A COMPARATIVE ANALYSIS OF CORPORATE REPORTING IN NIGERIA AND IN THE UNITED KINGDOM
This paper presents a comparative analysis of corporate reporting in Nigeria vis-à-vis UK. It describes the key factors in the business environment which influenced accounting system development as well as the regulatory frameworks. It tabulates and compares significant accounting rules and methods prescribed by both UK and Nigerian GAAPs, using the Financials of Dangote Cement Plc, a hugely market capitalized indigenous Nigerian company (10% of Nigerian stocks exchange) with factory footprints across Africa.
FACTORS INFLUENCING ACCOUNTING SYSTEM IN NIGERIA.
There is a unanimous agreement among researchers and academics that the corporate reporting practice of a country depends largely on several factors which include the social- cultural, legal, economic and historical background.
This is very true of my country Nigeria which was colonized by Britain as far back as 1914. Nigeria with current population of approximately 160 million remained under the British colonization until 1st October 1960. Before independence, Nigeria practiced several constitutional frameworks imposed by Britain, leading to the adoption of the British Parliamentary system upon independence.
The Nigerian legal system has been heavily influenced by the British legal system. For example the English Common Law practice which is a legal system that relies upon a limited amount of statue law was practiced in Nigeria. It had significance influence on commercial law in Nigeria which in turn influence the rules and policies for accounting practice and corporate reporting. Nigerian Companies and Allied Matters Act (CAMA) takes a cue from the British Company Act.
Economically, Nigeria was largely underdeveloped during its independence and had a five years capital development budget of N2.2 billion. In contrast, the 2010 – 2015 National budget proposed a five years capital development...