1.1 Background of the study.
The basic economic problem that confronts an under developed or a
developing country and especially the new independent ones is how to
attain within a relatively short period, a notable increase in the rate
of economic growth which is envisaged will bring it to the level of
perpetual real income comparable to those of more admired economics of
the world. In order to attain this oval, the country would have to ;
1.provide those basic government services especially in education,
public health and transport. These services will serve as fertile soil
to advancing the nation’s economy.
- Stimulate a higher rate of capital formation in production
facilities either in government or private sectors. The first
accomplishment requires transportation on needed factors or resources to
the governmental ;sector of the economy for the production of those
services or facilities required by the entire populace.. The second
accomplishment required transfer of resources to capital formation
either strictly in the private sector or through the governmental
sector.
These resources may come from
- outside the control
- present use for consumption
- present use in production of capital of or types regarded as not contributing to economit growth.
- Idle or partially idle resources primarily manpower. The above four
sources off varying opportunity growth and it actually does it only by
transfer existing resources to the appropriate quarter and profitable
application of these to production attains within that relatively short
period a level of standard of living comparable to those of other more
advanced countries of the world.
Accounting come in as the tool that measures the profitability/viability a project with an economic system.
Glanlier (1976) defines accounting as the systematic collection,
summarization, and analysis and reporting of data in a form suitable and
under stable to prospective users.
Generally, it involves some other related discipline as budgetary
control taxation, cost and management accounting, financial management,
auditing and quantitative techniques.
Since development project entails projection into the future, it
is essential that public officers ;and employees in the private sector
appreciat the need a transaction and necessary statistics as to enable
the proper ;evaluation of past. Records with what obtains presently in
order to reasonably project into the future. Some of the practical ways
in which accounting can be and is known to have been used not only for a
decision making but also importantly to achieve desired results
include.
- Ecnomic planning
- Capitalformation
- Accountability
- Taxation
- Accounting for social purposes.
Accounting records provide information that may be used within the
business and which may be relied on by businessmen while making
investment decision. The problem with most potential investors in the
development nations is they are mostly illiterates and therefore
required the services of any accountant and financial analyst to help
access possible areas of investment. Budget implementation is another
vital area where accounting knowledge is essential.
Most budgets are stated in accounting formula and their
implementation will require that knowledge that will enable officials
read the budget as it affects their sector and even reflect on how
other sectoral outlay may affect them. It is due to the perennial lags
in our civil service that the researcher decided to carry out an
investigation into what are likely lags in the wheel program or growth
of the civil service and thereby the nation. The private sector
employees are also caught in this lapses but however, there seems to be
more commitment on their part due to obvious reasons of ownership and
direct supervision by entrepreneurs. The proper functioning of
financial system of a company determines to a good extent the viability
of her economic structure. That is why the researcher decided to show
sets of accounts viz (profit and loss acco9unt and value added
statement) from unpetrol Nigeria PLC Annual Report and Account 1999.
This financial statements help users of such statements ascertain the
viability of the company and it is prepared by chartered Accountant.
1.2 Purpose of the study
The purpose of this project is aimed at identifying.
-The role of an accountant in planning
- The role of an accountant in government accounting.
- - The role of an accountant in controlling public expenditure.
- - The duties of an accountant in management and control of public concerns.
1.3 Significance of the study
The study which is an attempt to diagnose the accounting system in a developing economy is of immense importance to;
Future Researchers/The Researcher;]
This will serve as a secondary data to future researchers who
intends to carry on research on accounting role in Nation Development.
It will also help students in the school of financial studies in having
an in-depth knowledge of control accounting.
It will enable the researcher know more about the role of
an accountant in government accounting and where there are lapsed or
breakdown in management and control of public concerns, appropriate
suggestions are made to the management.
1.4 Statement of the problem. The problem of this research as
contained in the introduction is whether the accountant has major role
to play in national development.
1.5 Hypothesis formulation . For the purpose of direction and
charity of issues raised in this study, the hypothesis formulated are;
a. Accountant has a major role to play in national development
- Accountant has no major role to play in national development.
1.6 Scope and Limitations of the study. This project will cover
some vital aspect of an accountant’s role in government accounting and
control of public expenditure analysis and interpretations of financial
statements, budgetary control, management and control of public concerns
in developing economy. It will also show a company’s financial
statement prepared by an accountant. In carrying out this research,
some obvious limiting factors are encountered. There are reviewed below.
-Time fact; The time available to carry out this research and
compling of its report is rather very short. Infoact, one has to attend
lectures as well as face the research work thereby, the attention
required for this work had to be impaired.
- Attitude of the people; The uncooperative attitude of the people interviewed was very demoralizing.
- -Most of the people were unwilling to give out necessary
answers for effective completion of this work because of fear of
victimization.
1.7 Definition of terms. Accounting ; American accounting
association committee define accounting as ‘ The process of identifying,
measuring and communicating economic information to permit informed
judgment and decision by users of the information.
PRIVATE COMPNAY; J. C. Odike in managerial economics for Nigerian
Polytechnics II(2200) is a limited liability company owned by the
minimum of 2 shareholders and previously a maximum of 50 persons but now
in Nigeria, a maximum of 100.
Iabilities of shareholders are limited to just their shares in the company (paid up and unpaid) if the business goes bankrupt.
BUDGET; A budget according to chartered institute of accountants is ‘
a plan quantified in monetary term, prepared and approved prior to a
defined period of time, usually showing planned inform to be generated
and or expenditure to be incurred during that period and the capital to
be employed to attain a given objective’
INTERNAL CONTROL; According to Horngren (1982) INTERNAL control is
the set of accounting and administrative controls and practices that
helps ensure that approved and appropriate decisions are made in an
organization.
PUBLIC COMPANY J. C. ODIKE in managerial economics for Nigerian
polytechnics II (200) is a limited liability corporate body with
previous minimum of shareholders but now in Nigeria a minimum of 2 since
the 1990 companies and Allied matters Decree (CAMD) there is no minimum
of shareholders.
BUDGETARY CONTROL; According to Haper (1974) budgetary control can
defined as the establishment of budget relating the responsibilities of
executives to the requirements of a policy, and continuous comparison of
actual with budgeted.