THE ROLE OF ACCOUNTING IN NATIONAL DEVELOPMENT A FOCUS ON A DEVELOPING ECONOMY
1.1 Background of the study.
The basic economic problem that confronts an under developed or a developing country and especially the new independent ones is how to attain within a relatively short period, a notable increase in the rate of economic growth which is envisaged will bring it to the level of perpetual real income comparable to those of more admired economics of the world. In order to attain this oval, the country would have to ;
1.provide those basic government services especially in education, public health and transport. These services will serve as fertile soil to advancing the nation’s economy.
2. Stimulate a higher rate of capital formation in production facilities either in government or private sectors. The first accomplishment requires transportation on needed factors or resources to the governmental ;sector of the economy for the production of those services or facilities required by the entire populace.. The second accomplishment required transfer of resources to capital formation either strictly in the private sector or through the governmental sector.
These resources may come from
a. outside the control
b. present use for consumption
c. present use in production of capital of or types regarded as not contributing to economit growth.
d. Idle or partially idle resources primarily manpower. The above four sources off varying opportunity growth and it actually does it only by transfer existing resources to the appropriate quarter and profitable application of these to production attains within that relatively short period a level of standard of living comparable to those of other more advanced countries of the world.
Accounting come in as the tool that measures the profitability/viability a project with an economic system.
Glanlier (1976) defines accounting as the systematic collection, summarization, and analysis and reporting of data in a form suitable and under stable to prospective users.
Generally, it involves some other related discipline as budgetary control taxation, cost and management accounting, financial management, auditing and quantitative techniques.
Since development project entails projection into the future, it is essential that public officers ;and employees in the private sector appreciate the need a transaction and necessary statistics as to enable the proper ;evaluation of past. Records with what obtains presently in order to reasonably project into the future. Some of the practical ways in which accounting can be and is known to have been used not only for a decision making but also importantly to achieve desired results include.