ECONOMIC ENVIRONMENT AND ROLE OF PUBLIC SECTOR IN ACCOUNTING IN NIGERIA
Over the years the economic condition of Nigeria has been brought to questioning with the change in accounting principles due to change in political administration in Nigeria, the management of public sector, the private sector are the pivot behind the condition of the economic environment of Nigeria.
Public sector is that sector of the economy that was established and operated by the federal government and its agencies distinguishable from the private sector and are simply organized on behalf of the whole citizens while Public sector accounting is the process government agencies and municipalities use to record financial transactions.
The public sector plays a major role in accounting in Nigeria in the provision of data for public funds and resources such as tax, revenue, expenditure related to projectand the overall financial status of the nation.
With the role of public sector in accounting in Nigeria there are still some problems limiting its efficiency; some of these problem included poor allocation of funds to public states, mismanagement of funds even with the recent reform in the rules regarding the transparency in the accounting principles of public sectors in Nigeria.
According to Afolabi, (2004:320) stated that rather than creating a hard set of rules to follow, the principles allow for an application of basic principles to either large and small entities or municipalities. Standard public accounting principles will also make it easier for a nation to undergo an audit. It is also harder for countries to hide inappropriate financial transactions when using public sector accounting principles.
It is to this regard concerning the economic environment and the financial condition of nation that the paper wishes to examine the role of public sector in accounting in Nigeria.
1.1 OBJECTIVES OF STUDY
The main objective of the paper is to examine the economic environment and the role of public sector in accounting in Nigeria. Other specific objectives of the paper include:
- To examine the relationship between economic environment and the public sector accounting principles
- To examine the effect of public sector accounting on the economy of Nigeria
- To examine the factors affecting the performance of the public sector accounting principles in Nigeria