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INTERNATIONAL ACCOUNTING RULES AND REGULATIONS
OTHER ACCOUNTING ISSUES WITH A GLOBAL PERSPECTIVE
The economy of a country is determined by the local and international players. They come into the country with a variety of portfolios that affect both the demand and supply side of the economy. Issues relating to the local culture are important because they affect the normal relationships between the employers and the employees. Nigeria is one the countries that has experienced an increasing number of both local and global investors. The products and services produced within the country are consumed in different parts of the world. This requires an international approach in making the necessary accounting dimensions (Doty, 2012). The books of accounts are prepared in accordance with International Accounting Standards. The financial statements are therefore audited by the use of International Auditing standards that facilitate the right understanding of the financial reporting framework. The objective of this paper is to make an analysis of global economy by addressing the global market, taxation, international accounting rules and regulations, international compensation and other accounting issues with a global perspective.
Nigeria’s economic freedom stands at 55.6. This makes it the 120th freest for the 2015 Index. Nigeria’s score has gone up by 1.3 points from the year 2014. The improvements have been noticed in 5 of the 10 economic freedoms. The freedoms include labour, corruption, government spending, and monetary freedom. Nigeria is the 22nd out of the 46 nations within the Sub-Saharan Africa. Nigeria’s score is less than the world average (Heritage Foundation, 2015). Nigeria’s desire for accessing the international market for the non-oil merchandise has resulted in bilateral, regional and trade agreements with varying countries. It has signed bilateral convention s with Benin, Bulgaria, Zimbabwe, Guinea, Uganda, Jamaica and Romania. Investment promotions and protections treaties with France, Turkey, Switzerland, China, UK, China and Netherlands are central to Nigeria’s global economy. Nigeria is one of those countries that found the World Trade Organizations (WTO). WTO is responsible for removing all trade barriers between different countries so that the entire world ends up becoming a single global market (Reisenleitner, 2013). Apart from the one global market initiative and liberalization as a result of the Structural Adjustment Programme, Nigeria’s non-oil exportations have reduced significantly. Expanding Nigerian non-oil exports is based on the fact that crude oil as a foreign exchange earner is exhaustible and is not capable of creating a sustainable development.
The figure above shows how Nigeria’s inflation rate has been increasing as compared to Africa as a whole. It indicates that the country’s inflation rate is more than that of Africa. There are some converging points that indicate how Nigeria has tried to match the African continent.
Nigeria understands that the local market is not adequate to supply the country’s exchequer with the right kind of finances that can fund the nation’s operations. The domestic market’s demand is minimal and the right provision of the financial resources is a challenge that can be addressed by looking for additional demand destinations. It has been valuable to come up with a qualitative framework of determining the right countries that are capable of purchasing more of the oil (Fischer-Kowalski, 2011). A quality research has been done to determine the countries capable of buying much of the oil products that are expected to raise the country’s revenue sources. A priority is given to the global economies that have a high oil requirement. This creates a focused approach in dealing with cross sectional supply issues that are part of Nigeria’s economic functioning.
An exportation of basic agricultural products has promoted Nigeria’s non-oil exportations. The country has considered it right to diversify the exportation portfolio that is expected to enhance the country’s economic earning capacity. The varying agricultural production issues are well considered by the government to come up with the right approach is realizing the desirable productivity thresholds. The idea is to satisfy the local demand first before working on the global market that is for the better of Nigeria’s economic performance (Melancon, 2010). A variety of cross sectional issues are considered valuable in addressing the rate at which the country’s financing objectives are realized with great ease. Global consumers of different agricultural products are well addressed to come up with a qualitative approach in dealing with the quantitative advancement in the revenue generation for the country. The objective of Nigeria is to address the varying climatic conditions that create a better focus in realizing the desirable exchange earner results. Nigeria’s GDP growth:
The figure above shows Nigeria’s GDP as compared to the rest of Sub-Saharan Africa. Nigeria has the largest economy that encourages the right atmosphere for the highest exportations. Nigeria considers its local people as a high quality human resource factor.
Macroeconomic policy stimulation for the non-oil exportations has focused on marketing policy tools. Marketing is viewed holistically by encompassing product researching, development and improving the bond between producers and purchasers.
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- Musbau Kolawole Kayode (Author), 2015, Accounting in the global economy from a Nigerian perspective, Munich, GRIN Verlag, https://www.grin.com/document/306838