The study was directed towards examining the extent of
reliance of financial accounting information for effective business and
financial decision in corporate organisation in Nigerian.
(A Case study of First Bank of Nigeria PLC)
out the examination, Certain problems were identified. These problems included the fact that some
business are managed Ineffectively, In their words regardless of the
information content of financial statement.
organizations may unknowingly employ Incompetent and unskilled manpower in
sourcing financial accounting information.
of the study Include factors which may constrain or promote the effective use
of financial accounting information, analysing impact of and roles of financial accounting information ascertaining
whether there is a direct relationship between financial accounting information
and the decision made in corporate organizations, identifying the information
derived from financial accounting, with these objectives in mind, two
hypotheses were formulated, the first hypothesis is that financial
accounting information has contributed
to effective decision making in First Bank of Nigeria PLC and the information
content of annual financial statement of the bank is effective.
descriptive research approach was chosen for this study and both primary and
secondary data sources were explored.
Two sets of questionnaire were distributed and in analyzing the data
generated, simple percentage, statistical tables and chi-square were used.
After data analysis, it was discovered that financial
accounting information has contributed of effective decision making in the
bank. It was also discovered that the information content
of annual financial statement is the organization is effective.
Other findings made include that
inconsistent accounting policies and reporting practices make Comparison of the performance of
organizations difficult, the level of information given in financial statement
is highly reliable.
At the end of the study answers were
provided to some basic questions such as:
How reliable is the level of information in financial statement ?
The rate of effectiveness of financial accounting information in
achieving organizational objectives.
Whether organizations rely mainly on financial accounting information for
making business and financial decision.
TABLE OF CONTENTS
COVER PAGE - - - - - - - i
TITLE PAGE - - - - - - - ii
APPROVAL PAGE - - - - - - iii
DEDICATION - - - - - - iv
ACKNOWLEDGEMENT - - - - - v
ABSTRACT - - - - - - - vi
TABLE OF CONTENTS - - - - - vii
of the Study
of the study
and limitations of the study
OF RELATED OF RELATED LITERATURE
2.1 The nature of accounting Information in
First bank of Nigeria Plc.
Financial accounting processes.
2.4.2 Income statement
2.4.3 Analysis of Financial Statement
accounting Information and decision making in first bank of Nigeria.
nature of decision making.
2.6.1Classification of decision
making process in first bank
of Nigeria Plc.
2.6.2 Level of information available
for decision making in
first Bank of Nig Plc.
2.6.3 Effective decision making
as language of Business
2.7.1 Users of Accounting information
2.7.2 Characteristics of good
Financial Accounting Branch.
DESIGN AND METHODOLOGY
3.2.1 Primary data sources
3.3.2 Secondary data sources
methodology of approach
3.5.1 Statistical determination of
of questionnaire allocation.
3.6.1 Allocation of questionnaire
among First Bank of Nig.
Plc for managers.
of data analysis
ANALYSIS AND COMPUTATION OF DATA.
and rate of returns of questionnaire
of data from questionnaire
OF FINDINGS, CONCLUSION AND RECOMMENDATION
Accounting is the
recording, classifying and interpreting financial data relating to a particular
organisation or person. (Aspinall,
Accounting has one or
more of the following objects
maintenance of a classified records d cash debtors and other property, of
creditors and of changes in them.
maintenance of a record of transactions classified to show gains or losses
resulting from the various activities.
periodic preparation of statements summarizing the economic results of the
activities and the financial position.
use of such statements, by the
management of an Undertaking to assist them in the conduct f its business by
the proprietors to assist them in assessing the efficiency of the management
and in determing policy with regards to further Investment and the
withdrawal of profit, and by the
government in determing tax liability.
The owners of any business naturally
wishes to run their business as efficiently as possible in order to be able to
do this, accounting information is kept.
These accounting information enable the owner of the business to make
Comparisons of the amount of each cost and each expense, it also services as a
guide to business and financial decisions.
are responsible for preparing financial accounting information. Some of these accountant exercise their
profession as the employees of
Commercial Industrial and public practice of accountancy.
financial accounting Information prepared by accountants are of quantitative
nature because it is usually expressed in monetary terms, through non monetary
information are also often contained in accounting reports.
method and I or procedure for preparing financial accounting information are
based upon definite principle which are usually rules and Conventions which
have been adopted as a general guide to action by accountancy profession.
principles are formulated in such away that he practical details of accounting
may differ from one Company to another.
However, in order to secure acceptance such an accounting principle must
be useful in copying with a practical recording problems, it must be reasonably
objectives that is provides a similar answer in the hands of qualifies
practitioners, and it must be feasible and as such not expensive to apply. These accounting principles are known as
generally accepted accounting principle (GAAP).
organisations may have sound accounting system which enable them not only in
their decision making but also in monitoring operating expenses rules on the
information content of the financial statement is quite uncertain because they
may be managing the business Intuitively.
information involves technicalities such as quantitative analysis, adequate
recording reporting etc. Some
organisation may unknowingly employ Incompetent and unskilled manpower and as
such the financial accounting information prepared may not show a true and fair
view of the financial strength, profitability and future prospects of the
Some organizations have
to realise that accounting information is the only medium through which both
the management and external users get a clear picture of an organization. They fail to realised, appreciate an
accountants analysis in respect of the accounting information generated, this
often leads to poor management decisions which will have negative effects on
the performance of organization.
OBJECTIVES OF THE STUDY
The Core objectives of
the study is to examine the extent of reliance on financial accounting
information for effective business and financial decision in corporate
organization in Nigerian and in First Bank of
Nigeria to be precise.
Moreso, the research
intends to accomplish the following objective:
ascertain whether there is a direct relationship between the performance of
first Bank of Nigerian and effective use of financial accounting information.
ascertain whether there is a direct relationship between financial accounting
information and the decision make in the bank.
analyse the impact of and roles of financial accounting in First Bank of
identify the factors which may constrain or promote the effective use of
financial accounting information.
SIGNIFICANCE OF THE STUDY
exists to provide goods and services and in return provide rewards to its Owners. These two needs are linked to each
other in the sense that profitable organizations are those that normally
receives more resources from their customers in exchange of goods and services.
organizations are non-profit oriented.
However, Irrespective of the types of organisation therefore always have
accounting information regarding the value
/normally in monetary terms, of the resources used in generating the
required product and / or services used in generating the required product and
/ or services on the one hand and on the other, a fairly accurate measurement
of income or profit or value of benefits earned from the disposal of their
products and or services.
The study provide insight
into the nature and roles of financial accounting information, as well as
management needs for accounting information which may be said to resolve around
the purpose of planning and controlling the affairs of an organisation making
policy decisions and making choices among a number alternative options under
circumstance which may be unexpected.
This work will serve as a
guide to others who may intend to undertake a review of the work or other
related topics in the future.
In view of the native and
extent of the problem outlined for this study, it was considered appropriately
to have a sound basis for a research for this nature.
Financial accounting information has contributed to
effective decision making in
first banks of Nigeria Plc.
Financial accounting information has not contributed
to effective decision making in
The information content of annual financial Statement
of the bank is effective.
The information content of annual statement in the
bank is not effective.
SCOPE AND LIMITATIONS OF THE STUDY
This study was limited at
various stage by several factors which include the following:
time conduct compile, produce and submit this work was not adequate due to
compacted academic and non academic programme.
information is very vast, it covers various branches of accounting such as
public sector accounting financial accounting, management accounting etc. Consequently the study is limited.
were financial constraints however Judicious use of available resources was
made in order to achieve the objective of the study.
DEFINITION OF TERMS
ACCOUNTING: The provision of relevant economic
information to permit informed Judgement and decisions by users of the
ACCOUNTANT: A person whose profession is to keep and examine business
ACCOUNTING ASSUMPTIONS /
CONCEPTS: These are general guide to action by
the accountancy profession.
GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES (GAAP): They are accounting principle that
have been developed largely in accounting practice or have been established by
an authoritative organisation.
LIABILITIES: Debts owned by a company e.g trade creditors.
OWNER EQUITY; That shares of the
business that owners own out – right.
INFORMATION: These are information obtained as a
result of systematic gathering, identifying, summarizing and reporting business
transaction in monetary terms.