THE IMPACT OF FINANCIAL ACCOUNTING ON THE CORPORATE PERFORMANCE OF BUSINESS ORGANIZATION [A CASE STUDY OF NIGERIAN BREWERIES PLC]

Description

ABSTRACT

The research work “The impact of Financial Accounting Reporting on the
corporate performance of Business Organizations”, basically aims at
ascertaining how financial accounting reporting has helped in advancing
the objectives of corporate organizations. In the process, it investigated the
effected that financial accounting bear on the performance of a business.
Furthermore, if sought to ascertain the compliance of relevant statues by
corporate organizations and the overall satisfaction of stakeholders in a
corporate organizations. The study obtained its data basically from primary
and secondary sources. The primary sources of data collection employed
were questionnaire, oral interview and observations, while the secondary
sources of data included textbooks, journals. in the analysis of the data
collected, the chi-square was used to analyze the responses gathered. The
study revealed that a loot of problems were inherent in financial reporting
ranging from non-disclosure of vital information, subjective judgments of
prepares of the financial information and most times non-compliance to
relevant statues. There were recommendations given such as strict
compliance to the relevant statute were made to the companies, the
government needs to strengthen its regulatory agencies in order to ensure
that the financial statements show a “true and fair view and comply with the
relevant statues at all times.

TABLE OF CONTENTS

Title page ii

Certification: iii

Dedication: iv

Acknowledgment: -v

Abstract: vi

Table of contents: vii

CHAPTER ONE: INTRODUCTION

1.1 Background of The Study: 1
1.2 Statement of The Problem 3
Objective of The Study: 4
Research Hypotheses: 6
Significance of The Study: 7
Scope of The Study : 8
Limitation of The Study: 8
Definition of Terms: 9
reference: 10

CHAPTER TWO: REVIEW OF RELATED LITERATURE
Overview of the financial Accounting System: 11
Financial Accounting Records: 11
The Subsidiary Books the General Journal (proper) 12
Source Document: 17
The Ledgers: 19
Classification of Accounts: 19
The Trial Balance: 20
2.8 The Trading Profit and Loss Account 20
The Balance Sheet: 21
Principles and Assumption Underlying Financial Standards: 21
Accounting Standards: 28
Controversial Issue in Financial Accounting Reporting: 31
Cross Sectional Analysis of Selected Companies in Enugu State: -36
2.14 Brief History of the Companies: 36
References: 45

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
Research Design: 47
Sources of Data: 48
Method of Data Collection: 50
3.4 Determination of Population Size: 51
Determination of Sample Size: 51
Method of Administration and Questionnaire: 52
Method of Date Analysis: 53
Decision Rule: 54
Reference: 56

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
Date Presentation: 57
Data Analysis: 58
Hypothesis Testing: 69

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS

Summary of Findings: 84

Conclusion: 85

Recommendation: 86

Bibliography: 87

Appendices: 89

CHAPTER ONE

INTRODUCTION

Background of the Study

The impact of financial reporting on the corporate performance of a
business organization is becoming more apparent to user groups of a
financial statement.

Accounting is a not an exact science neither are business operations
without some subjective and judgmental errors when it comes to reporting
them. A financial reporting therefore is a document statement which
informs the various interest groups to a business on the operations and
performance of their business in a period under review its present state of
affairs as well as its anticipated future, in accordance with the statutes. If a
financial report is to service its purpose it ought to be characterized by the
following.

a. Relevance
b. Understandability
c. Reliability
d. Completeness
e. Objectivity
f. Timeliness

In the accounting process of an organization is to provide the
information required to prepare a financial report which shall have the
above characteristics then the transaction doing the period must be
recorded prompt by and accurately and interpreted in conformity with the
Generally Accepted Accounting Principles (GAAP), Statements of
Accounting Standard Board (NASB), International Accounting Standard
committee and the companies and Allied Matters Act cop LFN (CAMA)

Financial accounting reporting become necessary with the obvious
need for accountability of stewardship from the managers to whom
investors entrusted their financial resources. The Railway age in the UK.
Occurred between 1830 to 1870 and for the first time the world same the
emergence of multimillion corporations with large numbers of
shareholders. It was a period of disorder but it brought the basis for the
present day system of corporate financial report. Financial reporting is a
duty of stewardship assigned to the directors of a company by section
334 of the company and Allied Matters Act Cap L20 LFN, equally the
mandatory responsibility of companies to keep accounting records
derives its strength from section 331 and 382 of the same act. These
sections explicitly defined the necessary content and manner in which
financial records should be kept.