Accounting is the process of recording transactions and events for the purpose of proving Information for the good conduct of the activities of such organization.
The purpose of this study is to examine the Accounting systems in private and public sector establishment and to know what accounting is all about, History of accounting Nature and purpose of Accounting, The operational guideline and attributes of Accounting etc Two organizations will be choosen for the purpose, that is private and public establishment.
Data will be collected from both primary and secondary sources, questionnaires and oral Interview from the employees or management of the organization.
After analyzing the data, the following findings will be made
- The principles of Accounting, procedures and practices in both private and public establishment.
- Different financial statements prepared at the end of an accounting period.
- Different users of accounting Information.
- Different financial statements are prepared at the end of the Accounting period.
The constraints to be encountered as a researcher are as follows –
Uncooperative attitude of the Employees – it will not be easy for me to get as much Information as I want because the staff or employees of these establishments will be afraid of loosing their Job if they disclose Information without permission.
Inadequate finance – The researcher will not have enough finance to make the study more extensive by Including more establishments and traveling outside the town to get Information’s.
Limited time – The researcher will be faced with the problem of limited because, our time to devoted to other academic work and as a result of that the researcher have no much time to carry out the study.
Table Of Contents
Table Of Content
Chapter One: Introduction
1.2 Purpose / Objective Of Study
1.3 Statement Of Problems
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance Of The Study
1.7 Scope Of The Study
1.8 Limitations Of The Study
1.9 Definition Of Terms
2.0 Review Of Related Literature
2.1 Definition Of Accounting
2.2 Brief History Of Accounting In Nigeria
2.3 Nature And Purpose Of Accounting
2.4 Accounting Operational Guidelines
2.5 Attributes Of Accounting Information
2.6 Financial Statements And Users Of Accounting Information
3.0 Research Design And Methodology
3.1 Area Of Study
3.2 Population And Sample
3.3 Sources Of Data
3.4 Techniques Of Data Collection
3.5 Data Treatment
4.0 Presentation And Analysis Of Data
4.1 Presentation And Analysis Of The Questionnaire And Interview
4.2 Test Of Hypothesis
5.0 Summary Of Findings, Conclusion And Recommendations
Appendix / Questionnaire
Accounting is the act of recording, classifying and summarizing in significant manner and in terms of money transactions and events which are Interpreting the result thereof. (AIC PA 1953). But in a general sense. It may be considered as a means by which we measure and describe economic activities. Whether you are managing a business, making Investments or deciding how to spend your money, you are working with accounting concepts and accounting Information.
Every business entity, be it private or government owned operates a business system which can be classified into two main categories. They are financial and Non – financial systems.
Financial system are primarily concerned with processing and recording of business transactions, their analysis and Interpretation with a view to the preparation of periodic and routine reports for decision making by Interested parties. The accounting systems are also concerned with efficiency and effectiveness. (Harvey 1991 page 202)
Non – financial systems are those systems whose main purpose is not financial in nature, even if they have financial Implications. Thus, the sales system which deals with exchange process has financial Implications, the transactions are not financial per-se. Non – financial system cover such functions of an organization as purchasing, marketing and sales, stock control and production planning. Whether financial or non- -financial in nature, all these business systems generate and provide Information for decision making both Internally and externally.
Financial systems have two main sub – system the financial accounting system and management accounting system. These accounting system different in nature and procedure from what is obtainable in government establishment, the system known as government accounting.
Government accounting is the process of recording, analyzing, classifying, summarizing, communication and Interpreting financial Information about government in aggregate and in detail reflecting all transactions involving the receipt transfer and disposition of government funds and property (Dean 1990: 181). The purpose is to demonstrate the propriety of transactions and their conformity with established miles to give evidence of accountability for the stewardship of government resources and to provide useful Information for the good control and efficient management resources of government operations.
Government accounting is not the same as commercial accounting (financial and management accounting) Although both use a number of technical book keeping and accounting tools and skills. They also share in some areas the same principles and practice elements as well as concepts and theoretical foundations. In effect although government accounting plays a similarly role to commercial accounting, there are basic differences in concept and approach which affect their nature and objectives. It is against this background that this study is se to examine the accounting system in two private establishments and two government owned establishments. The two private establishments Includes The Nigerian Breweries Plc. 9th mile corner and Hemason Industrial Complex Emene Whereas, the government establishments are project development Institute and federal ministry of solid minerals Development, Enugu. .
1.2 PURPOSE OBJECTIVES OF THE STUDY.
The objectives of this study includes
1 to found out the accounting and financial policies procedure and
regulations encompassing documentation and reconciliation’s
2. To determine the differences in the accounting system of both private and public organizations.
3. To examine the various books of accounts kept by the establishment
4. To found out the types of financial statements prepared at the end of each accounting period by these establishments.
5. To determine if they’re accounting procedures conform with the established accounting standards.
1.3 STATEMENT OF PROBLEMS
There are many problems mutating against efficient system in both private and public establishment some accounting systems lack clearly defined procedure authorizations of financial transaction and accounting policies in respect of recording reconciliation’s and valuation.
There are also lapses in their accounting and financial control systems as
Weak as internal planning and budgeting control. These obvious inadequacies make such accounting system very inefficient and therefore calls
For an investigation in to nature of accounting system in the establishments
With a view to establishing their similarities and differences as well as their appropriateness or otherwise.
1.4 RESEARCH QUESTIONS
1 Are there any purpose of accounting in these establishment
2 Who are the users of accounting information generated?
3 What are the accounting policies of these establishment in respect
Of authorization procedure regulations recording reconcilicitions?
4 Which books of account are maintained by these establishments?
5 What type of financial statements to these establishments prepare at the end of every accounting period?
6 Are these accounting system in these establishments similar different?
7 To what extent are the accounting system in conformity with the established accounting standards?
1.5 RESEARCH HYPOTHESIS
The following hypothesis are formulated for the purpose of this study .
HO: The purpose of accounting in private and public establishments
Are significantly different.
HO: Differences in accounting policies and procedures in these establishments
Are not reflecting their purpose of accounting
HI: Differences in accounting establishments are reflecting their purpose of accounting.
HO: The accounting systems in the establishments are not conforming with established accounting standards
HI: The accounting systems in the establishments are conforming with established accounting standards.
1.6 SIGNIFICANCE OF THE STUDY
This study is very significant for many resins the significant derives from
The different uses of it in this case the management of both private and public organization will understarn the procedures in other similar of different organization this will enable them assess the extent to which these systems compare with the establishment accounting systems and procedure for private and public organization.
Secondly for those who consider accounting system in all private and public organization similar, the study will show in detail the similarities and differences in the purpose, procedure and regulations for accounting in private and public organizations. In other words, it will show the differences and similarities between government and commercial accounting.
Thirdly, by examining their accounting policies, the study will show the management of each establishment how any digression in the established standards can bring about errors, flaws and frauds in their accounting systems.
Fourthly, the study will be useful for academic purposes. The Information it contains or generates will be useful for students taking a course in accounting Information system.
Beside, the research findings can provide the basis for future research in related areas of study.
1.7 SCOPE OF THE STUDY.
The scope of this study covers accounting system in two, private and public establishment. The organizations are Nigerian Breweries Plc, Hemason Industrial Complex Emene, federal ministry of solid minerals development Enugu and project Development Institute. In other words, it covers both commercial and government accounting.
1.8 LIMITATIONS OF THE STUDY.
The researcher encountered some problems in carrying out this study.
Firstly, it was not easy to sources as much Information as possible from the staff of these establishments.
This is because of their Unco-operative attitude of a good number of them especially those in private establishments or fear of official reprisal if they divulge Information without obtaining permission to do so.
Consequently, much Secondary Information are used in conjunction with the little Information from primary sources.
Secondly, the researcher was constrained by inadequate fiance to make the study more questionnaire and making travel possible out side the town. But because of financial constraints, the scope of the study was limited.
Finally, the study was carried a time other academic work paced much demand on the researcher. The available time was also used for other academic work any the research did not have ample time to carry out the study.
1.9 DEFINITION OF TERMS
The following terms are used in their technical sense in this study and so are explained below for purpose of understanding.
1. Virement – this is authorized transfer of funds from one subhead to another in a public establishment by an auditor.
2. Audit – Examination of books account and voucher as well as other relevant documents of as establishment by an auditor.
3. Financial Regulation – Documented institution on how government finances should be appropriated expanded and accounted for.
4. Entity : An establishment which is given legal right to operate a business connect.
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