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Analysis Of Financial Reporting As A Source Of Information
[A CASE STUDY OF GUINNESS NIGERIA PLC LAGOS]
CHAPTER ONE -- [Total Page(s) 2]
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1.4 SIGNIFICANCE OF THE STUDY
The financial procedure is very significant in as much as its attempt to achieve these objectives.
1. To provide other needed information about changes in economic obligations
2. to provide reliable information about changes in non-resources of an enterprise that result from profit oriented activities.
3. its objectives are to provide reliable financial information and economic resources and obligation of business enterprises
4. it provides financial information that assist in estimating the earning potentials of the enterprises
5. to assist management in decision making from the above significance of financial statements, it can be deduce from that it has three main significances.
From the above significance of financial statements, it can be deduced from that it has three main significance.
(a) To ensure that directors properly managed the asset of the company (steward functions)
(b) To know the present financial position of the company
(c) To know the future prospect of the company, it ability to employ, pay dividend and to repay loan.
1.5 RESEARCH AIM AND OBJECTIVE
In order to give this research work some degree of validity, the following questions were formulated.
i. TO establish whether the procedure can reduce the degree of errors
ii. To investigate the usefulness of financial reporting as a means of information in an organization
iii. To ascertain the practice of standard an means of information
iv. To establish whether the introduction of financial reporting aids to detect all kinds of fraud in the financial statement of an organization
v. Finally to find out the standard and importance of financial reporting
1.6 SCOPE OF THE STUDY
The focal point this study is to examine the various accounting reports kept by public companies such as Guinness Nigeria plc, enlightens the usefulness of these accounting reports and their characteristics. This scope of the study is strictly to its Lagos office due to the fact that they keep the same accounting records.
Chapter one this research deals with the statement of the problem, purpose of the study, significance of the study, research questions, scope of the study and definition of terms.
Chapter two will show the literature review constituents of financial reporting, parties interested in financial statement, ratio and types of ratio, significance of ratio and limitation of ratio analysis.
Chapter three deals with research methodology, research instrument and techniques, brief historical background of the case study, method of interpretation, research design and procedure, selection population sample, questionnaire design and assumption, conducts of the field works, problems encountered and procedures of data analysis.
Chapter four will show the presentation and analysis of data application financial ratio analysis findings and writer predation of data.
Chapter five deals with summary, conclusion and recommendation of this research.
1.7 DEFINITION OF TERMS
In this study, various definitions will be used in order to give a true knowledge of the research work. These terms are analysis below:
(a) EXPENSES: This is the cost which has been paid or to be paid for the resources used in the accounting period
(b) REVENUE: This is often referred to as income or money received ot to be received in respect of ordinary business transaction or in respect of other expenses uses of assets
(c) BALANCE SHEET: This is a statement which shows the true financial position of the business entry in given period
(d) DIVIDEND: This is referred to as the contribution paid to the shareholders as benefit of a business. It is stated as a specific amount per share of capital stock.
(e) FINANCIAL STATEMENT: This is an accounting reports, which summarizes the financial position and operating result of a company.
(f) OWNER’S EQUITY: This is the amount of owner’s investment, which has been retained in the business.
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