Impact of Financial Accounting on the Corporate Performance of Business Organization (a Case Study of Nigeria Breweries Plc)
CHAPTER ONE
OBJECTIVE OF THE STUDY
The main objective of this study is to examine the impact of financial accounting on corporate performance of business organizations in Nigeria. The specific objectives of the study however are:
- To determine the extent to which a standard financial report contributes to the growth of a business organization.
- To determine the extent to which the financial reports of corporate business organization comply with statutory provisions.
- To ascertain the relationship between financial accounting and corporate performance of business organization
CHAPTER TWO
REVIEW OF RELATED LITERATURE
CONCEPT OF FINANCIAL REPORTING
Financial reporting involves recording financial information according to relevant accounting standards. According to (Vargiya, 2015), Financial Reporting includes the exposure of related financial information to the different Stakeholders about an organization over a predefined timeframe. These Stakeholders include investors, lenders, suppliers, and government organizations. Financial Reporting is considered as the final result of Accounting. It comprises of various important statement which include – financial related explanations from Statement of financial position, Statement of comprehensive income, Statement of cash flow, Statement of changes in equity, notes to financial related explanations, Quarterly and Annual reports (if there should be an occurrence of quoted organizations),Prospectus (if there should be an occurrence of organizations going for Initial Public Offers) and Management Discussion and Analysis (if there should be an occurrence of open organizations)
CONCEPT OF RELIABILITY OF FINANCIAL REPORTING
The expression “reliable quality” in connection to financial communication is a vital subjective property of accounting information. This term is imperative and may impact whether the information is helpful to the individuals who read financial related explanation or something else. The reliable quality of inspected corporate yearly financial report is thought to be vital and a fundamental element influencing the convenience of information made accessible to different users. The accounting researches have perceived that the dependability of reports is a critical normal for financial accounting information and for administrative and expert offices. Reliable quality idea is a nature of information that guarantees the management that the information contained in the financial related records catches the genuine conditions and occasions of the communication substance. The FASB was the main standard setter to characterize the term dependability. As far as the FASB Concepts Statement No. 2 (FASB, 1980) the dependability of a measure lays on the loyalty with which it speaks to what it implies to present (portrayal dedication), combined with an affirmation for the client, which comes through confirmation, that it has that representational quality (undeniable nature).
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to impact of financial accounting on the corporate performance of business organization
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain a critical analysis of impact of financial accounting on the corporate performance of business organization.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations are made, which in the opinion of the researcher will be of benefit in addressing the challenges of financial accounting on the corporate performance of business organization
Summary
This study aimed at having a critical analysis of impact of financial accounting on the corporate performance of business organization. Three objectives were raised. These objectives include: To determine the extent to which a standard financial report contributes to the growth of a business organization, to determine the extent to which the financial reports of corporate business organization comply with statutory provisions, to ascertain the relationship between financial accounting and corporate performance of business organization
Conclusion
Management of Nigeria breweries must introduce new strategies to improve their financial reporting quality; so that the level of their profit can significantly increase since this study has confirmed that both variables have significant influence on each other
Recommendation
Nigeria breweries Plc should ensure they adopt best practices in financial reporting, so as to improve shareholders wealth since this study has established statistically that both variables do not have significant impact on each other.
References
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