The Role Of Accounting In National DevelopmentA Focus On A Developing Economy such As Nigeria
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The Role Of Accounting In National DevelopmentA Focus On A Developing Economy such As Nigeria
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PROPOSAL: Accounting and financial reporting in the public sector especially in Nigeria were met give the right attention it required.  But effort put recently has been gave towards emphasis on the role and importance of accounting record and information to nation building.Accounting having a tradition formation of proper accountability through record keeping and events safeguarding has a lot to contribute to the development of Nigeria This research work is divided into five chapters, chapter one of this project work is amed at giving the background of the study, purpose, significance, problem of the study hypothesis and scope and limitation of the study. Chapter two of this work, will extensively x-ray the relevance and the problems militating the role of accounting in Nigeria economy. Chapter three of this work will then focus on Research design, method of data collection and the technique adopted to analyze the data. Going down to chapter four, it will deal with the data presentation and analysis and then the testing of the hypothesis. Chapter five, will summarize the project by focusing on the summary of finding, collection of recommendation.          At the end of this, it is expected that the researcher would have identify the problems, that is militating the application of accounting information in Nigeria.  And the role such vital ;information could play in the development of Nigeria economy.

 

TABLE OF CONTENT

TABLE OF CONTENT

  1. INTRODUCTION
    1. BACKGROUND OF THE STUDY
    2. PURPOSE OF THE STUDY
    3. SIGNIFICANCE OF THE STUDY
    4. STATEMENT OF THE PROBLEM
    5. HYPOTHESIS FORMULATION
    6. SCOPE AND LIMITATION OF THE STUDY
    7. DEFINITION OF TERMS

CHAPTER TWO

  1. Review of related literature
    1. Introduction.
    2. The role of accounting in government and control of public enterprises.
    3. Analysis and interpretation of financial statements.
    4. Budget and budgetary control
    5. Management and control of public concern.
    6. Public enterprises and inefficiency
    7. Public enterprises and subsidies
    8. Waste of public resources
    9. Accountability and social objectives responsibility.

 

CHAPTER THREE

  1. Introduction
    1. Method of data collection
    2. Sample & Sampling
    3. Questionnaire administration
    4. Treatment of data for analysis

 

CHAPTER FOUR

  1. Presentation and analysis of date
    1. Presentation
    2. Analysis
    3. Test of Hypothesis/Interpretation of Result.

CHAPTER FIVE

  1. Summary of findings conclusions and recommendations
    1. Findings
    2. Conclusions
    3. Recommendations
    4. Bibliography
    5. Appendix
    6. Questionnaire.

CHAPTER ONE

  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.

  1. 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

  1. outside the control
  2. present use for consumption
  3. present use in production of capital of or types regarded as not contributing to economit growth.
  4. 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.

  1. Ecnomic planning
  2. Capitalformation
  3. Accountability
  4. Taxation
  5. 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. 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. 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. 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.
  2. 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

  1. Accountant has no major role to play in national development.

 

  1. 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. 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.



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