The impact of financial accounting on the corporate performance of business organization [a case study of nigerian breweries plc]

Thesis Overview

<p> INTRODUCTION<br>9<br>Background of the Study<br>The impact of financial reporting on the corporate performance of a<br>business organization is becoming more apparent to user groups of a<br>financial statement.<br>Accounting is a not an exact science neither are business operations<br>without some subjective and judgmental errors when it comes to reporting<br>them. A financial reporting therefore is a document statement which<br>informs the various interest groups to a business on the operations and<br>performance of their business in a period under review its present state of<br>affairs as well as its anticipated future, in accordance with the statutes. If a<br>financial report is to service its purpose it ought to be characterized by the<br>following.<br>a. Relevance<br>b. Understandability<br>c. Reliability<br>d. Completeness<br>e. Objectivity<br>f. Timeliness<br>10<br>In the accounting process of an organization is to provide the<br>information required to prepare a financial report which shall have the<br>above characteristics then the transaction doing the period must be<br>recorded prompt by and accurately and interpreted in conformity with the<br>Generally Accepted Accounting Principles (GAAP), Statements of<br>Accounting Standard Board (NASB), International Accounting Standard<br>committee and the companies and Allied Matters Act cop LFN (CAMA)<br>Financial accounting reporting become necessary with the obvious<br>need for accountability of stewardship from the managers to whom<br>investors entrusted their financial resources. The Railway age in the UK.<br>Occurred between 1830 to 1870 and for the first time the world same the<br>emergence of multimillion corporations with large numbers of<br>shareholders. It was a period of disorder but it brought the basis for the<br>present day system of corporate financial report. Financial reporting is a<br>duty of stewardship assigned to the directors of a company by section<br>334 of the company and Allied Matters Act Cap L20 LFN, equally the<br>mandatory responsibility of companies to keep accounting records<br>derives its strength from section 331 and 382 of the same act. These<br>sections explicitly defined the necessary content and manner in which<br>financial records should be kept. <br></p>