The most common report from external use are the financial
statement included in the annual report to shareholders (owners) and potential
investors. These financial statements
are prepared to confirm with “generally accepted accounting principles” such
“principles” have evolved over time or have been made acceptable by decree from
official rule making body. Accounting principles result from an essentially
political process. The government
through the Securities and Exchange Commission (SEC) prescribes the methods of
accounting profession through its board, Nigeria Accounting Standards Boards
also issue statements of accounting standards as guide for prepares of
financial statements. In explanation of the above, the researcher examined the
usefulness of the statement produced by the accounting profession’s organ
(NASB) and how they are being complied with, its achievements and problems,
hypothesis was also conducted. Chapter five, discussed the findings of the
study. It was discovered from the
findings that accounting standards application in preparing financial statement
have came to conclusion that it contributes numerously not to the company –
Guinness (Nig) Plc, Enugu also on the nation’s economy as a whole.
1.1 BACKGROUND OF
Guinness (Nig) Plc, is one of the biggest breweries in
Nigeria today. It is a quoted company in
the Nigerian Stock Exchange Commission (SEC).
Guinness (Nig) Plc is an associated of Guinness overseas ltd, with
headquarters at Dublin in England.
The journey of this company to Nigeria started in 1950 when
the company was incorporated to import and distribute Guinness Stout from
Dublin for sale in Nigeria. In 1962, the
stout brewery in Ikeja Lagos, was commissioned.
This station was the third of it kind in the world and the first outside
the British Isles. A second brewery in
Nigeria was commissioned in Benin and from 1982 other breweries stations was
commissioned including in other states.
The company share capital is made up of 60% ordinary share
owned by Nigerians and 40% ordinary shares owned by Guinness overseas
limited. The Enugu Department which
happens to be over study interest has a staff strength of about 10000 workers
including both skilled and unskilled workers.