THE INFLUENCE OF ACCOUNTING STANDARD ON FINANCIAL REPORTING IN THE NIGERIAN BANKING SECTOR
ABSTRACT
The study examines the influence of accounting standard on financial reporting in the Nigeria banking sector, using a sampling size of 14 banks out of all banks quoted in the Nigerian stock exchange as at third quarter of 2012. The survey design was adopted in this study and a total number of 50 questionnaires were administered but 47 copies were returned completely. The t-statistics was adopted in carrying out the analysis of data. From the analysis of data collected, the result reveals that there is a positive relationship between accounting standards, its contents and presentation of financial statement in the banking sector. Based on these findings, some recommendations among others were made that proper accounting standards be put in place by the relevant accounting standard setting bodies so as to ensure the preparation of high quality financial report or statement in the Nigerian banking sector.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Section 33 5(1) of the companies and allied matters act CAMA 1990 as amended stipulates that the preparation of financial statement, shall comply with the accounting standards’ issued from time to time by the Nigeria Accounting Standard Board. Financial statements are described as the end product of accounting transactions or economic events aimed at providing qualitative and quantitative financial information to evaluate and predict the performance of an organization to permit informed judgment and decision making, (Illaboya,2005, p.167). In Nigeria, the; standard setting body was the Nigeria Accounting Standard Board (NASB) which is presently referred to as the Financial Reporting Council of Nigeria (FRCN) which was passed into law On 18 May 2011 and was signed into law on 20 July 2011. The financial reporting council of Nigeria like all standard setting bodies in the world is independent of the profession of accounting. The council identifies areas where a measure of uniformity is required so as to bridge the variation in reporting practices and ensure a high level of uniformity which is panacea to corporate compatibility, (Illaboya,2005, p.169).
