DETERMINANTS OF DISCLOSURE OF INTANGIBLE ASSETS IN FINANCIAL REPORTING IN NIGERIA
ABSTRACT
 This study examined the determinants of disclosure of intangible assets in financial reporting in Nigeria using seventy-five (75) companies listed on the Nigeria Stock Exchange (NSE) for a period of seven years (2007-2013). The objective was to determine the relationship between company size, profitability, leverage, company age, auditor type, liquidity and intangible asset disclosure.
    The Ordinary Least Square (OLS) was employed in analyzing and testing the hypotheses, the findings revealed that there is a significant relationship between company size, profitability and intangible asset. It furthermore reveals that there is no positive relationship between leverage, company age, auditor type, liquidity and intangible asset.
    We therefore recommend that in order to improve disclosure quality and transparency, which is imperative to build up investor’s and depositors’ confidence, corporate organizations of any country need to disclose additional financial information voluntarily in addition to mandatory disclosure requirements.
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
Background to the Study    -    -    -    -    -    -    -    
Statement of the Research Problem    -    -    -    -    -    
Objectives of the study    -    -    -    -    -    -    -    
Research hypotheses    -    -    -    -    -    -    -    -
Scope of the study    -    -    -    -    -    -    -    -
Significant of the Study    -    -    -    -    -    -    -
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction    -    -    -    -    -    -    -    -    
2.2 Literature Review on Selected Variables    -    -    -    -    -
2.3 Empirical Review    -    -    -    -    -    -    -    -
2.4 Conceptual Framework    -    -    -    -    -    -    -    
2.5 theoretical framework    -    -    -    -    -    -    -
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction    -    -    -    -    -    -    -    -    
3.2 Research Design    -    -    -    -    -    -    -    -    
3.3 The Population and Sampling    -    -    -    -    -    
3.4 Sources of Data    -    -    -    -    -    -    -    -
3.5 The Research Instrument    -    -    -    -    -    -    -    
3.6 Model Specification and Data Analyses Plan    -    -    -    -    
3.7 Operationalizaiton of Variables    -    -    -    -    -    -
CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION
4.1 Introduction    -    -    -    -    -    -    -    -    -    
4.2 Data Analysis and Interpretation    -    -    -    -    -    -
4.3 Model Summary and Analysis of Result    -    -    -    -    -    
4.4 Test of Hypotheses    -    -    -    -    -    -    -    -    
CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION
5.1 Introduction    -    -    -    -    -    -    -    -    -
5.2 Summary of Finding    -    -    -    -    -    -    -    -    
5.3 Conclusion    -    -    -    -    -    -    -    -    -    
5.4 Recommendations    -    -    -    -    -    -    -    -    
Bibliography    -    -    -    -    -    -    -    -    -
Appendix    -    -    -    -    -    -    -    -    -    -
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
     One of the most popular alternative ways of communicating is the use of narrative reporting where intangible asset information is voluntarily disclosed in narrative sections of the annual reports, outside the financial statements and their  notes, as part of broader business reporting practices (Ghamari, Saeindinia, Hashemi and Aghaei, 2012). They added that, intangible assets are of increasing. This has severe consequences for internal and external reporting and hence for the decision making processes. Intangibles treated as resources of distinctive should then be developed and allocated according to “objective” measure and according to excepted economic criteria.    
Alves &Martins (2010), support that, intangible assets show a set of characteristics-namely, high risk and uncertainly, firm-specificity and human capital intensity-that make them markedly distinct from other sorts of assets. Consequently, one can argue that differences in corporate asset structures-namely the level and the nature of the intangible assets-may affect the distribution of rents among managers, shareholders and debt holders. Managers contribute with human capital, whereas debt holders and shareholders contribute with financial capital of different nature) to the firm.  
    In this opinion, Svensson (2010) assert that, intangible assets have become more and more important as the information and knowledge society has been prevalent in the end of the 2000 century. At the same time, the intangibles have been more important to disclose to different stakeholders, for companies. The book values of companies have constantly been shrinking in relation to market value. He further opined that, the value and impact of intangibles are not adequately reflected in the traditional mandatory accounting framework. Intangibles can be denoted as a kind of unaccounted assets in the traditional accounting system. There is an international pressure on corporations to improve their accounting disclosure. Wide ranges of participant groups and other organizations have also diverse interests and concerns to see that accounting practices of disclosure are improved. In literature, practices of disclosure are basically related to the communication framework of capital market.
     Omoye(2013) observed that the objective of preparing a company’s financial statement is to  make known the company’s performance. Specifically, it provides information about a company’s financial performance, financial position, and cash flows. However, if the financial statement must effectively meet this objective, it must provide adequate information that relates to the various items or components (capital and recurrent) of the final accounts. Also, it is observed that firms and organizations in Nigeria prepare financial statements at the end f their accounting year or any period usually yearly i.e. twelve (12) months. In preparing these financial statements, assets and liabilities are reported at their net book values to determine the financial performance and position of the firm and ultimately, the net worth of the business. However, one vital aspect of these financial reporting which is unduly neglected in the balance sheet is the reporting of intangible assets. Furthermore, it has been observed that more often than not, a company’s market value is usually greater than its book value and the disparity can be attributed to the non-disclosure of intangible assets in the company’s balance sheet.
    Ragini (2012), also tow the same line of reasoning as he asserts that the role of intangible and their associated benefit can be accessed from the changing market-to-book value differences. That is, the magnitude of the difference in market value and book values of companies is an indication of the impact of intangible in these companies.
     In the light of the above discussion, this study shall examine the determinant of disclosure of intangible assets in financial reporting in Nigeria.
1.2 STATEMENT OF THE RESEARCH PROBLEM
 Over the last fifteen (15) years or so there have been a number of calls for accounting reforms, with claims that the traditional historic cost approach has outlived its usefulness. One of the claims often made in these debates is that the economy has changed in fundamental ways that business is now fundamentally “knowledge-based” rather than industrial, and that “intangibles” are the new drivers of economic activity. Based on these claims, commentators contend that one of the key problems faced by financial disclosure is that financial statements failing ot recognize many of the most important knowledge-based intangibles, such as intellectual capital, and that this has adversely affected investments in intangibles.
    The problem of this study is to investigate whether company size, profitability, leverage, company age, auditor type, liquidity influence firm decision to disclose intangible asset.
Against this backdrop, the following research questions are raised:
Is there a significant relationship between company size and intangible asset disclosure?
Is there a significant relationship between profitability and intangible asset disclosure?
Is there a significant relationship between leverage and intangible asset disclosure?
Is there a significant relationship between company age and intangible asset disclosure?
Is there a significant relationship between auditor type (BIG4) and intangible asset disclosure?
Is there a significant relationship between liquidity and intangible asset disclosure?
1.3 OBJECTIVE OF THE STUDY
 The broad objective of this study is to examine the determinants of disclosure of intangible asset in financial reporting in Nigeria.
The specific objectives are:
 To determine if there is significant relationship between company size and intangible asset disclosure.
To examine if there is significant relationship between profitability and intangible asset disclosure.
To examine if there is significant relationship between leverage and intangible asset disclosure.
To determine the relationship between company age and intangible asset disclosure.
To find lout the relationship between auditor type and intangible asset disclosure
To verify the relationship between liquidity and intangible asset disclosure.
1.4 RESEARCH HYPOTHESES
 The following hypotheses shall be tested in the course of this study:
H1:     There is no significant relationship between company size and intangible asset disclosure.
H2:     There is no significant relationship between profitability and intangible asset disclosure.
H3:     There is no significant relationship between and intangible asset disclosure.
H4:     There is no significant relationship between company age and intangible asset disclosure.
H5:     There is no significant relationship between auditor type and intangible asset disclosure.
H6:     There is no significant relationship liquidity and intangible asset disclosure.
1.5 SCOPE OF THE STUDY
     This study focuses on the determinants of disclosure of intangible asset in financial reporting in Nigeria.
 The population of the study is entre two hundred and fifty (250) companies in the Nigeria stock exchange. Seventy five (75) quoted companies in the Nigeria stock exchange shall constitute the samples size of this study.
 The study will cover a period of seven (7) years i.e. (2007-2013). Geographically, the study will be conducted in Benin city, Edo state.
1.6 SIGNIFICANT OF THE STUDY
 It is expected that this study would consolidate existing literature on the issues surrounding the disclosure of intangible assets in Nigeria. The study would also facilitate the examination of the effects of disclosure of intangible assets in Nigeria and thus boosting the empirical evidence from Nigeria. Furthermore, given empirical nature of the study, the outcome of this study would policy makers and regulatory bodies in economic modeling and policy simulation with respect to the selected variable examine in the study.
The result of the study would be of benefit to investment analysts, investors and corporations in examining the effectiveness of disclosure of intangible assets. It will also be useful in stimulating public discourse given the dearth of empirical researches in this area from emerging economic like Nigeria. Finally, it would also add to the available literature on the area of study while also providing a platform for other researchers who may want to further this study.