Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State

Jimoh Ihiovi Ojo; Njijong Ajabwoa Marcelus

doi:doi:10.11648/j.ijber.20211001.14

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Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State

Jimoh Ihiovi Ojo, Njijong Ajabwoa Marcelus

Published in International Journal of Business and Economics Research (Volume 10, Issue 1)

Received: 28 April 2020 Accepted: 5 December 2020 Published: 12 January 2021

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Abstract

Local Government financial reporting across the country has been largely driven by cash accounting basis and this has attracted a lot of criticism based on the quality of informational content of such report. Therefore, this study is carried out to assess the Local Government accounting basis on the financial reporting in Nigeria with particular emphasis on all the Local Government in Kaduna State. The study utilized descriptive research design using the entire 23 Local Governments in Kaduna State using their annual reports and accounts as a source of information. Also, the study utilized stata 12 to analyzed the formulated multiple regression model. The descriptive result reveals that there is wide variation in the financial reporting quality among the Local Governments under investigation across the state. This was supported by the large mean value of the size of the local government with a mean value of 16.824 suggesting that the Local Governments under investigation are of different sizes and probably their reporting quality will certainly differ. The regression summary reveals that the cumulative explanatory variables are statistically significant in explaining the effects of Local Government accounting basis on financial reporting. Similarly, the entire individual variable shows that they were all statistically significant having p-val < 0.05. This outcome suggests that the study failed to accept the null hypothesis. Therefore, the study recommends that the councils should ensure consistence in financial reporting in order to guarantee reliable and verifiable financial information as contained in the annual reports and accounts.

Published in	International Journal of Business and Economics Research (Volume 10, Issue 1) This article belongs to the Special Issue Microfinance and Local Development
DOI	10.11648/j.ijber.20211001.14
Page(s)	27-33
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Local Government, Financial Reporting Quality, Accounting, Revenue, Expenditure

References

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APA Style

Jimoh Ihiovi Ojo, Njijong Ajabwoa Marcelus. (2021). Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State. International Journal of Business and Economics Research, 10(1), 27-33. https://doi.org/10.11648/j.ijber.20211001.14

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ACS Style

Jimoh Ihiovi Ojo; Njijong Ajabwoa Marcelus. Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State. Int. J. Bus. Econ. Res. 2021, 10(1), 27-33. doi: 10.11648/j.ijber.20211001.14

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AMA Style

Jimoh Ihiovi Ojo, Njijong Ajabwoa Marcelus. Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State. Int J Bus Econ Res. 2021;10(1):27-33. doi: 10.11648/j.ijber.20211001.14

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@article{10.11648/j.ijber.20211001.14,
  author = {Jimoh Ihiovi Ojo and Njijong Ajabwoa Marcelus},
  title = {Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {1},
  pages = {27-33},
  doi = {10.11648/j.ijber.20211001.14},
  url = {https://doi.org/10.11648/j.ijber.20211001.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211001.14},
  abstract = {Local Government financial reporting across the country has been largely driven by cash accounting basis and this has attracted a lot of criticism based on the quality of informational content of such report. Therefore, this study is carried out to assess the Local Government accounting basis on the financial reporting in Nigeria with particular emphasis on all the Local Government in Kaduna State. The study utilized descriptive research design using the entire 23 Local Governments in Kaduna State using their annual reports and accounts as a source of information. Also, the study utilized stata 12 to analyzed the formulated multiple regression model. The descriptive result reveals that there is wide variation in the financial reporting quality among the Local Governments under investigation across the state. This was supported by the large mean value of the size of the local government with a mean value of 16.824 suggesting that the Local Governments under investigation are of different sizes and probably their reporting quality will certainly differ. The regression summary reveals that the cumulative explanatory variables are statistically significant in explaining the effects of Local Government accounting basis on financial reporting. Similarly, the entire individual variable shows that they were all statistically significant having p-val < 0.05. This outcome suggests that the study failed to accept the null hypothesis. Therefore, the study recommends that the councils should ensure consistence in financial reporting in order to guarantee reliable and verifiable financial information as contained in the annual reports and accounts.},
 year = {2021}
}

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TY  - JOUR
T1  - Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State
AU  - Jimoh Ihiovi Ojo
AU  - Njijong Ajabwoa Marcelus
Y1  - 2021/01/12
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211001.14
DO  - 10.11648/j.ijber.20211001.14
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 27
EP  - 33
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211001.14
AB  - Local Government financial reporting across the country has been largely driven by cash accounting basis and this has attracted a lot of criticism based on the quality of informational content of such report. Therefore, this study is carried out to assess the Local Government accounting basis on the financial reporting in Nigeria with particular emphasis on all the Local Government in Kaduna State. The study utilized descriptive research design using the entire 23 Local Governments in Kaduna State using their annual reports and accounts as a source of information. Also, the study utilized stata 12 to analyzed the formulated multiple regression model. The descriptive result reveals that there is wide variation in the financial reporting quality among the Local Governments under investigation across the state. This was supported by the large mean value of the size of the local government with a mean value of 16.824 suggesting that the Local Governments under investigation are of different sizes and probably their reporting quality will certainly differ. The regression summary reveals that the cumulative explanatory variables are statistically significant in explaining the effects of Local Government accounting basis on financial reporting. Similarly, the entire individual variable shows that they were all statistically significant having p-val < 0.05. This outcome suggests that the study failed to accept the null hypothesis. Therefore, the study recommends that the councils should ensure consistence in financial reporting in order to guarantee reliable and verifiable financial information as contained in the annual reports and accounts.
VL  - 10
IS  - 1
ER  -

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Author Information

Jimoh Ihiovi Ojo

Department of Local Government and Development Studies, Faculty of Administration, Ahmadu Bello University, Zaria, Kaduna State, Nigeria
Njijong Ajabwoa Marcelus

Department of Banking and Finance, Faculty of Social and Management Science, University of Buea, Buea, South West Region, Cameroon

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Plain Text BibTeX RIS

APA Style

Jimoh Ihiovi Ojo, Njijong Ajabwoa Marcelus. (2021). Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State. International Journal of Business and Economics Research, 10(1), 27-33. https://doi.org/10.11648/j.ijber.20211001.14

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ACS Style

Jimoh Ihiovi Ojo; Njijong Ajabwoa Marcelus. Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State. Int. J. Bus. Econ. Res. 2021, 10(1), 27-33. doi: 10.11648/j.ijber.20211001.14

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AMA Style

Jimoh Ihiovi Ojo, Njijong Ajabwoa Marcelus. Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State. Int J Bus Econ Res. 2021;10(1):27-33. doi: 10.11648/j.ijber.20211001.14

Copy | Download

@article{10.11648/j.ijber.20211001.14,
  author = {Jimoh Ihiovi Ojo and Njijong Ajabwoa Marcelus},
  title = {Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {1},
  pages = {27-33},
  doi = {10.11648/j.ijber.20211001.14},
  url = {https://doi.org/10.11648/j.ijber.20211001.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211001.14},
  abstract = {Local Government financial reporting across the country has been largely driven by cash accounting basis and this has attracted a lot of criticism based on the quality of informational content of such report. Therefore, this study is carried out to assess the Local Government accounting basis on the financial reporting in Nigeria with particular emphasis on all the Local Government in Kaduna State. The study utilized descriptive research design using the entire 23 Local Governments in Kaduna State using their annual reports and accounts as a source of information. Also, the study utilized stata 12 to analyzed the formulated multiple regression model. The descriptive result reveals that there is wide variation in the financial reporting quality among the Local Governments under investigation across the state. This was supported by the large mean value of the size of the local government with a mean value of 16.824 suggesting that the Local Governments under investigation are of different sizes and probably their reporting quality will certainly differ. The regression summary reveals that the cumulative explanatory variables are statistically significant in explaining the effects of Local Government accounting basis on financial reporting. Similarly, the entire individual variable shows that they were all statistically significant having p-val < 0.05. This outcome suggests that the study failed to accept the null hypothesis. Therefore, the study recommends that the councils should ensure consistence in financial reporting in order to guarantee reliable and verifiable financial information as contained in the annual reports and accounts.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Effects of Accounting Bases on Financial Reporting in Nigeria: The Case of Kaduna State
AU  - Jimoh Ihiovi Ojo
AU  - Njijong Ajabwoa Marcelus
Y1  - 2021/01/12
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211001.14
DO  - 10.11648/j.ijber.20211001.14
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 27
EP  - 33
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211001.14
AB  - Local Government financial reporting across the country has been largely driven by cash accounting basis and this has attracted a lot of criticism based on the quality of informational content of such report. Therefore, this study is carried out to assess the Local Government accounting basis on the financial reporting in Nigeria with particular emphasis on all the Local Government in Kaduna State. The study utilized descriptive research design using the entire 23 Local Governments in Kaduna State using their annual reports and accounts as a source of information. Also, the study utilized stata 12 to analyzed the formulated multiple regression model. The descriptive result reveals that there is wide variation in the financial reporting quality among the Local Governments under investigation across the state. This was supported by the large mean value of the size of the local government with a mean value of 16.824 suggesting that the Local Governments under investigation are of different sizes and probably their reporting quality will certainly differ. The regression summary reveals that the cumulative explanatory variables are statistically significant in explaining the effects of Local Government accounting basis on financial reporting. Similarly, the entire individual variable shows that they were all statistically significant having p-val < 0.05. This outcome suggests that the study failed to accept the null hypothesis. Therefore, the study recommends that the councils should ensure consistence in financial reporting in order to guarantee reliable and verifiable financial information as contained in the annual reports and accounts.
VL  - 10
IS  - 1
ER  -

Copy | Download