FINANCIAL REPORTING IN NIGERIA, PROBLEM AND SOLUTION


FINANCIAL REPORTING IN NIGERIA, PROBLEM AND SOLUTION     

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.

TABLE OF CONTENTS

PAGE                     …………      i

APPROVAL PAGE … … … … ii

DEDICATION … … … … iii

ABSTRACT … … … … iv

ACKNOWLEGEMENT … … … … v

TABLE OF CONTENTS … … … … vi

CHAPTER ONE

   INTRUDUCTION         … … … … 1

1. OBJECTIVE OF FINANCIAL REPORTING … 3

2. SIGNIFICANT OF FINANCIAL REPORTING … 5

3. STATEMENT OF PROBLEM … … 6

4. SCOPE AND LIMITATIONS OF THE STUDY … 8

5. DEFINITION OF TERMS … … 8

CHAPTER TWO

0: LITERATURE REVIEW … … … 12

:1 QUALITIES OF FINANCIAL REPORTING … 12

2:2 RELEVANCE … … … 13

2:3 RELIABILITY … … … 14

2:4MATERIALITY………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

3:4METHOD 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. STEMENT OF PROBLEMThe 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. SCOPE AND LIMITATION OF THE SUDYThe 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.

REFERENCES

Roger, H Her Manson at all, financial accounting Business publication inc, U.S.A 1984 2nd Ed.

Kermit D. Larson, et al, fundamental accounting principles, Homewood U.S.A 2nd ED.

.


TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.COM

Researchwap.com is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.com guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.com is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.com" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.