Financial Reporting Standards and Cost of Waters in Corporate Organization
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Date
2020-05
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Journal ISSN
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Publisher
EJBMR, European Journal of Business and Management Research
Abstract
This paper examined costs of waters and its
disclosures propensity in financial statement of corporate
organizations with a view to advocate for a suitable reporting
standards globally. International Accounting Standard Board
has not specifically announced or produced any financial
reporting standard in support of reporting cost of waters
despite the huge amount of monies that some corporate
industries incurred on it. Both primary and secondary data
were sourced from six breweries that uses water as one of their
major raw materials and analyzed through descriptive
statistics techniques of Analysis of Variance (ANOVA) and
Simple Percentage Method (SPM). The result revealed that
there were significant relationship between earnings and cost
incurred on waters by some specialized industries like
breweries, juice manufacturers and food processing companies
in Nigeria and as such affects the earning potentials of the
organization. On the average, water cost showed p-value of
(0.04) > (0.05) level of significant in and p-value of (0.18) >
(0.05) level of significant when reported differently from
environmental costs. The result obtained from (80.1%) of the
corporate affair section of six breweries and 65.7%
professional accountants judgement from selected districts of
the Institute of Chartered Accountants in Nigeria showed that
there are urgent needs to provide for a separate standard of
reporting such cost especially for specialized industries that
uses water as their major input/raw material in their
production. The study concludes that reporting cost of waters
separately will project the principles of IFRS as prescribed by
the board. Thus, the basic principles of human rights, cost
standardization, environmental pollution protection and
treatment-costs could be accounted for and reported in all the
continent of the world. Based on this, the study recommends
that accounting standards making bodies need to give cost of
waters adequate consideration with allotment of appropriate
standards for disclosure and reporting of costs of waters for all
corporate organization world-wide to allign uniformity in
financial reporting.
Description
Staff Publication
Keywords
Waters,, Breweries,, IFRS,, IASB.