ABSTRACT
The most common report from external use are the financial statement included in the annual report to shareholders (owners) and potential investors. These financial statements are prepared to confirm with “generally accepted accounting principles” such “principles” have evolved over time or have been made acceptable by decree from official rule making body.Accounting principles result from an essentially political process.
The government through the Securities and Exchange Commission (SEC) prescribes the methods of accounting profession through its board, Nigeria Accounting Standards Boards also issue statements of accounting standards as guide for prepares of financial statements.In explanation of the above, the researcher examined the usefulness of the statement produced by the accounting profession’s organ (NASB) and how they are being complied with, its achievements and problems, hypothesis was also conducted.Chapter five, discussed the findings of the study. It was discovered from the findings that accounting standards application in preparing financial statement have came to conclusion that it contributes numerously not to the company – Guinness (Nig) Plc, Enugu also on the nation’s economy as a whole.
CHAPTER ONE
1.1 INTRODUCTION
There has been quite a lot of criticisms in recent years about accountants and the financial report which they prepare. A lot of people have had to question the validity of the profit measuring procedures applied in arriving at the profit measuring procedures applied in arriving at the profit disclosed in the published accounts.Consequently, the profession has found it necessary to do a re-appraisal of the accepted procedures, which had found it necessary to do a re-appraisal of the accepted procedures, which had hitherto dominated accounting field in profit measurement.Quite a member of proposals have made an attempt in reforming the methods generally in use.
This has resulted in the coming together of different countries with a view to working out modalities for the standardization of these profit measuring and reporting procedures. This gave birth to the International Accounting Standards Committee (IASC) and local bodies like the Nigerian Accounting Standard Board (NASB) for Nigeria.The International Accounting Standards (IAS) to be followed by all member countries of which Nigeria is one.