• 0 Review(s)

Product Category: Projects

Product Code: 00000902

No of Pages: 71

No of Chapters: 5

File Format: Microsoft Word

Price :



This research examines the effect of accounting standards on the quality of financial reporting in Nigeria. The broad objective of the study is to determine the effect of financial accounting standard on the quality of financial reporting in Nigeria and also to ascertain if accounting standard is effective in business enterprise. It also aims at bringing to the awareness of the users of financial statement the benefits of financial reporting standard towards improving business performance. The researcher adopted the primary source of data collection and the chi-square statistical tool was used to test the stated hypotheses. It was found that financial reporting standard has a significant effect on financial reporting in Nigeria and that accounting reporting standard is effective in business enterprise. Finally, it was recommended that the standards setting body maintain cooperation with government regulatory bodies and financial institution so as to ensure compliance and disclosure in all material respect with financial reporting standard requirement. The financial reporting standard (FRS) should ensure full compliance.



Cover Page                                                                                       i

Title Page                                                                                          ii

Approval Page                                                                                  iii

Certification                                                                                     iv

Dedication                                                                              v

Acknowledgements                                                                          vi

Abstract                                                                                           viii

Table of Contents                                                                             ix


Chapter One: Introduction                                        1

1.1       Background to the Study                                                      1

1.2       Statement of Problems                                                          3

1.3       Research Questions                                                               4

1.4       Objectives of the Study                                                          4

1.5       Statement of Hypotheses                                                       5

1.6       Significance of the Study                                                       5

1.7       Scope of the Study                                                                 6

1.8       Limitations of the Study                                                        7

1.9       Definition of Terms                                                                7


Chapter Two: Review of Related Literature                10

2.1       Introduction                                                                           10

2.2       Concept of Financial Statements                                           12

2.3       Concept of Financial Accounting                                          14

2.4       Concept of Accounting Standard                                          16

2.5       Importance of Accounting Standard                                    18

2.6       International Financial Reporting Standards (IFRS)  20

2.7       Features of IFRS                                                                     21

2.8       The Nature and Scope of Financial Reporting            24

2.9       Approaches to Theories of Financial Reports                       28

2.10    Qualities of Financial Reporting                                            29

2.11    Factors Associated With Reporting Quality Assessment            30

2.12  Objectives of Financial Statement and Reporting                31

2.13  Disclosure in Corporate Financial Reporting                       32

2.14  The Effects of Accounting Standards on Financial Reporting Quality       34

Chapter Three: Research Method and Design             39

3.1       Introduction                                                                           39

3.2       Research Design                                                                     39

3.3       Description of Population of the Study                                 39

3.4       Sample and Sampling Techniques                              40

3.5       Instrumentation                                                           40

3.6       Method of Data Presentation                                                41

3.7       Method of Data Analysis                                                       41

Chapter Four: Data Presentation, Analysis and Hypothesis Testing     43

4.1    Introduction                                                                           43

4.2    Data Presentation                                                                  43

4.3    Data Analysis                                                                         43

4.3    Hypothesis Testing                                                                 54


Chapter Five: Summary of Findings, Conclusion and Recommendations 59

5.1    Introduction                                                                           59

5.2    Summary of Findings                                                             59

5.3    Conclusion                                                                             59

5.4    Recommendations                                                                 60

          References                                                                    62

          Appendices                                                                             64

          Appendices                                                                             77



1.1      Background to the Study

The end product of financial reporting is the preparation and publication of financial statement. A substantial number of alternative postulate, principle assumption and method adopted by a reporting entity in the preparation of financial statement can significantly affect its result of operation and understanding the interpretation of financial reporting in financial statement.

The financial statement prepared by the accountants is based on convention that is derived from printable reports and there conventions originate from such concepts as: entity, going concern, periodicity, realization consistency, matching concept, historical cost. These concepts are fundamental to financial reporting standards and presentation of financial statement, disclosure of fundamental financial concept and acts followed.

This is because financial statement are for interest to a variety of users, especially shareholders, the use of financial statement clearly valuable evaluation of a reporting enterprise unless if financial statement clearly disclose the significant financial accounting policies that have been adopted in their preparation.

Its is also adopted in recognizing measures and values on item of revenue, expense, gain, loss or any asst or liability. Financial reporting practice have evolved in response to the verity and complexity of types of enterprise and business transaction, there exist more than one recognized calculating profit, measuring depreciation, valuing inventory.

Standard accounting practices require publicly traded companies to follow certain accounting rules when presenting financial statements so that the readers of the statements can easily compare different companies. Private companies are also often required by banks and shareholders, for example, to present information according to their specified rules.

Usually, countries practicing civil law system write standards into law and countries with English common law systems have private organizations to set the rules. There are specialist organizations that can arrange for the set-up of an accounting practice with a franchise business model which can prove successful from the out-set.

The accounting standards are developed to ensure a high degree of standardization in the published financial statement. They provide the necessary information about how financial reporting information should be gathered, prepared and presented in order to improve the value of its contents and facilitate through understanding.

1.2      Statement of Problem

Financial accounting as an aspect of the accounting profession is concerned primarily with the Tran writing of financial information to the user who would use it to improve the outcome of their decision process. The financial information are embodied in the financial statement which serves as a means of communicating information to interested parties the obligation and performance of the reporting entity or enterprise in Nigeria system.

In preparing and presenting financial statements, the accountants must be guided in such preparation by the standard of the profession to ensure that such financial statement prepared and presented will facilitate a thorough understanding to its user.

1.3      Research Questions

The following research questions are used in the research work.

i.      What significant effect does financial accounting standard has on the quality of financial reporting in Nigeria?

ii.     How effective is accounting standard in business enterprise?

iii.    What are the problems encountered in the application of accounting standard?

1.4      Objectives of the Study

The broad objective of this study is to ascertain the effect of accounting standard on the quality of financial reporting in Nigeria. To following are the sub-objectives;  

1.     To determine the effect of financial accounting standard on the quality of financial reporting in Nigeria.

2.     To ascertain if accounting standard is effective in business enterprise.

3.     To ascertain the problems encountered in the application of accounting standard.

1.5      Statement of Hypotheses

The following are the hypotheses of the study;

Hypothesis I

HO:   Financial accounting standard has no significant effect on the quality of financial reporting in Nigeria.

HI:    Financial accounting standard has significant effect on the quality of financial reporting in Nigeria.

Hypothesis II

        HO:   Accounting reporting standard is ineffective in business enterprise.

HI:    Accounting reporting standard is effective in business enterprise.

Hypothesis III

HO:   There are no problems encountered in the application of accounting standard.

HI:    There are problems encountered in the application of accounting standard.

1.6      Significance of the Study

At the end of this research work, one will be able to know the procedures adopted in the preparation of financial statement reporting and the information contained therein.

Accounting Users: The relevance of the various concepts and convention in the preparation of financial will be classified. This is based on the fact that an attempt will be made to discover the importance of disclosure of the various concept and convention used in the preparation of financial statement, the understanding and interpretation of which it will greatly affect the decision of users.

Future Researchers: the study will broaden the knowledge of the academic community on the importance of accounting standard on the quality of financial statement and their subsequent disclosures.

1.7      Scope of the Study

The scope of this research work is limited to the effect of accounting standards on the quality reporting in Nigeria. In this study, the research covers in depth information gathered in such areas as, the historical development of financial statement, the objective of financial reporting, the various financial reporting standard, postulate the theoretical concept and principles. The time frame of the study is 5 years i.e. 2011 – 2015 (both years inclusive).

1.8      Limitations of the Study

In carrying out this research work, a number of difficulties were encountered.

1.     Finance: lack of adequate and sufficient finance in terms of the cost of collecting data, and processing the required information hindered the smooth conduct of this project.

2.     The non-availability of existing research materials made the researcher to search deeply for relevant data information from the internet, library and book stories.

3.     In the course of personal interview conducted by the researcher, it was difficult to obtain some information, as they were deemed confidential by the companies and persons visited.

1.9      Operational Definition of Terms

For the purpose of clarity, some of the terms in the research work as derived by IAS are explained below.

Financial Statement: This is a formal record of the financial activities of a business, person or other entity. The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.

Financial Policies: These are those bases or principles describing a corporation choices regarding its debt/equity mix, currencies of denomination, maturity structure and hedging of decision with a goal of maximizing the value of the firm to some set of stockholders.

Financial Information: These are data such as credit cards numbers, credit ratings, accounting balances and other monetary facts about a person or organization that are used in billing, credit assessment loan transactions and other financial activities.

Financial Reporting Standards: This is a set of accounting standards stating how particular types of transactions and other event should be reported in the financial statement.

Entity: This means an economic unit that is treated as separate from parties having proprietary or economic interest.

Investment: These are asset acquired for the purpose of income generation without any activities in the form of production, trade or provision of services.

Asset: This is a research controlled by an entity as a result of past event from which future economic benefit are expected.

Liability: A present obligation to transfer economic benefit as a result of past transaction.

Buyers has the right to create dispute within seven (7) days of purchase for 100% refund request when you experience issue with the file received. 

Dispute can only be created when you receive a corrupt file, a wrong file or irregularities in the table of contents and content of the file you received. shall either provide the appropriate file within 48hrs or send refund excluding your bank transaction charges. Term and Conditions are applied.

Buyers are expected to confirm that the material you are paying for is available on our website and you have selected the right material, you have also gone through the preliminary pages and it interests you before payment. DO NOT MAKE BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.

In case of payment for a material not available on, the management of has the right to keep your money until you send a topic that is available on our website within 48 hours.

You cannot change topic after receiving material of the topic you ordered and paid for.

Ratings & Reviews


No Review Found.

To Review

To Comment