Abstract

This study survey critical review of the impact of good accounting system in the growth and development of insurance industry. Some problems facing accounting system includes, Good accounting system has not been adequately carried out in insurance, inadequate accounting management. In insurance industry causes fraud, financial statement mis-interpretation also causes a problem. Objective was on the problems of good accounting management. This study critically reviewed the problems of good accounting system in 1G1, leadway and NICON insurance companies. This study made affair contribution towards the understanding of the treatment of various items by insurance companies and their accounting department. Data was sources from primary and secondary data, the primary data used was questionnaire the and observation to the accounting staff of IGI leadway and NICON, while secondary data are annual reports accounts, journals insurance year book etc. in the determining the sample size, Taro Yamani’s was used. Method of data presentation, tabular method was used in data presentation and analysis, it assembles information on the attributes under study in such a way that the relationship between all the information that can be observed and clearly understood at a glance.

Table of Content

Title Page

Abstract

Table of Contents

CHAPTER ONE: INTRODUCTION

1.1 Background of the study

1.2 Statement of the study

1.3 Objectives of the study

1.4 Research Questions

1.5 Research Hypothesis

1.6 Significance of the study

1.7 Scope and Limitation

1.8 Definition of the Operational Terms

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 An Overview

2.2 Historical development of IGI Leadway and Nicon

2.3 Historical Development of Insurance in Nigeria

2.4 Meaning and Functions of Insurance in Nigeria

2.5 Meaning of Accounting System

2.6 The impact of Good Accounting System on the

Insurance Industry

2.7 Examination of the Various Accounting principles that

Exist in the Accounting System

2.8 Measuring Good Accounting System and Insurance

Growth

2.9 Good Accounting System and Regulations

2.10 The problems Facing Insurance Manager using good Accounting System.

2.11 The prospect of Using Good Accounting System in the Development of Insurance

CHAPTER THREE

RESEARCH METHODOLOGY AND DESIGN

3.1 Sources of Data

3.2 Location of Data

3.3 Population of the Study

3.4 Sample and Sampling Distribution

3.5 The Instrument Used

3.6 Validity and Reliability of the Instrument

3.7 Method of Data Presentation and Analysis

CHAPTER FOUR

Data Presentation and Analysis

4.0 An Overview

4,1 Presentation and Analysis of Data

4.2 Test of Hypothesis

CHAPTER FIVE

Summary of findings, conclusions and Recommendations

5.1 Summary of Findings

5.2 Conclusions

5.3 RECOMMENDATIONS

Reference

Appendix 1

Appendix 11

Introduction

1.1 BACKGROUND OF THE STUDY

Insurance accounting as related to insurance company is a district and specialized account that is always referred to as ‘specialized account” just like taxation is a specialized area. Though it employs the general accounting principles, concepts and conventions, there are needs for a clear understanding of its preparations.

In the days of T-form presentation of financial statement an insurance company account could be easily recognized from the sides of the “T” to which income and expenditure items are posted, they are not in conventional form. The convention was placing revenue to the right of the “T” insurance company revenue items to the left of the “T’ and expenditure items to the right.

Nowadays, there are other features that distinguish accounting system in insurance industry or company or company’s from their accounting system, they are:

i. Requirement by law for remitting of quarterly and annual returns to central bank of Nigeria (CBN) and Nigerian Insurance supervisory bank (NISB).

ii. Prescription by law of the type and level of investment of insurance

iii. Requirement by law for condition of returns to the Nigerian Insurance supervision board (NISB) with stated deadline.

iv. Requirement by law of the maintenance reserves known as “TECHNICAL RESEARVES” comprising of insurance funds, reserves for outstanding losses reserves for incurred but not reported and contingency reserves.

All these are in addition to rendition of the required returns to the corporate affairs commission (CAC) being and incorporated company under in pursuant to the companies and allied matters decree (CAMD) 1991.

From the above, it can therefore be seen that without a proper understanding of intricacies involved in both the interpretation of the decree as well as items that makes up insurance accounts and right treatment is afforded to the financial statement as narrated wil not give a true and fair view of the statement of affairs and of profit and loss for the period.

Having read and studied the above insurance industry, the researcher felt it work bring out a detailed research work in order to benefit the students in higher institutions and readers alike.

A Critical Review Of The Impact Of Good Accounting System In The Growth And Development Of Insurance Industry. (A Case Study Of IGI, Leadway And NICON Insurance Companies)

Key Features

Table of Content

Introduction