Impact of Financial Information on the Profitability of Business Organizations in Nigeria
CHAPTER ONE
OBJECTIVES OF THE STUDY
The objectives of this study are to critically examine the financial reports of the selected company and to probe into the fundamental for their preparation as well as its presentation with a view to determining:
- The adequacy of the basis and the fundamental that guides its preparation.
- The degree to which the financial report meets the needs of its various users.
- The extent to which the financial report conform to the established standard.
- The influence that financial report has on business performance.
- Finally, to present suggestions and recommendations based on my findings.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
OVERVIEW OF THE FINANCIAL INFORMATION SYSTEM
The financial information system is one that is well designed to facilitate the smooth, efficient and uninterrupted flow of data from the point where a transaction occurs through the various stages of data processing to the final stage, thereby culminating in a report.
A financial information system is made up of three distinct stages which are:
- Data recording.
- Information summarization and interpretation.
- Information reporting
FINANCIAL INFORMATION RECORDS
The starting point for the financial information is the recording and analysis of transactions. A definite step is followed in the traditional information approach, the steps in the processing and generating of output of the information system are:
- Identification and analysis of relevant transitions in the journal.
- Making entries of the transactions in the journal.
- Posting from the journal to the ledger.
- Preparation of trial balance.
- Determining and recording of the adjusted entries in the journal the ledger.
It must be noted that in the emerging business environment where e-commerce is the procedure of doing business, the majority of business are conducted electronically. Whereby transactions happen paperless, it is worthy of note that the steps may not followed sequentially but in essence. They very need for all the step is satisfied in the electronic system. But because information focuses on the transactions and the financial information content rather than the steps taken to actualize or document it, accountants have adapted themselves to the current e-commerce business environment and the product which is d a financial report is still the same.
THE SUBSIDIARY BOOKS THE GENERAL JOURNAL [PROPER]
This is used for the following:
- Opening entries.
- Closing entries.
- Transactions of a special nature
It should be noted that every transaction is capable of entry in the journal proper, but in order to economize resources, other books are used in place of the general journal. A golden rule in information is that all transaction must pass through the journal proper before posting to the ledger. Each information transaction is entered in the journal in a chronological order, analysed into debit and credit, made self-contained and separated from any other transactions. Specifically a journal entry consists of:
- The transaction data.
- The amount of each debit and credit.
- A brief narration of the transaction.
The journal provides in a permanent form a full descriptive record of financial transaction and thus facilitates the entries into the ledger. The entering a transaction in journal is called journalizing.
ADVANTAGES OF A JOURNAL
Some of the advantages are:
- The journal uniquely provides in one place complete picture of each transaction.
- The journal provides a complete chronological history of all transactions, as such if serves as a source for future reference to the information transactions, of an entry.
- The use of a journal reduces the possibility of an error when transaction are first recorded.
CHAPTER THREE
RESEARCH METHODOLOGY
RESEARCH DESIGN
Any research has acceptable and authentic meaning and general accepted result. The effectiveness and successfulness of any research work depends on the availability of information,
The researcher adopted the survey method, in this study, survey according to (Anyanwu 2004:40) can be define as the investigation of the behavior, opinion or other manifestation of a group of people by questioning them. This method in generally in use of survey research includes personal interview, questionnaire, observation, and telephone interview and panel techniques.
CHAPTER FOUR
PRESENTATION AND INTERPRETATION OF DATA
PRESENTATION AND ANALYSIS OF DATA
This chapter, the data collected from questionnaire distributed analyzed and presented in tables. The research questionnaires analyzed and tested against the response of the respondents.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
This chapter contains the summary, conclusion and recommendations based on the findings. The problem finding and interpretations are summarized in this chapter.
SUMMARY AND FINDINGS
The main aim of this study is to investigate the appraisal techniques use in the ABC plc company and how the company has achieved increased productivity using techniques over the years. The findings includes:
- That the customers are satisfied with the services they are receiving. This customers satisfaction has been as a result of continuous improvement achieved through performance appraisal.
- The employee occasionally react negatively to poor appraisal processes this often happen when there is not standard for evaluation or when differences exist between the employee’s and the supervisors.
- That performance appraisal techniques used has a significant relationship between performance appraisal and staff productivity.
- That poor performance appraisal affects employee’s moral.
CONCLUSION
ABC plc Company, as a services organization should be customer oriented in order to survive. This study has shown that performance appraisal is very powerful control and competitive roles in today’s highly competitive business environment.
RECOMMENDATIONS
On the light of the findings, the researcher wishes to make the following recommendations that management should ensure that performance appraisal techniques is adequate, fair and consistent in standard.
- Management also needs to identify which evaluation technique it’s employees react most positively and supervisor needs proper training on how to carry out evaluation process so that employee will have confidence in them.
- Business Company in ABC plc should also incorporate appraisal of performance in their plan so as to always have an effective and efficient work.
BIBLIOGRAPY
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- Ecil B. I (1981) the practice of social resources. Belmot California, wadworth publishing company.
- John H.C (1984) management by objective. London British institute of management.
- Ohadinma D.C. and Nkwam uwaoma (2000) industrial personnel management. 74christ church road Owerri.
- Ohari A.U. (2002) personnel management in Nigeria. Inton management, services 11/13 Abubakar kigo road new extention Kaduna.
- Ubeku A.K (1984) personnel management in Nigeria, new York-McGra, Hill company inc.
