RELEVANCE OF ACCOUNTING INFORMATION TOWARD EFFECTIVE DECISION MAKING IN AN ORGANIZATION



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RELEVANCE OF ACCOUNTING INFORMATION TOWARD EFFECTIVE DECISION MAKING IN AN ORGANIZATION



CHAPTER ONE

INTRODUCTION

  • Background of the Study

Accounting is primarily concerned with the method of analyzing the various economic-activities or transaction of an enterprise. It is broadly speaking an information gathering system more specifically, accounting is a discipline that deals with the recording, classifying and summarizing of business transaction and the interpretation of effect of such information on the affairs and activities of an economic unit.

Accounting is a service activity, its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions, in making reasonable choices among alternative courses of action. The relevance of accounting information by any large economic are judgmental and decision to be taken and on time. However, given the extent of valuable time, consumed in the preparation, analysis and presentation of readable accounting information. It is the context above that this study is purposed to inquire into the relevance of accounting information towards effective decision making on an organization using Ecobank Nigeria as case study. 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 are kept. These accounting information enable the owners of the business to make comparisons of the amount of each cost and expense, it also serves as a guide to business and financial decisions.

Accountant are responsible for preparing financial accounting information, some of these accountants exercise their profession as the employees of commercial, industrial and public practice of accounting.

The financial accounting information prepared by accountancy is of quantitative nature because it is usually expressed in monetary reports. The method and/or procedure for preparing financial accounting information are based upon definitive principle which is usually rules and conventions which have been adopted as profession. The principles are formulated in such a way that the practical details of accounting may offer from one company to another. It must be reasonable objective that is provides a similar answer in the hands f qualifies practitioners, and it must be feasible and as such not expensive to apply.

 

Historical Background of Ecobank of Nigeria

Ecobank was found in 1985, when Larson Kolapo was the chairman and Thierry Jonah the managing director, Ecobank transactional, banking operations in 30 African countries. It is the leading independent regional banking group in West Africa and Central Africa serving wholesale and retail customers. It also maintains subsidiaries in Eastern Africa, as well as in Southern Africa. ERTI has representative offices in Angola, China, Dubai, France, South Africa and the United Kingdom.

ETI is a large financial service provider with offices in 35 countries around the world and presence in 32 Sub-Saharan countries, in December 2011, ETI’s customer base was estimated at 8.4 million, with 5.9 million (70.2%) location in Nigeria, the continent most populated nation at that time, group total assets were valued at USS17.2 billion with shareholder’s equity of USS1.459 billion. ETIs’ branch network numbered 1,151, with

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RELEVANCE OF ACCOUNTING INFORMATION TOWARD EFFECTIVE DECISION MAKING IN AN ORGANIZATION


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Ecobank was found in 1985, when Larson Kolapo was the chairman and Thierry Jonah the managing director, Ecobank transactional, banking operations in 30 African countries. It is the leading independent regional banking group in West Africa and Central Africa serving wholesale and retail customers. It also maintains subsidiaries in Eastern Africa, as well as in Southern Africa. ERTI has representative offices in Angola, China, Dubai, France, South Africa and the United Kingdom. ETI is a large financial service provider with offices in 35 countries around the world and presence in 32 Sub-Saharan countries, in December 2011, ETI’s customer base was estimated at 8.4 million, with 5.9 million (70.2%) location in Nigeria, the continent most populated nation at that time, group total assets were valued at USS17.2 billion with shareholder’s equity of USS1.459 billion. ETIs’ branch network numbered 1,151, with.. Click here for more

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