INTRODUCTION 

Any business unit that wants to survive must make the right decision. The era of mile of thumb is gone; employing it is a sure way to fail absurdly. The price of any conceivable item from garri and bread to radio and book not to mention petrol has been soaring in geometric proportions over the years. The economy is truly in distress. These compounds and complicates, intricate the problems of most organisation and their effective planning and decision making processes. Other factors such as stagflation, taxation, economic and political problem are the major problem which affects information and decision making. The future orientation is what most company gets from making accounting decision. The computation and interpretation of analytical ratios from financial statement enable Company to determine their operation trends and provide a basis for management decision making. Other users of financial analysis are used in making financial decision and achieving the goal of sustainability determines compliance with regulatory requirements. Financial analysis is an investment that has positive return in the future on how decision will be made, how to manage the finances to achieve the strategic goals of the institution through decision making.Many people think that accounting as a highly technical field can be understood only by professional accountants; actually nearly everyone practices accounting in one form or the other. In modern times, management requires a wide variety of information to successfully accomplish its aim and objectives. This information is mainly determined by the element of uncertainty about the future and lack of knowledge about the present. Some of these decisions are of strategic importance having a large impact on the business, others are routine operating decision. Therefore accounting information is based on laws and regulations governing the handling of accounting report contained in the financial reports of organization. Making the right decision depends on the possession of appropriate, accurate and up to date information provided and presented in a meaningful way. This study set out to examine the evaluation of the application of accounting concepts and conventions in financial reporting.