ABSTRACT

The research work seeks to examine the problem associated with social accounting in Nigeria, particular reference to its measurement and reporting procedures. This study uses the Nigeria National Petroleum Corporation as a model. To begin with, current literature on the concepts of social accounting were reviewed. This is then followed with an examination of data collected through a structured questionnaire administered to the staff in the accounting department of the corporation and supplemented with a personal interview conducted with members in the department. However, it revealed to the researcher that most of the measurements done are made through the direct cash outlay and that no reporting of its social performance were made in the annual report which is not published for public examination. The reasons given for their mobility to report its social performance was that it is not compelled by law and again no reporting standard is yet to be specified. The study also revealed that the social services rendered by the corporation are placed in a hierarchy, though they may be placed in an hierarchy. The researcher is of the opinion that their performance may not be followed in the order, but it worked simultaneous. It also revealed that the extent of social services rendered depend on the one beneficiaries. However, in order to remedy the problem encountered in social accounting, the following recommendations are made: (1) The Corporation should give a report of its social services in compliance with the requirement of SAS 14 as regard accounting in the petroleum industry i.e. Upstream activities and downstream activities. (2) The corporation should maintain an accident free environment for its workers. (3) The corporation should give proper measurement of its social services rendered, (4) It should review its manner of rendering social services. (5) A law should be enacted in the country enforcing a company to state the cause of the pollution for which compensation is paid.