CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
As Nigeria progresses in her vision to become one of the top 20 economic in the world by the year 2020, one prevailing issue that remains on the front flame is how to build investors confidence in the national economy through ethical accounting and auditing standard that enhance transparent financial reporting. According to the International Accounting Standards Board (IASB, 2008:40,) timeliness of financial reports is the “availability of information needed by decision makers for useful decision making before it loses its capacity to influence decisions.” In emerging economies, the provision of timely information in corporate reports assumes greater importance since other non-financial statement sources such as media releases, news conferences and financial analysts forecasts are not well developed and the regulatory bodies are not as effective as in Western developed countries (Ahmed, 2003). In Nigeria, the need for high quality and timely financial information has become particularly imperative due to the increasing exposure of Nigerian business organizations to international capital markets. Thus, the business organizations are being obliged to satisfy the information demands of foreign investors and to provide them with more timely information in annual financial reports. A farmer who plants crops expects results.
Similarly a student who sits for examination expects result. The same is also true of an investor. For the farmer, the result mighty be communicated to him in the from of a bumper harvest. A result sheet or a report card would usually sulfuric for a student. However, in the case of an investor, then result is communicated through the financial reports. Financial reports are by law to be prepared by every limited liability company. These limited liability companies abound in virtually all sector of the economy. Every company shall cause accounting records to be kept. The accounting records shall be sufficient to show and explain the transitions of the company and shall be such as to disclose with reasonable accuracy, at the any time the financial position of the company. In the banking industry, financial reports are od great interest to the general public because the banks directly or indirectly interact with people. This public interest has caused companies (including banks) to accept social as well as economic. Financial and legal responsibilities and has created a consequence, a growing need for the communication of information to account of the results which are of considerable interest to a wide range of individuals and organisations.
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