THE CHANGES IN ACCOUNTING STANDARDS ITS IMPACT ON FINANCIAL STATEMENT

Department: AGRICULTURE

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ABSTRACT


The project is a comprehensive study of the changes in Accounting standard, the impact on financial statement with a study of Guiness Nigeria Plc Benin Branch, Edo state. This project is aimed at determining the impact of Accounting standard on the users of financial statement and also the needs of the Accounting standard. Data were collected, through primary and secondary sources. The finding revealed that the changes in Accounting standard play a vital role of the financial statment of the companies that adopted the change. Therefore, the impact of Accounting standard cannot be over emphasized hence it depends on the conferment of a given organizaitonal setting from the conclusion of the study, it can be observed that there will be serious potentials for misunderstaniding and suspicious resulting form information based on mix of conflicting accounting policies. It is therefore recommended that since international financial reporting standard has come to stay with thirteen standards already to its credit. Therefore one would except  that the standard should be aplied on small scale business that are not quoted, and also non-compliance with accounting standard should not be seen only as a statutory offence but also as a criminal offence which can probably lead to closure of such business.

CHAPTER 1


CHAPTER ONE
INTRODUCTION
1.1     BACKGROUND OF THE STUDY
In recent years, there has been a lot of criticism about accounting standard and the impact of the recent changes in financial report they prepare. A lot of people have led to question the validity of the profit measuring procedures applied in arising at the profit disclosed in published accounting. Quite a number of proposal have been made in an attempt to reform the methods generally in used.
This has resulted in coming together of different countries with a view to working out modalities for the standardization of these profit measuring and reporting procedures.
The international accounting standard committee (IASC) produces international accounting standards (IAS) to be followed by all member countries, of which Nigeria is one of them. Also they also produce additional statement to accounting standard (SAS) in an attempt to make the international standard meet with the local condition with the aid of globalization and increasing demand for transparency. The (IASC) as reconstructed in 2001 by creating the international accounting standard board (IASB) among other changes.
A new set of rules, which would align Nigeria with other countries and also improve investors confidence was formed in May 2011 known as international financial reporting standards (IFRS) which was issued out by international accounting standard boards which is globally accepted specially IFRS are defined in comprise
13 in issue of the international financial reporting standard (IFRS) issued by IASB from 2001
29 is issue of international accounting standard (IAS) issued by IAS before April 2001.
15 in issue of interpretations originated from the internation financial reporting standard international committee (IFRSIC)
11 in issue of the standard interpretation committee (SIC) statement, issued before April 2001.
The 13 IFRS in issue are:
IFRS  1       –        First time adoption of IFRS
IFRS  2       –        Share based payment
IFRS  3       –        Business combination
IFRS  4       –        Insurance contract
IFRS  5       –         Non-current asset held for sale and discontinued
operation.
IFRS  6       –        Exploitation for and evaluation of mineral resources
IFRS  7       –        Financial instruments disclosure
IFRS  8       –        operating segments
IFRS  9       –        Financial instrument
IFRS  10     –        Consolidated financial statement
IFRS  11     –        Joint arrangements
IFRS  12     –        Disclosure of interest in other entities
IFRS 13      –        Fair value measurement.
This work intends to analyze and examine the impact of these standards, the financial statement with particular emphasis on Guinness Nigeria Plc Benin, Edo state.

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