Creative Accounting Dynamics and Financial Reporting Quality in Public Corporations in Nigeria
The public corporations are pivotal institutions that are vehicle used by the government to lubricate an economy and engender development. As government owned entity, their activity stimulates the economy of any nation. This paper examines financial statement to investigate the extent to which creative accounting issues in such financial reports had influenced the quality of such report in the public corporations in Nigeria. The study used secondary data from ten selected public corporate entities’ annual reports to rate the influence of creative accounting manipulations or otherwise on factors that influences financial reporting quality. A deductive approach using descriptive survey and inferential statistics were used to reach general conclusions based on the results from the findings. The result shows that application of standards allows for accounting preparer to use discretions given room to either positive or negative impact on financial reporting quality. The study noted that in Nigeria, the annual reports most times show positive growth while the economic reality signs show otherwise. Manipulative behaviours in financial reports in public corporations in Nigeria promotes corruption, destroys the image of the nation, public loss of confidence and negative growth trend.
Creative Accounting, Disclosure of Revenue and Cost, Auditors’ Opinion, Financial Performance, Financial Statement Annual Report, Compliance to Standards
Otse Amos Egwurube