CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Accounting standard can be regarded as the type of accounting prepared which: follow a laid down rife. It usually demands minimum level of disclosure and lay down principles which enable the accountant to specify the account prepared clearly and male a nice report based on the account prepared. Again, accounting standard in line; with the financial statement which is usually prepared annually and enable the company to know their profit and loss account. The essence of adopting such standard is to enable the accountant to know the principles of account very well and known that the account is crediting and debiting. Accounting standard could be regarded as the balance sheet, profit and loss account value added taxes financial statement are prepared to summarize the end result of all the business activities of an enterprises during the social economic political and technological environment. Accounting standard being the routes which regulated the manner which business’ of registered companies must be reported to the public. And again incorporate financial statement are to be adopted by the management In the . preparation of the financial statement such as balance sheet, income statement etc which the accountant/ auditor can stand and make a report which based on the financial statement of the company. It is the fundamental to the understanding and interpretation of financial statement. The accounting standard assets the user of accounting information to understand by prompting improvement in the quality of the information disclosure in financial accounting standard.
1.2 Statement of the Problems
This study in tends to look at the accounting standard and their impact on accounting practices in Nigeria. The accounting standards in Nigeria are expected to exposed to risk/problems which affects its effective performance unable to ascertain their financial position of the company.
1.3 Objective of the Study
1. To determine whether poor management affects the user of financial statements such as accountants investors bankers.
2. To handout whether investor analyze the financial statement before making investment decision.
3. To know the need of preparing the financial statement of the company.
4. To make a recommendation based on the finding.
1.4 Research Question
1. Do the poor management affects the compares performance in terms of maintaining the accounting standard?
2. Do investors carryout the analysis of the financial statement before making investment decision?
3. Is there any need for the preparation of the financial statement?