Thesis Abstract

Abstract
Accounting standards play a significant role in the preparation of financial statements by providing a framework that ensures consistency, comparability, and transparency in financial reporting. These standards are established to guide the recording and reporting of financial transactions, ensuring that companies present their financial performance and position accurately and fairly to various stakeholders. The usefulness of accounting standards in financial statement preparation lies in their ability to enhance the quality and reliability of financial information. Adhering to accounting standards helps companies in preparing financial statements that meet the requirements of stakeholders such as investors, creditors, regulators, and other interested parties. By following a common set of rules and principles, companies can improve the credibility and trustworthiness of their financial reports. This, in turn, enhances investor confidence and facilitates capital allocation decisions. Moreover, the use of accounting standards promotes consistency and comparability among different companies, making it easier for users to analyze and benchmark financial performance across industries and time periods. In addition, accounting standards serve as a benchmark for assessing the financial health and performance of a company. By providing guidelines on how to recognize, measure, and disclose financial information, accounting standards enable stakeholders to evaluate a company's profitability, liquidity, solvency, and efficiency. This information is crucial for making informed decisions about investing, lending, or engaging in business transactions with the company. Furthermore, accounting standards help in promoting transparency and accountability in financial reporting. By ensuring that companies disclose relevant information in a consistent and standardized manner, accounting standards reduce the risk of financial misstatements, errors, and fraud. This transparency enhances the integrity of financial markets and protects the interests of investors and other stakeholders. Overall, the usefulness of accounting standards in financial statement preparation cannot be overstated. These standards provide a common language for financial reporting, ensuring that companies communicate their financial performance and position accurately and comprehensively. By following accounting standards, companies can enhance the quality, reliability, and relevance of their financial statements, thereby supporting better decision-making by stakeholders. Adherence to accounting standards also promotes trust, transparency, and accountability in financial reporting, contributing to the overall efficiency and effectiveness of capital markets.

Thesis Overview

INTRODUCTION

As a result of increased commercial activities through out the world, many big business expand beyond their countries to have a share of the world market.
Therefore, established branches are translated accordingly based on exchange rates existing and at the end set of financial statements are prepared and published.
In preparing these financial statement normal accounting practices and procedures must be followed and a number of legal and other requirement observed.
In the international market, it was observed that it was possible for accounting policies to differ in one single transaction.
For instance, in a group involving foreign subsidiaries, the method of valuing stock may not be same if the Nigerian company for example use last – in – first – out (LIFO) and the other seas company uses first – in – first – out (FIFO) the result will differ.
In addition to accounting policies reporting formats and disclosure requirement may not be the same there is therefore the need for accounting policies and disclosure requirement to be international comparable and acceptable.
Accounting standard like, internationally accounting standard (IAS) statement of standard accounting practices (SSAP) financial reporting standard etc.
Constitute a set of definitive principle to be followed when preparing financial statement departures from principles and practice enunciated in these standard are permissible in exception circumstance only where adherences would fail to give a true and fair view in a specific instance or because the accounting standard world be obviously inappropriate or because exemption from disclosure is spanted by status.
1.1 STATEMENT OF PROBLEM OF ACCOUNTING STANDARD’S
Nigeria accounting standard board has issue statement of accounting standard which has compliance with international accounting standard.
The following standards has been issued in Nigeria and each of them has a particular IAS it complies with
SAS 1 – disclosure of accounting policies