CHAPTER ONE

INTRODUCTION

Background of the study 

Accounting is a field of study offered as both academic and professional programme in most tertiary institutions in Nigeria. As a result of the increasing population of students applying for part-time programme in accounting, the tertiary institutions in Taraba State now have separate unit which is popularly known as ‘Consultancy Unit’ for teaching financial accounting. Accounting, according to Hongreen (2002), is the language of business that is used for recording, measuring, summarizing and reporting economic activities in monetary value for the users of financial information to make decision. Accounting information reveals the financial position of any business to determine whether there is profit or loss in a given period as well as to know the book value of assets, liabilities and owners’ capital. In practice, accounting can be broadly divided into financial accounting and management accounting.  However, this study will deal on financial accounting.

Financial accounting is a practice and body of knowledge concerned primarily with methods of recording, classifying, analyzing, reporting and communicating the financial transactions in monetary terms to the internal and external users (James, 2010). It is also the systematic and comprehensive way of measuring, recording, analyzing, interpreting, summarizing and communicating the finance of a business to the appropriate users. Financial accounting provides the external users outside the business organization such as creditors, tax authorities, regulatory bodies, prospective investors, financial analysts, customers and other members of the public with information on the worth of a business entity.  Amat (2002) defined financial accounting as the process of recording, classifying, selecting, interpreting, summarizing and reporting financial data of an organization to the users for objective assessment and decision making.

Financial accounting is also concerned with providing both financial and non-financial information that will help decision makers to make good decisions. Okoli (2013) explained that financial accounting as a specialized branch of accounting that helps to keep track of both financial and non-financial information using standardized guidelines. It enables the general public to assess the potentials of the business for investment, understanding the concept of assets and liabilities so that the functions in business cycles can be easily analyzed by the users of accounting information. According to the Australian National Training Authority (2003), there are fundamental financial accounting competencies required for business functions namely ledger competencies, final account competencies, bank reconciliation competencies, manufacturing account competencies, ICT- based accounting competencies among others, which must not be compromised for effective teaching of the basic principles needed in preparing financial accounting information. 

Effective teaching is the impartation of knowledge. In the words of Sowande (2002), effective teaching depends on competency acquired by the teacher/staff in carrying out a set of specific tasks. Effective teaching in this study refers to ideas, attitudes and skills into students in order to properly measure, record, analyze, interpret, summarize and communicate the financial transactions of business to the appropriate users. It is conceived that the availability of competent financial accounting lecturers who are abreast of the trends, innovations, strategies and international accepted standards will ultimately improve the effective teaching of financial accounting in the consultancy units in the tertiary institutions of Taraba States. Abubakar and Dantani (2005) noted that a teacher cannot teach that which he does not know and knowledge alone does not make a teacher because it is the teachers’ task to create or influence desirable changes in behavior of students through his\her competencies.

            Competency is a generic word that refers to the sum total of skills, knowledge and attitudes manifested in an individual; behavior about a particular task, subject or activity.  It is also a quality or state of being functionally adequate in terms of knowledge, skills and capability to perform a particular duty or task (Baffa, 2013).  Penney (2014) defined competencies as the knowledge, skills and behavioural attributes necessary for acceptable job performance. Chagbe (2009) defined competency as the knowledge, skills, attitudes and judgments which are required in order to perform successfully at a special proficiency level in a programme. Ekong (2000) explained further that to be competent means that an individual has acquired the knowledge, skills, attitude and judgement which one requires in order to performed a specific given task effectively. To be effective, according to Olaitan, Nwachukwu, Igbo, Onyemachi and Ekong (1999), is an indication of the impact of a group of activities performed on the achievement of intended learning outcomes (the quality of education or professional training students acquired). This implies that there is a strong relationship between effective teaching in consultancy units and the financial accounting competencies of lecturers working in the units. Gbadamosi (2006) explained that effective teaching occurs when the measure of output or outcome of a specific activities meet the set goal/objectives based on quality of human and material resources, and way or manner such activities are performed in line with the laid down procedures and standards.   In this study, competencies are the fundamental knowledge, skills and ideas that are useful and required for effective teaching of financial accounting in the consultancy units.

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