ABSTRACT

This study is on Accounting and Reporting System of Leasing in Nigeria: l'roblems and Prospects. The purpose include among other things, to find out the problems associated with accounting and reporting system in the leasing industry, the types of leases carried out in Nigeria and how they arc recorded. in pursuance of these mill other objectives, thirty two questionnaires were administered by hand to four companies making up the survey base. The companies consist of three merchant banks and one non-bank leasing company all located in Port-Harcourt. Personal interviews were also conducted in these and other companies by the researcher. A third research instrument employed was the desk research of the thirty two questionnaires submitted, thirty were completed and the response spread through all the four companies. Meaning a 100% response irate. The percentage method of data analysis was used. Results of the study showed that the accounting and reporting system of leasing also entails other activities carried out by leasing companies. There is an accounting procedure employed by leasing companies. The procedure depends whether the lease is a capital or operating lease, the Nigerian Accoiinting Standard Board (NASB) authorizes the accounting procedure which is the exposure draft on leases. (EDJO) issued by all leasing compairies. The reporting enterprise fcr finance lease does not account by recording the base as an acquisition of an asset and the incurring of liability. Based on the findings it was concluded that the accounting and reporting system or products of leasing depends whether the lease is capital or operating. So far the reporting system in each method does conflict with what accounting literature suggest. The researcher therefore recommends that qualified accountants should be employed by every lessor company in Nigeria to adequately take care of the costing of leased equipment and diligently account for them. Initial direct cost that are identifiable with direct financing leases should be taken to the income statement in the period in which the cost were incurred and lessor companies in Nigeria should provide warehouse and workshops where repossessed assets can be kept.