THE QUALITY OF THE INFORMATION CONTENT OF PUBLISHED GOVERNMENT FINANCIAL STATEMENTS

BY SULEIMAN A.S. ARUWA

DEPARTMENT OF ECONOMICS AND MANAGEMENT SCIENCES, NIGERIAN DEFENCE ACADEMY, KADUNA

A PAPER FOR PUBLICATION IN IN THE BOOK OF READING ACCOUNTING PERSPECTIVE DEPARTMENT OF ACCOUNTING, UNIBEN, EDO STATE

JANUARY 2005 THE QUALITY OF THE INFORMATION CONTENT OF PUBLISHED GOVERNMENT FINANCIAL STATEMENTS By Suleiman A.S. Aruwa+ ABSTRACT This paper investigates three basic qualitative epithets of Government Financial Statements. These are the adequacy of the financial reporting statements in meeting the information need of diverse user groups in the country, reports utilization, and compliance of the statements with the statutory requirements. To accomplish the objectives of this paper, three hypotheses were formulated and tested. On the basis of these hypotheses, personal interview and government financial statement evaluation questionnaire were used as research instruments. The descriptive and parametric statistics were employed in analysing the data and testing the hypotheses, respectively. The paper revealed that the Government Financial Statements, in the present form, significantly comply with statutory laws but inadequate for report utilisation. There is high desire by the user groups for a more comprehensive and informative Government Financial Statements. Consequently, to improve the quality of the financial statements, it is recommended that the financial reports should be simplified with special financial reports based on users request. The need for emphasis on external reporting over stewardship reporting is strongly advocated. These will add value to the usefulness of Government Financial Statements.

1.1

INTRODUCTION

A considerable body of literature has developed, particularly in the past thirteen years, which examines the nature of governmental accounting and financial reporting. Applied researches in governmental accounting and financial reporting have been well documented. Research in this category typically explains the practical application of accounting standards in the governmental settings, discusses currently unresolved governmental accounting issues, and or questions current practices in governmental accounting and financial reporting (Aruwa, 2002; Giroux and Apostolou, 1991; Granof and Mayper, 1991; Hay and Antonio, 1990; Raman and Wilson, 1990; Ingram, Raman, and Wilson, 1989; Lewis, Patton, and Green, 1988; Ingram, Raman, and Wilson, 1987). Some of the major issues identified include: a perceived gap in the information content of government financial report and information need of users (Aruwa, 2002), the need to integrate budgeting, accounting and financial reporting and that a strong and enduring relationship exists between government accounting and budgeting (Chan, 1992), and the need to reform budgeting processes in view of large budget variances (Granof and Mayper, 1991). Nigerian system of government accounting has its roots from the British colonialists who were confronted with accounting and reporting problems that required resolution without the assistance of professional accounting standard-setting organisations (Anyafo, 1994:61).
+

The

Aruwa is a Lecturer with the Department of Economics and Management Sciences, Nigerian Defence Academy, Kaduna-Nigeria.

primary focus of financial accounting and reporting in those early days was determining whether cash, usually generated from general tax levies support current operating activities, was collected in amounts that at least equalled the cash paid for those purposes and whether laws restricting the collection and expenditure of public funds were followed by those who administered the programmes. Holder (1992:41) submits that the primary users of such reports were the administrators and legislative representatives of government that were guided by that information in performing their duties. Holder (1992:41) opines that little thought was originally given to the usefulness of the information content of Government Financial Statements for external financial statement users. The nature, complexity, intensity of use, and the related costs of acquiring assets, road maintenance, and other types of operating equipment have also increased sharply since the accounting practices used currently were originally developed. Holder (1992:3) posits that the assets that are acquired in one period but that are used for a number of periods pose accounting issues today that were far less significant years ago, and this complicates reporting activities in a meaningful way. The government financial reporting function seems to have been subjected to the greatest amount of criticism in recent years with regard to its information content and its apparent inability to meet the assumed need of a variety of decision-makers involved in the use of Government Financial Statements. In addition, individuals and institutions outside the government have become virtually interested in the financial activities and status of governments. Example of such users includes creditors, citizen groups (i.e. taxpayers, service recipients or voters), business enterprises and others, yet the Government Financial Reports remain the singular picture of the resources entrusted, how the resources are employed during a fiscal year, and in what form the resources are now held. However, there are overwhelming calls on government to shift emphasis from traditional stewardship financial reporting to the presentation of more informative Government Financial Statements (Maimako 1997:122). In a situation where the government accounting system is caught up between its reports based on financial related laws and regulations, and having to consider the needs and problems of user groups. It becomes important to investigate the content of Government Financial Statements in relation to problems of report adequacy, usefulness and the compliance of reports to relevant laws. The contents and formats of Government Financial Reports therefore require consideration. Gary (1992:10) observes that various persons who have written on the subject of financial reporting in the Federal Government have termed it antiquated, fragmented, incomplete, unreliable and lacking timeliness Gary further submits that to a person schooled in government 3

accounting, the Federal Government Financial reporting is disgraceful. All of these epithets may have merit, especially in respect of the statutory background of government accounting, the adequacy of the information content and the level of usefulness to which the financial reports are employed in decision-making. Oshisami (1994:12) reports that Morey (1926) acknowledged that many errors of principle will be committed if there are no material modification to the public accounts, in adopting private sector accounting procedures. In addition, if relevant information contained in Government Financial Statements could provide financial information, the timing of publication can impair its reliability, completeness, and usefulness and so adversely affect users of Published Government Financial Statements. In practical essence, the paper shall attempt to achieve the following objectives: 1) 2) 3) 4) To identify the nature of the information content of Published Government Financial Statements; To ascertain the Government Financial Statements usefulness to user groups in decision-making; To identify the factors that contribute or mitigate the Government Financial Statements information content adequacy or inadequacy; To reveal what major complaints or criticisms the user groups may have against the Government Financial Statements, as regard their understanding of them, and to reveal the reasons and areas of difficulty; and 5) To suggest improvements on Government Financial Statements that could enhance its informative capacity. LITERATURE REVIEW: 2.1 LEGAL FRAMEWORK OF GOVERNMENT ACCOUNTING The public sector accounting in Nigeria is rooted in a number of legal instruments, which sets the general framework for the total financial management, government accounting and financial reporting. The legal instruments at the federal level include: The Constitution of the Federal Republic of Nigeria, 1999, the Finance (Control and Management) Act), 1958, the Audit Ordinance No. 28, 1956; and the Annual Appropriation and Supplementary Appropriation Acts. Anyafo (1994:1) notes that these legal instruments constitute the statutory bed rock upon which the government accounting manuals, treasury circulars, and federal financial regulations and states financial instructions are founded. However, financial regulations and financial instructions provide for the control and management of public finances at the federal level and for 4

the audit of the accounts of individual states, respectively. The financial memoranda regulate the local governments accounting. According to Oshisami (1992), the Constitution covers the following key areas in government accounting: The operation of funds, the external controls for operating the accounting system in terms of audit and investigations, and the appropriation procedure. Finance (Control and Management) Act 1958 governs the management and operation of government funds. In addition the Act regulates the accounting system, the books of accounts to be maintained and the procedures to be followed in the preparation of accounts and government financial statements (Anyafo, 1994:79). Perhaps, the most important aspect of the Act is that it regulates the accounting format and basis of accounting for the preparation of government accounts. The Audit Ordinance, 1956 as amended by Audit Act 1988 provides for the Audit and accountability for the public funds of government in Nigeria. Section 7 sets out the duties of the Auditor-General for the federation. Section 13 mandates the Accountant-General of the federation to sign and present, within a period of seven months after the close of each financial year, to the Auditor-General for the federation the accounts showing the financial position of the federation of Nigeria on the last day of such financial year. The Audited financial statements are thereafter presented to the public accounts committees of the National Assembly (section 85(5) of the Constitution). Appropriation Acts are enacted annually for the purpose, not only for regulating financial and accounting matters, but principally to provide for the issue from the Consolidated Revenue Fund such sums of money as demanded justifiable for the recurrent expenditure including contribution to the Development Fund for capital projects for the service of the federation. Section 81(2) of the Constitution authorises the President to make withdrawals from the Consolidated Revenue Fund of the sum necessary to meet the expenditure and the appropriation of those sums for the purpose specified therein. The legal instruments of Government accounting are not without criticisms in respect of certain stipulations. The mandatory use of cash basis accounting as specifically mandated by Finance (Control and Management) Act, have been criticised variously by Ngwu (1999:200), Chan (1992:1), Oshisami (1992:130), Gary (1992), and National Council on Governmental Accounting (NCGA, 1979) of USA. This provision in its present state makes the accrual basis of accounting illegal. They posit that the present general application of cash basis of accounting may not entirely permit the Government financial reports to achieve its objectives. They contend that Cash basis of accounting is adjudged useful for short term fiscal control whereas Accrual basis of 5

accounting is the superior method for the economic resources of any organisation; it results in accounting measurements based on the substance of transactions and events rather than merely when cash is received and disbursed, and thus enhances their relevance, neutrality, timeliness, completeness and comparability. NCGA recommends use of the accrual basis to the fullest extent practicable in the Government environment. However, the report of research conducted by Likireman and Vass (1984) on government expenditure recommended continued adoption of cash basis of accounting by government. The Finance (Control and Management) Act 1958 also requires the preparation of government accounts on fund basis. In essence, all funds of a government must be classified into one of three fund categories: Governmental, proprietary, and fiduciary, or expendable and nonexpendable funds. The category of a fund determines the type of accounting and financial reporting that is accorded the activities conducted, assets owned or held, and liabilities incurred by that particular fund (Brooks, 1992:41). A question arose as to whether each fund should also constitute a reporting entity, considering the voluminous annual report resulting from this practice. Critics further argue that reporting by fund creates a fragmentary and incomprehensible picture of government finances. Chan (1992:1) opines that this practice, however justifiable on grounds of stewardship, legal and contractual compliance, certainly, it is not user-friendly- it produced comprehensive reports that are not comprehensible. 2.2 OBJECTIVES OF GOVERNMENT ACCOUNTING

In the light of Financial (Control and Management) Act No. 33 1958, Anyafo (1994:64) states the objectives of government accounting as: a) To ensure that a full account is made to the legislature on management of public finances and that its financial control as prescribed by the operated in accordance with the provisions of the Constitution of the Federal Republic of Nigeria (section 5); and b) To enable the Accountant-General to present to the Auditor-General for audit purposes, the accounts showing fully the financial position as at the last day of each financial year of the Consolidated Revenue Fund and all other Government funds (Section 24). In essence, the purpose of government accounting is to provide information about the economic and financial affairs of government agencies, institutions and units. It is tailored to emphasize the use of funds provided to accomplish objectives designed in the best interest of tax 6

payers. However, use of funds requires stewardship reporting, which preclude external reporting by the government. Similarly, Glyn (1987:7) reports that in Australia, the report of the committee on Public Sector Accounting stated the primary objectives of accounting in the public sector organisations as provision of information necessary for management controls and public accountability. Glyn (1987:8) relates these objectives to include: i) ii) iii) iv) v) To provide information useful for determining and predicting the flows, balances and requirements of short-term financial resources of the government unit; To provide information useful for determining and predicting the economic condition of the government unit and changes therein; To provide financial information useful for monitoring performance under terms of legal, contractual and judicial requirements; To provide financial information useful for planning and budgeting and allocation of resources on the achievement of operational objectives; and To provide information useful for evaluating managerial and organisational performances. Comparatively, lacking in the legal requirement of financial reporting in the Nigerian context is the external reporting by government. After considering the governmental environment and users needs, Governmental Accounting Standard Board (GASB) of USA (1987) proposed the following objectives: a) b) c) Financial reporting should assist in fulfilling governments duty to be publicly accountable and should enable users to assess that accountability; Financial reporting should assist users in evaluating the operating results of the government entity for the year; and Financial reporting should assist users in assessing the level of services that can be provided by the government entity and its ability to meet its obligations as they become due. It is however observed that what is published varies greatly in the relative emphasis given to each of these objectives and functions. The importance of using Published Government Financial statements as a vehicle for public accountability through meeting external reporting requirements has been steadily increasing. A comparison of Nigerian Governmental Accounting system and the United Nations model for Government Accounting further highlights the areas of discrepancies (Ngwu,1999:200): 7

Cash accounting seems to constrain the realization of Accounting system being capable of serving the basic financial information needs of development, programme-planning and appraisal of performance in physical and financial terms, planning programming budgeting system (PPBS) and the accrual basis of accounting need to be firmly implemented for the accounts to provide financial data useful for economic analysis and reclassification of government transactions to assist in development of national accounts.. 2.3 GOVERNMENT FINANCIAL STATEMENTS AND USES

The five Audited Financial Statements made available by the Auditor-General of the Federation represents the authentic and legal financial position of government at any time (Oshisami, 1992:166). These financial statements include, Consolidated Revenue Fund (CRF), Statements of Revenue, Statement of Recurrent Expenditure, Statement of Assets and Liabilities, and the Development Fund. All of the financial data in these publications contain up-to-date figures. The five statements conform to the basic minimum which should be prepared for government, under operational criteria: the balance sheet, statement of operations, statement of sources and operation of funds. However, the five statements suffer from some technical deficiencies in three areas (Oshisami, 1992:179): finalisation of accounts for publication, the presentation format, and the inadequacies inherent in the application of cash basis of accounting without supplementary information. Although the federal government supplies additional information, but do not remove all the inadequacies. It is held also that a presentation of financial statements for the year without budgetary comparisons is first of all not in conformity with standard accounting principles and practice, and is generally considered short of full disclosure (Anyafo, 1994:64). In the corporate report (1975) published in the United Kingdom, the users of corporate reports are defined as: Having a reasonable right to information concerning the reporting entity. We consider that such rights arise from the public accountability of the entity whether or not supported by legally enforceable powers to demand information. The National Council on Governmental Accounting (NCGA, 1981) of USA sponsored research paper identified many internal and external groups (and uses) as potential users. The Governmental Accounting Standard Board (GASB, 1987) of USA however, following the approach similar to that of Financial Accounting Standard Board (FASB, 1978) and the American Institute of Certified Public Accountants (AICPA, 1974) paper group on the objectives of financial statement, focused on external users who have limited authority, Ability or resources to obtain specific information. 8

Ngwu (1998:12) identified internal users (and uses) of Government financial reports as Government, Public official, and Trade unions. Chan (1992:1) equally identifies external users of Government financial statements as: Citizens group: as service recipients, as voters, and as taxpayers; Legislative and oversight officials, Investors and Creditors, and other external users. Hay and Antonio (1990:92) observe that interviewees indicated that notes disclosures on government financial reports should be concise and contain essential information. In particular, the respondents (users) were interested in information regarding events that may materially affect the statements after balance sheet date: contingent liabilities and instances of non-compliance with laws, regulations and agreement. Another disclosure that users would like to see is material differences between the original budget and the final budget (due to supplementary appropriations). In addition, users states that if budget and GAAP reporting differences are not reconciled on the face of the statements, only material differences need to be disclosed in the notes. Users recommended that for each major fund, a five year history be provided regarding each major revenue source and a five-year expenditure history for each major fund by function, program, or other category, and additional disclosures regarding assets and liabilities are necessary 3.1 METHODOLOGY

The primary data were sourced through personal interview and administration of Government Financial Reports Evaluation Questionnaire to the users of government financial statement, the staff of the office of the Accountant-General of the federation, and the staff of the office of the Auditor-General of the federation. The population of users includes both the internal and external user-groups. A systematic random sample of the population in Abuja, Kaduna and Kogi states locations is taken only as representative of the aggregation of the elements that comprise the research sample. The sample population is put at a randomly selected 597 (five hundred and ninety-seven) representatives. The secondary sources of data comprise the Federal Government Financial Statements (Finalised version), Kaduna State Financial Statement 1998, professional journals textbooks, research reports, articles and handbooks. The following three Hypotheses were formulated to direct the paper in three key areas: Report Compliance, Report Utilization, and Report information content adequacy. HYPOTHESIS I Ho1 There is no significant variation between the information content of Government Financial Statements and the Statutory Requirements 9

HA1

There is a significant variation between the information content of Government Financial Statements and the Statutory Requirements

HYPOTHESIS II HA2 HA2 There is no significant difference in the level of utilisation of Government Financial Statements in decision-making process, when classified by user groups There is a significant difference in the level of utilisation of Government Financial Statements in decision-making process, when classified by user groups HYPOTHESIS III Ho3 Ho3 There is no significant difference between the information content of Government Financial Statements and the information need of user groups There is a significant difference between the information content of Government Financial Statements and the information need of user groups The procedures employed for data analysis were based on responses from the linkert scale used for the questionnaire. The hypotheses were analysed separately for ease of data analysis and utilisation of available data. The parametric statistics (ANOVA: Single factor analysis) was used as the statistical tool to test the hypotheses at 0.05 level of significance, which depicts the difference between and within the user-groups responses. The descriptive tools used include mean, percentages and use of tables for data presentation. Mean (X) is computed as = (SXt) N Where SXt is the total computed mean of group N is the number of selected group (i.e. 5) The One-Way Analysis of Variance (ANOVA) was computed using the table below: Sources of variation SS DF SSc SC 1(K-1) SSe SE K(n-1) MS Sc 1(K-1) = S1 SE K (n-1) = S2 SSt Sr N(K-1) 10 F S1/S2 =Fc

Where: SSc is the sum of square column SSe is the sum of the square error SSt is the sum of square total DF is the degree of freedom MS is the mean square F is the computed F The rejection region consists of all value of P that is equal to or less than = 0.05. Therefore, the value of P greater than = 0.05 is the acceptable region. 4.1 TEST OF HYPOTHESES

Statistical tests and analysis of hypotheses based on data collected provides the empirical evidence for the following research findings: HYPOTHESIS I LEVEL OF COMPLIANCE

The extent of the information content of published government financial statement and the degree of variance in the level of compliance with statutory requirement were examined. The responses on compliance level as computed from the Government financial statement evaluation questionnaire is given below: Table l Mean Scores on Compliance level Group Public officials public Institutions Legislative officials Business enterprises Citizen groups Mean Source: Field data (2003) *Absolute Scores Compliance level using ANOVA: Single Factor Analysis Averag Groups Sum e Variance Between group 506 101.2 543.7 Within group 347 69.4 534.8 Source of Variation Between Groups Within Groups Total SS 2528.1 4314 6842.1 Df 1 8 9 11 MS F P-value F crit 2528.1 4.688178 0.062281 5.317645 539.25 Sample size (n) 86 81 123 86 130 Mean 95 89 71 47 45 69.4

P > 0.05 From table l the overall mean scores of compliance level is 69.4. This reflects a commendable compliance level of published government financial statement with statutory requirements in varying level of each groups perception. Statistical test of the hypothesis with respect to the level of compliance depicts that the null hypothesis (Ho1) was accepted on the ground that the sample evidence (P) is greater than = 0.05, P > 0.05; P = 0.06228; we conclude that the specified
groups of users agree in degree of level of compliance.

HYPOTHESIS II

LEVEL OF REPORT UTILISATION

Five groups of users were examined on the level of utilisation of published government financial statements. The analysis of these user-groups responses are as shown in table ll. Table ll Mean Scores on Report Utilisation level Mean 84 79 71 47 45 65.2

Group Sample size (n) Public officials 86 public Institutions 81 Legislative officials 123 Business enterprises 86 Citizen groups 130 Mean Source: Field data (2003) *Absolute Scores

Report Utilisation level using ANOVA: Single Factor Analysis Groups Between Groups Within Groups Source of Variation Between Groups Within Groups Total P < 0.05 SS 6812.1 3120.8 9932.9 Sum 506 245 df 1 8 9 Averag e Variance 101.2 543.7 49 236.5 MS F P-value F crit 6812.1 17.46245 0.003085 5.317645 390.1

Table ll depicts mean scores of 78.0 and 46.5 for the internal and external users, respectively. These scores reflect a lower level of financial statement utilization at 65.2 mean score but worse on the part of external user-groups. The statistical test conducted on null hypothesis ll (Ho 2) indicated that the probability (P) is less than = 0.05, P = 0.003085. Our decision in this test is to

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reject Ho in favour of HA. The conclusion drawn was that there is a significant difference in the level of report utilisation in decision making process when classified according to user groups. HYPOTHESIS lII REPORT ADEQUACY The perceptions of user groups with respect to the adequacy of the Government financial reports to their respective information needs formed the basis of the data reported in Table lll Table lll Mean Scores on Adequacy level Sample size (n) 86 81 123 86 130 Mean 62 57 61 36 29 49

Group Public officials public Institutions Legislative officials Business enterprises Citizen groups Mean

Source: Field data (2003) *Absolute Scores Level of Report Adequacy using ANOVA: Single Factor Analysis Groups Sum Average Variance Between groups 506 101.2 543.7 Within groups 5 326.2 65.24 329.788 Source of Variation Between Groups Within Groups Total P < 0.05 SS 3232.804 3493.952 6726.756 df MS F P-value F crit 1 3232.804 7.402057 0.026221 5.317645 8 436.744 9

Table lll depicts the highest mean score of 62.0 for public officials and the lowest mean score of 29.0 for citizen group. The overall mean scores stood at 49.0, which indicate a low level of report adequacy to the generality of the users. Again, the internal users scored higher (60.0) than the internal users (32.5). Sample evidence in table lll rejects null hypothesis lll (Ho 3) at P = 0.026221 (P < 0.05), therefore we conclude that there is a significant variation between information need of users and the information content of published government financial statements. 5.1 CONCLUSIONS AND RECOMMENDATIONS

From the foregoing analysis and findings, we can derive empirical conclusions with respect to three qualitative epithets of the information content of published government financial statements. These epithets are anchored on reports compliance, utilization and adequacy. 13

The paper has indicated that the published government financial statements have over the years attained a high level of compliance with legal prescriptions on the statement contents, format of presentation and the financial measurement principles prescribed by the legal instruments. The note to the accounts has been disclosed to the extent of disclosure permitted by law; but failed to meet timely publication as mandated by law. The conclusions drawn on report adequacy and utilisation were that variation exists among user groups in terms of level of utilisation and the sufficiency of the information contents of financial statements to the information need of user groups. It has been established in the paper that the adequacy of the information content of the statements is linked to the level of its underutilisation by the user groups, especially the external users. It must be emphasised that the relative adequacy of the reports to internal users resulted in a high level of utilisation than the external users. It was observed, that, the internal users have statutory duty to receive and utilize the financial statements in the process of discharging their functions, even at that it is not significant. The external users desire more information than what is presently obtained from the government financial statements. The conclusion that emerge from this paper is that, the entire basis of preparation, presentation and disclosure of financial information must be thoroughly examined with a view to meeting user-groups information needs, thereby making it more useful. Financial reporting in government should emphasize on external reporting than stewardship reporting. The findings and conclusions of the paper necessitated the following recommendations on legislative requirements, and report content and presentation: 1) Legislative Requirements made accessible; b) the timing of reports publication should be made 3-months as against the statutory 7months c) establishment of Governmental Accounting Standard Board, to determine the detailed procedures, principles, and standards that should operate within the public sector, as Nigerian Accounting Standard Board is to the private sector accounting; and d) the present statue makes the accrual basis of accounting illegal, in view of the importance now attached to it, the modified accrual basis of accounting should be adopted in reporting government financial transactions. 2) Content and Presentation: 14 a) the right of users to request special financial reports must be legally mandated, and be

a) Provision of information showing the relationship between services rendered and operating outlays, to enable groups external to the government obtain accounting information to assist them in evaluating the performance of functionaries in charge of government operations. b) Improvement in the quality and style of presentation of the statements with focus to make it understandable, complete, reliable and consistent. This could be achieved through: i) expansion of the contents of the notes to financial statements; notes to include: Basis of presentation and explanation of funds and fund accounts, Basis of accounting- for measuring and reporting constituents of the financial statements; ii) disclosure of the reconciliation between actual expenditures on the budget basis and the modified accrual basis, and disclosure on adverse situations- deficits in fund balances or retained earnings of individual funds, excess expenditures over appropriations, material violations of finance related legal and contractual provisions; iii) iv) v) c) details of investments, including the cost, interest rates and market value, be fully disclosed; a summary of fixed assets, including acquisition, depreciation, and whether infrastructures (roads) are capitalised- capital formulation disclosure; and disclosures with regard to total outstanding liabilities in respect of various guarantees, and pension funds. Comparative data in form of statistical tables and charts for a 5-year period, representing government revenue sources, expenditures by function, and forecasts of revenue and expenditures. BIBLIOGRAPHY Accounting Standards Committee (1975), The Corporate Report. London, United Kingdom. Anyafo, A.M.O. (1994), Government and Public Sector Accounting: Legal and Constitutional Framework. Vol. I Gopro Press, Enugu-Nigeria. Anyafo, A.M.O. (1996), Public Finance in a Developing Economy: The Nigerian Case. UNEC. Press, Enugu-Nigeria. Aruwa, S.A.S (2002), Empirical Investigation of the Information Content of Published Government Financial Statements, M.Sc. Accounting and Finance Thesis, A.B.U., Zaria. Brooks, R.C. (1992), Research in Government Accounting and Reporting. In: Apostolou, G. and Crumbley, D.L. Handbook on Governmental Accounting and Finance. (2nd ed.). John Wiley & Sons, Inc. New York. 15

Chan, J.L. (1992), The Government Environment: Characteristics and Influences on Governmental Accounting and Financial Reporting. In: Apostolou, G. and Crumbley, D.L. Handbook on Governmental Accounting and Finance. (2nd ed.). John Wiley & Sons, Inc. New York. Federal Republic of Nigeria (1958), The Constitution of the Federal Republic of Nigeria 1999. Federal Government Press, Lagos. Federal Republic of Nigeria (1989), Federal Treasury Accounting Manual. Federal Government Press, Lagos. Federal Republic of Nigeria (1999), Finance (Control and Management Act 1958. Federal Government Press, Lagos. Federation of Nigeria (1976), Revised Financial Regulations 1976. Federal Ministry of Information Printing Division, Lagos. Financial Accounting Standard Board (FASB) and American Institute of Certified Public Accountants (AICPA) (1978), Report of Paper Group on the Objectives of Financial Statements. Gary, T.J. (1992), Financial Reporting. In: Apostolou, G. and Crumbley, D.L. Handbook on Governmental Accounting and Finance. (2nd ed.). john Wiley & Sons, Inc. New York. Giroux, G. and Apostolou, N.G. (1992), The Market Reaction to the Information Content of Municipal Surplus/Deficit ratios, Public Budgeting and Financial Management. In: Apostolou, G. and Crumbley, D.L. Handbook on Governmental Accounting and Finance. (2nd ed.). John Wiley & Sons, Inc. New York. Glyn, J.J. (1987), Public Sector Financial Accounting. Basil Blackwell Ltd. London. Governmental Accounting Standard Board (GASB, 1987), Proposal on Objectives of External Reporting by Government. U.S.A. Holder, W.W. (1992), Future Developments in Government Accounting and Reporting. In: Apostolou, G. and Crumbley, D.L. Handbook on Governmental Accounting and Finance. (2nd ed.). John Wiley & Sons, Inc. New York. Maimako (1997), Financial Reporting and Accountability in the Public Sector Accounting. Journal of Nigerian Accounting Association. Ngwu, F.N. (1998), Public Sector Accounting and Finance. Computer Edge Publishers, EnuguNigeria. Oshisami, K. (1992), Government Accounting and Financial Control. Megavons (W.A.), Plc. Lagos-Nigeria. Oshisami, K. and Dean, P.N. (1984), Financial Management in the Nigerian Public Sector. Pitman. London.

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United Nations (1958), Manual of Economic and Functional Classification of Government Transactions. UNO.

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