TITLE PAGE I
TABLE OF CONTENT V
OF THE STUDY 1
OF THE PROBLEM 2
OF THE STUDY 3
OF THE STUDY 4
OF THE STUDY 5
OF THE STUDY 6
OF TERMS 7
TWO: LITERATURE REVIEW
2.3 THE MOVE
TOWARDS STANDARDISATION 12
REQUIREMENT OF SAS1 TO DATE 15
OF STATEMENT OF ACCOUNTING STANDARD17
CHAPTER THREE: RESEARCH
BACKGROUND OF UNION BANK OF NIGERIA PLC
OF THE SAMPLE 22
COLLECTION METHODS 23
OF THE STUDY 23
TO QUESTIONNAIRE 24
FOUR: DATA ANALYSIS
OF DATA 28
OF HYPOTHESIS 33
4.3 TEST OF
5.1 SUMMARY 38
5.2 CONCLUSION 38
5.3 RECOMMENDATIONS 39
OF THE STUDY
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
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.
OF THE PROBLEM
are several problems that are faced in the appraisal of accounting system of
multinational company operations some of them are:
conflict and difficulties induced by different national accounting standard and
(b) The problem of adjusting financial statements
to reflect the various level of inflation on different countries.
deficiency in the consolidation of the financial statement of foreign
subsidiaries and its regulative effect on the multinational settings.
problem of determine the total return form a multinational setting.
problem involved foreign exchange translation into the accounting system of multinational
of some technical accounting standard.
OF THE PROBLEM
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
THE HYPOTHESIS TO TEST
Accounting standard does not have effect on financial statements.
Accounting statements not have effect on financial statements.
The research will be
1. What is
2. What is
3. What are
benefits of accounting standards?
4. How does
accounting standard affect the preparation of financial statement.
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
ADDITIONAL DISCLOSURE: some standard requires
information be provided which is not required by law in such category fall SAS2
and SAS6 which requires companies to publish financial date / financial
reporting found in financial statement. Added to deal with ordinary items and
to take care of prior adjustment.
SPECIFICATION OF APPROPRIATE METHOD OF
VALVATION: In this category such standard tell the accountant and manager how to
annivota current figure for the purpose of inclusion in the profit / loss,
balance sheet in the account e.g. SAS4, SAS9 and so on. It is in fact use
categories that have pronounced most discussion and criticisms.
1.5 OBJECTIVES OF THE STUDY.
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
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
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.
information: these are data that are found in financial statement.
sheet: show the assets, liabilities and properties interest at a point in time.
are: profit and loss account or income statement notes on the account statement
of source and application of funds, valve added statement and five years
1.6 LIMITATION OF THE STUDY
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
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
In this research, due to and financial
resources constraints, the researcher strategically selected six out of the
eighteen as for the study. The need for individual area chosen may be briefly
presented as follows.
== SAS1: DISCLOSURE OF ACCOUNTING POLICIES
statements are prepared for various users and there are more than one
accounting treatment of financial transaction: there, the proper evaluation of
accounting information by the users, it is very paramount that accounting
policies adopted in such preparation must be disclosed.
SAS2: INFORMATION TO BE DISCLOSED IN THE
information about a business entry or enterprises. Requires a variety at users.
This need dictates the fundamental objectives of accounting and makes reporting
information in the financial statement information.
information in the financial statement are therefore expected to be simple,
clear and easy to
DEFINATION OF TERMS
The researcher has identified the most suitable
SAS as far as the study is concerned it is fundamental to be defined are:
Accounting policies are the specific accounting based selected and consistently
followed by a business enterprise in reporting
Financial statement are prepared under the historical cost convention except
for certain fixed assets which are professionally valued.
DEPRECIATION: Depreciation of fixed
assets to calculate to write off their cost, its expected useful life.
INVESTMENT: Investment is an act of
keeping founds for the realization of profits in the future business
operations, most of their resources are used to acquiring assets, to be held
for capital to appreciation incomes generation or for the purpose of securing
PROPERTY OR PLANT EQUIPMENT:
Generally, they are referred to as fixed assets and those tangible resources of
an enterprise which are employed in its operations.
LEASING: In Nigeria, is an attractive means of
financial the ocquistion and used for fixed assets.
BANK: An influential sector of the economy and its
being used for keeping valuable things and it play a major roles in maintaining
confidence in the monetary system.
ACCOUNTING PERIOD: Refers
to the time span usually one year, covered by financial statement.