The research work “The impact of Financial Accounting Reporting on the corporate performance of Business Organizations”, basically aims at ascertaining how financial accounting reporting has helped in advancing the objectives of corporate organizations. In the process, it investigated the effected that financial accounting bear on the performance of a business. Furthermore, if sought to ascertain the compliance of relevant statues by corporate organizations and the overall satisfaction of stakeholders in a corporate organizations. The study obtained its data basically from primary and secondary sources. The primary sources of data collection employed were questionnaire, oral interview and observations, while the secondary sources of data included textbooks, journals. in the analysis of the data collected, the chi-square was used to analyze the responses gathered. The study revealed that a loot of problems were inherent in financial reporting ranging from non-disclosure of vital information, subjective judgments of prepares of the financial information and most times non-compliance to relevant statues. There were recommendations given such as strict compliance to the relevant statute were made to the companies, the government needs to strengthen its regulatory agencies in order to ensure that the financial statements show a “true and fair view and comply with the relevant statues at all times.
TABLE OF CONTENTSTitle page ---------------------------------------------------------------------- ii
Certification: ----------------------------------------------------------------- -- iii
Dedication: ---------------------------------------------------------------------- iv
Acknowledgment: ------------------------------------------------------------- -v
Abstract: ---------------------------------------------------------------------------vi
Table of contents: --------------------------------------------------------------vii
1.1 Background of The Study: ---------------------------------------------1
1.2 Statement of The Problem: -------------------------------------------- 3
1.3 Objective of The Study: ------------------------------------------------ -4
1.4 Research Hypotheses: -------------------------------------------------- 6
1.5 Significance of The Study: ----------------------------------------------7
1.6 Scope of The Study : ----------------------------------------------------- 8
1.7 Limitation of The Study: ---------------------------------------------------8
1.8 Definition of Terms: --------------------------------------------------------- 9
1.9 reference: ------------------------------------------ --------------------------10
2.1 Overview of the financial Accounting System: -----------------------11
2.2 Financial Accounting Records: -------------------------------------------11
2.3 The Subsidiary Books the General Journal (proper) ----------------12
2.4 Source Document: -----------------------------------------------------------17
2.5 The Ledgers: ------------------------------------------------------------------- 19
2.6 Classification of Accounts: ---------------------------------------------------19
2.7 The Trial Balance: --------------------------------------------------------------20
2.8 The Trading Profit and Loss Account: -------------------------------------20
2.9 The Balance Sheet: ------------------------------------------------------------21
2.10 Principles and Assumption Underlying Financial Standards: --------21
2.11 Accounting Standards: --------------------------------------------------------28
2.12 Controversial Issue in Financial Accounting Reporting: --------------31
2.13 Cross Sectional Analysis of Selected Companies in Enugu State: -36
2.14 Brief History of the Companies: ---------------------------------------------36
References: ---------------------------------------------------------------------------- 45
3.1 Research Design: --------------------------------------------------------------47
3.2 Sources of Data: --------------------------------------------------------------- 48
3.3 Method of Data Collection: ---------------------------------------------------50
3.4 Determination of Population Size: -------------------------------------------51
3.5 Determination of Sample Size: -----------------------------------------------51
3.6 Method of Administration and Questionnaire: -----------------------------52
3.7 Method of Date Analysis: ------------------------------------------------------ 53
3.8 Decision Rule: ---------------------------------------------------------------------54
Reference: --------------------------------------------------------------------------------56
4.1 Date Presentation: ---------------------------------------------------------------57
4.2 Data Analysis: -------------------------------------------------------------------- 58
4.3 Hypothesis Testing: -------------------------------------------------------------69
5.1 Summary of Findings: ---------------------------------------------------------- 84
5.2 Conclusion: ------------------------------------------------------------------------85
5.3 Recommendation: ----------------------------------------------------------------86
Bibliography:-------------------------------------------------------------------- ---87
Appendices: -----------------------------------------------------------------------89
INTRODUCTION
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....
