the fried unripe plantain …
Can the material for “Analytical Study of Merger and Acquisitions in the Insurance Industry in Nigeria” be used as a guide for Insurance Project?
Yes it can be used — This project is divided into different stages for ease of references of simplification of analysis which goes as follows: The introduction of mergers and acquisition, the background of the study which state the different problems that brought about mergers and acquisition which are the inability to settle claims, bad eggs in the industry, inability to bring up better services and innovative ideas that can enable the industry grow. Insurance has not been able to get to the rural area, it makes insurance non-popular profession that one must study, but since it has failed in this area, the common man find it difficult to know what insurance is all about. In order for the industry to stop the liquidation in the industry, the …
Can the material for “Improving Vocational Skills Acquisition for Entrepreneurship Development in Mechanical Technical Education in Universities in Nigeria” be used as a guide for Vocational and Technical Education Project?
Yes it can be used — The study was carried out to examine the improvement of Vocational Skills Acquisition for Entrepreneurship Development in Mechanical Technical Education in Universities in Nigeria. In achieving this aim, the following specific objectives were laid out to assess the relationship between vocational skill acquisition and entrepreneurial development in Nigeria and determine the importance of vocational skills acquisition to employment generation. Investigation revealed that the issues and challenges related to university undergraduates’ vocational skills acquisition for entrepreneurship development and Self-employability, hence the need for this research. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 200 (two hundred) respondents were selected for this study to represent …
Can this topic “Construction of a Full-Duplex Intercom System” be used for Electrical / Electronics Engineering (EE) Project?
Yes it can be utilized for research — The design of full duplex intercom system is an absolute implementation of strategic components to perfect a modern semi-conductor technology (electronics) and communications. The simple circuit design allows the two intercom stations to be operated leaving the operation free of the usual “push-to-talk” operation mode, no complex changeover switch is required. As both microphones are always in operation, a special circuit is used to avoid that the loud speaker output is being picked up by the microphone enclosed in the same box, causing a very undesired and loud “howl” i.e. The well known “Larson effect”. A private switch allows microphone muting, if required. …
Can the material for “Evaluation of Thyroid Dysfunction in Type 2 Diabetic Patients” be used as a guide for Biochemistry Project?
Yes it can be used — Diabetes is a metabolic disorder of multiple etiologies characterized by chronic hyperglycaemia with disturbances of carbohydrate, fat and protein metabolism resulting from defects in insulin secretion, insulin action, or both. The study was carried out to evaluate the Thyroid Dysfunction in Type 2 Diabetic Patients. Diabetes Mellitus (DM) and Thyroid Dysfunction (TD) are the two most common endocrinopathies seen in general population. Type 2 diabetes mellitus (T2DM) is commonly associated with altered thyroid function. Blood samples were collected from 80 Type 2 diabetic patients and 80 non diabetic (control) and analyze for fasting blood sugar (FBS), glycatedhemoglobin (HbA1c), thyroid stimulating hormone (TSH), triiodothyrorine (T3), thyroxin (T4), cholesterol, triglycerides (TG), high density lipoprotein (HDL-C)and low density lipoproteins(LDL-C). The levels, of FBS, HbA1c, Cholesterol, …
Can the material for “Treasury Management Strategies and Challenge in the Banking Industries” be used as a guide for Banking and Finance (BF) Project?
Yes it can be used — This research work was conducted to examine Treasury management strategies and challenges in the Nigeria. Banking industry, identifying the various types of bank treasury products, their challenges and the strategies applied by difference banks in marketing their new and existing treasury products. The study analyses the treasury management responsibilities assumed by financial departments and develops a model to confirm those responsibilities. The study has also developed an explanatory model that brings together the man functions of the treasurer by means of two concepts: (i) basic cash management, which group the management of collections and payments, liquidity monitoring in banking operations, short term treasury forecasts, management of banking balances on value data and negotiation with financial organization; and (ii) “advanced cash …
Can this topic “Effect of Globalization on Non-Oil Export trade” be used for Business Administration and Management (BAM) Project?
Yes it can be utilized for research — This project work is concerned with effects of globalization on non-oil export trade. Globalization as a concept can be attributed to two major reasons: The first is its scale and speed and the way technology (especially in communications and transportation) is changing the world. Second, it is the latest in economic fad that has become accepted as changing the international environment and turning the whole world into a global villages. Three hypotheses were tested through statistical package for the social sciences (SPSS) along with least square, regression analysis, F-statistic (ANOVA), t-statistic, co-efficient of correlation among others were used to analyse the result of the findings. The findings of the study revealed that globalization has enhanced the growth of non-oil export trade, that globalization …
Can this topic “Evaluation and Optimization of the Physiochemical Properties of Composite Flours” be used for Science Laboratory Technology (SLT) Project?
Yes it can be utilized for research — Cassava, yams (Dioscorea spp.), and sweet potatoes (Ipomoea batatas) are important sources of food in the tropics. The cassava plant gives the third-highest yield of carbohydrates per cultivated area among crop plants, after sugarcane and sugar beets. The aim of the study is to Evaluate and Optimize the Physiochemical Properties of Composite Flours Made from Wheat Cassava and Orange Flesh Sweet Potato. In achieving this aim, the following specific objectives were laid out to Evaluate the Composite Flours Made from Wheat Cassava and Orange Flesh Sweet Potato, optimize the Physiochemical Properties of Composite Flours Made from Wheat Cassava and Orange Flesh Sweet Potato, examine the physico-chemical and functional properties of orange fleshed sweet potato-based composite flours on dry weight basis …