ABSTRACT
The purpose of the study is to examine the impact of historical cost convention adopted by banks, on investment and performance appraisal. It is also to find out whether financial reports are prepared to reflect inflation on the economy and finally to find out whether management’s financial ineptitude is usually disclosed to owners while presenting financial reports.
The inductive research method will be adopted and the statistical analysts, particularly the chi-square and t-distribution test is going to be use in the analysis of the data from the banks.
The finding of the study were that:
1. Some financial statement contained in financial reports influence investment remarkably in banks.
2. The annual reports do not reflect inflationary effects in the country today.
3. The financial reports were prepared adopting a general purpose nature with the assumption that different users of the report have different information needs.
Accordingly, the following conclusion were made;
Although investors and performance evaluation analysts relied on financial statement in their decisions and appraisal, the reliability of financial reports especially during inflation cannot be assured, owning to the historical cost convention used as a basis for asset valuation by banks. This is because the profits so a accounting year would not usually show a true figure . Therefore, managerial decision of banks based entirely on financial reports will lead to poor and inadequate decisions.
The recommendations and suggestion made were based wholly on the outcome of study. For example, on the problem of inflation, it was remanded that the bank should adopt the current cast accounting basis for its financial reporting to ensure credibility and reliability of information, by the various users, given the inflationary realities.
TABLE OF CONTENTS
Title Page … … … … … … … … i
Approval Page … … … … … … … … ii
Dedication … … … … … … … … iii
Acknowledgment … … … … … … … iv
Proposal … … … … … … … … v
Abstract … … … … … … … … vi
Table of figure … … … … … … … … vii
Table of contents … … … … … … … viii
CHAPTER ONE
1.0 INTRODUCTION
1.1 Preamble or introduction
1.2 Statement of problems
1.3 Purpose of the study
1.4 Research hypothesis
1.5 Significance the study
1.6 Research methodology
1.7 Scope and limitations of the study
1.8 Organisation of the study
1.9 Definition of terms
CHAPTER TWO
2.0 Review of Related Literature
2.1 Introduction
2.2 Background of union Banks of Nigeria Plc
2.3 Need for financial reports
2.4 Composition of banks financial report
2.4.1 The Chairman’s report
2.4.2 The Directors report
2.4.3 The Auditors report
2.4.4 The financial statement
2.5 Various uses of financial reports and information needs of such users.
2.5.1 Shareholders
2.5.2 Long-term creditors
2.5.3 Short-term creditors
2.5.4 Government and tax authority
2.5.5 Employees and trade Unions
2.5.6 The management
2.5.7 Analysts / Advisers
2.6 Financial Reporting by Banks
2.6.1 Introduction
2.6.2 The prudential Guidelines
2.7 Performance Evaluation in banks
2.7.1 Efficiency and profitability
2.7.2 Potential and Actual Growth
2.7.3 Loans and Advances.
CHAPTER THREE
3.0 Methods and procedure
3.1 Samples Design
3.2 Samples size
3.3 Sources of Data
3.3.1 Primary sources
3.3.2 Secondary sources
3.4 method of data Analysis and Interpretation
CHAPTER FOUR
4.0 Data Analysis, Presentation
4.1 Presentation of Data
4.2 Analysis of Data
4.3 Hypothesis analysis and testing
4.4 Interpretation of Result.
CHAPTER FIVE
5.0 Finding, Conclusion and Recommendation
5.1 Summary of Findings
5.2 implication of findings
5.3 Conclusion
5.4 Recommendation
5.5 Suggestion for further research
Bibliography
