The Usefulness of Accounting Standards in the Preparation of Financial Statements
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Abstract on The Usefulness of Accounting Standards in the Preparation of Financial Statements
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.
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