The Influence Of Accounting Standard On Financial Reporting In The Nigerian Banking Sector.  Download complete project work with full chapter 1-5, abstract, reference and questionnaire. view abstract and chapter one below.



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.



1.1Background 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).

1.2Statement 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.

1.3Research Question

Is there a positive relationship between accounting standards, its contents and the presentation of financial statement?

1.4Objective of the Study

To find out if there is a positive relationship between accounting standard and the content in the presentation of financial statements.

1.5Statement 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.




Do you need help? Talk to us right now: (+234) 08060082010, 08107932631 (Call/WhatsApp). Email: [email protected].


Disclaimer: This PDF Material Content is Developed by the copyright owner to Serve as a RESEARCH GUIDE for Students to Conduct Academic Research.

You are allowed to use the original PDF Research Material Guide you will receive in the following ways:

1. As a source for additional understanding of the project topic.

2. As a source for ideas for you own academic research work (if properly referenced).

3. For PROPER paraphrasing ( see your school definition of plagiarism and acceptable paraphrase).

4. Direct citing ( if referenced properly).

Thank you so much for your respect for the authors copyright.

Do you need help? Talk to us right now: (+234) 08060082010, 08107932631 (Call/WhatsApp). Email: [email protected].

Welcome! My name is Damaris I am online and ready to help you via WhatsApp chat. Let me know if you need my assistance.