The Impact of Company Accounts on Accounting Information Generation for Decision Making of Small and Medium Enterprises in Nigeria

Small and medium scale enterprises are gaining widespread acceptance as viable drivers of economic growth. However, several of these enterprises demise without fulfilling expectations due to poor management arising from weak accounting structure and information, and the studies of the impact of company accounts on accounting information generation are very few and not fully explored in the literature especially in Nigeria. This study therefore, examines the impact of company account on the generation of accounting information for decision making of small and medium enterprises (SMEs) in Nigeria. A survey research design approach was adopted through the administration of questionnaire to obtain primary data from respondents. The sample size of 151 respon-dents was drawn from 15 selected SMEs in Osun State. A stratified sampling technique was used to draw the sample. The data collected was analyzed using Linear Multiple Regression mode. From the results obtained, there is strong relationship between the company accounts and accounting information as indicated by the correlation coefficient of 0.955, 0.958, 0.962 and the p-value is less than 1% significant level (0.00<0.01), therefore null hypotheses are rejected. That means company accounts play significant role in generating accounting information for decision making of business organizations in Nigeria. This study finds that some SMEs operators in Osun State hired unskilled accounting personnel which make their accounting information unreliable and inadequate for effective decision making and very difficult to measure the performances of their business. This study recommends that government should promulgate new additional company law that will extend mandatory annual statutory preparation, disclosure and publication of annual accounts and reports of limited liability companies to other uncovered small and medium enterprises in Nigeria. Keywords: Accounting information, Company accounts, Small and Medium Enterprises. DOI: 10.7176/RJFA/11-11-04 Publication date:June 30th 202

CASH CONTROL PRACTICES IMPACT ON THE FINANCIAL PERFORMANCE OF SOME SELECTED NIGERIAN PLASTICS AND ENERGY FIRMS

The survival of a business depends on its ability to manage profitability and control cash to ensure high liquidity position especially in this era of COVID-19 outbreak. This study thus, examined cash control practices (CCPs) impact on the financial performance (PFs) of some selected plastics and energy firms (PEFs) in Nigeria. This study adopted case study research design. The population of this study is made up of all the PEFs in Nigeria. Panel secondary data was used to elicit information from the annual accounts and reports of the selected companies. This study employed regression models and non-parametric test to analyze the data. The results from non-parametric test showed a rejection of the tested three hypotheses at 0.05% significant level confirming that CCPs exert significant impact on the FPs.  This study concluded that there are positive effects of CCPs on the FPs of PEFs in Nigeria.  This study recommended that adequate the CCPs that can block cash pilfering should be installed to improve FPs of companies in Nigeria and other countries. The outcome of this study would gear up the business owners to install cash control procedures that could resolve cash mismanagement and liquidity problems for their businesses. Furthermore, findings from this study would serve as a valuable data for future research in this study area. Key Words:   Cash control practices, financial performance, Nigerian plastics and energy firm

The Impact of International Financial Reporting Standards Adoption on Global Acceptability of Financial Statements of Firms in Nigeria

Nowadays business has become global activities. Nigeria is not left out of making international transactions. Before the introduction of the global standards called International Financial Reporting Standards (IFRS), different countries have developed their own national accounting standards or adopted that of other countries as a basis for financial reporting. Any information generated for economic decisions from financial statements prepared under different countries’ local accounting standards often not comparable. There exists a gap in literature on the studies of global acceptability of the financial statements of Nigerian firms after adopting IFRS in Nigeria.This study therefore, examines the impact of IFRS adoption on global acceptability of financial statements of firms in Nigeria after migration. A purposive sampling technique was adopted to draw a sample size of 96 from the study population of all the accountants and accounting lecturers in Osun State, Nigeria. Both primary and secondary data were used to elicit responses from the questionnaire administered. Multiple regression and Pearson correlation statistical tools were used to analysis the data generated for the study. The results from data analysis show the correlation of 0.850, 0.845, R value of 0880, R-square of 0.774 and the p-value of 0.00. The correlation results show that IFRS adoption has a strong positive relationship with global acceptability of financial statements. Since the p-value is less than 0.01 level of significant (0.00 <0.01), then null hypotheses should be rejected. Therefore, there is significant impact of IFRS adoption on global acceptability of financial statements of firms in Nigeria. This study concludes that by transmitting to IFRS, business organizations in Nigeria will enjoy full benefits of credible financial statements. This will ease their access to global capital markets thereby increasing their access to external capital and this will also attract foreign investors into this country which will serve as a basis for economic growth. This study therefore, recommends that the professional accounting bodies in Nigeria should make IFRS training a part of Mandatory Continuous Professional Education at reduced costs and the accounting lecturers should see the implementation of IFRS adoption as part of their professional and national responsibilities by embracing the teaching of students based on IFRS benchmarks in order to build human capacity that will support the production of global acceptable financial reports for businesses in Nigeria. Keywords: International Financial Reporting Standards, Financial Statements, Firms Global acceptability. DOI: 10.7176/RJFA/11-9-07 Publication date:May 31st 202

PREGLED UČINAKA PRIMJENE MEĐUNARODNIH STANDARDA FINANCIJSKIH IZVJEŠTAVANJA NA FINANCIJSKE IZVJEŠTAJE KOMPANIJA: PRIMJER NIGERIJE

Globalization of business operations has compelled many countries across the globe to adopt the International Financial Reporting Standards (IFRS). However, continuous review of the impact of IFRS adoption is imperative to business stakeholders and accounting standards setters. This study therefore, reviewed the impact of after adopting IFRS on the global relevance of the locally produced financial statements of companies in Nigeria. The study employed a survey research design and made use of primary source of data to obtain responses through the questionnaire. A sample of ninety-six (96) respondents comprising forty-eight (48) accountants and forty-eight (48) Accounting Lecturers was purposively selected based on their availability. Multiple regression models which include regression model summary, analysis of variances (ANOVA) and Pearson correlation were used to analysis the data at 5% level of significant using the Statistical Packages for Social Sciences version 20. Findings from the study revealed that the F-statistics of the ANOVA is positive (4910.868) and statistically significant (0.00 < 0.05.). The study therefore concluded that the IFRS, after its adoption exert positive impact by adding value to the volume of accounting information generated; improving the quality of accounting reports and enhancing global relevance of financial statements in Nigeria. The study recommended that those companies that are yet to migrate to IFRS should do so for them to enjoy the benefits of its adoption.Globalizacija poslovanja natjerala je mnoge zemlje diljem svijeta da usvoje Međunarodne standarde financijskog izvještavanja (MSFI). Međutim, kontinuirano propitivanje učinka usvajanja MSFI-ja imperativ je poslovnim sudionicima i onima koji postavljaju računovodstvene standarde. Stogaova studija istražuje utjecaj usvajanja MSFI-ja na globalnu važnost lokalnih financijskih izvještaja u Nigeriji. Studija se koristila anketnim istraživanjem kao načinom dobivanja primarnih podataka. Uzorak od devedeset i šest (96) ispitanika koji se sastoji od četrdeset osam (48) računovođa i četrdeset osam (48) predavača računovodstva namjerno je odabran na temelju njihove dostupnosti. Višestruki regresijski modeli koji uključuju sažetak regresijskog modela, analizu varijanci (ANOVA) i Pearsonovu korelaciju korišteni su za analizu podataka na razini od 5% značajnosti pomoću StatisticalPackages for SocialSciences verzija 20. Nalazi iz studije otkrili su da F-statistika ANOVA je pozitivan (4910,868) i statistički značajan (0,00 < 0,05.). Zaključci studije ukazuju kako usvajanje MSFI ima pozitivan učinak kroz stvaranje dodane vrijednosti promatrano kroz obujam kreiranih računovodstvenih informacija; poboljšanje kvalitete računovodstvenih izvješća i povećanje globalne relevantnosti financijskih izvještaja u Nigeriji. Studija je preporučila da one tvrtke koje tek trebaju preći na MSFI to učine kako bi ostvarile koristi njihova usvajanja

The Impact of Triple Bottom Line Accounting on Firms’ Sustainability in Nigeria

The era of reporting business activities solemnly based on financial performance is over. In addition to economic performance reporting, many organizations in the globe have been producing entities’ reports that disclose and account for the social responsibilities and environmental impacts of the entities. Also, the accounting financial reporting practice is considered socially and environmentally unfriendly.  This study therefore, examines the impact of triple bottom line accounting on firms’ sustainability in Nigeria by focusing on the perspective views of firms’ stakeholders. A survey research design was employed and the population of this study is made up of three selected money deposit banks in Nigeria. Purposive sampling technique was used to select the sample of 150 respondents. The primary data was collected through a structured questionnaire and the data gathered was analyzed using descriptive statistic and multiple regression models with the aid of SPSS version 20. Findings from this study indicate that p-value of 0.00 &lt; 001. Therefore, the triple bottom line accounting has significant impact on firms’ sustainability in Nigeria. This study concludes that disclosure in form of TBL accounting becomes a necessity to satisfy the interest of varying stakeholder groups and to place firms’ sustainability objective at the fore front of present day business. This study therefore, recommends that firms should adopt transparent disclosure of quantifiable triple bottom line accounting encompassing social, environmental and economic performance as this would boost stakeholder’s confidence and improve the overall quality of their report. Also, the performance information reported by firms should be linked with their stated intentions and their strategic processes for achieving sustainability as these would ultimately capture their impact in the society and boost their reputation. Then as most of the developed countries have various forms of standards regulating social and environmental disclosure, the governments of developing countries especially Nigeria are encouraged along with standard setting bodies to develop standards that can guide every organization in accounting for social and environmental impacts and. Finally, additional education and training should be given to accountants on the key trends in the areas of economic, social and environmental disclosure so as to keep them abreast of changes in the profession. Keywords: Accounting, Firms, Sustainability, Triple bottom line. DOI: 10.7176/RJFA/11-9-06 Publication date:May 31st 202

Enhancing the Performance of Consumer Goods Firms through the Equity Capital in Nigeria (2011-2021)

This study examined whether or not equity capital enhances the performance of listed consumer goods firms in Nigeria. The study purposively sampled fourteen (14) out of twenty-one (21) consumer goods firms listed on the Nigerian Exchange Group Plc. The study used secondary sources to obtain panel data from the annual financial statements of the selected companies. Data sourced for were analyzed using random effects model and arithmetical means. Findings from the study revealed that the coefficient of share capital is positive (0.903050) and statistically significant (p=0.0099&lt;0.05), but the beta value of retained earnings is negative (−0.683966) and significant (p=0.0023&lt;0.05) for listed consumer goods firms in Nigeria. The average results found that 45% and 7% of total assets of the firms were financed by retained earnings and share capital respectively. The study confirmed that the appropriate mode of finance that could be considered for the effective performance of the firms in Nigeria is the share capital. The study concluded that share capital enhanced the performance of firms while the retained earnings did not in the country. The research recommended that the government of Nigeria should try to rebrand its dead local enterprises especially the affected consumer goods firms to enable them to attract more foreign investors into the country to enhance its economic growth