Financial Accounting Reporting Quality on the Performance of Business Organization
CHAPTER ONE
OBJECTIVES OF THE STUDY
The objectives of this study are to critically examine the financial accounting reporting quality of the selected company and to probe into the fundamentals for their preparation as well as its presentation with a view to determining:
- Theadequacy of the basis and the fundamental that guides its
- The degree to which the financial report meets the needs of its various users.
- The extent to which the financial report conforms to the established
- The influence that financial report has on business
CHAPTER TWO
REVIEW OF RELATED LITERATURE
OVERVIEW OF THE FINANCIAL ACCOUNTING SYSTEM
The financial accounting 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 accounting system is made up of three distinct stages which are:
Data, Information summarization and Information reporting
FINANCIAL ACCOUNTING RECORDS
The starting point for the financial accounting is the recording and analysis of transactions. A definite step is followed in the traditional accounting approach, the steps in the processing and generating of output of the accounting 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
- Preparation of the final accounts and statement which are the profitand loss account and the balance sheet
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 accounting 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.
CHAPTER THREE
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RESEARCH METHODOLOGY
The method used in the generation of ideas and collection of data for this research as well as the methods employed in the analysis of the data shall be discussed briefly in this chapter. The researcher employed various method and procedures to achieve the objectives of this research. The methods that were used in the collection and analysis of data are outlined together with how these methods led to the conclusion drawn with regards to the research question.
RESEARCH DESIGN
This section which could be referred to as either research design or research method is very critical to the entire research process. It is in this section that the research stamps his scientific status on the process. A research design therefore is a blue print or scheme that is used by the research for specific structure and strategy in investigating the relationship that exist among variables of the study so as to enable him or her collect the data which will be used for the study. Research designs are basically of four types, which are experimental, historical, survey and case study research design. For the purpose of this study, I adopted the case study approach in evaluating financial reporting quality and the performance of business organizations.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
DATA PRESENTATION
The data collected for this study were presented, analyzed from the questionnaires based on the responses received from the questionnaires which were computed and returned. A total of twenty-six copies were administered to the selected sample, but it was only twenty-three copies that were duty completed and retuned. The table below shows the summary of the distribution of the questionnaire and the number returned.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
SUMMARY OF FINDINGS
This research is aimed at providing an insight into the impact of financial reporting on the corporate performance of businessorganizations. the course of the research work, data were gathered, collected and analysed, also various hypotheses were tested with a view to finding the extent to which financial accounting reporting bear on the performance of a business organization. It was discovered that not much significance difference existed between the respondents who were of the opinion that the information contents of the financial report was not enough to inform a good investment decision and the respondents who though otherwise. Again it was observed in question N0 10 of the questionnaire, that 52 percent of the respondents were of the opinion that the minimum disclosure as stipulated in the statutes for companies was enough, the remaining 48 percent were of the opposite view.
The hypothes is number two of the research work was tested and it was discovered that the disclosure requirements of the statutes affects corporate performance of business organizations positively. This is because of the desire in every stakeholder to know about their business organizations.
The extent to which this need is satisfied is the gravity of the weight if will bear on the positive or negative performance of the business organization. The hypothesis number four that was tested yielded quite an interesting result. The number should that the financial information. If the operation does not satisfy the needs of the people whose stake in the business is enormous, then there is need for proper check.
CONCLUSION
In the light of the observation and discussions carried out on the impact of financial accounting reporting on the corporate performance of business organizations, the following conclusions were drawn.
- That the financial accounting report is a veritable document through which the status and performance of a business organization could be evaluated.
- Their given the weight of the financial accounting report, a lack of adequate information
- The stakeholders place heavy reliance on the financial accounting report or desist from venturing into the business organization whose financial information rail to meet their
RECOMMENDATIONS
For the purpose of drawing a well balance insight into the impact of financial accounting reporting on the corporate performance or business organizations, I recommend as follows:
- If stakeholder’s confidence is to be restored and sustained for the growth of the business organization, care must be exercised to ensure that the financial accounting report furnishes them with the required information they
- Reports on the organization operations should be made available to its users timely so that it can be put to adequate
- The regulators of the financial accounting reporting should ensure that business organizations adhere strictly to the reporting
The directors who have the traditional role of preparing this financial report should ensure that it is prepared in accordance to the best international practices.
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