Financial Accounting has help so much in the preparation of reports on the performance of a business. This report is executed through a means known as financial statement, which shows the details or activities carried on a business and its performance so far. The statement also reports the financial status of a firm at a particular time usually one year. It determine whether profit or loss is made in a business and the flow of resources during that period.
International Accounting Standard Board (IASB) Changed the Financial Accounting and report section of the American Accounting Association (AAA) to report on papers and expose drafts relating to financial Reporting section of the American Association also made provision for comment letters which will help the managers or directors to manage the resource of the business with care and caution. Those who disobey the warning of communicated financial accounting information and up in a “business accident”.
There are other sources of information which have impacted on the management of business, in which the combination of these sources gives an information system a complete nature i.e. why Farm wood said that “It must not be thought that accounting of any form is the management control system instead, it is part of it”. The financial statement of a business informs the external users on what is happening in the business but due to the preparation of the financial statement requires the employment of experts who has experience on the preparation. This has made some business with low capital to forfeit the preparation.
This project help in knowing the effect of financial accounting reporting on the management of a business and its benefits to the world at large.
There have been difficulties in reporting the financial accounting of a business. These difficulties can be caused by the following factors:
This work is carried out for the achievement of the following objectives, which includes:
The Research question listed below will help in the achievement of the objective above.
At the end of this work, it is expected that it will help to improve the financial reporting standard of businesses, what effective management of the business will be reached.
It will also be useful in examining and evaluating the effect of financial accounting as information system and directing the business person to such effect.
The research will be useful in warning not only business person but any person who neglects financial accounting, this will lead to obedience of financial statement prepared.
It will also serve as a reference purpose to the users of accounting information such as shareholders, government, customers, investors etc.
The research work will base its attention on Emenite Ltd with reference to the effect of financial reporting on its management. It shall also draw ideas from textbooks in all forms or branches of Accounting. It will cover the past and present financial accounting reporting on the management which will help in the planning and budgeting for effective financial reporting in the future.
During the Research findings, there were limitations encountered in carrying out the work. Those limitations include the following factors:
Time: The Researcher is a student and has limited time to carryout the research due to his lecturers and other functions or activities embarked on the school.
Finance: The Research requires huge capital i.e. it capital intensive and the Researcher has limited capital to carryout the work because she is a student.
Scope: The scope covered by the research work is voluminous. This has made the research not to cover all the areas needed but made use of sample study which she generalized on the population.
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