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Accounting Project Topics

Accounting Information and Performance of Financial Institutions in the 21st Century Business Environment in Nigeria

Accounting Information and Performance of Financial Institutions in the 21st Century Business Environment in Nigeria

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Accounting Information and Performance of Financial Institutions in the 21st Century Business Environment in Nigeria

Chapter One

AIMS ANDย OBJECTIVES

The purpose of this study is to establish the relevancy of accounting informationย as aย toolย for management decision-making.

Theย subsidiaryย objectivesย ofย thisย studyย are;

  1. The basic issues of how the accounting information systems are used to perform the generally recognized financial and management function in First Bank Nigeria Limited, Abdullahi Fodio Road Branch,
  2. To carefully look at the need for accounting information for management decision-making.
  3. To make suggestions as to the usefulness of accounting information to the users in
  4. The research seeks to know the extent to which the management of the organization under review has used the accounting

CHAPTERย TWO

LITERATUREย REVIEW

ACCOUNTING INFORMATION

However, in a broader view, American Institute of Certified Public Accountantsย (1970) stated the function of accounting is to provide quantitative information,ย primarily financial in nature, about economic entities that is needed in makingย economic decisionโ€ (an economic entity is a unit such as a business that has anย independent existence). Etuk-Udo (2003) stated that the โ€œmodern accountantsย are concern not only on record keeping but also with a whole range of activitiesย involving planning and problem solving, control and attention, directing andย evaluation,ย review and auditingโ€.ย The present day accounting information onย the ultimate needs those who use accounting information, whether these usersย areย inside the businessย itself.

Stanford (1978) stated โ€œan information system that measures, processes andย communicates financial information allows the users to make reasonable choiceย among alternative of scarce resources in the conduct of business and economicย activitiesโ€.

Aย distinctionย isย traditionallyย madeย betweenย accountingย informationย thatย isย provided for those people within the business and that which is provided forย those outside the business (internal and external users). James (1979) stated thatย โ€œmanagementย accountingย concernsย accountingย informationย usedย mainlyย byย those within the business organization (internal or management). And that itย gives answersย to;

  • How income is being created?
  • What are the available resources in the firm?
  • How much does the company owe to the outside?

James (1979) also stated โ€œfinancial accounting information report is used by theย outsiderย (externalย or shareholders)ย of theย organizationโ€.

However, Robert (1979) said โ€œwhether management or financial accountingย information,ย theย bothย areย veryย essentialย toย theย managementย inย makingย decisionย to achieve business goalsโ€. Furthermore, he said โ€œaccounting system createsย informationย byย recordingย businessย eventsย asย theyย occurย andย summarizingย the data into accounting reports designed to meet the information needs of decisionย makersโ€.

The ultimate justification of accounting information therefore is its usefulness inย certainย objective.ย Robertย (1979)ย statedย theseย objectivesย andย specifiedย asย follows;

  • Report of financial information to proprietors, and other interestedparties;ย suchย reportsย may include the preparation of annual reportsย and statementsย ofย source andย applicationย of
  • Provision of information for planning and decision making to management, through analysis of data about past transactions and events and projection of future economic events.
  • Measurement of financial data by means of proper recording, analysing and interpreting in accordance with Generally Accepted Accounting Principle (GAAP).
  • Internal control, including the safe guarding of organizationโ€™s moneyand other properties, the regular collection and payment of moneyย owing to and by it, and the prevention and detection of errors andย fraudsย byย employeesย of the

BOOKKEEPING: AN ACCOUNTING PROCESS

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Bookkeeping as a process of accounting is the means of recording transactionย and keeping records. Mechanical and repetitive bookkeeping is only a smallย simpleย partย of accounting.

Accounting on the other hand, includes the design of an information system thatย meets usersโ€™ needs, as described earlier. The major goals of accounting are theย analysis,ย interpretationย andย theย useย ofย information.ย Chrisย (1990)ย saidย โ€œAccountants look for important relationships in the figure they produce and areย interested in finding trends and studying the effects of different alternatives.โ€ย Accounting includes system design, budgeting, cost analysis and income taxย preparation orย planning.

 

CHAPTERย THREE

RESEARCHย METHODOLOGY

INTRODUCTION

According to Osuala (1986), a research is โ€œa process of arriving at dependableย solution to a particular problem through the planning and systematic collection,ย analysis and interpretation of dataโ€. It can also be seen as a planned procedureย towards solution of the problem (Burn 2000). Fafunwa (1994)ย also definedย research as โ€œan abstract noun that contains some psychological, philosophicalย and physical technique that gives new ideas which can be used in a society forย future developmentโ€. This chapter states how the information for this study wasย collected andย methods usedย forย theย collection.

RESEARCH DESIGN

These research design approaches was informed by need to use only First Bankย Nigeria Limited, Abdullahi FodioRoad Branch as a case study and obtainingย information directly from primary source of banking institution in respect ofย certain variables in relation to the Banking Institutions in Nigeria. The samplesย forย theย studyย wereย selectedย usingย theย stratifiedย andย convenienceย samplingย techniques.ย Theย samplesย wereย alsoย studiedย underย aย naturalย condition.ย Theย primaryย dataย ofย questionnairesย wereย analysedย usingย descriptiveย andย inferential analysis methods. These research works were also carried out within a space ofย oneย month.

POPULATION OFย THEย STUDY

In the course of finding out the importance of โ€œAccounting Information and performance of Financial Institutionsโ€ย aย caseย studyย ofย Firstย Bankย ofย Nigeriaย Limited,ย Abdullahiย Fodioย Roadย Branch,ย theย populationย involvedย theย following;

  • Staff of First Bank
  • Non-staff (other institution)

CHAPTERย FOUR

DATAย PRESENTATIONย ANDย ANALYSIS

ANALYSIS AND INTERPRETATION OF QUESTIONNAIRESDISTRIBUTED

A total of 20 questionnaires were administered on the samples of the study. Theย samples completed and returned a total of 17 questionnaires which representedย 85%ย responseย rateย whileย 3ย ofย theย questionnairesย whichย representedย 15%ย wereย not returned.

The table 4.1 below shows the analysis of the questionnaires administered andย returnedย inย the courseย of the study.

CHAPTERย FIVE

SUMMARY,ย FINDINGS,ย RECOMMENDATIONย ANDย CONCLUSION

Thisย chapterย summarisesย theย work,ย drawย conclusionsย andย makeย recommendations onย the findings.

SUMMARY

Chapterย oneย identifiesย theย conceptsย andย problemsย arisingย fromย accountingย information in an organisation. The chapter gave a general background to theย studyย inย relation toย accountingย information.

Theย chapterย alsoย statesย theย problems,ย significanceย andย purposeย ofย theย study.ย Also formulated was the hypothesis of the study which was tested in chapterย four.

Chapter two used secondary data of renowned authors in the field of accountingย toย createย literatureย reviewย forย theย study.ย Theย chapterย discussedย usersย ofย accounting information. A section in the chapter also gave a techniques used forย decisionย makingย process and selecting theย approximateย decision.

Inย chapterย three,ย theย variousย proceduresย employedย toย obtainย bothย theย primaryย andย secondary data wereย outlined. Theseย include the design of theย researchย work, the population of the study, sampling method used in gathering data andย theย toolย toย testย theย classifiedย data.

The classification, presentation, evaluation and analysis of data was done inย chapterย four.ย Theย chapterย alsoย analysedย theย dataย obtainedย throughย theย questionnaire and utilisation of interview tips on the hypothesis. The test toolย was appliedย onย theย keyย questions.

Chapter five which is the last chapter summarized, drew conclusions and madeย recommendations onย theย study.

Generally, it was concluded that in all aspect of an organisation, accountingย information contributes significantly to achieving set goals of both internal andย externalย usersย of financialย advisoryย services.

FINDINGS

The followings were the findings of the researcher in the course of carrying outย theย researchย work:

  1. The ledger accounts were not reviewed from time to time which wouldhave ensureย thatย debtors with outstanding advances are not granted newย onesย forย easyย determinationย ofย outstandingย balancesย at anyย pointย in
  2. The internal auditors of the bank were not given adequate report at theappropriateย timeย toย ensureย dueย considerationย and accurate
  3. Responsible officers are not at supervisory and management levelwhich would helped maintain adequate implementation, proper segregation of duties and follow up procedures to ensure adherence to management policies. Safeguarding the asset.

RECOMMENDATION

In the course of the study, some lapses were discovered through investigationย and observationย hence,ย theย followingย recommendation:

  1. The ledger accounts should be reviewed from time to time to ensure thatstaff debtors with outstanding advances are not granted new ones for easyย determinationย ofย outstandingย balances at anyย pointย in
  2. The management should be able to compare alternative actions and events from the accounting information or report supplied them.
  3. Responsible officers should be both at supervisory and management levelto maintain adequate implementation, proper segregation of duties andย followย upย proceduresย toย ensureย adherenceย toย managementย ย Safeguarding the assets.
  4. The internal audit of the bank should be given adequate report at theappropriateย timeย toย ensureย dueย considerationย and accurate

Finally, in the researcherโ€™s view, โ€œthe successful implementation of these recommendations will facilitate the effectiveness of accounting information on management and control of business activities in First Bank of Nigeria Limited, Abdullahiย Fodioย Roadย Branch,ย Sokotoย branch.

CONCLUSION

The study has proved the essence of accounting information in an organisation (economic enterprise). It has shown clearly the usefulness of accounting information as a tool for effective management decision making. Accounting information also gave priority to capital project that will improve the standard of the economy.

From the responses to the questionnaires, it was evident that management ofย organizationsย useย accountingย information forย decision making.

Finally, it was discovered that inadequate accounting facilities greatly militateย against managementย decisionย making.

References

  • Asika, N (1998); Research Methodology on the behavioural Science, Nestaย Publishers Ltd,ย Enugu,ย Nigeria.
  • Americanย Instituteย ofย Certifiedย Publicย Accountantsย (AICPA)ย (2000),ย Accounting Terminologyย No.ย 2ย Newย York.
  • American Institute of Public Accountants (1997), Statement of the Accountingย Principlesย boundย No.ย 4,ย โ€œBasicย Conceptย andย Accountingย Principles underlying financial statement of Business Enterpriseโ€,ย Newย York.
  • Badejo, F. (1999), Researchย Methodology inย Nigeria, Rahama Printing andย Publishers,ย Maiduguri.
  • Calvin, E (2005), Advance Accounting, Mark Inc Publishers, Homewood Newย York.
  • Central Bank of Nigeria (2003), โ€œFinancial Information System (MIS). Goddayย Printing Ltd,ย Josย Plateau,ย Nigeria.
  • Goaham, J. and Chris, H. (1990), Accounting for Business Organization (Aย Practicalย Approach),ย Macmillan Educationย Ltd,ย London.
  • Morenikeji,ย W.ย (1998),ย Essentialย ofย Researchย methodsย forย Plannersย andย Environmental Researchers, Gabasfrer Educational Printer, Boxย 4437,ย Ibadan.

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