A comparative analysis of the public and private sectors financial reporting practices in Nigeria

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Abstract

This research is on A comparative analysis of the public and private sectors financial reporting practices in Nigeria. Financial reporting has been the order of the day in the financial spheres in recent times. It is a means of communicating the performances of enterprises to all those who have stakes in the organizations. This study sought to do a comparative analysis of the public and private sector’s financial reporting practices in Nigeria. The study has adopted the descriptive analysis to come up with a powerful analysis of both sectors’ financial reporting practices. The study found out that, government institutions use both the cash base and accrual base accounting systems in reporting financial information (the ratio of usage found by this study in the public sector is to a 1:1 basis, i.e. for everyone public sector enterprise that uses cash base accounting system, there is equally one public sector entity using the accrual base accounting system). Whereas some public entities adhere to the provisions of the Statement of Accounting Standards (SASs) in the preparation of financial statements, others comply with the provisions of the International Public Sector Accounting Standards (IPSASs). In the private sector, however, financial statements are prepared in accordance with the statement of accounting standards which is applicable in Nigeria.
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A comparative analysis of the public and private sectors financial reporting practices in Nigeria

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