THE USE OF ACCOUNTABILITY FRAMEWORK AS AN ALTERNATIVE APPROACH FOR CORPORATE SOCIAL RESPONSIBILITY REPORTING AND DISCLOSURE PRACTICES IN NIGERIA
CHARPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nigeria with an estimated population of over 180 million people is the largest market for goods and services in Africa. Its gross domestic product was U. $ 568.51 billion in 2014. There are 864902 companies registered with the corporate affairs companies registered with the corporate affairs commission. The Nigeria stock exchange has 209 listed companies with a combined market capitalization close at #9.851 trillion as at December 2015. (Asein, 2010), noted that despite this huge resources it is neither satisfying the need of the people nor increasing the growth of the economy. A key policy strategy in repositioning the economy of Nigeria is the attraction of foreign direct investment (FDI) into the economy to provide investible fund for corporate entities. Foreign direct investment in Nigeria has been declining for the past decade primarily due to the perception of risk in Nigeria Obazee, (2010). The perception of Nigeria as a risky country for the flow of foreign direct investment can in part be attributable to the limitations and short comings noticed in the corporate reporting and disclosure practices by Nigerian companies this is owning to the fact that some of these companies cannot provide investors and other stakeholders with sufficient and reliable economic information that will enable the users of such information to understand the risk profiles inherent in such companies and to permit informed judgment and decisions.
Nowadays, business has become more global and indeed Nigeria is part of this globalization. The competitive and dynamic nature of Business environment has brought about pressure for more information disclosure to assist shareholders and others stakeholders in taking economic and other investment decisions. Asein (2009) to the end concluded that the global adoption of a single set of financial reporting standard will enhance comparability and create an enabling environment for all investors to compare effectively investment opportunities across the global market. It has been observed and frequently asserted by scholars of accounting history that the practice of accounting and corporate reporting and disclosure requirement of corporate entities have been closely interlocked with the social, political and economic situation of a country. However, there are two very clear elements in the conventional basis of legitimating for current accounting practices. Role of law and the concept of generally accepted accounting principles (GAAP). The legal basis for reporting and disclosure practices in Nigeria is derived from the relevant laws and legislation notably the Companies and Allied Matters Act (CAMA, 1990) and secondly from the recent adopted international financial reporting standards in 2012 which is to be observed in the preparation and presentation of financial statement by corporate entities in the country.
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