History of Accounting in Nigeria SS1 Principles of Accounting First Term

BOOK KEEPING AND ACCOUNTING

CONTENT

Meaning of Book Keeping

Meaning of Accounting

History of Accounting in Nigeria

Definition of Accountant

Roles of an Accountant

Types of Accountants

Accounting as a Profession

 

Meaning of Book Keeping

Book-keeping from time immemorial has been defined as a science of recording business transactions in a systematic manner so as to exact financial position of the business that can be easily ascertained at any time.

Book-keeping may be defined as the art of recording business transactions in a systematic manner so that the books of account will reveal at any time the financial position of the business to the owner and other stakeholders in the business.

Meaning of Accounting

Accounting is the process of obtaining, recording, classifying, summarizing, reporting, interpreting and presenting financial information in a manner that will facilitate informed decision by the users of accounting information.

Boateng, (1884) defines accounting as ”the process of identifying, measuring, and communicating economic and financial information to permit informed judgment and decision by the users of the information”.

EVALUATION

Define Accounting

Mention two differences between Book keeping and Accounting

History of Accounting in Nigeria

Origin of Accounting in Nigeria

Nigeria has a long standing history in international trade even before colonization came to Africa. Back in the olden days, properly organized system of trade and government were in existence in the ancient kingdoms of South- south/ South-west, Western part of Nigeria, and part of the Northern part (Benin, Oyo and Borno, Etc).

The granting of the Royal Charter to Niger Company in 1886 necessitated the preparation of proper records by the company. From that time till the independence in Nigeria in October 1960, the law governing accounting in Nigeria was tailored after her colonial master (Great Britain). The Association of Accountants of Nigeria, which later became Institute of Chartered Accountants of Nigeria, was established in the year 1965. Majority of the members were trained in Britain.

In 1965, the Federal government of Nigeria passed an Act of Parliament No.15 establishing the Institute of Chartered Accountants of Nigeria and was affiliated with the professional Institute of Britain and United State of America (USA).

Many Nigerians came back as professional accountants and became a member. One of the doyens of accounting profession in Nigeria is Chief Akintola Williams. The Institution has about 26,000 Accountants as at December 2008 and more than 120,000 as student members.

The two major accounting professional bodies in Nigeria are the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN). The Association of National Accountants of Nigeria (ANAN) was formed in 1979 with the Headquarters in Lagos,Nigeria.

In 1982, Nigeria Accounting Standard Board was born to set standards to guide accounting operations. Members include:

Central Bank of Nigeria

Ministry of Finance

Nigeria Accounting Teachers Association

Chamber of commerce

Office of the Auditor General etc.

Definition of Accountant

An accounting is a person who has undergone a formal or professional training in the process of accounting and who belongs to at least one of the recognized professional accounting bodies.

Roles of an Accountant

Preparation and presentation of timely and accurate financial/ accounting reports to management.

Identification of areas of inefficiency and wastage of resources.

Treasury functions- rising finance, cash management and so on.

Setting up effective system of internal and accounting controls.

Preparation of feasibility reports.

Investigation of fraud within the organization.

Types of Accountants

Financial Accountant

Cost Accountant

Management Accountant

Tax Accountant

Auditor

 

Accounting as a Profession

Meaning of Profession

A profession is a field of study, a unique career or a job requiring special expertise or skill and operates with principles or standards agreed upon by members (professionals).

Accounting is a profession because it is a field of study or a career that requires figure manipulation skill and unique expertise and operates with sets of principles and standards agreed upon by it’s members (professionals).

Accounting opens doors in every kind of business coast to coast. It can prepare you to become a partner in an accounting firm, to pursue a career in finance or corporate management, to work in government, or even to become an entrepreneur. In fact, no matter what you decide to do, having an accounting background can open doors wide.”

The reason why accounting may be the best route to a successful business career is, accounting has always been considered as the language and basic tool of business. It has always concerned itself with determining how a business is doing and what the bottom line is.

In this increasingly complex and competitive business environment, accounting skills are very much in demand and accounting has become a dynamic career.

Future Prospects for Accountants

The demand for accountants appears to be growing and outstripping supply. Job opportunities in today’s business climate are better than ever for accountants.

 

EVALUATION

Summarize the history of accounting in Nigeria in five sentences.

Mention four future prospects of Accountant.

 

 


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