THE EXTENT OF RELIANCE ON FINANCIAL ACCOUNTING INFORMATION FOR EFFECTIVE BUSINESS AND FINANCIAL DECISION IN CORPORATE ORGANIZATIONS
A CASE STUDY OF FIRST BANK OF NIGERIA PLC
Abstract
The study was directed towards examining the extent of reliance on financial accounting information for effective business and financial decision in corporate organization in  Nigeria (A case study of First Bank of  Nigeria PLC). In carrying out the examination, certain problems were identified. These problem include the fact that some business are managed in intuitively, in their words regardless of the information content of financial statement. Secondly, some organizations may unknowingly employ incompetent and unskilled manpower in sourcing financial accounting information.The objective of the study include factors which may constrain or promote the effective use of financial accounting information, analyzing impact of and roles of financial accounting information ascertaining whether there is a direct relationship between financial accounting information and the decision made in corporate organizations, identifying the information derived from financial accounting, with these objectives in mind, two hypothesis were formulated, the first hypothesis is that financial accounting information has contributed to effective decision making in First Bank of  Nigeria Plc and the information content of annual financial statement of the bank is effective.
The descriptive research approach was chosen for this study and both primary and secondary data sources were explored. Two sets of questionnaire were distribute and in analyzing the data generated, simple percentages, statistical tables and chi-square were used. After data analysis, it was discovered that financial accounting information has contributed  to effective decision making in the bank. It was also discovered that the information content of annual financial statement in the organization is effective.
Other findings made include that inconsistent accounting policies and reporting practices make comparison of the performance of organizations difficult, the level of information given in financial statement is highly reliable.
At the end of the study answers were provided to some basic questions such as:
-                      How reliable is the level of information in financial statement?
-                      The rate of effectiveness of financial accounting information in achieving organizational objectives.
-                      Whether organizations rely mainly on financial accounting information for making business and financial decision.
TABLE OF CONTENTS
CHAPTER ONE
1.1         Introduction                                                  
1.2         Statement of problem                                             
1.3         Objectives of the study                                           
1.4         Significance of the study                          
1.5         Research hypothesis                                             
1.6         Scope and limitations of the study                      
1.7         Definition of terms                                      
CHAPTER TWO: LITERATURE REVIEW                    
2.1         The nature of accounting information in –
First bank of nig. Plc                                  
2.2         Its financial accounting processes          
2.3         Its accounting standard                 
2.4         Its accounting statement               
2.4.1     Balance sheet                                                         
2.4.2     Income statement                                                   
2.4.3     Analysis of financial statement                
2.5         Financial accounting information and decision making in first bank of Nig.                                                          
2.6         The nature of decision making                
2.6.1     Classification of decision-making processes in first bank of Nig. Plc.                                                                      
2.6.2     Levels of information available for decision making in first bank of nig. Plc.                                                          
2.6.3     Effective decision making                         
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY              
3.1         Introduction                                      
3.2         Sources of data                                                       
3.2.1     Primary data sources                                             
3.2.2     Secondary data sources                
3.3         Research method of approach                 
3.4         Research instruments                                           
3.5         Sample selections                                      
3.5.1     Statistical determination of sample size             
3.6         Method of questionnaire allocation                     
3.6.1     Allocation of questionnaire among first –
Bank of Nig. Plc for managers.                
3.7         Contact method                                                       
3.8         Method of data analysis                            
3.9         Method of testing hypothesis                                           
3.10      Decision rule                                                                       
References                                                              
CHAPTER FOUR: PRESENTATION
ANALYSIS AND COMPUTATION OF DATA     
4.1         Introduction                                                  
4.2         Allocation and rate of returns of questionnaire
4.3         Analysis of data from questionnaire       
4.4         Testing of hypothesis                                 
CHAPTER FIVE: SUMMARY OF FINDINGS                
CONCLUSIONS AND RECOMMENDATION                
5.1         Summary of findings                                              
5.2         Recommendations                                                 
Appendices                                                              
Shareholders questionnaire                                             
Bibliography                                                              
CHAPTER ONE
1.1       INTRODUCTION
accounting is the recording, classifying and interpreting financial data relating to a particular organisation or person (Aspinall, 1970:37).
Accounting has one or more of the following objects:
1.            The maintenance of a classified records of cash debtors and other property, of creditors and of changes in them.
2.            The maintenance of a record of transactions classified to show gains or losses resulting from the various activities.
3.            The periodic preparation of statements summarizing the economic results of the activities, and the financial position.
4.            The use of such statements, by the management of an undertaking to assist them in the conduct of its business by the proprietors to assist them in assessing the efficiency of the management and in determining policy with regard to further investment and the withdrawal of profit, and by the government in determining tax liability.
The owners of any business naturally wishes to run their business as efficiently as possible in order to be able to do this, accounting information is kept). These accounting information enable the owner of the business to make comparisons of the amount of each cost and each expense, it also serves as a guide to business and financial decisions.
Accountants are responsible for preparing financial accounting information. Some if these accountant exercise their profession as the employees of commercial industrial and public practice of accountancy.
The financial accounting information prepared by accountants are of quantitative nature because it is usually expressed in monetary terms, through, non monetary information are also often contained in accounting reports.
The method and/or procedure for preparing financial accounting information are based upon definite principle which are usually rules and conventions which have been adopted as a general guide to action by the accountancy profession.
These principles are formulated in such a way that the practical details of accounting may differ from one company to another.
However, in order to secure acceptance such an accounting principle must be useful in copying with a practical recording problem, it must be reasonably objective, that is provides a similar answer in the hands of qualifies practitioners, and it must be feasible and as such not expensive to apply. These accounting principles are known as generally accepted accounting principle (GAAP).
1.2       STATEMENT OF PROBLEM
Most corporate organizations may have sound accounting system which enable them not only in their decision making but also in monitoring operating expenses relies on the information content of the financial statement is quite uncertain because they may be managing the business intuitively.
 Financial accounting information involves technicalities such as quantitative analysis, adequate recording, reporting etc. some organisation may unknowingly employ incompetent and unskilled manpower and as such the financial accounting information prepared may not show a true and fair view of the financial strength. Profitability and future prospects of the organistion.
Some organistions have to realize that accounting information is the only medium through which both the management and external users get a clear picture of an orgnisation. They fail to realized, appreciate an accountants analysis in respect of the accounting information generated, this often leads to poor management decisions which will have negative effects on the performance of organization.
OBJECTIVES OF STUDY
The core objectives of the study if to examine the extent of reliance on financial accounting information for effective business and financial decision in corporate organisation in  Nigeria and in First Bank of  Nigeria to be precise.
 
More so, the research intends to accomplish the following objective:
1.            To ascertain whether there is a direct relationship between the performance of First Bank of Nigeria and effective use of financial accounting information.
2.             To ascertain whether there is a direct relationship between financial accounting information and the decision make in the bank.
5.            To analyse the impact of and roles of financial accounting in First Bank of  Nigeria Plc.
6.            To identify factors which may constrain or promote the effective use of financial accounting information.
SIGNIFICANCE OF THE STUDY
Business organization exists to provide goods and services and in return provide rewards to its owners. These two needs are linked to each other in the sense that profitable organizations are those that normally receive more resources from their customers in exchange of goods and services.
Some business organizations are non- profit oriented. However, irrespective of the types of organisation therefore always have accounting information regarding the value/normally in monetary terms, of the resources used in generating the required product and/or services used in generating the required product and/or services on the one hand and on the other, a fairly accurate measurement of income or profit or value of benefits earned from the disposal of their products and or services.
The study provide insight into the nature and roles of financial accounting information, as well as management needs for accounting information which may be said to resolve around the purpose of planning and controlling the affairs of an organisation making policy decisions and making choices among a number alternative options under circumstance which may be unexpected. This work will serve as a guide to others who may intend to undertake a review of the work or other related topics in the future.
RESEARCH HYPOTHESIS
In view of the nature and extent of the problem outlined for this study, it was considered appropriately to formulate the following research hypothesis in order to have a sound basis for a research of this nature.
These are:
Ho:      Financial accounting information has contributed to effective decision making in first bank of  Nigeria
Hi        Financial accounting information has not contributed to effective decision making in the bank
Ho:      The information content of annual financial statement of the bank is effective.
Hi:       The information content of annual statement in the bank is not effective.
DEFINITION OF TERMS
Accounting : The provision of relevant economic information to permit informed judgement and decisions by users of the information.
Accountant: A person whose profession is to keep and examine business accounts.
Accounting assumptions/concepts: These are conventions which have been adopted on a general guide to action by the accountancy profession.
Generally Accepted Accounting principles (GAAP): They are accounting principle that have been developed largely in accounting practice that have been developed largely in accounting practice or have been established by an authoritative organistion.
Liabilities: Debts owned by a company e.g. trade creditors.
Owner equity: That shares of the business that owners own out – right.
Financial accounting information: These are information obtained as a result of systematic gathering, identifying, summarizing and reporting of business transaction in monetary terms.