Browsing by Author "Tanimu, Shuaibu Atabs"

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    THE EFFECT OF CREATIVE ACCOUNTING PRACTICES ON REPORTED PROFIT AND LIQUIDITY OF QUOTED COMMERCIAL BANKS IN NIGERIA
    (Department of Accounting, Nasarawa State University, Keffi., 2011-07-12) Aruwa, Suleiman A.S.; Tanimu, Shuaibu Atabs
    The creative financial reporting practices of banks were studied, particularly the adversarial reporting practices associated with Statement of Accounting Standard (SAS 10). The paper examines the effect of creative accounting practices on reported profit and liquidity of quoted banks in Nigeria. This study used ordinary least square method of regression, to examine the relationship between Provisions for Bad and Doubtful Loans (PBDL), provision for depreciation (PFD) and the reported profit and liquidity of Quoted Commercial Banks in Nigeria. The study used secondary sources of data. The data were collected from the Nigerian Stock Exchange (NSE). A sample of three banks was selected out of the sample size of twenty banks quoted on the NSE as at December, 2009, using purposeful sample technique. No significant relationship in provision for bad and doubtful loans, reported profit and liquidity position except for one of the sample, which shows a significant relationship between PBDL and liquidity. But there is a significant difference in the strength of the relationship for provision for depreciation and profitability. Although, there is negative relationship between PFD and liquidity, the strength of the relationship has varied with the result on PBDL. The study recommends uniform rates for depreciation to be specified by Central Bank of Nigeria while the timing by which debts are being serviced by customers should always be reviewed by inspectors from CBN and external auditors.