The Role Of Accounting In Nigeria
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The Role Of Accounting In Nigeria
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TABLES OF CONTENT

CHAPTER ONE:

INTRODUCTION

1.1     BACKGROUD OF THE STUDY

1.2     OBJECTIVE OF THE STUDY

1.3     SCOPE AND LIMITATION OF THE STUDY

1.4     SIGNIFICANCE OF STUDY

1.5     STATEMETN OF PROBLEM

1.6     DEFINITION

CHAPTER TWO

  1. LITERATION REVIEW
  2. ACCOUNTING CONCEPT CONVENTIONS
  3. ACCOUNTING INFORMATION VIA USERS
  4. ROLE OF ACCOUNTING IN NIGERIA
  5. BUYING AND SELLING PROCEDURES AND MAJOR ACCOUNTING DOCUMENT

CHAPTER THREE

  1. SUMMARY UP
  2. RECOMMENDATION
  3. CONCLUSION
  4. BIBLIOGRAPHY

 

 

          CHAPTER ONE

 

          INTRODUCTION

  1. BACKGROUND OF THE STUDY

Booking keeping is business in a methodical manner that

information on any point relating to their may be quickly obtained.  The method of proceeding is based upon deprecate principle, which are discussed and illustrated.  The kind of information which a trader may desire to have and which is readily available is summarized below.

THE TRADER MAY DISCORE: -

The value up his purchases

The value up his sales

His expenses

The amount of cash in the office or bank etc.

          The ultimate position of the business is to make a profit, by providing goods services or employment.  As every transaction plays it part in determine the final profit or loss for a trading period, accuracy in recording is important.

          Accounting is defined as a discipline concerned with the recording, analysis, and forecasting of income and wealth of business and other entitle.  Generally is record in money to terms the flow of economic transactions between or within economic entities.

          A clear distinction between accounting and book-keeping is not easy to make because book-keeping is in fact a part of accounting.      

          Accounting figures are not use unloose they are made to tell useful stories to the business owner.

 

BRIEF HISTORY OF ACCOUNTING IN NIGERIA

          Nigeria is a former British Colony.  Among the influence of Britain of Nigeria is modern commercial accounting.  It will be erroneous to attribute the advert of the Europeans.

For as has been said earlier, in as much as there was flourishing commerce among the various segments considerable measure of trans-share an Trans Atlantic trade, there must have been some of accounting before that time.

          Indeed, the virgin of accounting in Nigeria must be assumed to be akin to its origin all over the world.

It arose with the earlier form of commercial transaction, trade by barter.

          With the magnetization the tradition at economic through the introduction of various units of exchange cowries, beds, manila etc.  The method of accounting evolved further and become more refined.  Which method is as yet, unrestricted (to the best knowledge of the author).  This normal evolution of an accounting system.  Whether through indigenous invention or through across – the border importation via routine influences, suffered a violent dislocation and upheaval, like every other things as a result of the impact of colonization.

          The British Master established trading outposts all over Nigeria, with time.  They equally introduced coinage currency. In these trading outposts, especially the charted trading companies modern book-keeping techniques were used.  Those trading concerns grew is size and complexity and in order to maintain the necessary political and social orders for trade and development.

They began to exercise governmental control.  They set up schools where they taught, among others, numerous subjects some of the products of these schools were employed as charts and book-keeper where they were taught book-keeping on the job.

          As British laws extended to the country and as local laws were fashioned along the line of British companies operating locally found themselves subject to the some regulations of accounting practices and procedures as prevailed in British foreign accounting and audit forms soon established locally.

British trained accountants come to work in the country and set up the internal revenue department accounting systems soon were extended through the colonial office in loaded.  For quite a while, all the trained accounting personnel in the country were British.

But with time, local personnel were employed in the lower cedars of the civil service and the Nigeria railways.

The first indigenous professional accountant, Mr. Akintola Williams qualified in England and Wales.  By 1990 a few more Nigeria had qualified in British and some back to Nigeria and they formed the Association of Accountants in Nigeria (A.A.N).

The aims of the Association of account in Nigeria were to institute better training arrangement for accountants in Nigeria, promote accountancy as a profession and see to the welfare of its members.  The initial membership of the association was fourteen.

the association receives the parliamentary charter in 1965 when the Institute of Charter Accountant of Nigeria (ICAN) act was passed as act No.15 of 1965.  The act empowers the association to regulate the practice of the profession in the country, form time to time set and modify standards for the practices of profession and also to discipline.  The act makes it an office for anyone who is not a member of the institute to engage in public practice of accountancy in Nigeria.

          Although the Nigeria Institute has the necessary power to regulate the practice of the profession.  It for a long time merely adopted these standards developed by the British accounting standards , committee and the Institute of Chartered Accounting in England and Wales,.  On September 9, 1982, however, the institute established the Nigeria accounting standard based (NASB) to issue statement of accounting standard (SAI).

 

  1. OBJECTIVE OF THE STUDY

The aim and objective of this type of research work is to

highlight and focus attention on the roles which account play in Nigeria and how to relate to the preparation and proper control of the financial reports and stamen of business and organization.

 

  1. SCOPE OF STUDY

The scope of this research project is aimed at taking into

consideration on the roles and methods by which financial and economic date are collected proceeds and summarized into report that can be used economy (Nigeria).

 

  1. LIMITAITON OF THE STUDY

As a students researcher, time on straits was my greatest

problem couple with the problem of schedules of trying to meet up with the daily lectures and running to and fro in the quest for adequate materials with which to makes up the write up owing to this, the researcher limited the study to Enugu State so as to effectively consider the activities of few leading accounting section in some organization and companies whose head and/or branch office are located in Enugu.

 

  1. SIGNIFICANCE OF THE STUDY

Considering the nature of this study which is a form of

accounting ensuring, the study helps in revealing an/ or creating awareness of the existence of account in all organization in Nigeria.  It is equally aimed at Nigeria giving a true picture of accounting rules in Nigeria.

 

  1. STATEMENT OF THE PROBLEM

As student researcher, time constraints was my greatest

obstacles couple with the problem of schedules of trying to meet up with the daily lectures and running to and fro for the assignment in courses and quest for the adequate materials with which to make up the write-up.

 

  1. DEFINITION

Every discipline has certain terms with which it can be

described.

Similarly, accounting has its own terms which best described it and which are frequently used in this project.

i.        TRANSACTION: -      Any dealing between two or more person involving exchange of goods or services for a consideration, usually in money.

ii.       ASSETS: - These are rights which have value to its owners which represents expected future economic benefit or rights, have been acquired as the result of paid or current transaction assets companies of fixed and current.

iii.      FIXED ASSETS: - These are right which are tangible in nature and can last with a person or business entity for a very long time.  These are usually acquired for retention in the business and not for convention into cash.  They include motor vehicle etc.

iv.      CURRENT ASSETS: - These are assets which are circulation or floating within the business at the current period.  They can be easily turned to cash at a reasonably short time.  For example include cash at hand, bills receivable and prepayments.

v.       STOCKS: - These are goods bought and meant for resale at a particular period.  These items are his stock of goods.  There may be opening and closing stocks.  The opening stock concern the goods with which a business was started.  The stock of goods which remained on sale in the business at the end of the period, for which value can only be ascertained by country is known as the closing stock.

vi.      LIABILITIES: -  These are amount which a business own to its owners or others.  They consist of fixed or long term liabilities and current or short term liability.

vii.     FIXED OR LONG TERM LIABILITIES: -  These include all money which a business owners to its owners or others which need not be met with a year.  They include capital in the case of sale trader and debentures, issued shore capital in the case of a limited company.



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