In recent years, there has been a lot of criticism about accounting standard and the impact of the recent changes in financial report they prepare. A lot of people have led to question the validity of the profit measuring procedures applied in arising at the profit disclosed in published accounting. Quite a number of proposal have been made in an attempt to reform the methods generally in used. This has resulted in coming together of different countries with a view to working out modalities for the standardization of these profit measuring and reporting procedures. The international accounting standard committee (IASC) produces international accounting standards (IAS) to be followed by all member countries, of which Nigeria is one of them. Also they also produce additional statement to accounting standard (SAS) in an attempt to make the international standard meet with the local condition with the aid of globalization and increasing demand for transparency. The (IASC) as reconstructed in 2001 by creating the international accounting standard board (IASB) among other changes.

A new set of rules, which would align Nigeria with other countries and also improve investors confidence was formed in May 2011 known as international financial reporting standards (IFRS) which was issued out by international accounting standard boards which is globally accepted specially IFRS are defined in comprise 1 13 in issue of the international financial reporting standard (IFRS) issued by IASB from 2001 2 29 is issue of international accounting standard (IAS) issued by IAS before April 2001. 3 15 in issue of interpretations originated from the internation financial reporting standard international committee (IFRSIC) 4 11 in issue of the standard interpretation committee (SIC) statement, issued before April 2001. The 13 IFRS in issue are: IFRS 1 – First time adoption of IFRS IFRS 2 – Share based payment IFRS 3 – Business combination IFRS 4 – Insurance contract IFRS 5 – Non-current asset held for sale and discontinued operation. IFRS 6 – Exploitation for and evaluation of mineral resources IFRS 7 – Financial instruments disclosure IFRS 8 – operating segments IFRS 9 – Financial instrument IFRS 10 – Consolidated financial statement IFRS 11 – Joint arrangements IFRS 12 – Disclosure of interest in other entities IFRS 13 – Fair value measurement. This work intends to analyze and examine the impact of these standards, the financial statement with particular emphasis on Guinness Nigeria Plc Benin, Edo state.


Good accounting practice means that the account must be in accordance with the international financial reporting standard (IFRS), and the international accounting standard (IAS). The impact of accounting standard in the finance statement of an organization cannot be over emphasizes. Moreover, the problem can be summarized below: a Lack of personnel with adequate knowledge of accounting standard is a major issues affecting the changes. b Lack of infrastructures and equipment which help to obtain most accurate information and report. c Inadequate accounting standard applied on financial statement to provide information for its users. d The problem of poorly designed accounting system in organization e The effect if faulty financial statement and report and the analysis produced by the management towards the achievement of the organizational goal. f The effect of financial statement and report which are not prepared at the appropriate tin e.g Ineffectiveness of financial statement due to its improper application.


The objective of this research work is intended to do the following: A To revealed that the changes in accounting standard play a vital role on the financial statement of the companies that adopted the changed. B To determine information about the changes in the net resources of the business organization C To find out if accounting standard is cumbersome and create problem. D To determine whether accounting and financial statement enhance accountability, transparency and improve quality to financial results of the organization.


The following are research questions postulates to guide the study. 1 What impact has this standard made on Nigeria economy? 2 How adequate is this accounting standard that is been applied in the financial statement helping to provide information to its users? 3 How necessary is the adopting of the accounting standard in the preparation of financial statement? 4 Of what importance is the extent of compliance in the preparation of the financial statement of an organization 5 To what extent has the change in the accounting standard help to harmonize and improve the accounting standard?


The following hypothesis were formulated in order to determine the validity and reliability of the study. a HO: The changes in accounting has no impact on the financial statement. Hi: The changes in accounting has impact on the financial statement. b Ho: Adoption of the accounting standards does not help in the standardization are harmonization of financial statement Ho: Adoption of the accounting standards help in the standardization are harmonization of financial statement c Ho: it is of no importance to determine the extent of compliance of some organization in the preparation of the financial statement.


The accounting standards are developed to ensure higher degree of standardization in the published of financial statement. They provide the necessary information about how accounting information should be presented in order to enhance the value of its content and facilitated through understanding. The significance of this study to the academic world cannot be over emphasized. It is of benefit to all users of accounting information who need to interprets and use proper understanding of the financial standard and the information so derived in making management decision for the interest of the organization. Another most importance of the study is to reveal to the management of (Guinness Nigeria Plc Benin, Edo state) on the standards in financial statement and also an accounting guides to staff of the organization Lastly, this study would also serve as reference literature to further researchers on the changes and impact of accounting standards.

Leave a comment

Open chat
How may we assist you please?
× How can I help you?