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
FEDERAL CHARACTER PRINCIPLE AND NATIONAL INTEGRATION
Abstract
The Nigerian federation has been enmeshed in contradictions, paradoxes, controversies and cris...
IMPLICATION OF RAINFALL AND TEMPERATURE VARIABILITY ON PORTABLE WATER SUPPLY ANALYSIS IN CHANCHAGA LOCAL GOVERNMENT AREA, NIGER STATE, NIGERIA
ABSTRACT
In recent time, Minna, the Niger State capital has witnessed prolong period of dry season, heat stress and fluctuating pattern o...
THE IMPLICATION OF UNITED STATES HEGEMONY ON NIGERIA FOREIGN POLICY (1999 – 2015)
ABSTRACT
This study is an assessment of the impact of the present power transition in the international system and the implication it por...
STUDY OF FACTORS AFFECTING CONSTRUCTION COST PERFORMANCE IN NIGERIAN CONSTRUCTION SITES
Abstract
Maintaining steady cost projection on construction projects had been until recently an issue of serious concern...
THE EFFECT OF QUALITIES OF HOME ECONOMICS TEACHERS ON THE PERFORMANCE OF STUDENTS IN WASSCE
ABSTRACT
This study was carried out to examine the the effect of qualities of home economics teachers on the performance...
ANALYSIS OF STUDENTS PERFORMANCE IN VOCATIONAL AND TECHNICAL SUBJECTS IN NECO/SSCE IN KADUNA STATE (2013-2017)
ABSTRACT
The study was designed to analyze the Performance of Students in Vocational and Technical Subjects in NECO/ SSCE 2013-2017.Probl...
A CRITIQUE OF THE FIVE MAIN OBJECTIVES OF THE PHILOSOPHY OF NIGERIAN EDUCATION IN THE CONTEMPORARY SOCIO-ECONOMIC AND POLITICAL TRENDS IN THE COUNTRY
Abstract
According to Taiwo (1980:75), for sense of national unity , a country where people are different races, a...
IMPACT OF PUBLIC FINANCE MANAGEMENT REFORMS ON FINANCIAL PERFORMANCE OF PUBLIC ENTERPRISES
ABSTRACT
The emergence of financial management as a major contributor to the analysis of investment and financing decis...
DESIGN AND IMPLEMENTATION OF ATTENDANCE MANAGEMENT SYSTEM
ABSTRACT
In this project, the development of an attendance management system using biometrics is proposed. Managing stud...
HUSBAND’S INVOLVEMENT IN ANTE-NATAL CARE
ABSTRACT
This study investigated men involvement in ante-natal care using Ikeja bag Local Government as...
