ABSTRACT
The
unprecedented master influx of financial reporting in the country party as a
result of deregulation policies occasioned by sometimes government intervention
has aroused the curiosity of writers to carry out study of this nature. This
reporting apparently act as a fool for management decision. The problem does
not lie on management decision per se but the financial market in general and
public users as a whole.
Thus
the cord of this study is to find among other things need, avenue to get
financial report, the likely, problem and their root cause eventual findings
and analyses of research work, recommendations and possible solutions as regard
to proper financial reporting in Nigeria
The
study follows the chronological order of first introducing the study, coupled
with its evolution, objective, significance and likely problems to resolve
elaborating on the scope of study and definitions of some teams used in the
study.
In
the literature review of the study, the researchers try to extract the salient
quality of the study.
In
carrying out the research, the researcher made used of personal interview,
observation and collection of related literature in obtaining their
information.
Furthermore,
analyses their finding, citing problems, their root cause, and the users of the
financial reporting the regulatory bodies.
Finally,
in recognition of the obvious of the fact, the reveals as regard to the
analyzed work recommendations were made and possible solutions suggested.
APPROVAL PAGE
This
research work is approve for the department of Banking and Finance, school of
financial studies, institute of management and technology, Enugu.
By
…………………….. …….. ……………
Mr. Ikechukwu Date
Project Supervisor
…………………….. …………………..
Dr. John Orji Date
Head of Department
Banking and Finance.
………………………. …………………..
Mr. Odike J.C Date
Director, School of
Financial Studies.
TABLE OF CONTENTS
PAGE … … … … i
APPROVAL PAGE … … … … ii
DEDICATION … … … … iii
ABSTRACT … … … … iv
ACKNOWLEGEMENT … … … … v
TABLE OF CONTENTS … … … … vi
CHAPTER ONE
INTRUDUCTION … … … … 1
1.2
OBJECTIVE OF FINANCIAL REPORTING … 3
1.3
SIGNIFICANT OF FINANCIAL REPORTING … 5
1.4
STATEMENT OF PROBLEM … … 6
1.5
SCOPE AND LIMITATIONS OF THE STUDY … 8
1.6
DEFINITION OF TERMS … … 8
CHAPTER TWO
0: LITERATURE
REVIEW … … … 12
:1 QUALITIES
OF FINANCIAL REPORTING … 12
2:2 RELEVANCE … … … 13
2:3 RELIABILITY … … … 14
2:4 MATERIALITY … … … 14
2:5 COST
AND BENEFITS … …. …
16
2:6 REFERENCES … … … 17
CHAPTER THREE
3:0 RESEARCH
DESIGN AND METHODOLOGY … 18
3:1 POPULATION … … … 18
3:2 INSTRUMENTS
OF DATA COLLECTION … 20
3:3 RELIABILITY
OF INSTRUMENTS USED … 21
3:4 METHOD
OF ANALYSIS … … …
CHAPTER FOUR
4:0 ANALYSIS
OF FINDINGS … … … 23
4:1 PROBLEM
OF FINANCIAL REPORTING … … 23
4:2 RELEVANCE
AND USEFULLNESS … 24
4:3 RELIABILITY, … … … 27
4:4 COMPARABILITY
AND CONSISTENCY … … 29
4:5 EXTERNAL
ENVIROMENT REGULATION … … 31
4:6 REPORTING
DTANDARDS … … … 33
4:7 COMPETITION … … … 35
4:8 USEDS
OF FINANCIAL REPORTING … … 37
4:9 AUDITORS … … … 39
4:10 REFERENCES … … … 40
CHAPTER FIVE
5:0 RECOMMENDATION
AND SOLUTIONS … … 42
5:1 REGULATOR … … … 42
5:2 REPORTING
STARNDARDS … … … 43
5:3 USERS
OF FINANCIAL REPORTS … … 44
5:4 PEPOLE
AND MANAGEMENT … … 44
5:5 AUDITORS … … … 45
5:6 REFERENCE
BIBILOGRAPHY … … 47
CHAPTER ONE
1:1 INTRODUCTION
Financial
reporting is principally concerned with the communication of financial Information
relating directly or indirectly or indirectly to an enterprises resource,
Obligations, earnings e.t.c.
The
principal reporting medium is normally financial statement financial statements
are important measure of communicating for useful purpose. The usage of scare
economic resources by an enterprise. As such, they need to contain all relevant
information to be realized, and be reality understood by the well-informed
reader.
When
different accounting treatment and disclosures are used for essentially the
same transaction or when information is omitted, the chances of the information
provided in the financial statements being misleading or maunders are insured.
Although there may sometimes be good reasons for differences in accounting
standards, principles, applications or disclosures that evolved at national
level or otherwise over turn now with the introduction of MIDF and the level of
public interest developing in financial reporting may be a good tome to look at
our local reporting form an over all perspective.
These
issues of validity and credibility from the care of my of my topic “financial
Reporting in Nigeria:
problems and solution.†The objectives of my speech is to identify and define
the problems in financial reporting in Nigeria at present and thereafter
to offer or suggest solutions or recommendations. Thereon.
In
this regard, a brief over view of the evolution of financial reporting. Its
objectives and the over all challenges facing if will be conducted.
OBJECTIVE OF THE STUDY
The need for
information on which to base investment credit and similar decision underlies
the objective of financial reporting. If information provided is not useful for
decision making, there would be no benefits form providing it to set against
related costs.
The
objectives issued by the U.S financial Accounting standard board (FASB) on
financial reporting are as follows:
1. Financial
reporting should provide information that is useful to present and potential
investors and creditors and other users in making national investment, credit
and similar decisions.
2. The
information should be Comprehensive to those who have a reasonable
understanding of business and economic events.
3. Financial
reporting should proved information to help present and potential investors and
creditors and the other users in assessing the account, firming and
ascertaining of prospective cash receipts from cash out flows of a business
ability to generate sufficient cash to meet existing obligations as and when
due, reinvest in the business for further growth and pay dividends to
shareholders.
4. To
assist existing and potential investors in assessing.
5. To
provide information about economic resource of an enterprise claims to those
resources and the effect of transactions or economic events.
6. To
provide information about how enterprises obtain an utilizes cash resources
about its borrowing and repayment of borrowing.
7. Financial
reporting should provide information about how management has to use the
resources of the enterprise entrusted to it by owners of the business.
8. Finally, financial reporting should
provide information that is useful to management in making decision in the
interest of the business.
This seems
fairly comprehensive definition to the objective of financial reporting. It of
course leads us to the question of whether Nigeria financial reporting meets
such objectives.
1:3 SIGNIFICANT OF THE STUDY
The whole essence of financial report as
noted is to serve as a tool in decision making, partially decision affecting
shift in resources to better opportunities. Three principal users of the
financial reporting are shareholder the send. (Normally the Bank) and the
potential investor. There is no doubt that the extent of financial literacy of
these people/parties invariably shapes the quality of financial reporting.
1.4
STEMENT OF PROBLEM
The problem
of financial reporting in Nigeria
can be defined according to the extend to which the objective of financial
reporting are met.
1. Mixed timeless and value: On timeliness,
our local performance in mixed. Most Companies do issue their account within
six months of the year-end and while most banks written four months. As it
regards to value most companies do discover or disclose what is required by law
and accounting standard. For from perfect, while in some areas a little out of
data fairly comprehensive.
2. Reliability in terms of reliability noted
in the objective the measure rest on the quality of verification and
neutrality. How would financial reporting in Nigeria for on the reliability
score-eard/ an evolution of recent trends in financial reporting system would
provide some incomparability sights on this issue, where sadly it think we
score very.
3. Comparability and consistency: We
identified that benefits are firm companies information across companies and
between years.
In order
words, companies stand to go gain from financial analysis.
However, it is common knowledge to
those of us that conduct (or attempt to conduct) financial analysis that key
limitation exist in such exercises.
1.5
SCOPE AND LIMITATION OF THE SUDY
The scope
of my study covered library and some institution with record on financial
report across the country.
Limitation
encountered in respect of carrying out the study is numerous with multiplications.
When limitation includes: Transport, Time constrain communication gap, short of
material and most especially, restricted assess to available material for the
study.
1.6 DEFINITION
OF TERMS:
BALANCE
SHEET:
This
is a statement showing a summary of the assets and liability of a business.
DOUBLE
ENTRY BOOK KEEPING
This
is a general accepted method of accounting which demands every transaction must
be recorded device in the book of account to go complete information about the
given and receiver of values in that single transaction.
ACCOUNTING
STARNDARE:
This
is the codification of accounting application to remove subjectivity from
accounting practices.
FINANCIAL
ACCOUNTING STANDARD BOARD (FASB)
Issue
statement of financial accounting standard which be considered as authoritative
expresses of generally accepted accounting principle.
Get the Complete Project Material Now!!!
