THE DIFFERENCE BETWEEN LOCAL AND FOREIGN BANKS USING INTERNATIONAL ACCOUNTING STANDARD AND STATEMENT OF ACCOUNTING STANDARD: Case of Nigeria Banks
Makinde, Olaniyi (2009)
Makinde, Olaniyi
Vaasan ammattikorkeakoulu
2009
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-200912168099
https://urn.fi/URN:NBN:fi:amk-200912168099
Tiivistelmä
The research focuses on three bank’s financial reporting and why they had adopted the different accounting standards. The banks are Union Bank of Nigeria Plc, First Bank of Nigeria Plc and Standards chartered of Nigeria Ltd. I chose the topic because of my interest in international accounting and way of reporting financial statement in different cultures. The aim of the thesis is to show how companies use different kinds of accounting standards to publish their annual report, the effects of using a particular method of reporting and also to know why financial information are not trusted in the developing countries. The financial information of a company tells much about how companies’ images are being seen by both local and foreign investors in the outside world.
In the literature review, I enumerated different accounting standards, the background and functions of both international accounting standards and statement of accounting standards. In my methodology; in the research a qualitative research was conducted by interviewing bank chiefs and also gathered materials from secondary sources. In the empirical part, answers were given to the questions listed above. There was a clear difference between the banks using international accounting standard (IAS) and statement of accounting standard (SAS); the former i.e. banks using IAS will be acceptable and more business ready both locally and internationally while the latter bank using SAS might not be business ready to foreign investment since its accounting standards is only local standards. Tabulation was made for the financial statement of all the banks by showing the difference between the financial items that are listed and non-listed by the banks. Finally I attached the financial statement of all the case banks used and concluded that, more still needed to be done by Nigerian banks in their implementation of international accounting standard in order for them to attract foreign investors and more reliability and trust are needed in their financial information.
In the literature review, I enumerated different accounting standards, the background and functions of both international accounting standards and statement of accounting standards. In my methodology; in the research a qualitative research was conducted by interviewing bank chiefs and also gathered materials from secondary sources. In the empirical part, answers were given to the questions listed above. There was a clear difference between the banks using international accounting standard (IAS) and statement of accounting standard (SAS); the former i.e. banks using IAS will be acceptable and more business ready both locally and internationally while the latter bank using SAS might not be business ready to foreign investment since its accounting standards is only local standards. Tabulation was made for the financial statement of all the banks by showing the difference between the financial items that are listed and non-listed by the banks. Finally I attached the financial statement of all the case banks used and concluded that, more still needed to be done by Nigerian banks in their implementation of international accounting standard in order for them to attract foreign investors and more reliability and trust are needed in their financial information.