1.1 BACKGROUND OF THE STUDY
Financial statement has been defined by the statement of accounting standard no. 2 (sas 2) as the means of communicating to interested parties, information on the resources obligation and performance of the reporting entity or enterprises financial statement therefore, are statement of statement of summarized transaction of a business organization, prepared and presented basically for a time period for various decision making situation by a variety of users.
According to SAS no 1 financial statement are on conversion derived from experience. The conversion originated from such concepts as entity, going concern, periodicity, realization, matching, consistency and historical cost. The purpose of this statement is not evolve a basic theory of accounting but to identify some of these concepts wh1ich are generally accepted. Finance statement are there generally accepted. Financial statements are there fore expected to be simple, clear and easy to understand by all users. The publisher financial statement are prepared inform of reports.
However, many people think of financial statement as statement highly technical documents which can be understood by those with accounting knowledge financial statement provide information needed as a basis for making business decision that will enable management to guide the company on a profitable and solvent course.
Financial statement consist of balance sheet profit account and loss account, notes to the account cash flow statement, value added statement and historical financial summary.
Decision making is normally derived as a choice. Between at least alternatives courses of action. If a choice does not have to be made to solve problem. An individuals is not actually involved in a decision are influenced by a combination of objective and factors. In most situations, it is possible to analyze some of the consequences of alternative action in decision. Financial statements of provide a means for such quantitative analysis. Users of financial statement include investors, potential employer, potential director, and rvenue and regulatory, authorities (sas1).
The need information about business organization in making business decision but have neither direct access to the reporting organization records legislature power to them in special manner.
Management of the company therefore, met the needs of these users preparing general financial statement covering the result of business activities and the economic resources entrusted to them and obligation incurred by entrusted to them and obligation by them.
1.2 STATEMENT OF THE PROBLEM
It was unfortunate, that the management of the business organization and some other users of financial statement do not use them when making vital business decisions.
1.3 OBJECTIVES OF THE STUDY
The main objectives of this project is to collect information and understanding of the use of information, the financial statement provided on the affair of a company (i.e coca cola bottling company, ilorin) and server as an aid to the management decision making. Much emphasis is going to the laid on the interpretation of accounting figure rather than the process of data accumulation and statement preparation. Nevertheless, for read approach and professionals in accounting sector who wish to give an understanding of how accounting serves as an aid to management decision making which goes beyond the narrow professional approach found in day of fay running of organization. Therefore, the study will critically examine the extent to which financial statements decision making. It which show the principles that will guide the financial management accounts of coca cola company in preparing their financial statement for management consumption. The study will pinpoint some weakness that need retredy and financial statement should be related upon to be used as to planning, policy and control in an organization. It will provide the ways of measuring pass operations, regulating performance and future estimate.
1.4 SIGNIFICANCE OF THE STUDY
i. Serving as a future for further research in demonstration that an assessment of financial statement is decision making will be beneficial.
ii. An effective tool in assessing financial statement will be beneficial to other organization
iii. Educating people that without an assessment of financial statement a good decision will not be made.
1.5 RESEARCH HYPOTHESIS
The under listed hypothesis are raised and ested in the later chapter.
This 1is in order to determine how the adoption of financial statement could serve as a guide for decision maker towards the effective and efficient management principles and accounting procedures and the integrating forces towards the effective realization of company’s objectives.
Information provided by financial statements is prominent feature, which has a significance effect on the management of resources. A significant relationship exist between financial statement information and prompt efficient decision making by executive. Analysed information generated from financial statements are necessary indicative of performance of the company operating statements tend to depend more on accounting information then non account information.
1.6 SCOPE OF THE STUDY
The scope of the study is to highlight the assessment of financial statement in decision making with the particular reference to the coca cola bottling company Ilorin branch. Therefore the geographical limit is intended to be only at Ilorin branch, so the study will be confirmed to a particular section of the company namely the management and the accounting sections. The categories of staff covered are managerial, supervisory and intermediate staff.
The information collected is defined as communication in oral, graphic or written form. Due to large bias associated with oral, with written or graph communication. It is hope that the study will serve as a good supplement to the contribution made by various authors of financial statement as an aid to management decision making.
1.7 LIMITATION OF THE STUDY
Some of the limitation or problems faced by the researcher including these listed below:
The duration of time upon the limit for should be complete short i.e the time limit for the completion and submission of the project is short but researcher was also to collect credible data needed for the completion of the completion of the work. Hindrance in data collection: this was due to the fact that giving out information ownening their ways of assessing financial decision making coca cola bottling company was not easily give out by the employees. Finally the fund that was available to the researcher was insufficient as there was need to travel between one place to another, transportation cost was too exorbitant but the researcher was able to source for limitation.
1.8 SCOPE OF STUDY
THE RESEARCH WORK TAKES THE FOLLOWING FORMAT
Chapter one contain introduction to the topic of the project work, which includes the problems of the study, purpose/objectives of the study, significance of the study, research hypothesis, scope of the study, limitation of the study, plan of the study, definition of terms.
Chapter two embodied literature review introduction what is financial statement, financial statement and decision making introduction, importance of book keeping and financial statement and planning, financial statement and control, financial statement as an aid to measuring performance, interpretation of company annual report ratio analysis.
Chapter three deals with research methodology historical background if Nigeria bottling company, research design in assessing financial statement in decision making, population study in assessing financial statement in decision making, sample and sampling techniques in assessing financial statement in decision making, data collection instruments, method of data collection, method of data 1analysis in assessing financial statement in decision making, limitation of the methodology.
Chapter four examines data presentation analysis and interpretation, testing of the hypothesis.
Chapter five examines, testing of the hypothesis recommendations, appendix, conclusion and recommendations, appendix, reference.