THE USEFULNESS OF ACCOUNTING STANDARDS IN THE PREPARATION OF FINANCIAL STATEMENTS



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THE USEFULNESS OF ACCOUNTING STANDARDS IN THE PREPARATION OF FINANCIAL STATEMENTS



ABSTRACT

 

The most common report from external use are the financial statement included in the annual report to shareholders (owners) and potential investors.  These financial statements are prepared to confirm with “generally accepted accounting principles” such “principles” have evolved over time or have been made acceptable by decree from official rule making body. Accounting principles result from an essentially political process.  The government through the Securities and Exchange Commission (SEC) prescribes the methods of accounting profession through its board, Nigeria Accounting Standards Boards also issue statements of accounting standards as guide for prepares of financial statements. In explanation of the above, the researcher examined the usefulness of the statement produced by the accounting profession’s organ (NASB) and how they are being complied with, its achievements and problems, hypothesis was also conducted. Chapter five, discussed the findings of the study.  It was discovered from the findings that accounting standards application in preparing financial statement have came to conclusion that it contributes numerously not to the company – Guinness (Nig) Plc, Enugu also on the nation’s economy as a whole.

 

CHAPTER ONE

 

INTRODUCTION

 

1.1     BACKGROUND OF THE STUDY

 

Guinness (Nig) Plc, is one of the biggest breweries in Nigeria today.  It is a quoted company in the Nigerian Stock Exchange Commission (SEC).  Guinness (Nig) Plc is an associated of Guinness overseas ltd, with headquarters at Dublin in England.

 

The journey of this company to Nigeria started in 1950 when the company was incorporated to import and distribute Guinness Stout from Dublin for sale in Nigeria.  In 1962, the stout brewery in Ikeja Lagos, was commissioned.  This station was the third of it kind in the world and the first outside the British Isles.  A second brewery in Nigeria was commissioned in Benin and from 1982 other breweries stations was commissioned including in other states.

 

The company share capital is made up of 60% ordinary share owned by Nigerians and 40% ordinary shares owned by Guinness overseas limited.  The Enugu Department which happens to be over study interest has a staff strength of about 10000 workers including both skilled and unskilled workers.

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All Project Materials Inc. (2020). THE USEFULNESS OF ACCOUNTING STANDARDS IN THE PREPARATION OF FINANCIAL STATEMENTS. Available at: https://researchcub.info/department/paper-7816.html. [Accessed: ].

THE USEFULNESS OF ACCOUNTING STANDARDS IN THE PREPARATION OF FINANCIAL STATEMENTS


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The most common report from external use are the financial statement included in the annual report to shareholders (owners) and potential investors. These financial statements are prepared to confirm with “generally accepted accounting principles” such “principles” have evolved over time or have been made acceptable by decree from official rule making body. Accounting principles result from an essentially political process. The government through the Securities and Exchange Commission (SEC) prescribes the methods of accounting profession through its board, Nigeria Accounting Standards Boards also issue statements of accounting standards as guide for prepares of financial statements. In explanation of the above, the researcher examined the usefulness of the statement produced by the accounting profession’s organ (NASB) and how they are being complied with, its achievements and problems, hypothesis was also conducted. Chapter five, discussed the findings of the study. It was discovered from the findings that accounting standards application in preparing financial statement have came to conclusion that it contributes numerously not to the company – Guinness (Nig) Plc, Enugu also on the nation’s economy as a whole... Click here for more

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