Nhistorical development of accounting in nigeria pdf merger

Prior to nigerias emergence into the class of developing nations, no relevance was given to accounting and nigerians hardly engaged the services of accountants. The frcn was established by the financial reporting council of nigeria act, 2011. This article covered the history of accounting development. A study of the impact of colonisation and the legal systems on accounting standards in subsaharan african countries abstract according to briston 1978 colonial inheritance is a major factor influencing the. In nigeria, merger and acquisitions remain few and unpopular. Nigeria witnessed an unprecedented wave of mergers and acquisitions in its banking sector in the post1995 and 2009 periods as a result of regulatory mandates issued by the central bank of nigeria, aimed at strengthening the capital base of nigerian banks. Published by european centre for research training and development uk. Accounting is the system of recording, classifying and summarizing financial information in such a way that users of the information can make economic decisions based upon it. These factors were highlighted under the section of threats facing accounting education in nigeria. It was provided by few accountants who coordinated the foundation of the association of accountants in nigeria.

The irfs foundation provides a comprehensive list of international accounting standards, but these standards often have little use or are too complex for small businesses. Ardl cointegration economic growth fdi gdp nigeria romania smes south. The effect of tax revenue on the economic development of nigeria is not significantly different from its impact on economic growth using gdp as a measure. The early development of accounting dates back to ancient mesopotamia, and is closely related to developments in writing, counting and money and early auditing systems by the ancient egyptians and babylonians.

O efforts to shape a new directional focus that will ensure an efficient and effective cost accounting practice in nigeria s informal business sector. European journal of accounting auditing and finance research vol. Nigeria, commonly known as the giant of africa with more than 150 million people is the most populous country in africa. Laws that govern merger and acquisition in nigeria the principal law that governs the merger and acquisition in nigeria is the investment and securities act isa 2007. The decision was in line with a report submitted by senator ahmed makarfi, chairman of the senate committee on finance. History and development of accounting in perspective. The origin and development of management accounting. Foreign takeovers became common with most of them being hostile. Before the colonization period in nigeria, the tax system was traced to the northern parts of the country. History of accounting in nigeria the institutionalization of accounting started in britain, from where accounting was imported to nigeria. The history of accounting in nigeria is as important as nigeria s history particularly before and after the era of independence. The idea of establishing a professional accounting body appeared after nigeria got its independence.

The 4th wave merger that started from 1981 and ended by 1989 was characterized by acquisition targets that wren much larger in size as compared to the 3rd wave mergers. As the business world has grown and simultaneously become more complex, the need to prove that one side or the other in a contractual interpretation is closer to reality. Historical development of marketing business plan nigeria. History is the pre tell of inception of accounting, while development of accounting theory is the process through which the base of accounting standard asked in nigeria, 2009 economic stimulus plan. Group 1 doan duy tien cao thi ha duyen pham thi thuy nhung bui thi phuong loan do nhu chinh financial accounting 2. A thorough understanding of the history and development of management accounting is required before the gap between education and practice can be investigated. The educational charge is pegged at 2 percent of the assessable profit while the a 10 percent withholding tax is deducted from dividend payments to companies and individuals. Nigerian companies pay 30 percent of their worldwide profit while foreign companies pay 30 percent of only the profit made in nigeria. Accounting research and the development of accounting profession in nigeria. History and development of accounting in nigeria small. Ed, mba, mtp sa, aca, acib, amnim, acti, cfa, cfe, cpfa, accacertifr asst. Gentlemen, the purpose of this meeting is to have as many questions and as much discussion on those questions as possible. The apex bank is charged with the responsibility of administering the banks and. Evolution of forensic accounting and its role in nigeria economy 1.

Historical development of accounting in nigeria answers. Financial sector development and economic growth in nigeria adelakun, o. Northern nigeria history and development of taxation. The effects of mergers and acquisition on corporate growth. Us, uk, italy and the constitution of the federal republic of nigeria 1979, 1989 and 1999. Department of economics joseph ayo babalola university, ikeji arakeji, osun state, nigeria email. His book was one of the first published using the historical gutenberg press. This paper focused on merger and acquisition in nigerian business environment. Pdf the history of accounting, stewardship and total separation of the roles of agents from principal beget auditing history. Taxation started in the precolonial era and has been improved over the years. On 18 may 2011 the senate passed the financial reporting council of nigeria bill, which repealed the nigerian accounting standards board act and replaced it with a new set of rules. Aug 09, 2016 taxation in nigeria and history of taxation in nigeria a tax in nigeria is a compulsory levy imposed by the federal government of nigeria on individuals and corporate entities in respective of return of service expected from the government. Taxation in nigeria plus history of taxation in nigeria.

Pursuant to the provisions of the isa, the key regulator for merger and acquisition is the. Pdf the impact of information disclosure on goodwill impairment. The basis for the taxation was the islamic religion. Evolution and development of auditing owolabi sunday ajao, jayeoba olajumoke olamide and ajibade ayodejitemitope department of accounting babcock universit y, ilishan remo ogun state nigeria. Introduction to mergers and acquisitions 7 ventures to complete mergers. There must be a consensusadidem and compatibility of objectives between the merging firms otherwise the merger. Therefore, the continued existence of any organization will depend on its ability to record and prepare adequate accounting reports. The sec was created to help the american public regain trust in the united states capital markets after the stock market crash of 1929. The nok achieved a level of material development not repeated in the region for nearly 1,000 years. Simply put, a merger is a combination or integration of existing companies to form a single company. The earliest accounting records date back more than 7,000 years. The role of mergers and acquisitions in firm performance. Revenue allocation and economic development in nigeria. No discipline can develop without a strong theoretical base practice should backed by sound theory.

History and development of accounting in nigeria cost accounting practice in the informal sector of nigeria development caan. The history of accounting or accountancy is thousands of years old and can be traced to ancient civilizations. In addition, the study critically examines the state dynamism that have facilitated in shaping the outcome of the various events in the history of the accounting profession in nigeria. Long before 1500, much of presentday nigeria was divided into states, which can still be linked to the modern ethnic groups that trace their history to the origins of these states. Evolution of forensic accounting and its role in nigeria. With one of the biggest democracies in the world and a presidential system of government, it has a dual economy, based on its rich natural resources, traditional agriculture and the trade sector before the development of nigeria, no one needed the services of an accountant. The development of accounting in nigeria can be traced to the time when the companies ordinance can be said to start in the early fifties when the nigerian colleges of arts, science and technology were established in ibadan, enugu and zaria and the development of the departments of.

Forensic accounting and fraud prevention and detection in. An overview of mergers and acquisitions under nigerian. The governor of central bank of nigeria, professor charles soludo in defense of the new capital base of n25billion and consolidation by merger and acquisition did analysis of the position of the government of the federal republic of nigeria and their reform programme to have a banking system that will be a strong bedrock for economic building. By the time of the roman empire, the government had access to detailed. Accounting profession, accounting education in nigeria, threats to. Political leadership and corruption in nigeria since 1960. The origin and development of management accounting 1 introduction 1. In the process of merger and acquisition accounting process, the total liabilities of the joint company equals the sum of individual liabilities of the two separate firms. Also the dearth of accounting education in nigeria is examined and recommendations were made. Accounting began as a simple system of clay tokens to keep track of goods and animals, but has developed throughout history into a way of. In order to strengthen the competitive and operational capabilities of banks in nigeria with a view towards returning global and public confidence to the nigerian banking sector and the economy in general, the central bank of nigeria instituted a banking reform in 2004, which saw most of the then existing 89 banks merging with each other. Mergers and acquisitions and banks performance in nigeria.

Accounting is a way to record and communicate financial information for businesses and other organizations. Outline overview the historical development of accounting accounting in vietnam conclusion 4. The development of ifrs is ongoing, and it is therefore necessary to take into account changes that occur subsequent to the time when this publication was prepared. Statements of accounting standards are standards used by management of companies in the preparation of financial reports. There is no reduction or other change in the number of. An overview of mergers and acquisitions under nigerian law omotayo akinrinwa abstract this essay seeks to explore the legal framework governing the operation or activities of mergers and acquisitions in nigeria. History and development of accounting and management. A comparative study of accounting standards in nigeria. Therefore, a conglomerate transaction ordinarily has no direct effect on competition.

National interest and national development the term national interest is characterized with inconsistency. The development of accounting in nigeria with special emphasis on the key role players in education, training and practice lawrence a. Mar 28, 2017 nigeria remains an important investment destination, accounting for 43% of deal volume and 64% of reported private equity deal value in west africa between 20102016 h1. The historical development of taxation in nigeria answers. Since then there have been increased discussion and awareness on merger and acquisitions in nigeria. Some merger actions are specified by law or by a regulatory body as was the case of recent bank consolidations in nigeria. The history, origin and development of accounting has laid the foundations for 21stcentury practice. Search and screen birds of the same feather, they say, flock together. But effort put recently has been gave towards emphasis on the role and importance of accounting record and information. In the summer of 1995 i enrolled in courses sponsored by both the society of management accountants of saskatchewan and athabasca university. Harvey university of ghana business school this study analyzes the impact of mergers and acquisition on performance of the acquiring firm using a ttest to test the difference between the average pre and postacquisition performance indicators. The history of marketing extends back in time to the most primitive societies, for it can be argued that some activities that are today regarded as small fractions of marketing date back to centuries before the birth of christ.

To address this, the ifrs foundation has created the ifrs for smes or ifrs for smes standard, the terms of which have been simplified in relation to the original standards. Born in 1445 in tuscany, pacioli is known today as the father of accounting and bookkeeping. National interest and national development in nigeria. The role in nigeria economy compiled and presented by godwin emmanuel oyedokun hnd, bsc. Accounting is all about cost savings which can be said to be the backbone of economic growth and development. Pdf the need for quality accounting information is to bring investors in an economy. This research work examines the accounting standards in nigeria. The effect of merger and acquisition on the performance of banks in nigeria ajayi lawrence boboye obisesan oluwaseun grace department of banking and finance, faculty of management sciences, ekiti state university, adoekiti, nigeria. Banks consolidation in nigeria covenant university.

Forensic accounting and fraud prevention and detection in nigerian banking industry introduction the nigeria banking sector is composed of deposit money banks, development banks, merchant banks and the central bank of nigeria cbn, which is the apex bank. Jan 26, 2019 accounting is the system of recording, classifying and summarizing financial information in such a way that users of the information can make economic decisions based upon it. The history and development of accounting theory took a new turn after the great depression, which led, in 1934, to the creation of the securities and exchange commission. From prehistory to the information age by james desantis premise. At the time, many nigerians didnt realize the need for the.

Accounting and financial reporting in the public sector especially in nigeria were met give the right attention it required. Historical data were obtained from the financial statement and accounts of access bank. Either way, the history of accounting throws a light on economic and business history generally, and may help us better predict what is on the horizon as the pace of global business evolution escalates. Ho1 tax revenue has no significant positive impact on economic development of nigeria using hdi. The frcn has statutory authority to establish financial reporting standards for all public interest entities, which includes not only quoted and unquoted companies but also governments. The history of accounting in nigeria is as important as nigerias history particularly before and after the era of independence. In 2001, the iasc merged into iasb as a successor to iasc in the area of. A total of ten incorporated banks were selected using simple random sampling technique.

Developments in accounting theory and practice since 1929 a round table the meeting convened at 2. The frcn replaced the former nigerian accounting standards board. History of accounting in nigeria all you need to know peakng. The teaching and learning of history in nigerian schools have been observed to be going into extinction. Whether a conglomerate merger is pure, geographical, or a productline extension, it involves firms that operate in separate markets. Moreover, knowledge of the history of management accounting will facilitate an understanding of the future of this profession. Mergers took place between the oil and gas industries, pharmaceutical industries, banking and airline industries. Some of the roles of accounting in economic development are listed below. During the preindependence period, in nigeria, especially before the establishment of the collages of arts and sciences particularly the one in ibadan, people who wanted to enroll into accounting profession had to be trained through article ship.

Umoren and olokoyo 2007 studied merger and acquisition in nigeria. Accounting as it is practiced today, evolved gradually over the years, and we can must pinpint the time of the first accounting system. Accounting development, historical accounting, government funding and. The emirs created a system of taxes throughout the north. This comparative study has been prepared to enable our personnel and clients understand the basic differences between international financial. In nigeria, the history of accounting can be traced to an era before trade by barter, where. International journal of sustainable development research. Nigeria remains an important investment destination, accounting for 43% of deal volume and 64% of reported private equity deal value in west africa between 20102016 h1. Prior to nigeria s emergence into the class of developing nations, no relevance was given to accounting and nigerians hardly engaged the services of accountants. The history of forensic accounting it has been stated that the first known use of forensic accounting was in the conviction of al cappone. The historical background of taxation in nigeria indicates that the first form of taxation occurred in northern nigeria. In nigeria, nobody can dispute the fact that though this taxes are been collected, they are. The growth and development of every economy hinges on how resources are judiciously managed and multiplied. The purchase price then determines the amount by which the acquiring firms equity is going to increase.

The methodology used is a survey of companies incorporated in nigeria under the companies and allied matters act 1990, which have undergone a merger or an acquisition process. The effect of merger and acquisition on the performance of. The procedure for the development of a statement of accounting standard is time consuming, painstaking and requires the involvement of members of council and the public at large. It is a unique field in the nigeria legal system, and this is connected to the limited expertise in this area. This study aims to address the historical development of accounting from its birth in. History of accounting in nigeria 725 words bartleby. Accounting is more than just the act of keeping a list of debits and credits. History of accounting in nigeria all you need to know.

Findings of the study revealed that accounting information system have been playing a dominant role in the merger and acquisition and business decision makings of the banking institutions. Trade records have been found dating back to ancient mesopotamia. Pdf evolution and development of auditing researchgate. This study explored the history of accounting and evolution of accounting standard in. Analysis of performance pre and post consolidation of thirteen mega banks in order to consider if there had been improvements. Accounting records dating back several thousand years have been found in various parts of the world. In a situation such as this, national interest does have a negative contribution to national development. It is an incontrovertible fact that corruption has been the bane of nigerias development.