Principles and Assumption Underlying Financial Standards

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Background of the Study

The impact of financial reporting on the corporate performance of a business organization is becoming more apparent to user groups of a financial statement. Accounting is a not an exact science neither are business operations without some subjective and judgmental errors when it comes to reporting them. A financial reporting therefore is a document statement which informs the various interest groups to a business on the operations and performance of their business in a period under review its present state of affairs as well as its anticipated future, in accordance with the statutes. If a financial report is to service its purpose it ought to be characterized by the following.
a. Relevance
b. Understandability
c. Reliability
d. Completeness
e. Objectivity
f. Timeliness
In the accounting process of an organization is to provide the information required to prepare a financial report which shall have the above characteristics then the transaction doing the period must be recorded prompt by and accurately and interpreted in conformity with the Generally Accepted Accounting Principles (GAAP), Statements of Accounting Standard Board (NASB), International Accounting Standard committee and the companies and Allied Matters Act cop LFN (CAMA) Financial accounting reporting become necessary with the obvious need for accountability of stewardship from the managers to whom investors entrusted their financial resources. The Railway age in the UK. Occurred between 1830 to 1870 and for the first time the world same the emergence of multimillion corporations with large numbers of shareholders. It was a period of disorder but it brought the basis for the present day system of corporate financial report. Financial reporting is a duty of stewardship assigned to the directors of a company by section 334 of the company and Allied Matters Act Cap L20 LFN, equally the mandatory responsibility of companies to keep accounting records derives its strength from section 331 and 382 of the same act. These sections explicitly defined the necessary content and manner in which financial records should be kept.

STATEMENT OF THE PROBLEM

The study “The impact of Financial Reporting on the corporate performance of business organization” aims at investigating the financial reports of selected companies in Enugu State with a view to determine the following ;
a. The extent to which a standard financial report contributes to or detracts from the growth of a business organization. b. The extent to which the financial reports of corporate business organization comply with statutory provisions. c. The uniformity and conflict which exist in the financial reporting regulations given the multiplicity of regulators. Therefore, bused on the above statements, the researcher shall investigate the financial accounting reporting standards and every regulation their bear on the financial statement and to the extent the selected company (s) has either complied with or disobeyed the relevant statutes.

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OVERVIEW OF THE FINANCIAL ACCOUNTING SYSEM

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: a. Data recording. b. Information summarization and interpretation. c. Information reporting.

SIGNIFICANCE OF THE STUDY

This study is a very important one and most significant at this period of economic situation which has witnessed the collapse of giant corporate with impressive profit and loss accounts and balance sheet statement, because the financial report serves is a “prima facie” evidence on the state of attains of such companies as well as its performance and could be relied upon as a certificate because it had the auditors certification, financial reporting could be done with every ser business, utmost good faith and diligence.

CERTIFICATION
DEDICATION
ABSTRACT
Acknowledgment
CHAPTER ONE: INTRODUCTION
1.1 Background of The Study
1.2 Statement of The Problem
1.3 Objective of The Study
1.4 Research Hypotheses
1.5 Significance of The Study
1.6 Scope of The Study
1.7 Limitation of The Study
1.8 Definition of Terms
1.9 reference
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Overview of the financial Accounting System
2.2 Financial Accounting Records
2.3 The Subsidiary Books the General Journal (proper)
2.4 Source Document
2.5 The Ledgers
2.6 Classification of Accounts
2.7 The Trial Balance
2.8 The Trading Profit and Loss Account
2.9 The Balance Sheet
2.10 Principles and Assumption Underlying Financial Standards
2.11 Accounting Standards
2.12 Controversial Issue in Financial Accounting Reporting
2.13 Cross Sectional Analysis of Selected Companies in Enugu State
2.14 Brief History of the Companies
References
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Research Design
3.2 Sources of Data
3.3 Method of Data Collection
3.4 Determination of Population Size
3.5 Determination of Sample Size
3.6 Method of Administration and Questionnaire
3.7 Method of Date Analysis
3.8 Decision Rule
Reference
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
4.1 Date Presentation
4.2 Data Analysis
4.3 Hypothesis Testing
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendation
Bibliography:
Appendices:

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