THE INFLUENCE OF FINANCIAL ACCOUNTING REPORTING ON THE MANAGEMENT OF A BUSINESS ORGANIZATION.

THE INFLUENCE OF FINANCIAL ACCOUNTING REPORTING ON THE MANAGEMENT OF A BUSINESS ORGANIZATION. (A STUDY OF CHAMPION BREWERIES PLC, UYO)
CHAPTER ONE
INTRODUCTION
1.1   BACKGROUND OF THE STUDY
According to Ogunjimi in Ejiofor (2008:2) the running of any business is based principally on financial functions and hence what usually first come to mind in every business activity is the monetary aspect involved. No wonder an accounting department plays a vital role in effective running of an organization. Peter and Sylvia (2008:7) explains that financial statements are literally a “road map”  telling us where a financial firms has been in the past, where it is now and perhaps where it is headed in the future. Financial reports are invaluable guideposts that can, if properly constructed and interpreted, signal success or signal disasters. In that wise, efforts must be made in establishing a system that will be suitable to the business giving enough consideration to the future expansion and development. Akintoye (2004) expresses that we all make decision which most of the times even when our decisions are purely emotional; we use information to help us arrive at a viable decision. Information includes facts ideas and concept that help us to understand a certain issue. He said it is knowledge helpful in reaching a conclusion. As pointed out before, both manual and mechanized systems of accounting are available in the Nigerian economy. However, it is very important to realize that whenever a system is adopted the following points have to be considered:
(i) That the procedures for handling money or funds should be simple and designed to provide maximum security. (ii) Records should be simple and provide room for easy cross-checking and the system must be capable of meeting all legal requirements of the country in terms of auditing, taxation, company law and the like. The above qualities are necessary if a businessman is aware of the interested parties (1985 of people) in his business operations. One wonders how people get to know about many companies. The simple answer is that people interested in particular company derive their knowledge of such company by the examination of the published annual reports of when the majority are financial statement. Ogunjimi in Ejiofor (2008:2).  Financial reporting deals with the presentation of financial and other relevant statements to show the extent to which the objectives of the organizations have been achieved. It has been described as a way or manner of documenting the day to day financial or other transaction of an enterprise for a given accounting year.
1.2   STATEMENT OF THE PROBLEM
Financial reporting is an avenue of feeding stakeholders of both profit and non-profit oriented organizations with accounting information that will enable them make informed decisions and judgment about management performance and organizations’ liquidity, viability and stability. Therefore, the importance of financial reporting in Champion Breweries Plc cannot  be over emphasized because it also helps stakeholders to overcome any doubt against managers of the funds.  In Nigeria today, weak controls coupled with inadequate financial reporting culture has been of growing concern among corporate entities. It is therefore important to determine to what extent corporate entities appreciate the use of financial reporting in planning systems.  In more specific terms, the problem is lack of adequate financial reporting culture in Champion Breweries Plc, Uyo which ensure proper measurement of its activities and achievement of state objectives.
1.3   OBJECTIVES OF STUDY
1.4     RESEARCH QUESTIONS
Ho: There is no positive and significant relationship between financial accounting reporting and management of a business organization.
Hi:  There is a positive and significant relationship between financial accounting reporting and management of a business organization
This study will be useful to the immediate beneficiaries i.e. champion breweries plc Uyo branch where the study is conducted this is so, because it is clear that any organization that has no effective accounting and record management  will not know whether there are making profit or running of a loss.  It is also to provide necessary information and enlightenment to some interested members of the public, shareholders, creditors, in-debtors government etc. The major significance of this study will be the contribution to the body of knowledge which is the primary purpose intended by the researcher.
The study is limited to champion breweries plc Uyo and is based on the influence of financial accounting reporting on the management of a business organization.
The inability of management to divulge certain information which they consider sensitive.  The publication of which might be detrimental to their operations proves to be a limitation on the study. Distance and its attendant cost of travel in order to obtain information with which to write this study was also a major limitation. Hence, the project has not been able to cover all areas which it should have covered, if one were to write freely and this called for the streamline of the scope of study to allow for successful handling of these hindrances without bias.