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Effect of Financial Statement Comparison Exercises on Students’ Ability to Identify Changes in Corporate Financial Position in Nigerian Universities

Abstract

Financial statement comparison exercises are an important instructional approach in accounting education because they provide students with opportunities to examine financial information across different periods and identify changes in a company’s financial position. Students’ ability to identify changes in corporate financial position is essential for developing financial analysis and interpretation skills. However, some students may experience difficulties in recognizing significant changes in assets, liabilities, equity, and other financial information when comparing financial statements. This study therefore examines the effect of financial statement comparison exercises on students’ ability to identify changes in corporate financial position in Nigerian universities. Financial statement comparison exercises involve structured activities in which students examine and compare financial statements from different accounting periods to identify changes, movements, and patterns in financial information. The exercises may require students to compare figures relating to assets, liabilities, equity, revenue, expenses, and other relevant financial statement items. Through repeated comparison and analysis, students can develop greater familiarity with financial information and improve their ability to recognize changes that may have implications for corporate financial performance and position. Students’ ability to identify changes in corporate financial position refers to their capacity to examine financial statements and accurately recognize increases, decreases, or other significant movements in the financial position of a company. This includes identifying changes in assets, liabilities, equity, and other relevant financial statement components and interpreting what such changes indicate about the company’s financial position. Developing this ability is important because accurate identification of financial changes supports effective financial analysis and informed business decision-making. The study will adopt a survey research design. The population will comprise Accounting Education students in selected Nigerian universities. Data will be collected using a structured questionnaire designed to obtain information on financial statement comparison exercises and students’ ability to identify changes in corporate financial position. The instrument will be subjected to appropriate validation and reliability procedures before administration. Data collected will be analyzed using descriptive and inferential statistics, while the hypothesis will be tested at a 0.05 level of significance. The study is expected to establish that financial statement comparison exercises have a significant positive effect on students’ ability to identify changes in corporate financial position. Regular engagement in comparison activities is expected to improve students’ ability to examine financial figures, recognize changes across accounting periods, and interpret movements in major components of corporate financial position. The findings are expected to have important implications for the teaching and learning of financial accounting in Nigerian universities. Accounting lecturers may need to incorporate regular financial statement comparison exercises into classroom instruction and practical assignments. Students may be provided with financial statements from different accounting periods and guided to identify changes in assets, liabilities, equity, and other relevant financial information through structured analytical activities. The study is expected to benefit Accounting Education students, accounting lecturers, university administrators, curriculum developers, and other stakeholders in accounting education. Students may develop stronger financial statement analysis and interpretation skills, while lecturers may gain useful insights for improving practical accounting instruction. Curriculum developers may also use the findings to strengthen financial statement analysis activities and practical learning within accounting education programmes. The study recommends that accounting lecturers should incorporate systematic financial statement comparison exercises into accounting instruction. Practical assignments, comparative financial statements, guided analysis, classroom discussions, and case-based activities should be used to enable students to regularly examine changes in corporate financial position. The study concludes that effective financial statement comparison exercises can improve students’ ability to identify changes in corporate financial position and strengthen their practical financial analysis competence.

Keywords: Financial Statement Comparison, Corporate Financial Position, Accounting Education, Financial Statement Analysis, Accounting Instruction, Financial Analysis, Financial Statements, Comparative Analysis, Asset Changes, Liability Changes, Equity Changes, Financial Information, Accounting Skills, Financial Interpretation, Accounting Competence