ABSTRACT

 This research work “appraises financial information as an aid to prospective investment decisions” questionnaires were administered on the fifty members of staff Industrial General Insurance PLC to get relevant data that will be of help to the researcher. Frequency counts and percentage mean weighted techniques were used to analyze the collected data. Results indicated that financial information aids that decision of the prospective investment. Conclusion was reached on the results available and the recommendations are management, so as to take investment decision, proper investigation should be made on all financial statements. That is part from the balance sheet and the profit and loss account; an in-depth investigation should be made on other statements such as the valve added statement, report of the authors, report of the directors, cash flow statement, chairman’s statement and the five year financial summary. All these statement are contained in the published annual report of limited liabilities companies. Even through a study of financial statements  serve as good indices for taking investment decisions, absolute relevance on accounting figures should be avoided so that the shortcomings or insufficiency of information present would not for the basis of analysis alternative sources of information like stock exchange reports can be used as supplements. A financial statement serves as the best means of communicating to interested parties. It also provides reliable information about changes on resources of an organization that results from the profit directed and other activities, financial statement will enable investors in estimating the earnings potential of enterprise.  It enables shareholders aware financial information about economic resources obligation of a business enterprise as a tool for prospective investment should use the financial information.