CHAPTER ONE
INTRODUCTION
The introduction of accounting standard and worldwide by the various professional accountancy bodies has tried to solve the problem of non-uniformity in financial statement and also the acceptance of financial statement by the standardization.
The need for accounting standard in Nigeria to suit our local, political, legal and economic environment has bee recognized long, particularly during the indigenization period. Government ministries, departments, and regulatory public have for many years demanded for uniformity in the recording of accounting transaction.
It is the researcher’s opinion that by the end of this study, the attempts made to standardize financial statement as well as their merit and demerit would be highlighted.
It is also necessary to say that accounting standard board whether statement of accounting standard (SAS) issued by the Nigeria accounting standard board of the standard accounting practices (SSAP) have a great impact on the level of relevance placed on financial statement and the accounting profession as a whole. Cognizance should be taken of the fact that accounting standard by various accounting bodies have a persuasive effect outside the committees’ boundaries. A chartered accountant in Nigeria may be forced to comply with the standard set by Britain, America or any other country on his Nigeria Based client company-prior to the promulgation of Nigeria. Enterprises promotion decree 1977 when most of the publicity quoted Nigeria companies was foreign controlled. It was easy to persuade the local government to comply with the.
There are several problems that are faced in the appraisal of accounting system of multinational company operations some of them are:
1.3 SIGNIFICANCE OF THE PROBLEM
This study will be useful to all financial statement of bank as this research will enable the current and prospective user of financial statement, both external and internal users be acquainted with the knowledge of analytical tool in making decision. Serve as relevant guide for future researchers in the area of the of the user of financial statement. Help to supplement the existing knowledge of users of financial ratios as a guide toward determine the banks achievement as well as to show how financial ratio analysis can identify this strength and weakness of the bank both a day and in the future.
It enable the intending investors who are not well raised in accounting to be able to appreciate how to critically evaluate financial statement or organization of interest to them before making investment decision.
THE HYPOTHESIS TO TEST
Ho Accounting standard does not have effect on financial statements.
H1 Accounting statements not have effect on financial statements.
1.4 RESEARCH QUESTION
The research will be
Indigenization programmed in 1978.
In order to facilitate easy consolidation of financial results the same accounting policies are now readopted by both of the present and subsidiary companies, for the purpose of this project, statement of accounting standard (SAS) well be used in the following categories!
This study is aimed at determining the extent of compliance to an accounting standard in the preparation of financial statement. Accounting standard are to be taken into cognizance and unlike auditing guidelines which may provide a guide.
Accounting standard are to be observed in understand by all users. Financial statement are therefore the means of communicating for instead meaningful information must be presented information recommended in the SAS2, it is expected to be the best practices in Nigeria.
INFORMATION TO BE DISCLOSED IN FINANCIAL STATEMENT SAS2
In any company, these are many accounting information that will assist to access the financial liquidity profitability and viability of reporting entity.
The financial statement of a reporting company should include the following.
By implication, this study untended to look at the nature of financial statement in Nigeria in order to verify and ascertain whether what is analyzed in the theory is actually put in practice in use of financial statement overtime through the study tries to determine variance between actual performance and stated standards but because of financial constraint and time factors will be a limitation to this study since most of manufacturing company apply the SAS to suit the purpose and the adherent to the SAS is not strong as we have in the theory.
Preparation of financial statement and where in any circumstances, it is not being complied with then the financial statement that does not company with a particular standard should be disclosed in the financial statement and the extent of its non-compliance should ne noted.
The stuffy is also aimed at determining the attempt made by professional bodies to standardize financial accounting reports / statements. The improvement without considering the impact of accounting standards in information contained in financial statement.
1.7 SCOPE OF THE STUDY
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