The study investigated the impact information technology has on the preparation and publishing of financial reports in deposit money banks in Nigeria. It examines whether Information Technology improves the qualities required by the international financial reporting standards on financial reports, and if it affects compliance with required standards as well. The study adopted descriptive research design method with a population of 2,500 accountants and a sample size of 345 which was derived using Yaro Yamani formula. The study made use of primary data. Data collected were analyzed using simple regression analysis. Results from the study based on the regression analysis which gave an outcome of 90% and a p-value of 0.00 for the first hypothesis show that information technology makes financial reporting more accurate, useable and of better quality. The regression analysis gave a result of 2.9% and a p-value of 0.680 for the second hypothesis which means that information technology does not hinder compliance with international financial reporting standards. Finally, the study recommended that information technology should be made a core part of the curriculum in schools and professional training of accountants so as to improve their skills. Also, research on advancements accounting technology should be taken serious in Nigeria, as there is constant change and improvement in this area.
INTRODUCTION
Financial reports are companies’ formal record of their financial activities. All corporate entities are required by law to account for their finances. Financial reporting is the preparation and publishing of financial statements or making accessible financial statements for users. These reports are expected to meet certain standards or qualities that make them easier and better to use. The qualities include relevance, understandability, reliability and comparability. Under section 331 of the companies and Allied Matters Act of Nigeria (CAMA) 2004, companies in Nigeria are to hold accounting records that would display and interpreted the transactions of the company to disclose with financial accuracy at any time the financial position of the company and other applicable matters. Banks and other financial institutions decree, 1999, section 25, requires all banks to release in a daily newspaper printed and circulated in Nigeria and approved by the bank copies of their statements of financial position, income statements and other relevant financial statements showing their financial position, structure and performance.
In their study, Kharuddin, Zariyawati and Annuar (2010), they state that accounting systems that were previously performed manually can now be performed with the help of computers. Thus, improvements in the Information Technology have facilitated the use of accounting procedures. They state that the increasing growth of Information Technology in the world has made the preparation and publishing of financial statements easier and less stressful. Novinson (2005), disclosed that the language known as Extensible Business Reporting Language is used to standardize the financial information in companies' annual reports. According to him, the format has brought about easy access and quick sorting. It enables investors find data they need and make investment decisions. Information Technology has subsisted for a long time, fundamentally as long as people have lived. According to Haigh (2011), Information Technology has existed because there were always ways of communicating through technology available at that point in time.
According to researchers (Sajady, Dastgir and Hasheem, 2008; Urquia, Raquel, and Clara, 2011), implementation, investment, and improvement of accounting information system are related to the increase in economic and financial results of a firm. Also that accounting information system leads to improved decision-making by managers, more efficient internal control systems, improves the quality of financial reports and improves performance measures and facilitates financial transaction processes. To respond to developments in Information Technology in financial reporting, providers of accounting information must possess a broader set of knowledge, skills and abilities than prior generations, (Fowzin and Narsin 2011).