Social and Environmental Accounting: The Challenges of Implementation in Oil Prospecting Companies in the Niger Delta States of Nigeria

Social and environmental accounting is the ability to provide accurate information in the financial statements regarding the estimated social cost occasioned by the production externalities on the environment and how much deliberate intervention cost had been incurred to bridge the gap between the marginal social cost and the marginal private cost by a firm. This study examines the factors affecting the practice of social accounting disclosure in Nigerian oil prospecting companies. Three (3) companies operating in the Niger Delta States of Nigeria where randomly sampled with thirty (30) host communities drawn from Delta, Bayelsa, Rivers and Akwa-Ibom states. Secondary data were collected from each company’s annual reports from 2002 to 2011 and one hundred and seventy two questionnaires were administered to staff and host community members for direct inter personal information. The researchers used least square regression analysis with the help of Econometric view (E-view) model to analyse the effect of the identified variables on the practice of social and environmental accounting. The study revealed that the sampled companies did not in detail, report a close to reality estimate of the externalities generated by their production activities but reports the little intervention cost incurred under the directors or the chairman’s report. Again, that factors such as cost of implementation, the effect on profitability, the existence of a legal frame work, the peaceful environment and top management support affects 79% of the level of implementation of social and environmental accounting practice among the companies studied. The paper recommended that a strong legal frame-work should be provided to ensure that more than 80% value of actual economic value of externalities generated in a year is to be reported in the director’s report and the actual intervention cost is to be reported in the profit and loss account under social cost. Key words: Social, Environmental, Accounting, Implementation, Challenges, Niger Delta States, and Nigeria.

Factors Affecting the Application of Price Discrimination in the Hospitality Business in Yenagoa, Bayelsa State

This research examines the factors influencing the application of price discrimination in the hospitality industry in Yenagoa, Nigeria. To achieve this objective, primary and secondary data were used. The secondary data include books, journals, periodicals, unpublished research materials and the internet and the primary data include interview and a well structured questionnaire administered to one hundred and sixty-five (165) respondents in fifty (50) hotels sampled from the population. The data collected from the questionnaire were analysed using relevant econometric tests such as granger causality, diagnostic, and ordinary least square statistics for the purpose of analysis. The results suggest a positive relationship between the factors influencing the application of price description and the hospitality industry in Yenagoa. On the basis of the findings, the paper concluded that price discrimination is poor in the hospitality industry and recommended that for it to be successful, owners and operators of the industry should invest on credible feasibility study on client classification into political, business, civil servant and social events. Also on daily discounts and commitment from all level of staff, with strong relationship marketing. Keywords: Price Discrimination, Factors influencing, Application, Hospitality Industry, Yenagoa Nigeria

Taxation as a Stimulus for Economic Growth in Nigeria

This study examined taxation as a stimulus for economic growth and development in Nigeria. The problem of over dependence in oil income has marred the nation sustainable development, several scholars and agencies are clamouring for revenue diversification for the economy. Since technological growth is a long way to achieve in the economy, tax could be considered as an immediate option to the problem. Tax is a major source of government revenue all over the world and Nigeria is not an exception. The tax system is an opportunity for the government to assemble extra revenue needed in discharging economic development and creating a conducive business environment for its citizens. This study used yearly time series data from the Central Bank of Nigeria (CBN) Statistical Bulletin for the period of 2009 to 2018 and a linear model of Corporate Income Tax (CIT), Value Added Tax (VAT) and Economic Growth (GDP) was appraised using the Ordinary Least Square (OLS) technique. The results gotten from this study revealed that the hypothesized connection among corporate income tax, value added tax and economic growth really exist in Nigeria. Thus the result gives the confirmation that taxation is indeed a stimulus for economic growth and development in Nigeria. This conclusion has revealed the need for government to institute extra methods or processes that will make taxpayers not to avoid and evade tax so that revenue can be properly generated, and income effectively redistributed and allocated in the economy. Keywords: Taxation, Economic growth, Development, Gross Domestic Product DOI: 10.7176/RJFA/11-2-07 Publication date: January 31st 202

Corporate Governance, Shareholders Wealth Maximization and Tax Avoidance

Tax avoidance is a common problem among many nations all over the world, especially the developing and third world countries. Most citizens see tax payment as very offensive, and seek all means to avoid tax liabilities. Nigeria is not exempted from this economic menace. In spite of the several tax holidays enjoyed by firms in Nigeria, most firms have resorted to creatively avoid tax under the disguise of shareholders wealth maximization. This act is seen by the researchers as a corporate governance factor because the provision of bonus schemes by shareholders for managers for abnormal wealth maximization had justified the act of tax avoidance in the Nigerian corporate world. Key Words: Corporate Governance, Shareholders, Wealth Maximization, Tax, Avoidance

Audit Rotation; Creative Accounting, Audit Independence And Objectivity

The debate for audit firms and audit team rotation had been on the increase since the collapse of major multi-national firms in recent years, most scholars and industrialist/ government agents and officials had laid hold on the negligence of auditors to minor acts of creative accounting by managements of such firms, which cumulate into world class frauds leading to economic melt-downs. This study evaluates this claim by using empirical means to determine the effect of audit rotation on creative accounting. Believing that a long relationship between auditors and staff/management of auditee firms will possibly result to auditors compromising standards on minor but intentional acts of fraud and violation of internal control guidelines. It also examine the relationship between audit rotation and independence, objectivity and financial discipline of management. Using the statistical package for social sciences, the researchers used spearman correlation coefficient to test proposed hypotheses of the relationships of the variables. A questionnaire was designed to collect primary data from one hundred and eighty respondents drawn from audit firms and companies in the Niger Delta Region of Nigeria. The result of the analysis shows that audit rotation has a positive effect on creative accounting, audit objectivity, independence and financial discipline. The researchers therefore recommended that audit rotation should be seen by shareholders, relevant regulatory authorities, investors, corporate providers of interest capital and intervention fund along with the Governments as a means of guaranteeing corporate survival in this desperate get rich quick laden economy. KEY WORDS: Audit, Rotation, Creative, Accounting, Independence and Objectivit

The Relevance of Environmental Cost Classification and Financial Reporting: A Review of Standards

Oil prospecting companies and host communities in Nigeria has been having series of conflicts in the past decade. The complaint is always firms not meeting up with their environmental responsibilities generated through the negative production externalities. This study takes a critical evaluation of some aspects of IAS and selected companies’ financial statement to see the level of companies’ response to such responsibilities as reflected in the financial statements. Using a content analysis, the researchers discovered that firms report their environmental cost with no specific classification of to enable them report in the either the income statement or the statement of financial position. The result is that firms only give a descriptive disclosure of environmental cost with no monetary value in the chairman’s or director’s report. The researchers recommended that cost should be reported in the income statement if it is not intensive, otherwise it should be reported in the statement of financial position. Keywords: Relevance, Environment, Cost, Classification, Financial Reporting and Standards.

Role Theory and the Concept of Audit Expectation Gap in South-South,

Abstract: This study examines the role theory and audit expectation gap and the performance of internal auditors in the prevention of financial misappropriation of funds in the public sector of South South Nigeria. Audit expectation gap is the difference between the levels of expected performance as envisioned by the users of financial statements and by the independent accountant. To achieve the objective of this paper, data were collected from primary and secondary sources. The primary source was generated from a well structured questionnaire administered to 120 internal auditors in Bayelsa State and Cross Rivers State in South South Nigeria. The researchers only collected 96 usable questionnaires that were analysed using Spearman rank order correlation coefficient, Mann-Whitney U test and descriptive statistics. The study revealed that there is a significant relationship between audit expectation gap and internal auditors in the prevention financial misappropriation of funds in the public and there is significant difference between the perceptions of auditors and users whether the intervention of management hinders the effective performance of internal auditors in South South, Nigeria. On the basis of the findings, the paper concludes that internal auditors in the public sector in Nigeria is not performing the audit responsibility with all level of professional and technical expertise as expected by the society. This is why there is wide spread misappropriation of public sector funds and massive corruption in Nigeria. Therefore, the paper recommends amongst others that internal auditors in All Ministries, Departments and Agencies (MDAs) should have the requisite professional qualification (example, the Institute of Chartered Accountants of Nigeria), the issuance of new audit standards for public sector accounting system