CHAPTER ONE
INTRODUCTION
- BACKGROUND OF THE STUDY
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 effect that financial accounting bear on the performance of a
business. Furthermore, it sought to ascertain the compliance of relevant
statues by corporate organizations and the overall satisfaction of
stakeholders in corporate organizations. Problems inherent in
financial reporting ranges from non-disclosure of vital information,
subjective judgments of financial information and most times
non-compliance to relevant statues. There were recommendations given
such as strict compliance to the relevant statute. 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. The research shall therefore seek to
determine the impact of accounting records on the performance of
Business organization.
1.2 STATEMENT OF THE PROBLEM
The basis of this research lies with the deficiencies in the
preparation and presentation of accounting records ranging from non
disclosure of vital and sufficient financial information to non
compliance to standard accounting regulatory framework. The consequence
is that it is difficult to determine the true and fair view of the
financial position of the organization and the corporate performance of
the organization. It is in this perspective that the research intends to
investigate the impact of accounting records on the performance of
business organization. with a case study of Nigerian bottling company
plc.
1.3RESEARCH QUESTIONS
- What constitute the nature of accounting records
- What are the standard and relevant information of an accounting record
- What are the types of accounting records
- What are the impacts of accounting records on the performance of business organization
- What are the impact of accounting records on the performance of Nigerian bottling company
1.4OBJECTIVE OF THE STUDY
- To determine the nature of accounting records
- To determine the standard and relevance of accounting information
- To appraise the impact of accounting records on the performance of business organization
- To determine the impact of accounting records on the performance of Nigerian bottling company plc
1.5. SIGNIFICANCE OF THE STUDY
The study shall provide an analysis of the nature of accounting records of business organization
The study shall provide standard accounting regulatory framework
The study shall provide the needed information on the impact of accounting record on the performance of business organization
The study shall serve a reference point for managers, accountants and financial analyst.
1.6. STATEMENT OF HYPOTHESIS
- Ho: The level of accounting information in NBC is low
2 Ho: The standard of accounting records in NBC is low
Hi: The standard of accounting records in NBC is high
3 Ho: The impact of accounting records in NBC is low
Hi: The impact of accounting records in NBC is high
1.7. SCOPE OF THE STUDY
The study focuses on the appraisal of the role and impact of
accounting records on the performance of business organization.it
elucidate the nature and accounting regulatory framework of accounting
records and provides a case analysis of the impact of accounting records
on the performance of Nigerian bottling company plc.
1.8. DEFINITION OF TERMS
FINANCIAL ACCOUNTING RECORDS
The starting point for the financial accounting is the recording and
analysis of transactions. A definite step is followed in the traditional
accounting approach, the steps in the processing and generating of
output of the accounting system are:
i. Identification and analysis of relevant transaction in the journal.
ii. Making entries of the transactions in the journal.
iii. Posting from the journal to the ledger.
iv. Preparation of trial balance.
v. Determining and recording of the adjusted entries in the journal and the ledger.
vi. Preparation of the adjusted trial balance.
vii. Preparation of the final accounts and statement which are the profit and loss account and the balance sheet.
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