Towards Optimal Operational Decision-Making in Manufacturing Operations: an Integrated Cost Management System (ICMS)’S Approach

This study was carried out to investigate the relationship between Integrated Cost Management Systems (ICMS) and Operational Decision-Making (ODM). ICMS is a framework that emphasizes the relationship between information flows and decision-making at various levels of the organization by seeking to identify those essential data elements that must be shared between individuals, team, departments, processes and entities for effective coordinated decision-making and action to occur. The operationalized definition of the ICMS theoretical construct in this study is encapsulated in the concepts of Traditional (full) absorption costing (TAC), Throughput Accounting (TA), and Activity-Based Costing (ABC). While, Operational Decision Making (ODM) was operationalized via the factory floor measures of work –in-process inventory values, finished goods inventory values, cycle time and number of jobs in the shop. The result found that there is a positive and significant relationship between ICMS and ODM. A proper synergy of the strengths of the various cost management systems would lead to improved work in process inventory values, better finished goods inventory values, reduced cycle time and reduced number of jobs or orders in the shop, thus contributing positively to optimal system’s performance. Key words: Integrated Cost management system, operational decision making, traditional absorption costing, throughput accounting, activity-based costing

Fiscal Transparency, Accountability and Corporate Collapse: A Post-Mortem Analysis of Failure of State-Owned Enterprises (SOEs) in Nigeria

The study investigated through a post mortem research paradigm the extent to which lack of fiscal transparency and accountability accounted the collapse of SOEs in Nigeria without prejudice to other variables identified in previous studies. The study adopted the fiscal transparency and accountability code of good conduct as evolved by the IMF in building the model tested in the study. The paper observed that institutionalization of the tripod of: clarity of roles and responsibilities (which is a cardinal principle of internal control); public availability of information; and open preparation and proper of implementation of budget would have contributed significantly to foreclosing the collapse of SOEs in Nigeria. The paper also observed that assurances of integrity which revolved around proper engagement of external audit services could not have prevented the failure of SOEs. The paper concludes that the non enshrinement of fiscal transparency and accountability in the management of SOEs is a recipe not only for their poor performance but eventual failure. This conclusion is firmly collocated within the current push for greater transparency and answerability on the part of government and her institutions as evidenced in the ongoing public service reforms. Therefore, the paper recommends the imperative of institutionalizing fiscal transparency and accountability in all public institutions as a critical service delivery success factor and the enthronement of good governance. Keywords: Fiscal transparency, accountability, state-owned enterprises, corporate collapse, post mortem, national development

Comprehensive Income and Social Cost Reporting as a Measure of Firms’ Profitability and Corporate Image

In this study, the researchers try to investigate the relative ability of comprehensive income reporting and that of reporting a firms externalities as social cost in the final accounts affect the profitability and the corporate image of a firm. The study was conducted with ten selected companies registered with the Nigerian stock exchange for a period of twenty two years based on their annual financial reports and a questionnaire to gather inter-personal information on the issues raised. This study was informed by the fact that the FASB, in 2011 provided new guide lines on the implementation of the comprehensive income financial statements due to complains by stockholders on high cost of implementation and corporate reputation. In addition the researchers felt that if FASB find it necessary to introduce the comprehensive income accounting concept, then it was also necessary to look at comprehensive expense concept to include externalities cost as a write off cost to comprehensive income to determine the net income of a firm. The data collected was analysed with econometric view (E-view) system after presenting data with Microsoft excel 2007 model. The results revealed that comprehensive income reporting affects the profitability of a firm if measured with the reporting of the externalities and corporate image will improve substantially if firms follow such reports on a regular basis. The researchers recommended that firms should consistently present such reports in the annual financial statements. Keywords: Comprehensive income, Social cost, Measure, Firm, Profitability and Corporate imag

Accounting Ethics and Quality of Financial Reporting

In this paper, the effects of accounting ethics on financial reporting quality in Nigeria were investigated. The descriptive survey research design which seek to elicit objective opinion of respondents on accounting ethics and financial reporting quality was used. The population of the study..

Revaluation Accounting and Decision Usefulness of Accounting Ratios

This study examined the decision usefulness of ratio analysis based on historical cost valuation of assets as enshrined in end of year financial statements. A good ratio with near perfect interpretation brings about feasible investment decisions, corporate solvency and profitability and a track down effect on economic growth. These well-articulated objectives of ratio analysis had been faulted on several occasions due to the faulty measurement and evaluation tools used by preparers of financial statements in reporting economic events. To address this gap, the researchers looked at revaluation accounting in detail, as a substitute to historical cost accounting, so as to ameliorate some of the limitations associated with ratio analyses based on historical cost data. To achieve the objective of this study, data was collected from primary and secondary sources. The primary source was generated from a well-structured self-administered questionnaire sent to 190 respondents drawn from top Bankers, Stock Brokers and Company Managers in Bayelsa, Rivers and Delta States in Nigeria. 172 usable questionnaires were retrieved and analyzed using Spearman rank order correlation coefficient, Mann-Whitney U test and descriptive statistics. The study revealed that there is a significant relationship between the method of asset valuation and the truthfulness of financial statements and decision usefulness of accounting ratios. On the basis of the statistical results, the researchers concluded that to enhance the decision usefulness of ratio analysis, users of financial reports should adjust financial statements to reflect the current value of assets before using them to compute necessary ratios. Key words: Revaluation accounting, decision usefulness, financial statements, limitations, ratio analysis

Executive Pay Composition and Corporate Financial Health Maximisation

This study examined the relationship between executive pay composition and corporate financial health maximisation in Nigeria. Secondary data was obtained from the annual reports and accounts and Nigerian Stock Exchange Fact-book during the period 2008-2017 and ordinary least square was employed in the analysis of data. Net interest margin, return on asset and return on equity were operationalized as proxies for corporate financial health maximisation while bonus scheme as proxy for executive pay composition. The study found an executive pay package comprising of a bonus scheme is likely to influence managers to behave in a manner that would ensure the overall wellbeing of the organization. The study recommends that a bonus scheme should be a major component of executive composition as not a way of managing agency cost but also as a tool for instigating managerial behaviour that would enhance overall wellbeing of the organization. Keywords: Executive pay composition, Corporate financial health maximisation, Bonus scheme DOI: 10.7176/RJFA/10-22-05 Publication date: November 30th 201

Creative Accounting and Income Tax Yield: A Dependency Inquisition

Quite a number of empirical evidences have shown that creative accounting practices are prevalent among Nigerian firms and management and accountants being the sole influencers of such accounting practices. More worrisome is the fact that there is dearth of empirical evidence on the nexus between creative accounting and income tax yield.  Thus, this study was carried out with the view to investigating the nexus between creative accounting practices and income tax yield in Nigeria.  The descriptive survey design was adopted and questionnaire was the major instrument of data collection.  Questionnaire was administered to two hundred and fifty-eight (258) employees of South-South States’ Boards of Internal Revenue.  Data obtained were analyzed by means of descriptive (frequency counts, mean and standard deviation) and inferential (simple regression) statistical techniques.  Based on the analysis of data, it was found that income tax yield is significantly affected by creative accounting practices of Nigerian firms.  On the basis of the findings, it was recommended among others that the government, regulatory framework of accounting as well as management of firms should further discourage the use of creative accounting mechanisms in tweaking income tax yield.  More so, the regulatory framework of accounting should as a matter of fact postulate and revise accounting standards linked with income tax yield so as to further discourage creative accounting practices among Nigerian firms. Keywords: Creative accounting; income tax yield; federation accounts committee; Nigeria DOI: 10.7176/EJBM/11-33-07 Publication date: November 30th 201