BACKGROUND OF STUDY
A farmer, who plants corps, expects
result, similarly to student who sits for examination expects results. The same
5 also true of an investor.
For the farmer, the result might be
communicated to him in the form of a bumper harvest. It result sheet or a
report card would usually sufficed for a student. However, in the of an
investor, the result is communicated through the financial reports.
Financial reports are law to be prepared by every limited liability
company; these limited liability companies abound in virtually all sector of
Every company shall cause accounting records to be kept. The accounting
records shall be sufficient to show and explain the transactions of the company
and shall be such as to disclose with reasonable accuracy, at anytime the
financial position of the company.
“The fundamental objectives of corporate
report are to communicate economic measurement of the reporting entity useful
to those having reasonable right to such information”
It is not an over statement when one says that the banking industry is
the flume on which the national economy
rotates. This mammoth, impact upon a country economy therefore makes it a
public affair is everybody in the country has a right to know what such
organizations are doing, more so all information, necessary to explain the
organization’s activities fully should be provided in the annual reports.
of the most significant aspects of the information system of business
enterprises in an economy is that which deals with the communicate of financial
data, especially in describing business profitability and financial position.
This information is important because it attempts to partial the economic
resources of the enterprises and the financial results, which have been achieved
by its management when those resources have been put to use. It attempts to
reveal how effective management has been in resources utilization as well as
the financial reward available to compensate for risk taken by various
suppliers of capital.