Accounting Information and Decision-making in the Public Sector of Nigeria (a Case Study of Bank of Agriculture Lokoja Branch)
OBJECTIVE OF THE RESEARCH
- To determine the nature of accounting information in public sector
- To appraise the effect of accounting information on decision making in public sector
- To determine the use and application of accounting information in decision making in public sector
REVIEW OF RELATED LITERATURE
DEFINITION OF ACCOUNTING INFORMATION
Accounting information can be classified into two categories financial accounting or public information and managerial accounting or private information. Financial accounting include information disseminated to parties that are not part of the enterprise proper-stock holders, creditors, customers, suppliers, regulatory commissioners, financial analysts, and trade associations although the information is also of interest to the company’s officers and managers. Such information relates to the financial position, liquidity (that is, ability to covert to cash) and profitability of an enterprise. (Rose:2002) managerial accounting deals with cost profits volume relationships efficiency and productivity, planning control, prize decisions, capital budgeting, and similar matters. This information is not generally disseminated outside the company. Whereas the general-purpose financial statements of financial accounting are as assemble to meet basic information needs of most external users, managerial accounting provides a wide variety of specialized report for division managers, department heads project directors, section supervisors, and other managers. (Rose: 2004). Accounting information should include aspects such as flexibility and companies, ability to adopt to change. The context of the flexibility does not appear in any of the accounting definition because the definitions were developed during stable periods. The environment has changed and uncertainty has increased. In view of the fact that flexibility is one of the outcomes of uncertainty, greater value will be attached to flexibility in organizations uncertainly situation (Puxty 1993).
The Concept of Accounting Information System
Accounting information refers to report or relevant financial information regarding the economic activities of an organization or unit to users (Reger and Herman 1983). Accounting information developed as far back as 4500 B.C where stewardship accounting information, they were able to plan their stock and wealth. Keeping of records of wages, taxes due of trade by barter and early 19th century when the Greeks and Romans developed a better and systematic book 22 keeping technique to the repent day when machines are used in the accounting process. Accounting has since received remarkable improvement with the increase in demand, for information in planning and decision-making result from changing environment has always brought about changes in accounting. Information made of what is accepted as accounting today would not have been recognized as such 50 years ago changing social attitudes combined with development in information technology, quantitative methods and behavioral sciences has affected radically the environment in which accounting operates today. Accounting is moving away from the procedure base encompassing record keeping and such related work as the preparation of a budget and final accounts towards the adoption of a role which emphasizes social importance. Gautier and under down (1982). Accounting information are financial position statements and other reports supplied by the accountant which shows the true and fair financial position of the economic activities of the organization. Accounting 23 information includes the balance sheet, profit and loss accountant’s cash flow statements. Balance sheet according to move Gautier and under-down (1982) is the statement of financial position that lists the accounting period it provides a measure of the capital invested by the owners in company or business. It is also made up of four main section that fixed assets. A current asset, capital and liabilities. This classification simplifies financial analysis of business. Trading profit and loss account shows the profitability of the business, it also shows the amount of economic activities that took place during the preceding accounting period and profit derivable form such economic activities. It shows the gross profit as well as the net profit of the organization within the accounting period. Gross profit is the sum of sales less the cost of goods sold. 1. Cash flow statement is a statement that shows the cash movement in transaction engaged in by the firm for a particular period usually one year.
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine accounting information and decision making in the public sector of Nigeria. Bank of agriculture lokoja branch form the population of the study.
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
SUMMARY, CONCLUSION AND RECOMMENDATION
It is important to ascertain that the objective of this study was to ascertain accounting information and decision making in the public sector of Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of accounting information and decision making in the public sector of Nigeria
This study was on accounting information and decision making in the public sector of Nigeria. Three objectives were raised which included: To determine the nature of accounting information in public sector, to appraise the effect of accounting information on decision making in public sector and to determine the use and application of accounting information in decision making in public sector. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Bank of agriculture lokoja branch. Hypothesis was tested using Chi-Square statistical tool (SPSS).
The researcher revealed that the bank of agriculture also applies accounting information in making useful and effective decision. The effectiveness however, was supported by facts gotten from accountants on how its application has affected the bank, which they claimed has affected the bank positively. This is to say that the use of accounting information are very vital in decision-making of the organization and it leads to an effective and efficient use of decision-making in the organization and also the 70 management makes use of accounting information in their day to day management decision making. Therefore accounting information is useful in decision making in bank of agriculture, accounting information is effective in decision making in public sector organization and also there is association between the neglect of accounting information are decision making in public sector organization
. Information can only be used and effective if it is relevant and timely. The management should therefore try to install more companies so as to help the production of accurate information as this will go a long way enhancing the effectiveness and efficiency of the organization.
Managers should have elementary knowledge of accounting generally to enable them understand the information for quickly use. They should be trained from time to time on how to apply accounting information to decision making.
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