خلاصة:
Banks play important roles in promoting national development. In order to provide efficient services and to perform their statutory roles effectively, banks are required to comply with established standards. In Nigeria, the Statement of Accounting Standards (SAS), Companies and Allied Matters Act (CAMA) and the Central Bank of Nigeria’s directives and regulations provide guidelines to banks in the preparation and presentation of the records of their financial transactions. In recent time, some Nigerian banks appear to be engaging in non-standardized and unprofessional practices, which could lead to distress and liquidation. The objectives of this study therefore are to assess the level of Nigerian banks’ compliance with statement of accounting standards as established by the Nigerian Accounting Standards Board and appraise the relationship between level of compliance with Statement of Accounting Standards and performance of Nigerian banks. Twenty selected banks quoted on the Nigerian Stock Exchange constituted the target sample and these were banks whose annual financial reports for the period of study were fully available. Both primary and secondary sources of data were adopted in carrying out the study. A researcher-designed questionnaire was used to obtain data from senior and managerial staff of each of the twenty sampled banks. The instrument was structured to accommodate the sixteen Statements of Accounting Standards which are related to banks and used in the assessment of banks’ compliance. Twenty five questionnaires were administered to the staff of each of the twenty selected quoted banks. Thus, a total of five hundred randomly selected respondents participated in the study. The annual financial reports of the selected banks from 2005 – 2009 (post-consolidation era) were also used. The collected data were analyzed using Kruskal Wallis Test, CAMEL Ratios, Analysis of Variance (ANOVA). Based on the findings of the study, it was recommended that the Nigerian Accounting Standards Board (NASB) should overhaul and properly equip its monitoring unit in order to ensure better banks’ compliance with accounting standards and to take appropriate actions against defaulting banks.
ملخص الجهاز:
Vol. 1 / No. 2 / Spring 2011 4- Hypotheses of the Study Hypothesis one Ho: Nigerian quoted banks are not significantly different in their levels of compliance with Statement of Accounting Standards (SAS).
X16) , Where; CAMEL= Independent variable as derived above X1 = Disclosure of Accounting Policy (SAS1), X² = Information to be disclosed financial statement (SAS2), X3 = Accounting for property, plant and equipment (SAS3), X4=Extraordinary items and prior adjustments (SAS6), X5=Foreign currency conversions and transaction (SAS7), X6=Accounting for employee’s retirement benefits (SAS8), X7 =Accounting for depreciation (SAS9), X8= Accounting for banks and non-bank financial institution I (SAS10), X9 = Accounting for leases (SAS11), Vol. 1 / No. 2 / Spring 2011 X10 = Accounting for deferred (SAS12), X11 =Accounting for investment (SAS13), X12 = Accounting by bank and non-bank financial institutions II (SAS 15) X13 = statement of cash flows (SAS18), X14 = Accounting for taxes (SAS 19), X15 = Abridged financial statements (SAS 20), X16 = Earning per shares (SAS 21) 6- Results Overall Compliance with accounting standards After performing the analysis of the compliance of each bank with respect to the SAS, we also pooled together the mean score of the banks on the overall compliance with SAS.
Hypothesis two Ho: There is no statistically significant relationship between the level of compliance of the Nigerian quoted banks with Statement of Accounting Standards and their performance in terms of profitability.