Archive




Volume 10, Issue 1, February 2021, Page: 27-33
Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State
Jimoh Ihiovi Ojo, Department of Local Government and Development Studies, Faculty of Administration, Ahmadu Bello University, Zaria, Kaduna State, Nigeria
Njijong Ajabwoa Marcelus, Department of Banking and Finance, Faculty of Social and Management Science, University of Buea, Buea, South West Region, Cameroon
Received: Apr. 28, 2020;       Accepted: Dec. 5, 2020;       Published: Jan. 12, 2021
DOI: 10.11648/j.ijber.20211001.14      View  6      Downloads  4
Abstract
Local Government financial reporting across the country has been largely driven by cash accounting basis and this has attracted a lot of criticism based on the quality of informational content of such report. Therefore, this study is carried out to assess the Local Government accounting basis on the financial reporting in Nigeria with particular emphasis on all the Local Government in Kaduna State. The study utilized descriptive research design using the entire 23 Local Governments in Kaduna State using their annual reports and accounts as a source of information. Also, the study utilized stata 12 to analyzed the formulated multiple regression model. The descriptive result reveals that there is wide variation in the financial reporting quality among the Local Governments under investigation across the state. This was supported by the large mean value of the size of the local government with a mean value of 16.824 suggesting that the Local Governments under investigation are of different sizes and probably their reporting quality will certainly differ. The regression summary reveals that the cumulative explanatory variables are statistically significant in explaining the effects of Local Government accounting basis on financial reporting. Similarly, the entire individual variable shows that they were all statistically significant having p-val < 0.05. This outcome suggests that the study failed to accept the null hypothesis. Therefore, the study recommends that the councils should ensure consistence in financial reporting in order to guarantee reliable and verifiable financial information as contained in the annual reports and accounts.
Keywords
Local Government, Financial Reporting Quality, Accounting, Revenue, Expenditure
To cite this article
Jimoh Ihiovi Ojo, Njijong Ajabwoa Marcelus, Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State, International Journal of Business and Economics Research. Special Issue: Microfinance and Local Development. Vol. 10, No. 1, 2021, pp. 27-33. doi: 10.11648/j.ijber.20211001.14
Copyright
Copyright © 2021 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Reference
[1]
Akinyele, T. A. (1981). Budgetary System in Presidential Government: Factors for Effective Reform. Public Service Lecture at Nigeria Institute of International Affairs, Lagos, 4th November.
[2]
McCosh, A. M., Whiting, E. and Howell, S. (1981). Planning and control systems and their evolution during inflation. Manchester Business School and Centre for Business Research.
[3]
Pallot, J. (2008). Accounting and Financial Management Reforms in the New Zealand Central Government: Context and Critique. Paper for the MENSAGEM DA GOVERNADORA À ASSEMBLÉIA LEGISLATIVA.
[4]
Khumawala, S. B. and Gordon, T. P. (1997). Bridging the credibility of GAAP: Individual donors and the new accounting standards for nonprofit organizations. Accounting Horizons, 11(3), 45.
[5]
Hopwood, A. G. (1988) Information Systems and Organizational Reality, Occasional Paper No. 5, Thames Valley Regional Management Centre, forthcoming
[6]
Omolehinwa, E. O. and Naiyeju, J. K. (2011). Theory and practice of government accounting in Nigeria: Pumark Niheria Limited.
[7]
Anthony, K. T. (1978). Mistake, disclosure, information, and the law of contracts. The Journal of Legal Studies, 7(1), 1-34.
[8]
International Accounting Standards Board, 2008. Exposure Draft of An Improved Conceptual Framework for Financial Reporting. ISBN: 978-1-905590-65-0
[9]
Giroux, H. (2002). Neoliberalism, corporate culture, and the promise of higher education: The university as a democratic public sphere. Harvard educational review, 72 (4), 425-464.
[10]
Giroux, G. and McLelland, A. J. (2003). Governance structures and accounting at large municipalities. Journal of Accounting and Public Policy, 2 2(3), 203-230.
[11]
Gore, C. J. (2004). Commentary on how to interpret changes in an athletic performance test. Sportscience, 8.
[12]
Laswad, F., Fisher, R. and Oyelere, P. (2005). Determinants of voluntary Internet financial reporting by local government authorities. Journal of Accounting and Public Policy, 24 (2), 101-121.
[13]
Ingram, R. E. (1984). Toward an information-processing analysis of depression. Cognitive therapy and research, 8 (5), 443-477.
[14]
Falkman, P., and Tagesson, T. (2008). Accrual accounting does not necessarily mean accrual accounting: Factors that counteract compliance with accounting standards in Swedish municipal accounting. Scandinavian Journal of Management, 24 (3), 271-283.
[15]
Giroux, G., and Jones, R. (2011). Measuring audit quality of local governments in England and Wales. Research in Accounting Regulation, 23 (1), 60-66.
[16]
Udeh, F., and Sopekan, S. (2015). Adoption of IPSAS and the quality of public sector financial reporting in Nigeria. Research Journal of Finance and Accounting, 6 (20), 1-9.
[17]
Ifeoluwapo A. O. (2018) Implication of International Public Sector Accounting Standard and Financial reporting quality in Lagos State, Int. J. Adv. Res. 7 (1), 1124-1129.
[18]
Obasi, A. H. (2008). Creating positive change in community organizations: A case for rediscovering Lewin. Nonprofit Management and Leadership, 18 (4), 485-496.
[19]
Meyer, H. D., and Rowan, H. D. M. B. (2012). New Institutionalism in Education, The. SUNY Press.
[20]
Banker, R. D., and Patton, J. M. (1987). Analytical agency theory and municipal accounting: An introduction and an application. Research in governmental and nonprofit accounting, 3(Part B), 29-50.
[21]
Zimmerman, J. L. (1977). The municipal accounting maze: An analysis of political incentives. Journal of Accounting Research, 107-144.
[22]
McKean, R. N. (1964). Divergences between individual and total costs within government. The American Economic Review, 54 (3), 243-249.
[23]
Baber, W. R. (1983). Toward understanding the role of auditing in the public sector. Journal of Accounting and Economics, 5, 213-227.
[24]
Downs, A. (1957). An economic theory of political action in a democracy. Journal of political economy, 65 (2), 135-150.
[25]
Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International.
Browse journals by subject