Effect of Globalization on Financial Reporting: A Case Study of Zenith Bank PLC

Abstract

Globalization is a process of integration and interaction of organizations and people all over the world through trade and investment. Hence, it becomes important for organizations to prepare and present their financial information in a way that is relevant, timely, accessible, comparable, understandable, and reliable. All these qualities of financial information can be achieved through the adoption of globalization's major components in the preparation and presentation of financial reports. These components include: information technology and harmonization of accounting standards. The study’s main objective is to examine and critically evaluate the effect of globalization on financial reporting. Past researchers’ works were examined and reviewed, the statistical method used was the Correlation Analysis, it was used to analyze the data gotten through the use of questionnaire filled by the management and staff of Zenith Bank PLC. Based on the analysis, the null hypothesis was rejected. In conclusion, the process of globalization has improved the quality of financial reporting. It was therefore recommended that effort should be made by the preparers of financial reports by adopting globalization's major components in its preparation and presentation with the aim of reaping the benefits of this on-going process.