Abstract
The circumstances necessitating this paper were as a result of need for uniformity in respect of financial information being disclosed in the published financial to standardized the financial information is how to harmonize the comments and contribution that are usually arise from those that are affected by the proposed exposure draft, which will finally become an accounting standard. In this paper secondary data were collected and analysis was done through the use of regression analysis. The use of regression analysed was published become secondary data was collected. It was discovered based on research findings that there was significant relationship between. Accounting standard and proper accounting information disclosure requirement in the financial reporting in Nigeria. Based on the above findings, it was recommended that there should be speedy passage of financial reporting council bill by the National assembly in order to enhance adequate comparison and reliability of financial statement being prepared by the various enterprises in Nigeria.
Keywords: Enterprises, Financial Information Accounting Standards Financial Statement.
INTRODUCTION
The circumstances that necessitate the need to carry out an empirical research on the role of accounting standards in the process of enhancing standardization of financial information arise out of the need for uniformity, in respect of financial information being disclosed in the published financial statement of various enterprises.
The request by various users of financial statement including the creditors, financial analyst, employees, management, foreign embassies. Tax authorities and other users of financial statement for the need to be able to make an informed financial decision necessitated the need for standardization of accounting information through the issuance of accounting standards relating to different aspect of sector of the economy where financial information is being published.
Another major reason for the research topic is the standardization of financial information through the proper up dating of issuance of accounting standards by the Nigeria’s Accounting Standard Board (NASB). This would definitely enhance financial comparability of published financial statement among the various firms within an industry in Nigeria.
The present situation on this research topic is that these have been calls by various users of accounting information for the need to issue an up date of accounting standards that will be locally applicable to the Nigeria enterprises so that less emphasis will be placed on International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS) except where there is no local accounting standard covering that areas of accounting preparation.
The bill that will make the Nigerian Accounting Standards Board (NASB) regulatory bodies have been returned to the National Assembly for deliberation by the President Shehu Yar’adua. The bill is called financial reporting council of Nigeria bill.
Although, this bill has already been passed by the previous National Assembly during the era of Olusegun Obasanjo, but was not signed in to law by former President Olusegun Obasanjo.
The future prospect of the role of accounting standard in enhancing standardization of financial information is that the regulatory agency that is Nigeria Accounting Standard Board (NASB) will continue to be of importance in order to ensure continued standardization of financial information. Since accounting is a dynamic field of learning and the environmental
changes affecting accounting preparation such as globalization, information technology, political, social, economic cultural and other factors will continue to dictate what types of accounting standard will be issued in order to make financial information relevant to the users of accounting information both locally and internationally.
The main problem emanating from the above introduction and the circumstance, which has necessitated the study is how to harmonise the comments and contributions that are usually emanated from those that will feel the impact of the proposed exposure draft that will finally become accounting standards. This usually occurs where there is need to incorporate and amend the exposure draft in order to make the accounting standards generally acceptable to the wirers of financial statement.
The main objective of this paper is to examine the role of accounting standard in the process of enhancing standardisation of financial information in Nigeria.