The Role Of Accounting In Societal Development (in The Nigerian Context)
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INTRODUCTION
This project is aimed at looking into the accounting profession in details and examining its role in societal development.
A study of the evolution of accounting suggests that accounting processes are reactive because they have developed primarily in response to business needs. Also the development of accounting process has been related to economic progress and societal development of a country.
History shows that the higher the level of Civilization or development, this more elaborate and wider the accounting method becomes.
Since Picoli’s days to this present day, accounting has recorded a lot of tremendous changes and growth all over the universe. For instance during the first sixty years of the twentieth century, a major economic and societal force had thrown the accounting profession into new frontiers and responsibilities. The factors contributing to this growth are the increase in the population of large corporate business in the affairs of business by way of taxation and business regulations, technological advancement especially in the area of computerization – which has rapidly changed the process of data procession. These factors, to a great extent, have deeply contributed tot he development of the accounting profession over the years.
The role of computer in the accounting profession has facilitated the traditional functions such as payroll, cost accounting and general bookkeeping.
It is also being used for analytical purposes such as forecasting, cost benefit, analysis, etc.
As professionals, accountants are expected to demonstrate a responsibility tot he public services above their commitment to personal economic gains. Accountants recognize that the special esteem. They enjoy obligates them to work for the improvement of society. Complimenting their obligation to society, accountants have analytical and evaluative skills needed in the solution of the over-growing problems of the universe. The special abilities of accountants as well as their independence and ethical standards, permit them to make significant and unique contribution in such areas as protecting the public interest, preserving environment interest and controlling and improving public programmes.
In recent times, the work of accountants increased in scope.
The reward as added to the accounting profession include installation of accounting system, auditing and investigation management of social activities and host of others.
It is also of importance to note that the increase in the scope of accounting give rise to complex problems, which accountants must encounter. This is why competent accountants are needed in the various areas (i.e. to ease the accounting problems facing the management of companies and the society in general).
Apart from providing accounting information, the accountant also gives his opinion on a wide range of representations such as sales statistics, lease agreement, etc. or the fact that, accounting is not only for the good of the individual accountants have to be conscious of the society’s benefit. This is because social responsibility and service tot he public is the major objective of the accounting profession.
Thus, there is the need for the accountants to develop a social attitude towards their profession. Recall that the accountant is duty bound to exercise his duties with reasonable care, skill and diligence. He must offer his integrity and reputation to the public, which relies on his judgment and pinion.
1.2 OBJECTIVE OF STUDY
In view of the purpose of accounting and how it affects the society generally, this study is designed to achieve the following objectives.
- Identify the users of accounting information
- Highlight the importance of accounting information to its various users
- Highlight the role played by accountants toward providing accounting information to its users
- The contributions of the accounting information towards societal development
1.3 SIGNIFICANCE OF STUDY
It is hoped that this study when completed will
- Be able educate the management of firms on how important it is to tailor their accounting information requirement in such a way that they can take decisions which will help maximum the objective(s) of the business;
- Be able to educate shareholders (prospective ones inclusive) on how to watch out for profitable and viable firms in which to invest their capital;
- Provide prospective employees with information that will enable them look out for companies that can offer them safe employment through growth over the period of time;
- Equip trade uncoils with methods of calculating the claims for higher wages and better conditions for labour
- provide creditors with the acid test with which to know if a prospective debtor can keep can keep to the terms of credit;
- assist the government and its agents on effective revenue generation and allocation;
- help consumers to use accounting data to asses the viability of a company (with respect to long term contracts);
- sensitizes comptitors towards using accounting information for purposes of companies;
- Bring accountants to remembrance in respect to their roles in societal development.
