A CRITICAL ANALYSIS ON THE USE OF FINANCIAL STATEMENT IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF UNION BANK PLC)
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 5000
-
-
Background Of Study
-
Background Of Study
A farmer, who plants corps, expects result, similarly to student who sits for examination expects results. The same is also true of an investor. For the farmer, the result might be communicated to him in the form of a bumper harvest. It result sheet or a report card would usually sufficed for a student. However, in the case of an investor, the result is communicated through the financial reports.
Financial reports are law to be prepared by every limited liability company; these limited liability companies abound in virtually all sector of the economy. Every company shall cause accounting records to be kept. The accounting records shall be sufficient to show and explain the transactions of the company and shall be such as to disclose with reasonable accuracy, at any time the financial position of the company.
In the banking industry, financial reports are of great interest to the general public because the banks directly or indirectly interact with people.
This public interest has caused companies (including banks) to accept social as well as economic, financial and legal responsibilities and has created a consequence, a growing need for the communication of information to account for the results which are of considerable interest a wide range of individuals and organizations.
So, it becomes very imperative for reliable information to be circulated to interested parties which can enable them to acquire an essential knowledge of the way is which companies particularly the bank are performing in relation to the public interest. This fact is further educated by the recommendation of the working party set up in Britain by the Accounting standard committee in October 1974 under the chairmanship of Derek booth man which took a study of the scope and aims of publisher financial statements.
The committee recommended that:
“The fundamental objectives of corporate report are to communicate economic measurement of the reporting entity useful to those having reasonable right to such information”
It is not an over statement when one says that the banking industry is the flume on which the national economy rotates. This mammoth, impact upon a country economy therefore makes it a public affair is everybody in the country has a right to know what such organizations are doing, more so all information, necessary to explain the organization’s activities fully should be provided in the annual reports.
One of the most significant aspects of the information system of business enterprises in an economy is that which deals with the communicate of financial data, especially in describing business profitability and financial position. This information is important because it attempts to partial the economic resources of the enterprises and the financial results, which have been achieved by its management when those resources have been put to use. It attempts to reveal how effective management has been in resources utilization as well as the financial reward available to compensate for risk taken by various suppliers of capital.
-
-
Statement of the Problem
-
The genuineness or other wise of financial reports has attracted diverse opinions from different quarters, such opinions can come from the general public, tax authorities, shareholders, creditors with long or short term interest, financial analyst and potential investors. They argue that the financial reports do not usually give an accurate data about the activities of such business concerns, for example, the idea of stating assets at their historical cost do not favor most investors as they argue that inflation is not usually taken care of, though the real value of such assets might have been eroded.
Again since the financial reports prepared by managements, the shareholders and others argue that there would usually be some elements of bias on the part of management in the disclosure of management’s financial ineptitude.
But in any case the management claims that some inherent problems would usually affect the accuracy of such reports. It is therefore the intention of this researcher to delve into the matter to enable him establish a relationship between financial reporting and performance evaluate in a bank.
1.3 Objectives of the Study
Companies including those in the banking industry have had to face the onerous task of presenting a credible and generally acceptable financial statement in their annual reports, to the various people to whom they own such obligations. The purpose of the study is:
-
To determine the various financial reports used by banks.
-
To ascertain the problems of using financial reports to assess performance of banks.
-
To determine if there’s a relationship between financial reporting and performance evaluation of a bank.
Related Project Materials
The Role of Communication in Enhancing Voter Education in Yauri Local Government Area, Kebbi State
Background of the Study
Voter education is critical to ensuring informed and active participation in democratic processe...
The Impact of Advertising on Consumer Choice of Telecommunications Providers in Bokkos LGA, Plateau State
Chapter One: Introduction
1.1 Background of the Study
The telecommunications sector in Nigeria is highly competitive, with seve...
Enhancing IoT-Based Smart Indoor Air Quality Monitoring in University Hostels: A Case Study in Kano Municipal LGA, Kano State
Background of the Study
University hostels are dynamic living environments where indoor air quality plays a critical role...
An evaluation of translation challenges in rendering Hausa news content in Kano
Background of the study
Hausa news content is pivotal in keeping the public informed and engaged in Kano,...
IMPACT OF SLUM ON VALUE OF RESIDENTIAL PROPERTIES IN NIGERIA
-
-
Background of the study
-
Slums are home to the poores...
An Examination of Ethical Finance Practices Within Islamic Banking
Background of the Study
Ethical finance in Islamic banking is grounded in the principles of justice, transparency, and soc...
An assessment of nurses’ knowledge and practice in managing pressure ulcers in Yobe State healthcare facilities.
Background of the Study: Pressure ulcers (PUs), also known as bedsores or decubitus ulcers, are a common and...
An Assessment of Menstrual Hygiene Knowledge and Practices Among Adolescent Mothers in Sokoto State
Background of the Study
Menstrual hygiene is a crucial aspect of reproductive health, yet it remains a...
DRUG PROCUREMENT AND INSTITUTION TRACKING SYSTEM
BACKGROUND OF STUDY
Computerization is defined as the control of processes by computers and its peripherals. Today it would be difficult...
Assessing the Effect of Political Advertisements on Voter Preferences in Keana Local Government Area, Nasarawa State
Chapter One: Introduction
1.1 Background of the Study...
