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Tags: FINANCIAL STATEMENT FRAUD IN AN ORGANIZATION: ISSUES AND SOLUTIONS

7 years ago 0 Comments Short URL

THE ROLE OF ACCOUNTANT IN THE ECONOMIC DEVELOPMENT OF organization (A STUDY OF NIGERIAN BOTTLING COMPANY ONITSHA)

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

THE ROLE OF ACCOUNTANT IN THE ECONOMIC DEVELOPMENT OF organization (A STUDY OF NIGERIAN BOTTLING COMPANY ONITSHA)

ABSTRACT

The main purpose of this project is to find out the Role of accountants in the economic development of Nigeria with particular reference to the Nigeria Bottling Company Onitsha. The Role of accountants in the management of business organization varies and highly challenging. The accountants who make use of the concepts and principles of account concerns themselves with the recording, analysis, directing and co-operate the preparation of forecast, budget and other financial plans. Since the work of accountants has been identified as a necessity in the economic development of Nigeria, NBC in particular, this research is tailored towards identifying and recommending appropriately, the salient things which all users of accounting information must watch out for in all matters concerning the improvement of their organization. In all, hypothesis were formulated based on the specific components or facts of the accountants in NBC Onitsha and some final year students. Accounting related information were collected through review of relevant literature. From these, a questionnaire was designed and distributed to 50 employee of Nigeria Bottling Company Onitsha and 30 final years of accountancy students. Out of these a total of 30 and 10 respectively were recovered. A careful analysis of the responses revealed that accountants have a great significant role in the economic development of Nigeria. As a result of this findings of recommendations, organizations are advised to make the best use of accountants in their daily financial transaction in order to sustain the life of their business and forestall available misuse of funds and resources. To this effect, it is very expedient to employ well meaningful accountants in all organization, Nigeria Bottling Company in particular to ensure effective growth and development of our economy as a whole.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Role of Accountant in Economic Development of Nigeria, it has to do with the role in which Accountant plays in the Economic Development of Nigeria.

The concept of Economic Development has to with innovation and improvement in the quality of life of the people it is about sustained rise in the standard of living of the people overtime, whether in advance or less developed countries, nations, government superiors state of affairs or superiors they currently enjoy.

To achieve this, deliberate efforts are to be made in other to implement people–oriented Policies that would raise their capacity to produce and earn more. This will manifest in the form of growth in the cross domestic product (GAP) of the economy, and extension improvement in the size of per capital income. When this occurs on a sustain basis with positive impact on the citizens, quality of life. Development is said to have taken place.

Since 1960 when Nigeria gained it independence, for instance the place of economic growth and development has not yet meet the aspiration of founding fathers of the nation in spite of the many development and rolling plans that have been meticulously draw up by the government. Although a lot of resources have been committed to the development of some economic projects, the results have been dismal. In fact, that the Nigeria economy is presently in a quagmire, is enough evidence of the failure of past effort to pull the nations up by its bootstrap through the instrumentality of development and rolling plans.

Thus:- the basic thrust of development policies, in a less developed country like Nigeria is to provide as many people as possible with the means of overcoming the helplessness and misery arising from a lack of food, health, education, security of life and property which pose serious challenges to their longevity.

Here lies the justification for the choice of topic which seeks to consider the role of accountants in the economic development.

Firstly, accountant is a person skilled in keeping, examining, recording or inspecting the accounting of an organization or a nation. Accountants plays a very vital role in the development of Nigeria economy. They also contribute efficiently to the development of some business organization in Nigeria example (Nigeria Bottling Company). The role of accountants can never be looked down if the aim and purpose of the country are to be achieved.

According to Agbebiyi (2000), it is obvious that accounting as a scientific process is about provision of financial information needed to take economic decisions particularly in respect of the acquisition and use of scarce corporate resources as well as the elimination of waste in the wealth creation chain. It is this professional discipline that involves systematic gathering classification, recording analyzing, interpretation and transmission of information based on data that are of monetary in nature. Such resources that is the relationship between its assets and liability, the productive activities and profitability of a business a required by owners and managers alike in order to assess the health of the organization and ascertain the changes in the stock of the wealth of shareholders.

According to Professor Charles Magers, Accounting incorporate four major functions which are communication, measurement control and decision making. Accounting as a means of communication involves the submission of financial reports to various units in the economy. In terms of measurement, accountancy through the use of account, arts as a major of wealth based on the original cost of an objective which lately developed in measuring efficiency of operation and performance.

Accounting as a means of control is exercised by the creation of book-keeping record and legislation and by the standing of the professional body to act as an independent witness and carryout and audit function.

As a result of activities, information is communicated on the basis of standardized system of measurement and results which can be relied on when making decision. Government may use published accounting information to know the extent of providing social amenities to the public; they can also use this information in knowing what is due in taxation and government tribute.

This accounting information can equally be used in preparing the country’s budget and determining how to generate income and ways of revenue expenditure. Accounting information, also are required in an economy to meet up with the stated objectives and purpose (making profit or gain) in the economy and it is the duty of an accountant to prove such an accounting information.

Beyond the role of providing information to the public, proprietors even government, the accountant has over time played the following crucial roles in the economic development process of the nation they are record keeping which assisted the merchant in determining the value he has added to his wealth at a given period. Providing financial information, internal control measures, attestation function, and tax functions professional leadership among others.

Furthermore, accountants gives financial report of a nation to ascertain the financial position of such nation, perform some audit function, evaluation of financial reports and finally, recommends measures and strategies to enhance the performance of the economy.

1.2 STATEMENT OF PROBLEM

1. To find out the extent at which the accountant, provide audit reports. Do audit reports still add credibility to today financial statement?

2. Are the information provided by Accountants still effective in making business decision today?

3. Are the audited aliting information provided helpful to tax official in assessing the taxable in an organization?

1.3 PURPOSE OF THE STUDY

As a result of the prevalent condition of Nigeria economy and dwindling of most business in recent times there is need to realize how significant the role of an accountant was in order to develop to economy efficiency. And for this reason, there are also need to study the importance of accountant in the economic development of Nigeria.

The purpose of this study is this:-

1. To find out how production of correct accounting information has led to profitable economic decision.

2. To determine how the proper accountability is a means of safe guarding the assets of the establishments.

3. To investigate the influence of nations ability to employ the services of qualified or professional workers in economic development.

Importance and significance of the study the findings of the study will throw more light on the importance of accountants in the economic development of Nigeria and why it is good for every economy to have accountants in its management.

This study will be directed towards the following:

1. It will enable the people to know the profitable economic decision

2. It will help the economy in safe-guarding the assets of the establishment.

3. With the knowledge of the role of Accountant in the economic development, it will minimize the source of the problem encountered in the Nigeria economy.

1.4 RESEARCH QUESTIONS

For the purpose of effective investigation on the sole of accountant in economic development of Nigeria the following research questions have been raised:-

1. Does audit report still add credibility to today’s financial statements?

2. Are the information provided by accountant still effective in business decision making today?

3. Are the aliting information provided helpful to tax official in assessing the taxable income of organization?

1.5. SCOPE/DELIMITATIONS OF THE STUDY

The role of accountant in the economic development of Nigeria could have been very vest tedious as mostly research as mostly research work to undertake, but the topic has been limited to a particular area, Nigeria Bottling Company Onitsha, which made it researchable for the researcher.

Like every research work a bit of things posed as delimitations to the researcher. This work also can be limited to the basic concepts, theories, are principles and procedures employed by accountants in the performance of their duties so as to uplift the nations economy.

1.6 DEFINITION OF TERMS

ACCOUNTANTS:

This is a person trained and skilled to keep examine or inspect the financial accounts of organization.

DEVELOPMENT:

The act of improving the quality of life of people and sustained rise in the standard of living of the people overtime. It is also an act of bringing out the economic responsibilities of a nation or an economy.

ORGANIZATION:

An economic group of people deliberately created for the purpose of achieving some specific objectives and measuring economic performance.

TAX ASSESSMENT:

To determine the amount that is payable by tax payer through the tax assessment authority (TAA).

FINANCIAL STATEMENT:

A summary of figure facts showing the financial condition of a business which includes assets (what the business owns) liabilities (what the business owes) and the net worth of capital account (the owners equity in the business).

GROSS DOMESTIC PRODUCT:

It is the gross value of the national output produced by domestic factors of production or indigenous factors of production. We get the gross domestic products by subtracting all the domestic output produced by foreign factors and add the foreign output produced in the country by Nigeria factor.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

(1) Your project topics

(2) Email Address

(3) Payment Name

(4) Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

AFFILIATE LINKS:

Tags: THE ROLE OF ACCOUNTANT IN THE ECONOMIC DEVELOPMENT OF ORGANIZATION (A STUDY OF NIGERIAN BOTTLING COMPANY ONITSHA)

7 years ago 0 Comments Short URL

THE IMPACT OF FINANCIAL ACCOUNTING REPORT ON THE CORPORATE PERFORMANCE (A CASE STUDY OF NIGERIA BREWERIES PLC)

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

THE IMPACT OF FINANCIAL ACCOUNTING REPORT ON THE CORPORATE PERFORMANCE (A CASE STUDY OF NIGERIA BREWERIES PLC)

ABSTRACT

The research work “The Impact of Financial Accounting Report on the Corporate Performance”, basically aims at how financial accounting reports has helped in advancing the objectives of corporate organizations. In the process, it investigated the effect financial accounting bears on the performance of a business. Furthermore, it sought to ascertain the compliance of relevant statue by corporate organizations and the overall satisfaction on stakeholders in a corporate organizations. The study obtained its data basically from primary and secondary sources. The primary source of data collection employed were questionnaire, oral interview and observations, while the secondary source of data included textbooks, journals in the analysis of the data collected, the simple percentage was used to analyze the responses gathered. The study revealed that a lot of problem were inherent in financial reports ranging from non-disclosure of vital information, subjective judgments of prepares of the relevant statues. There were recommendations given such as sticks compliance to the relevant statue were made to the companies, the government needs to strengthen its regulatory agencies in order to ensure that the financial statement show a “true and fair view and comply with the relevant statue at all times”.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The impact of financial accounting reports on the corporate performance is becoming more apparent to users groups of financial statements.

Accounting is not an exact science neither is business operations without some subjective and judgmental errors when it comes to reporting them. A financial report therefore is a document statement which informs the various interest groups to a business on the operations and performance of their business in a period under review its present state of affairs as well as its anticipated future, in accordance with the statues. If a financial report is to service its purpose it ought to be characterized by the following:

a. Relevance

b. Understandability

c. Reliability

d. Completeness

e. Objectivity

f. Timeliness

In the accounting process of an organization is to provide the information required to prepare a financial report which shall have the above characteristics than the transaction during the period must be recorded promptly and accurately and interpreted in conformity with the Generally Accepted Accounting principles (GAAP), statements of Accounting Standard Board (NASB), international accounting standard committee and the companies and Allied matters Acts cops LFN (CAMA). Financial accounting reports become necessary with the obvious need for accountability of stewardship from the manage to whom investors entrusted their financial resources. The railway age in the UK. Occurred between 1830 to 1870 and the first time the world saw the emergencies of multimillion corporation with large number of share holder. It was a period of disorder but it brought the basis for the present day system of corporate financial report. Financial reporting is a duty of stewardship assigned to the director of a company by section 334 of the company and Allied matters Act cap L20 LFN, equally the mandatory responsibility of companies to keep accounting records derives its strength from section 331 and 382 of the same act. These sections explicitly defined the necessary content and manner in which financial records should be kept.

1.2 STATEMENT OF THE PROBLEM

The study “The impact of financial accounting reports on the corporate performance aims at investigating the financial report of selected companies in Enugu state with a view to determine the following.

a) The extent to which a standard financial report contributes to or detracts from the growth of a business organization.

b) The extent to which the financial reports of corporate business organization comply with statutory provision.

c) The uniformity and conflict which exist in the financial accounting reports regulations given the multiplicity of regulators.

Therefore, based on the above statements, the researcher shall investigate the financial accounting reports standards and every regulation their bear on the financial statement and to the extent the selected company(s) has either complied with or disobeyed the relevant statues.

1.3 OBJECTIVE OF THE STUDY

The objectives of this study are to critically examine the financial reports of the selected company and to probe into the fundamental for their preparation as well as its presentation with a view to determining:

a) The adequacy of the basis and the fundamental that guides us preparation.

b) The degree to which the financial report meet the need of its various users.

c) The extent to which the financial report conforms to the established standards.

d) The influence that financial report has on business performance.

e) Finally, to present suggestion and recommendations based on my findings.

1.4 RESEARCH QUESTIONS

In order to determine the impact of financial accounting reports on the corporate performance, it is pertinent to test the following questions;

1) Does the information disclosed in the financial statements adequate to support good decision making?

2) Does the disclosure requirement of the status affect corporate performance positively or negatively?

3) Does companies comply strictly with the regulations?

4) Does the financial report meet the needs of the various users?

1.5 SCOPE OF THE STUDY

This study could have covered the impact of financial accounting report on corporate performance of all the sectors of the Nigerian economy but due to the challenges of such a task especially the financial resource with which to execute it, it is limited to braving industry. The study used in Nigerian breweries Plc Enugu.

1.6 LIMITATION OF THE STUDY.

The limitations of the study encountered by the researcher of this work are given as follows:

a) The confidential nature of financial accounting information in the business organization posed as a problem to this study.

b) The researcher was unable to reach all the members of the sample as a result of their frequent travels and busy schedule.

c) The sample used in the research through representative but it relatively small compared to the population, as a result of lack of financial with which to carry out the research on a greater sample.

1.7 SIGNIFICANT OF THE STUDY

This study is very important one and most significant at this period of economic situation which has witnessed the collapse of giant corporate with impressive profit and loss accounts and balance sheet statement, because the financial report serves is a “Prima facial” evidence on the state of affairs at such companies as well as it’s performance and could be relied upon as a certificate because it had the audition certification, financial reporting could be done with every business, utmost good faith and diligence.

1.8 BRIEF HISTORY OF THIS COMPANY

The Nigerian Breweries Plc is a subsidiary of Heineken N.V. which has a 54.10% interest in the equity of company i.e. Nigerian Breweries Plc. The company, which is a publicity quoted, was incorporated on 16th November 1940 under the name of Nigerian Brewery limited. It was later named Nigerian Breweries Plc in 1990 when the companies and Allied matters Act of that year come into effect. The principle activities of the company remained brewing marketing and selling lager, stout, non-alcoholic malt drinks and soft drinks.

1.9 DEFINITION OF TERMS

AUDITOR:

A person who is qualified to examine the accounts of an organization to see that they are in order.

BALANCE SHEET:

A business as at a specified date

BANK:

A financial institution whose responsibility among others is to keep deposit for their client and customers.

GOVERNMENT:

An institution of the state whose responsibility is to maintain law and order in the society.

PRIMA FACIE:

Sufficient to establish something legally until disprove later.

Tags: THE IMPACT OF FINANCIAL ACCOUNTING REPORT ON THE CORPORATE PERFORMANCE (A CASE STUDY OF NIGERIA BREWERIES PLC)

7 years ago 0 Comments Short URL

THE USE OF COMPUTER IN RECORDING ACCOUNTING INFORMATIONS, PROBLEMS AND PROSPECT

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

THE USE OF COMPUTER IN RECORDING ACCOUNTING INFORMATIONS, PROBLEMS AND PROSPECT

ABSTRACT

This research work is aimed at ascertaining the various roles played by using computer in recording accounting information problems and prospects in the modern business world using Bendel feed and flour mill, Ewu, Edo state as a case study.The importance of using computer in recording accounting information will be apparent when considering the fact from the data that is gathered in the course of this work, from the related literature as well as, from interviews and discussions. Also questionnaire were distributed equally and collected which yielded or revealed that the use of computer in recording accounting information [played a positive role in initiating computer use in the modern business world.The information supplied by the Chief accountant in Bendel feed and flour mill Ewu, Edo state contributed to the success of the exercise. The statistical analysis that used in the study includes the hypothesis testing in which the questionnaire is analyzed under their related hypothesis and the use of chi-square test of homogeneity.It will also be discovered that it is important among other groups of professionals needed for this implementation of the exercise. Therefore, they formed the pillar on which any successful establishment rests upon. Based on the findings, it was recommended that the use of computer in recording accounting information should be give a free hand in implementation exercise in order to enhance the importance of the use of computer in recoding accounting information.

PROPOSAL

The research work on the topic, “The use of computer in recording accounting information problems and prospects is aimed at making individuals, firms and government aware of the importance and necessities that are attached to the use of computer in recording information in this modern world.To bring this project to execution, I shall review this topic by sourcing data from related literatures such as journals, magazines, new papers and periodical. Base on this, I shall go to libraries and other various places where these literatures will be found or located. In addition, personal interview will be carried out and questionnaires will be structured which will be distributed to respondents. This is to enable me get direct information about the role computer is playing in recording accounting information.In connection with, this hypothesis will be raised and this will be tested through the use of chi-square for efficient proof. For easy understanding by the readers, I shall present the data collected, by the use of tables, graphs charts and other method of presenting data.In view of the procedures listed above to be followed in this research work I am anticipating that there will be difficulties that I going to encounter, which will be a bottle, neck in the course of this work. These problems includes:

· Availability time to enable me finish the project before August or September.

· Inadequate finance to buy materials needed and reaching places of importance.

· The loaded academic work coupled with school activities.

· Lack of cooperation from the respondents which may bring about wrong information.

However, this project was embarked upon due to the reluctant attitude individuals and firms are paying to use computer in accounting records. Therefore, I shall make recommendations on my findings in the course of this work to enable them know the necessity, accuracy and efficiency that will benefited from the use of computer in book-keeping.

TABLE OF CONTENTS

CHAPTER TONE

INTRODUCTION

1.1 OBJECTIVE OF STUDY

1.2 STATEMENT OF THE PROBLEM

1.3 PURPOSE OF STUDY

1.4 RESEARCH QUESTIONS

1.5 RESEARCH HYPOTHESIS

1.6 SIGNIFICANCE OF THE STUDY

1.7 SCOPE, LIMITATIONS AND DELIMITATION

1.8 DEFINITION OF TERMS

CHAPTER TWO

LITERATURE REVIEW

2.1 HISTORY OF COMPUTER/DEFINITION

2.2 COMPARISON OF MANUAL AND COMPUTER INFORMATION PROCESSING

2.3 ELECTRONIC DATA COLLECTION (EDP)

2.4 DATA INPUT/OUTPUT AND THE MEDIA SYSTEM

2.5 PARTS/ELEMENTS OF A COMPUTER

2.6 OPERATING TECHNIQUES

2.7 AREAS OF COMPUTER APPLICATION

2.8 LIMITATION OF THE USE AND COMPUTER

2.9 THE ORGANIZATIONAL STRUCTURE OF A DATA PROCESSING DEPARTMENT.

CHAPTER THREE

RESEARCH DEISIGN AND METHODOLOGY

3.1 POPULATION

3.2 SAMPLE SIZE

3.3 LOCATION OF DATA

3.4 INSTRUMENT OF DATA COLLECTION

3.5 METHODS OF DATA PRESENTATION

3.6 METHOD OF DATA ANALYSIS

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.1 HISTORICAL BACKGROUND OF THE COMPANY OF CASE STUDY

4.2 ANALYSIS OF DATA

4.3 RETURNED AND UNRETURNED QUESTIONNAIRE

4.4 ANALYSIS OF RESPONSES

4.5 PERSONAL INTERVIEW ANALYSIS

4.6 TEST OF HYPOTHESIS AND PROOF

CHAPTER FIVE

SUMMARY AND CONCLUSIONS

5.0 FINDINGS

5.1 CONCLUSIONS

5.2 RECOMMENDATIONS

5.3 OTHERS SEGMENTS

BIBLIOGRAPHY

APPENDIX

CHAPTER ONE

INTRODUCTION

In this present world, individual, business men, firms and government have seen the effects of computer in the area of recording and safe keeping of information,.

However, this computer cannot function unless the day-to-day business activities are well documented and fed into it properly.

Every business get up has different levels of management and each of these level of management and information to enable them make decision on how he objective of the organization can be achieved likewise, the government need of computer networking can never be over-emphasis in the sense that, every government departments, ministries and parastatals are computerized.

This project is designed to cover every aspect of computer roles in recording accounting information for management use. Unlike the stone age when computer has not been in existence, people were getting information from inscriptions on stones and carvings in wood. All these information are soon forgotten because there was no special method designed to preserve then.

In Nigeria before the advent of computer, nearly al clerical works are, done by paper and pen. This gives rise to

1. Mismanagement of stationeries.

2. Errors and omissions in accounting enterprises

Monotonous work and tiredness and other, associated clerical problems. But since the introduction of computer, these problems are minimized. Therefore, the use of computer in recording accounting information in this modern world cannot be over sighted. In the past, recording, filing and safekeeping of information was known as “routine clerical work” but with the advent of sophisticated, electronic business machines it is now known as “data processing”.

Today, no business can survive without the use of computer especially, in recording accounting information. It is on this ground that this project is carried out to make people; businesses, finance and government know the roles that a computer is playing in keeping accounting records.

1.1 OBJECTIVES OF THE STUDY

This research work on “The use of computer in recording accounting information, problems and prospects” is to investigate or require for the following:

a. To know a brief history of computer

b. To understand some important components of the computer

c. To know the uses and importance of computer in keeping accounting records.

d. To understand some of the problems that are associated with the use of computer.

e. Knowing the advantages and disadvantages in using computer to record accounting information.

f. To create awareness on the use of computer in business.

1.2 STATEMENT OF THE PROBLEMS

“Garbage in garbage out” is a general phenomenon in computer. Electronic computer has no self-judgment and as such devoid of human errors. It is what you feed into the computer (input) that it gives out (output). For example, if one feeds in wrong data into the computer, no matter how efficient the programming may be wrong output will be the out come because the computer has been mislead.

In addition, computer has its own language and all data are [programmed and written in this special language. There fore, it required a lot of training without which computer will not make any meaning to the users.

Furthermore, computer does not function effectively in a hot environment, for this reason it requires huge amount in installing air-conditions to enhance efficiency.

Finally, small businesses cannot afford computer because it is costly to buy and maintain. This constitutes a bottleneck in getting correct information and as such, the small businesses cannot thrive in the present of the big ones.

1.3 PURPOSE OF THE STUDY

The purpose of this study is to conduct an indebt study in the problems and prospects that is faced with the use of computer in recording accounting information. Moreover, individuals, businessmen, firms and government are not fully aware about the uses of computer, it is design to create this awareness.

Another reason why this research work is embarked on is to answer a lot at questions that are raised by users and non-users of computer in book-keeping.

1.4 RESEARCH QUESTIONS

The following are some of the questions the researcher would like to find answer to in order for him to carry out the project effectively:

a. What made individuals, firms and government adopt computer system?

b. What has been the effect of the use of computer on old and new staff?

c. Routine clerical work” and “Data processing” which is more economical?

d. What improvement has computer made to the general accounting system in the counting?

e. What are the problems that generate from the use of computer?

f. What are needed to make computer use effective?

g. What effect has the use of computer in the labour market.

h. In modern accounting, can computer be left out in recording information?

1.5 RESEARCH HYPOTHESIS

The following hypothesis shall be treated in the coursed of carrying out this research work:

1. HO: There is no significant relationship between the electronic data processing approach and the manual system approach.

Hi: There is significant relationship between the electronic data processing approach and the manual system approach.

2. HO: Computer has no positive effect in recording accounting information.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

(1) Your project topics

(2) Email Address

(3) Payment Name

(4) Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

AFFILIATE LINKS:

Tags: PROBLEMS AND PROSPECT, THE USE OF COMPUTER IN RECORDING ACCOUNTING INFORMATIONS

7 years ago 0 Comments Short URL

STRATEGIC MANAGEMENT AND PROFESSIONAL USE OF ACCOUNTING DATA FOR COMPANIES BENEFIT

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

STRATEGIC MANAGEMENT AND PROFESSIONAL USE OF ACCOUNTING DATA FOR COMPANIES BENEFIT

CHAPTER ONE

1.0 Introduction

Strategy management can simply be defined as the effective control of available resources in an organization and the professional uses of accounting information for companies benefit in under to determine the managerial performance of industries professional use of accounting data provide information that can be expressed in financial term i.e Naira and kobo. Accounting data in an organization are usually flexible dependable and hence, it will assist the management of the organization in decision making. Furthermore, the introduction of this topic is to take a deep look into the accounting data and the records collated to access the future of the business positively as a result of strategic management and professional use of accounting data.

Due to the fact that sole trader has limited resources, strategic management and professional use of accounting information is needed as one-man business is a business organization owned run and managed by a person if he intends to use a trade name different from his surname of fore-name he/she must register the trade name under the registration of business under dubious character setting up a business under dubious name and defrauding the public. It also ensure that two or more person setting up in separate business does not use the same name in way as to confuse the public. Through strategic management sole trader reaps the profits of the business for himself and also all the possess are borne by him as the case may be.

Strategic management and use of accounting data need for effective management control system in a large scale industry as regard profits and loss ration the law regulating partnership Act 1890 which is applicable to the whole of the federation except the western and mid-western states where the partnership law 1859 applies in relation to an organization that directly with the public like the Nigeria bottling company strategic management and professional use of accounting data information is needed for companies benefit to determine the areas with immediate demand of a product also to determine the managerial performance of the company at the end of the accounting year.

It is very important to know in each and every organization that if you fail to plan, you plan to fail. This implies that it is very important to adopt strategic management and professional use of accounting data for managerial purpose and future references in an organization. Strategic management and professional use of accounting in administration may be defined as a proves of maintaining an organization and at directing if for the purpose of achieving predetermined goals.

Accounting data is an organization that are usually flexible dependable and hence, it will assist the management of organization in decision making.

Furthermore, the introduction of this topic is to take a deep look into the accounting data and the records collected to assess the future of the business positively as a result of strategic management and professional use of accounting data.

1.1 Background of Study

In the 1980s management accounting was criticised for becoming too internally focused on operational issues and was providing little help to managers making strategic decisions. The term strategic management accounting (SMA) was introduced by Simmonds (1981, p.26) and defined by him as ‘the provision and analysis of management accounting data about a business and its competitors, for use in developing and monitoring business strategy’.

Since then several attempts have been made to refine this definition and identify a set of techniques that can be classified under the banner of SMA. However there has been little agreement within the academic and professional literature on the definition of SMA and the associated techniques, nor is the term widely used by practising accountants (Langfield-Smith, 2008; Jorgensen and Messner; 2010; Nixon et al., 2011).

When management accounting was introduced as an advanced version of cost accounting after second world war its early advocates had claimed that it would make accounting more useful in assisting managers in their decision making function. As the discipline has failed to live up to the promise now strategic management accounting has been presented as a messiah for the discipline of accounting. New promises have been made that while the traditional management accounting failed to make use of strategic thinking and other qualitative aspects of management the new discipline is likely to make accounting more relevant and important for managers. The empirical evidence on successful diffusion of strategic management accounting is still not overwhelming. It is therefore yet to be seen if strategic management accounting can live up to its promise in future or not.

Most textbooks of management accounting define the discipline in terms of its decision making role. It is generally stated that since managerial functions involve using information for better planning and control, therefore, management accounting is very important for effective and successful management at all levels. In this paper, we review the role of management accounting and after identifying its limitations we examine the claim that strategic management accounting is the future of this discipline. The analytical paper looks at the development of strategic management accounting as a new discipline which promises to be the flagship of the accounting profession. It makes a contribution to the general management literature by clarifying the role of management accounting in decision making and signifying the need for more empirical evidence on usefulness of strategic management accounting for general management.

Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes.[Nag, R.; Hambrick, D. C.; Chen, M.-J (2007)]

Strategic management provides overall direction to the enterprise and involves specifying the organization’s objectives, developing policies and plans designed to achieve these objectives, and then allocating resources to implement the plans. Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision making in the context of complex environments and competitive dynamics.[Gareth R. Jones, 202]. Strategic management is not static in nature; the models often include a feedback loop to monitor execution and inform the next round of planning.[ Hill, Charles W.L., Gareth R. Jones, 2012]

Michael Porter identifies three principles underlying strategy: creating a “unique and valuable [market] position”, making trade-offs by choosing “what not to do”, and creating “fit” by aligning company activities with one another to support the chosen strategy. Dr. Vladimir Kvint defines strategy as “a system of finding, formulating, and developing a doctrine that will ensure long-term success if followed faithfully.”[ Kvint, Vladimir, 2009]

Corporate strategy involves answering a key question from a portfolio perspective: “What business should we be in?” Business strategy involves answering the question: “How shall we compete in this business?”[Chaffee, E., 2005] In management theory and practice, a further distinction is often made between strategic management and operational management. Operational management is concerned primarily with improving efficiency and controlling costs within the boundaries set by the organization’s strategy.

The strategic management discipline originated in the 1950s and 1960s. Among the numerous early contributors, the most influential were Peter Drucker, Philip Selznick, Alfred Chandler, Igor Ansoff, and Bruce Henderson.[ Ghemawat, Pankaj, 2002] The discipline draws from earlier thinking and texts on ‘strategy’ dating back thousands of years. Prior to 1960, the term “strategy” was primarily used regarding war and politics, not business.[Kiechel, Walter, 2010] Many companies built strategic planning functions to develop and execute the formulation and implementation processes during the 1960s.[Henry Mintberg, 2004]

Peter Drucker was a prolific management theorist and author of dozens of management books, with a career spanning five decades. He addressed fundamental strategic questions in a 1954 book The Practice of Management writing: “…the first responsibility of top management is to ask the question ‘what is our business?’ and to make sure it is carefully studied and correctly answered.” He wrote that the answer was determined by the customer. He recommended eight areas where objectives should be set, such as market standing, innovation, productivity, physical and financial resources, worker performance and attitude, profitability, manager performance and development, and public responsibility. Drucker, Peter (2004).

Porter wrote in 1980 that companies have to make choices about their scope and the type of competitive advantage they seek to achieve, whether lower cost or differentiation. The idea of strategy targeting particular industries and customers (i.e., competitive positions) with a differentiated offering was a departure from the experience-curve influenced strategy paradigm, which was focused on larger scale and lower cost. Porter, Michael E. (2002) Porter revised the strategy paradigm again in 1985, writing that superior performance of the processes and activities performed by organizations as part of their value chain is the foundation of competitive advantage, thereby outlining a process view of strategy. Porter, Michael E. (2005)

1.2 Statement of Problem

There are numerous problems hindering the effective and the efficient use of accounting data the purpose of this project work, we shall be looking at three major problems obstructing the proper use of accounting data in the management of an organization.

(i) Lack of reliable data

(ii) Behavior attitude of management

(iii) Physiological impact of the staff.

1.3 Objectives of the Study

The project work aims at determining and highlighting the need for adequate accounting data, in an organization.

The study will also provide exploration and reason for accounting data and will offer adequate solution that can reduce factors hindering the effective use of accounting data in an organization.

The objectives are stated as follows:

1. The study will help to measure the performance of the organization from the accounting data gathered.

2. The study also is used to highlight the areas of the organization where controls are needed.

3. The study helps to gather all data relating to the activities of the enterprises for the period concerned.

4. Also, the study is used as a basis for inter-firm comparison

5. Also to assist in forecasting which would likely occur in the future and consequently.

6. To serve as a guideline for the amount of revenue to be generated to the government purse.

1.4 Research Question

The research work is guided with same research question, which will be administered and distributed among the researchers area of study which are the respondents to this research work and these comprise management and staff of Nigerian bottling company within the area study. Sample research question are:

1. What is strategic management and how can accounting data be used professionally?

2. Who can you use with the help of accounting data to measure the performance of the organization?

3. What are the areas you think the company needs controls and strategic management?

4. How can the Nigeria bottling company achieve its set out objective with in a specific time in order to improve its performance both industrial and commercial wise in global corporate open market.

5. What are the activities the activities of the enterprises within the period of last six months?

6. Do you consider the inclusion of accounting data in the factors chosen?

7. What sort of accounting data do you find most useful in reaching certain decisions that you make?

1.5 Statement of Hypothesis

The researcher formed some of the hypothesis which will be tested to support this study. The hypothesis will be tested at 0.05 level of significance using the t-test method and correlation analysis.

The research hypothesis are as follows.

1. H1: Enhanced role of accounting analysis can be used to further the innovation, planning, management and professional drive in both industrial and commercial sector.

H0: Enhanced role of accounting analysis can be used to further the innovation, planning, management and professional drive in both industrial and commercial sector.

2. H1: The Company is largely dependent on the accounting data in relation to the company

H0: The Company is not dependent on the accounting data in relation to the company

3. H1: The use of accounting data is an effective tool for economic benefit.

4. H0: The use of accounting data is not an effective tool for company benefit.

1.6 Signification of the Study

This research work will present in a precise manner, the importance and use of Strategic Management over others management. It is believed that the findings of this research work should provide detailed information on the use of accounting data for companies benefit through Strategic Management with the help of professionals. It is also expected that the study will benefit the management, staffs of the company, researchers and the society in general.

The findings of the study should be useful to CEO and Directors. It is expected that the findings will expose the Company management to the importance of Strategic Management and professional use of accounting data. By this exposure the management could acknowledge the advantage Strategic Management over the conventional management method in use previously. It is possible that by this outcome the management would realistically adjust to the application of Strategic Management in achieving greater goals and benefits within the company. In turn, the staffs would have real focus for better performance and achievements in their work.

Accuracy in pin pointing the plans for strategic management and professional use of accounting data are essential in the industrial and commercial sector in that; it may invariably lead a firm to the management of compatible units that are crucial to fulfilling its objective and also for re-enforcing its objectives. However, due consideration has to be given in thus approach through due regard for opportunity cost of founding a new business towards the purpose.

The research will also be beneficial to the researcher. This is because the study will expose the researcher to so many related areas in the course of carrying out his research. This will enhance the researcher’s experience, knowledge and understanding on Strategic Management and professional use of accounting data for companies’ beneficial goals.

1.7 Justification of the Study

I want to justify this research work based on the objectives and the significance of this research work, what is within its coverage, this research work is with no doubt necessary to be carried out. Because if done will greatly highlight the importance and advantage of using Strategic Management and professional use of the accounting data for beneficial interest to any company.

1.8 Scope of the Study

The scope of this research work been narrowed down to the Nigerian bottling company. It is limited to Accounting data in the strategic management and professional use to companies benefit evaluation in Nigeria bottling company Lagos Nigeria.

1.9 Definition of Terms

Some of the term that will be used frequently would be defined in order to have a broad and clear understanding of the topic. There terms includes the following:

Management: Refers to proper and purposeful use of material skill e.tc so as to achieve an aim

Accounting: Can be seen as information in accounting from gathered and collapsed together showing past results that can help in future.

Book keeping: means the act of keeping records for future reference such that any error relation to it at any point may be quickly ascertained.

Management Accounting: Means the application of professional knowledge and accounting information in such a way as to assist and control of the operations undertaking.

Information: can be define as processed or analyzed data capable of solving problems.

HOW TO GET THE FULL PROJECT WORK

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BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

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Tags: STRATEGIC MANAGEMENT AND PROFESSIONAL USE OF ACCOUNTING DATA FOR COMPANIES BENEFIT

7 years ago 0 Comments Short URL

AN APPRAISAL OF DEPOSIT AND LENDING POLICIES IN NIGERIAN DEPOSIT MONEY BANKS (A CASE STUDY OF ACCESS BANK PLC, KADUNA)

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

AN APPRAISAL OF DEPOSIT AND LENDING POLICIES IN NIGERIAN DEPOSIT MONEY BANKS (A CASE STUDY OF ACCESS BANK PLC, KADUNA)

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background to the Study

In a modern economic system, there is distinction between the surplus and deficit economic units and consequently a separation of the savings and investment mechanism. This has necessitated the existence of financial institutions whose jobs include the transfer of funds from savers to investors. One of the institutions is the money deposits bank, the intermediating roles of the money deposit banks place them in a position of “trustees” of the savings of the widely dispersed surplus economic units as well as the determinant of the rate and shape of the economic development. The techniques employed by banks in this intermediary function should provide them with perfect knowledge of the outcome of lending such that funds will be allocated to investment in which probability of full payment is certain. However, in practice no such tool can be found in the decision of lending bankers. Virtually all lending decisions are made under creditors uncertain of the risk and uncertainties associated with lending decision situations are so great that the concepts of risk and risk analysis need to be employed by lending bankers in order to facilitate sound financial decision making and judgment. This statement implies that if risks are to be objective assessed, lending decisions by the money deposit banks should be based less on quantitative data and more on principals tools subjected to provide sound and unbiased judgment. Hence, the banks depend heavily on historical information as a basis for decision making.

Apparently aware of the inadequacies of his or her decisions base, the lending banker has often sought solace in tangible and marketable assets as security giving the impression that lending against such securities is an insurance against bad debts. This makes the banker complacent with his loan port folio. The increasing trends of provision for bad and doubtful debts in most money deposit banks is a major source of concern not only to management but also to the shareholders who are be coming more ware of the dangers posed by these debts. Bad debts destroy part of the earning assets of banks such as loans and advances which have been described as the main source of earnings and also determine the liquidity and solvency which generates two major problems, that is liquidity and profitability, has to earn sufficient income to meet its operating costs and to have adequate returns on its investment.

Lending has becoming a vital function in banking operations in view of its direct effect on the economic growth and development in the business sectors. Thus, as far as banks are concerned, their activities are lending are as important as their deposit taking, considering the inter-relationships between lending and deposit taking. Although lending is risky, deposit money banks profit oriented organizations having a primary objective as profit maximization cannot do without lending out money. In most cases, they generate the highest proportion of their interest from lending. Moreso, the principal objective of lending of a bank is the provision of growth in profitability and liquidity within the economy.

Deposit money banks play an important role in the pass-through of monetary interest rates. Nevertheless, the efficiency of transmission of decisions of Central Bank is a complicated process and may depend on many factors such as: level of competition in financial industry, perception of credit risk, risk aversion, availability of close substitutes for loans etc. Moreover, banks may influence the external fiancé premium not only via the interest rate but also modifying the available maturity of loans or changing collateral requirements. Finally, as evidence by broad literature on bank lending channel, credit rationing and uncertainty about creditworthiness of borrowers may markedly influence banks risk taking thereby influencing their willingness to lend.

The existence of bank lending channel is conditioned on two important assumptions. First, monetary policy decision impact on the bank liquidity position; second, changes in the supply of loans affect borrowers because of constrained access to other sources of financing than bank loans. Tightening of monetary policy usually leads to decrease in the demand of deposit because banks adjust their deposit rates only partially to the other sector to equity investment funds. Shrinking bank’s liabilities force banks to decrease the supply of loans accordingly.

1.2 Statement of the Problem

Years after years, banks suffer much from the part of full loan extended which has for one reason or the other proved irrecoverable. Banks lose millions of Naira in various bad debts yearly and deposit efforts by bank management committee of chief inspectors and the bankers committee on the other hand, the rate of bad debts in banks is still on alarming proportion.

On the other hand, many banks experienced a lot of bad debts when new government abandoned the project awarded to the contractors by the former government. These contractors borrowed to execute the project awarded to them but could not repay the loan, due to government action on revamping the economy. Again, problem of bad debts also arise in respect of lapses on the part of the bank credit officers. For instance, these are due to excesses over approved facility, unformatted facilities and expired facilities not renewed in time in each of these cases, the customer may easily deny even owing the bank all or part of the amount. Deposit banks have always borne the burden alone, but this may not continue in future as the banks may be unable to take the risk of lending more but when eventually they do, they would seek the best way to come out of the risk with realistic reward which they are dearly failing to achieve at present.

1.3 Objectives of the Study

The objectives of the study are stated as follows:

i) To determine and appraise the lending procedures of Access bank plc

ii) To ascertain the extent to which government intervention in lending policies of money deposit banks has influenced bad debts in Access Bank.

iii) To highlight the extent to which improper project evaluation influence bad debt and lending policies of Access bank.

iv) To highlight the rate at which inadequate collateral securities provision by borrowers increase the incidences of bad debts in Access Bank.

1.4 Research Questions

The following questions were formulated to guide the study:

i) What are the lending techniques and procedures used by Access Bank Plc?

ii) To what extent has government intervention in lending policies of money deposit bank influence bad debts in Access bank plc?

iii) To what extent does improper projects evaluation influence bad debt and lending policies of Access Bank Plc?

iv) How do the inadequate collateral securities provision contributed to bad debt in Access Bank Plc?

1.5 Significance of the Study

The significance of this study to bankers will enable them to appreciate an appraisal of their lending control mechanisms now that they are expected to lend under tight monetary conditions. The economic as a whole will benefit from the study because if the level of bad debts is reduced, banks will be left with more profits to enable them make the expected contributions to the development of the economy.

The scholarly importance of this study cannot be overemphasized as the findings will contribute to existing body of knowledge, provide information, open up research areas and assist in the design of such studies for student researchers in related fields of study.

Moreso, the study will serve as a reference material to such future researchers who may wish to use the research results as a springboard to undertake their own research.

1.6 Scope of the Study

The scope of the study however be restricted to Access Bank Plc, Bida Road, Kaduna. The study will seek to determine and appraise the lending procedures of Access Bank, and to ascertain the extent to which government intervention in lending policies of deposit money banks has influenced bad debts in Access Bank. Furthermore, it will highlight the extent to which improper project evaluation influence bad debt of Access Bank and its lending policies as well as highlight the rate at which inadequate collateral securities provision by borrowers increase the incidences of bad debts in Access Bank Plc, Kaduna. The study shall cover the period of 2010 – 2015.

1.7 Historical Background of Access Bank Plc

Access Bank Plc, commonly refers to as Access bank but often called intercontinental is a commercial bank in Nigeria. It is one of the twenty-four (24) deposit money banks licensed by the Central Bank of Nigeria, the country’s banking regulator.

The bank was established in 1989 under the name Nigerian Intercontinental Merchant Bank Limited. That same year, the first subsidiary intercontinental securities limited, was established. In 1996, the bank acquired controlling shareholding in equity bank of Nigeria, a commercial bank. Also in 1996, Access acquired majority shareholding in West Africa provincial company plc (WAPIC), an insurance company.

Access bank converted into a commercial bank in 1999. In 2002, the company listed its shares on the Nigeria Stock Exchange. In 2005, Access bank successfully merged with three (3) other deposit money banks, in which it held equity position prior to the merger, namely Equity bank of Nigeria, gateway bank and Global bank. In 2009, a special audit of the deposit money banks in Niger by the Central Bank to be undercapitalized and badly managed. Access Bank plc was one of the troubled banks. Following the injection of capital by the federal government of Nigeria to maintain solvency, the troubled banks have embarked on recapitalization through participation by new investors.

Increasing the capital base: according to its un-audited interim results at August 31 2006. Intercontinental has a capital base in excess of N61 billion ($491 million) ranked as Nigeria’s fourth most capitalized bank. Access bank is in the market to raise an additional N50 billion ($403 million) by way of a combined rights issue and public offer for subscription.

According to interim results for the first six months of the access bank financial year to August 2006, interest income is up close to 150% on the same period in 2005. Profit before tax is up 91.4% to N8.14 billion ($ 66 million) and the proposed interim dividend is up 100% at N3.2 billion ($26 million) (Access Bank Financial Statement 2006).

Access Bank has more than 200 branches national, rising to 280 by the end of February 2014. The bank has begun its continental expansion in Ghana, where it recently obtained approval in principles to commence operations. The bank intends to build its presence in major financial centers, including South Africa, the United Kingdom, United States of America, Hong Kong and Dubai. Access bank is a large finance services provide in West Africa. As at December 2008, the banks’ shareholder’s equity was valued at approximately S1.7 billion (N 261 billion). The share of stock of Access bank is listed on the Nigeria stock exchange (NSE) where they trade under the symbol: INTERCONT

1.8 Definitions of Terms

Character: This is the credit worthiness of the borrower, based on his previous relationships with the bank and what his previous records on credit book looks like.

Capacity to Borrowers: This refers to the legal aspect of the borrower, whether he/she has the legal contractual capacity to borrow such money.

Collateral Security: This refers to whether the lender requires you to put up assets often referred to as collateral; this is a form of security guarantee to ensure that the lenders might recover their money incase of default on the path of the borrower.

Capital: Capital here refers to the borrowers contribution as to the amount required.

Lending: Lending is the process whereby fund is being given to an individual or organization after analyzing the facts of a loan request and making judgment about that information.

Borrowing: Borrowing is where deficit units of the economy, applies to secure fund from the surplus unit of the economy.

Policy: Policy is a general statement that guide the direction of an organization on a particular subject matter.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

(1) Your project topics

(2) Email Address

(3) Payment Name

(4) Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

AFFILIATE LINKS:

Tags: AN APPRAISAL OF DEPOSIT AND LENDING POLICIES IN NIGERIAN DEPOSIT MONEY BANKS (A CASE STUDY OF ACCESS BANK PLC, KADUNA)

7 years ago 0 Comments Short URL

CREDIT POLICY AND DEBT RECOVERY EFFORT IN NIGERIAN COMMERCIAL BANKS (A CASE STUDY OF GUARANTY BANK PLC, KADUNA)

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

CREDIT POLICY AND DEBT RECOVERY EFFORT IN NIGERIAN COMMERCIAL BANKS (A CASE STUDY OF GUARANTY BANK PLC, KADUNA)

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

To every nation, the existence of banking industry is inevitable. This necessitates the need for deposit and credit mobilization. Osayeme (1936) reported that lending has become a vital function in banking operation because of its direct effect on economy, growth and business development.

A bank is an organization that accepts money in different account and honours cheque drawn upon it, return of the same amount on demand by depositor or at a specified maturity date.

According to Haisbury Laws of English, a bank or banker in an individual, partnership or corporation whose sole or predominant business in banking, that is the receipt of money on current or deposit account and the payment of cheque drawn by the collection of cheques paid in by a customer.

The above definition is suitable for the description of a commercial bank, commercial as a bank of common people are organized on a joint stock company system with primary aim of making a profit as any other business venture carried out, if the profit is not forthcoming, then the rate of patronage and intimacy must be improved between the buyer and the seller.

This is done by granting of credit to customer of financing in modern business. In order to protect the creditor (that is, he person who gives out loans), certain policies must be complied with. These protective weapons are credit standard credit terms and collection efforts. By credit stand we mea the criterion which a form followed in selecting a customer for credit extension. Credit terms could be the stipulation under which credit is extended to customer, for instance, it expected that a customer will pay his credit obligation of later than 35 days. A collection policy is needed because not all debtors pay their debt in time, some customers are slow payers, while some are not payers.

The aim of collection effort is to speed up the payment. However, the motive of granting credit facilities with the aim of increasing the volume of profit have become somehow difficult to realize by commercial bank a business today operate in harsh erratic economic climate. As a result, granting of credit to assessment have both positive and negative impact on the commercial banking sector (especially in Nigeria).

To survive in Nigeria (banking business), it is wise for commercial banks to increase their liquidity (cash). This can be brought about by effective credit assessment and a design of comprehensive policy in granting credit. Banks must follow clear, and sequential procedures to recover their debt, it is not done, there is great tendency for them to lose the whole amount.

1.2 Statement of Problem

It is important to recognize the two fundamental functions which a banker must perform. It must attract deposit on one hand and attract borrowers and users of services on the other hand. Those average positioned were at a staggering level of performance. This menace is as a result of high level of bad debts with associated problems brought about distress in many banks. Hence tribunal came to place to recover these bad debts.

Despite the strict conditions that prevail lending of procedure commercial bank still find their administration difficult because of the fluctuating effect of some factors such as economic policy and more so that the attitudinal tendencies credit, in that all banks are exposed to available fund at all times of boom, hence their lending ability is high. But in period of depression, lending money will mean exposing the bank into a greater risk.

Then the problem of human beings their attitude is evident in question like what is the intent of borrowers before and after credit facility has been granted him? business was frustrated by promulgation of decree?

1.3 Objectives of the Study

i) To know the concept of credit policy and debt recovery in an organization.

ii) To identify the relationship between customers and bankers.

iii) To understand how to recover debt in an organization

iv) To know how to interact with customers when it comes to attending to their needs.

The complexity of modern business environment and the increased volume of transactions have conferred credit as a vital tool in the development of banking industry. Lack of sound lending policy initiate operation lapses in commercial bank which affect levels of efficiency and effectiveness in the performance. This study attempts to appraise the credit policy and debt collection efforts of commercial with a sample bank of Guaranty Trust Bank (GTB) evaluating whether it is in conformity with efficient financial management.

1.4 Research Hypothesis/Questions

H1: Credit policy and debt recovery has a significant impact in Nigerian commercial bank.

H0: Credit policy and debt recovery has no significant impact on Nigerian commercial bank.

Research Questions

1) What is the concept of credit policy and debt recovery in an organization?

2) What is the relationship between the customers and bankers?

3) How can debt be recovered in an organization?

4) How can an organization go about credit policy?

5) What are the tactics needed to collect debts from creditors?

1.5 Significance of the Study

Credit policies are certain guideline which any well established organization adopts before granting credits. The policy could be tight or loose. Tight credit policy leads to loss of sales and at the same time loss of handling account receivable or debtors accounts.

Therefore, the credit policy of any organization could be determined by the trade-off between opportunity cost and credit administration and bad-debt losses. In the case of debt settlement by customer, not all customers are willing to pay-in-time or pay at all.

Certain incentives have to be given by the organization in order to speed up the payment. Such as cash discount and this research work is aimed at selecting the best way of collecting so as not to loose the whole amount by defaults which may in turn be bad debt.

The condition of the debtor must be well observed that is, his financial capability. The research therefore, hopes that by this suggestion given, may assist in minimizing losses and stabilize on maximize earning.

1.6 Scope of the Study

This study will expose itself to the analysis and procedure for granting credit and debt collection effort in commercial banks. It will utilize the opinion of Guaranty Trust Bank Kaduna and the summary or balance sheet which is clearly elucidates the bank annual report and accounts.

1.7 Historical Background of Guaranty Trust Bank (GTB)

Guaranty Trust Bank Plc was incorporated as a limited liability company licensed to provide commercial and other banking services to the Nigerian public in 1990 and commenced operation in February, 1991.

In September 1996, Guaranty Trust Bank Plc became a publicly quoted company and won two Nigerian Stock Exchange President’s merit award. In February 2002, the bank was granted a universal banking license and later appointed a settlement bank by the Central Bank of Nigeria (CBN) in 2003, Guaranty Trust Bank undertook its second share offering in 2004 and raised over N11 billion from Nigerian investors to expand its operations.

On 26th July 2007, Guaranty Trust Bank became a very first sub-saharan bank and First Nigerian Joint Stock Company to be listed on London, stock exchange and Deutsche Borse. The IPO raised its $750,000,000. In the same year, they successfully placed Nigeria’s first private Eurobond issue on the International Capital Market.

The long-term debts of Guaranty Trust Bank Plc are rated BB by Standard and Poors and AA by Fitch Ratings, which are the highest ratings for a Nigerian bank. They introduced online banking and SMS banking in Nigeria and a Naira denominated MasterCard as well as the platinum and world signal cards and with Guaranty Trust Bank on wheels mobile branches. On the 12th March 2008, Guaranty Trust Bank was given a license for the United Kingdom by the Financial Services Authority.

GTB is a partner of Eko Atlantic City a new made Island (820 km) in the Atlantic ocean, adjacent to Victoria Island Lagos. It will be the home of the new financial district. The building of Eko Atlantic city started in 2009 and is expected to be finished in 2016. To commemorate the bank’s 20th anniversary, the Nigerian Postal Service issued a set of GT Bank Anniversary postage stamps. This was the first time in Nigeria that a corporate organization was honoured in such a way. In 2011, the bank became the biggest in Nigeria by market capitalization.

The Bank has over 10,000 employees and furthermore Guaranty Trust Bank has cordial relationship with the customers and bankers and they have a credit policy and the way to recover their debts, when the customers has reached his or her limits for paying the debts. The bank knows how to recover their debts.

Leadership

Mrs Osaretin Demuren is Chairman

Segun Agbaje is Managing Director/CEO

Cathy Echeozo is Deputy Managing Director

Other members of the Board of Directors are as follows: Akindele Akintoye, Adebayo Adeola, Andrew Alli, Olabode Augusto, Ibrahim Hassan, Hezekiah Onyinalola.

1.8 Definition of Terms

Credit Term: The firms credit terms state the credit period the size of the discount it may, the cash discount period and the date of the credit begin. It is concisely stated that such expression as 3/20 net 30 EOM. These term contain all the key information concerning the length of the credit period (30 days) the cash discount (3%), the cash discount period begins at the end of the month.

Credit Period: This refers to the numbers of days until payment in full is required regardless of whether cash discount is offered or not.

The Cash Discount Period: This specifies the medium of number of the days after the beginning of the credit period that the cash discount can be taken. Typically the cash discount period is between five and twenty days (5-20), the cash period varies between different business organization.

Credit Standard: This relates to the decision about who will be granted credit. If the firm extends credit sales to about the stronger customers, it would never have had debt losses on other hand, it would be properly losing sales and the profit that were forgone as a result of cost sales could be for larger than the cost that were involved.

Collection Policy: A collection policy is the procedure the firm follows to collect or obtain payment of past due accounts. A collection policy is necessary because not all customers do pay their debts in time. Collection policy aims at accelerating collecting form slow paying customers and so reduce bad debt losses.

Average Collection Period (ACP): This determines the speed of payment by customers. It measure the number of days for which credit sales remain outstanding, the larger the average collection period. The higher the firm investment in account receivable.

Default Risk: Default risk is the likelihood that a customer will fail to pay the credit obligation.

Loan and Over Drafts: A loan involves the often of a fixed amount to a borrower for a specified term. Interest is payable at a specified rate on the amount of the loan irrespective of whether the borrower actually drawn the whole amount or not the bank.

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7 years ago 0 Comments Short URL

THE IMPACT OF ACCOUNTING RECORDS ON PERFORMANCE OF BUSINESS ORGANISATIONS

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INFORMATION:

THE IMPACT OF ACCOUNTING RECORDS ON PERFORMANCE OF BUSINESS ORGANISATIONS

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

The impact of Financial Accounting Reporting on the corporate performance of Business Organizations”, basically aims at ascertaining how financial accounting reporting has helped in advancing the objectives of corporate organizations. In the process, it investigated the effect that financial accounting bear on the performance of a business. Furthermore, it sought to ascertain the compliance of relevant statues by corporate organizations and the overall satisfaction of stakeholders in corporate organizations. Problems inherent in financial reporting ranges from non-disclosure of vital information, subjective judgments of financial information and most times non-compliance to relevant statues. There were recommendations given such as strict compliance to the relevant statute. The government needs to strengthen its regulatory agencies in order to ensure that the financial statements show a “true and fair view and comply with the relevant statues at all times. The research shall therefore seek to determine the impact of accounting records on the performance of Business organization.

1.2 STATEMENT OF THE PROBLEM

The basis of this research lies with the deficiencies in the preparation and presentation of accounting records ranging from non disclosure of vital and sufficient financial information to non compliance to standard accounting regulatory framework. The consequence is that it is difficult to determine the true and fair view of the financial position of the organization and the corporate performance of the organization. It is in this perspective that the research intends to investigate the impact of accounting records on the performance of business organization. with a case study of Nigerian bottling company plc.

1.3RESEARCH QUESTIONS

What constitute the nature of accounting records

What are the standard and relevant information of an accounting record

What are the types of accounting records

What are the impacts of accounting records on the performance of business organization

What are the impact of accounting records on the performance of Nigerian bottling company

1.4OBJECTIVE OF THE STUDY

To determine the nature of accounting records

To determine the standard and relevance of accounting information

To appraise the impact of accounting records on the performance of business organization

To determine the impact of accounting records on the performance of Nigerian bottling company plc

1.5. SIGNIFICANCE OF THE STUDY

The study shall provide an analysis of the nature of accounting records of business organization

The study shall provide standard accounting regulatory framework

The study shall provide the needed information on the impact of accounting record on the performance of business organization

The study shall serve a reference point for managers, accountants and financial analyst.

1.6. STATEMENT OF HYPOTHESIS

Ho: The level of accounting information in NBC is low

2 Ho: The standard of accounting records in NBC is low

Hi: The standard of accounting records in NBC is high

3 Ho: The impact of accounting records in NBC is low

Hi: The impact of accounting records in NBC is high

1.7. SCOPE OF THE STUDY

The study focuses on the appraisal of the role and impact of accounting records on the performance of business organization.it elucidate the nature and accounting regulatory framework of accounting records and provides a case analysis of the impact of accounting records on the performance of Nigerian bottling company plc.

1.8. DEFINITION OF TERMS

FINANCIAL ACCOUNTING RECORDS

The starting point for the financial accounting is the recording and analysis of transactions. A definite step is followed in the traditional accounting approach, the steps in the processing and generating of output of the accounting system are:

i. Identification and analysis of relevant transaction in the journal.

ii. Making entries of the transactions in the journal.

iii. Posting from the journal to the ledger.

iv. Preparation of trial balance.

v. Determining and recording of the adjusted entries in the journal and the ledger.

vi. Preparation of the adjusted trial balance.

vii. Preparation of the final accounts and statement which are the profit and loss account and the balance sheet.

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7 years ago 0 Comments Short URL

THE USE OF MANAGEMENT ACCOUNTING TECHNIQUES AS A VERITABLE TOOLS FOR ORGANISATIONAL DECISION MAKING

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INFORMATION:

THE USE OF MANAGEMENT ACCOUNTING TECHNIQUES AS A VERITABLE TOOLS FOR ORGANISATIONAL DECISION MAKING

CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND TO THE STUDY

Prices of goods and services are gradually increasing day by day, and due to the fact that the sole aim of a businessman, producer or manufacturer is to make profit they end up making use of low quality materials for production so as to reduce cost of production and maximize profit. Moreover, with the increase of competitors around, most of the producers have thought it wise to manufacture or package a quality product and also enhance their profit level, prevent wastage and utilize available resources, management decision decision needs to be made both mostly in the financial aspect.

The precarious situation of the economy requires to major participants in economic life, policy makers in particular, to take immediate action. However, these measures delays to occur. On the economic level, the decision is at the discretion of the manager. Therefore, a manager cannot achieve its intended objectives, without taking into account information obtained from management accounting techniques. For efficient management of the economic entities having as its object of activity the production of goods, information is needed to calculate product costs. Cost accounting techniques are being applied to collect information on production, to allocate specific spending lots of product and unit cost calculation. Also, as the deployment of production and generation of costs, strict quality control procedures are being applied to compare actual costs with planned costs. Through these methods it can be determined the efficiency of exploitation activity and management. Finally, managers need special financial reports and analysis to substantiate their decisions. Therefore, at the base of management decisions must stand the analysis of alternative lines of action.

Management accounting techniques has been equipping organizational managers with important information to take decision and deals with both constant timely and frequently changing business dealings i.e. order received, order backlog, capacity utilization, and sales. Other analytical reports are prepared for decline in profitability, market share shrinkage, customer loyalty disruption towards the organization. In both cases, it is usually done through comparing actual results with the planned results or benchmarks. Management accounting techniques is about “the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information” (D. Colin, 2000). Management accounting techniques usually plays as an influencing role for planning, organizing, leading and controlling through managers of the organization. Planning activity is done mostly through budgeting, standard costing, target costing, cost-volume-profit analysis and directing or organizing through process reengineering, just in time (JIT), activity based costing (ABC), flow direction, value proposition. Leading and controlling through total quality management (TQM), balance score card (BSC), actual and budgeted performance comparison, benchmark analysis.

Management accounting techniques is renowned to be very useful accounting resources that extensively help organizations incorporate cost accounting data, financial and non-financial information. Knowing this information is essential for managers to do their jobs, in the present day today, organizations need development and continual improvement in their performance for maintaining their activity and survival in the dynamic competitive environments. The abilities and capacities of an organization through efficient and effective use of the organization’s resources are introduced as the important tools for improvement of organizational performance that benefiting from it requires aware management. Therefore, collecting and providing relevant information to the performance is indispensible for organizations that the need can be satisfied with employing management accounting techniques.

Furthermore, management for achieving the organization’s objectives requires firm plans that management accounting can employ different solutions in the plans through appropriate operating methods as well as help managers in achieving the objectives. The recent progress of researchers in the field of competitive markets indicates that organizations needs management accounting in order to improve their performance according to the changing competitive conditions.

The conducted research indicates that management accounting techniques can be used in the following ways:

Serves as a catalyst for decision making process

Use as a financial tools for management decision making

provide the managers’ needed information

to improve the organization’s performance

Sustain company growth and profitability.

As management accounting moves into the 21st century, what happens in the last decade of millennium will be crucial. Management accounting has already undergone a period of trial and tribulations and will no doubt continue to do so.

Management accounting technique can include budgeting, performance evaluation, information for decision-making; and strategic analyses are some of the methods used among many others. Ittner&Larcker (2001) has also argued that due to the development of these new methods, it has changed the basic principles of management accounting to a more superior one that adds value to various practices. The research study indicated that some techniques such as absorption costing and marginal costing have not been highly favoured by most manufacturing businesses. For example, Dugdale and Jones (2002) stressed that there is a limitation within these costing systems, since they do not provide an accurate method of recording costs to be exact in order to make sound management decisions.

There is a general perception that management accounting provides relevant information for making decisions, both internally and externally and on a long term or short term basis. There are many different tools for making short term decisions such as cost volume profit (CVP) analysis, and customer profitability analysis, however, the use of discounted cash flows and internal rate of return techniques to calculate the cost of capital seems not to be a regular management accounting practice used by businesses.

The IT based management accounting intends to provide information and insight to management and shareholders, who are in the position to decide the budgets, investments and long term planning with the help of management accounting. Application of IT in management accounting depends on individual organizations’ vision and appropriate system or technology acquired. If the need for strong and structured technology is not installed, an organization can waste its capital investment on technology, however there are still low level of awareness and understanding of technology available and suitable based on organization to be adapted in management accounting including Lack of availability of internal expertise and consultant to suggest, evaluate and implement IT in management accounting.

Furthermore, Quality decision making has never been more important – or more difficult. Competition is relentless, as new innovations and innovators daily disrupt the status quo. The volume and velocity of unstructured data is increasing complexity, in recent years, the cost of products manufactured in Nigeria has been very expensive beyond the reach of common Nigerians. This cost challenges has made many products manufactured in the country unpatronized by the consumers, and as a result of that expires in the hands of the sellers. There is also a problem of poor inventory management which leads to overstocking thereby tying down the company‟s working capital. Another problem facing some or most of the manufacturing firm is the installation of improper plan to reduce cost of production so as to maximize profit, i.e. ( making use of low quality raw material).

OBJECTIVES OF THE STUDY

The main objective of the study is to examine the use of management accounting techniques as veritable tools for organization decision.

The specific objectives are:

Determine the extent to which management accounting techniques are employed by management.

Explain the differences between management Accounting and other fields of Accounting.

Identify the factors influencing the choice of management accounting techniques by management.

Ascertain level of effectiveness of management accounting techniques for decision making.

Contrast and scrutinize the traditional management accounting approach and modern management accounting techniques.

Eliminate the constraints affecting the application of management accounting techniques by management.

1.4. RESEARCH QUESTION

The following tentative research questions were asked to guide the research study:

To what extent are the management accounting techniques employed by management?

What are the differences between management accounting and other fields of Accounting?

What are the factors influencing the choice of management accounting techniques by management?

Level of effectiveness of management accounting techniques for decision making?

What is the difference between the traditional management accounting approach and modern management accounting techniques?

Are there any constraint mitigating the application of management accounting techniques by management?

1.5 SIGNIFICANCE OF STUDY

This study will have useful implications for theory and practice. Regarding the potential implications for theory, the study will expand the existing management accounting literature in two main ways. First the study will provide new empirical evidence on the use of management accounting techniques. Second, the study will contribute an additional study in the new context of Nigerian firms regarding what contingent factors affect the extent of management accounting techniques use.

On this note, this research work when completed will be very useful to the followings:

Business/ Organisations: To this group, the research work will provide them with the requisite knowledge of management accounting techniques in making provision and interpretation of information required by management at all levels for formulating organizational policies, planning and good decision making.

SME businesses: the creation of awareness among SME managers of the importance of management accounting techniquesas a means of improving performance and maintaining competitiveness in the marketplace.

The study will also be of importance to government corporation, companies, regulators and policy makers who are involved in regulating the accounting Standards and guidelines, it will also educate the general public, investors and entrepreneurs on application of management accounting techniques, types, it application, and benefits, It will also enable a better understanding of common management accounting techniques in relation to other fields of accounting.

This research would contribute to the existing literature by focusing on modern management accounting techniques in Nigeria with a view to identifying the critical problems that are confronting it application so that appropriate measures could be taken to tackle them.

1.6. STATEMENT OF HYPOTHESIS

Hypothesis is “a speculation of the way the variables of study behaves” it is a guide method to be used in their analysis. The needs for such guides rise to the following hypothesis;

Hypothesis one

Ho: Management Accounting techniques has a negative impact on decision making of organization.

Hypothesis Two

There are no significant relationship between the use of management accounting techniques and organizational performance.

1.7. SCOPE OF THE STUDY

From the foregoing discussion, the research focuses on use of management accounting techniques as veritable tools for organization decision using Tower Aluminum Plc, As Case Study.

1.8. LIMITATION OF THE STUDY

Limitations envisage in this research work are:

Uncooperative attitude of the staff in the organisation: this is a major limitation which increase the time spent in completing the research work.

Monetary constraints: this factors serves as a deficiency for the research work, and as a result of low financial capability, it was not enough to give us desired results.

Inadequacy of Reference Material: In the process of carrying out this research work, the most nagging problem facing the study is how to obtain reference materials. The time to carry out the research is short and insufficient, since it is done alongside with some other courses to contend with so as to present a good result.

1.9. DEFINITION OF TERMS

Management accounting is the process of identification, measurement, gathering, analysis, providing, interpretation and presentation of the management’s useful financial information in order to plan, evaluate and control of an organization’s operations.

Capital budgeting is the process of identification, evaluation, planning and financial security of the main investment projects in the commercial units and guiding and monitoring such investments

Budget is the action plan or the organization’s measure in a particular period of time that is presented according to the financial or non-financial quantities.

Decision making: the thought process of selecting a logical choice from the available option. It is done to achieve a specific objective or solve a specific problem.

Management: this is defined as the process of dealing with or controlling things or people. It is the responsibility for control of a company or similar organization.

Costing is the appropriate classification and division of costs in order to determine the final price of the products and services of the commercial unit and adjustment and providence of relevant information appropriately in a way that it would be usable for the guidance of managers, the owners of commercial units to control its operation.

Target costing is a comprehensive cost planning, cost management and cost control concept used to influence or to have an impact on product cost structures primarily at the early stages of product design depending upon the requirements drawn from the market.

Cost volume profit analysis as a method or tool for measuring potential changes in the company‟s revenues, costs and prices. CVP analysis is used in manufacturing companies to determine how many units of a particular product must be sold in order to break even.

9. Throughput accounting: The most significant recent direction in managerial accounting is throughput accounting; which recognizes the interdependencies of modern production processes. For any given product, customer or supplier, it is a tool to measure the contribution per unit of constrained resource

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Tags: THE USE OF MANAGEMENT ACCOUNTING TECHNIQUES AS A VERITABLE TOOLS FOR ORGANISATIONAL DECISION MAKING

7 years ago 0 Comments Short URL

THE PROBLEM AND PROSPECT OF PETROLEUM PROFIT TAX ADMINISTRATION IN NIGERIA

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INFORMATION:

THE PROBLEM AND PROSPECT OF PETROLEUM PROFIT TAX ADMINISTRATION IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND TO THE STUDY

As Africa’s most populous country, Nigeria boasts of the continent’s second largest oil reserves and has a very promising growth outlook. Poised to eclipse Africa’s largest economy by 2016, Nigeria is becoming a rather worthy recipient of foreign capital, receiving anywhere from $10-$12 billion per year. However, in order to take full advantage of what foreign investment has to offer, Nigeria has been trying to improve its economic and political climate.

Taxation remains a veritable instrument for national development. Apart from being a major source of revenue for the government, taxation provides goods and services needed by citizens. Taxation policies can stimulate economic growth and job creation through its impact on investment and capital formulation in the economy. In this respect reforms in the administration of petroleum tax system that ensure effectiveness, equity and efficiency are conditions for healthy public revenue. The decision to reform the Nigerian tax system is crucial in order to improve the revenue base for national development and attaining socio-economic goals for taxation.

The oil industry is thus the hub of the Nigerian economy, and needs to be sustained if the country is to achieve real economic growth. According to Nwete (2003), the oil glut of the 80’s that greatly impacted on global oil prices and the low OPEC quota, foisted on the country various fiscal regime for petroleum especially the petroleum profit tax of 85% and 20% royalty regime, all in a bid to get more revenue to oil the nation’s economy. Since then Nigeria has had lofty aims for its oil industry, including the desire to increase reserve from 34billion barrels to 40billion barrels by 2010 and subsequently its OPEC quota, optimization of oil revenue, increase in the industry’s local content, and continuous attraction of foreign investment as a way of promoting and sustaining investment in the oil industry. If we compare it with other economic activities, the petroleum industry has wider attraction because of its special nature, which stems from the fact that till date, it remains the largest and most important industry in the world. It has continuously provided the world’s energy and industrial needs, from transportation to agriculture. It has also been a Monet spinner just for the oil production companies, providing them with the opportunity of economic and social development ,and second for the multinational oil companies engaged in its extraction, and by extension the industrialized market to which the earnings of the multinational oil companies. From exploration to eventual production, the cost of developing and operating an oil field is very high and probably higher than any other industry.

Before independence in 1960, agriculture was the mainstay of Nigeria economy, providing cash crops as well as food to the entire economy. The history of oil production in Nigeria dates back to 1908 when an affiliate of a German Exploration Company, the Nigerian bitumen company came to present day Ondo State to venture for Bitumen (tar sand). By 1971, a year after the Civil War, oil had started becoming more important to the economy4. With the boom in the late seventies of oil, attention shifted completely from the agricultural sector to the oil sector of the economy. The structure of Government’s participation, as well as its impacts on the entire sector of the economy, changed from been a mere ‘supportive’ sector it was in 60s to the predominant source of foreign exchange earnings and development finance as well as a viable access to international development opportunities. The very vital importance of oil to Nigeria dictates government’s involvement in the regulation of the Nigerian oil sector. It is noteworthy that prior to 1971, all of the multinational companies were wholly owned by their foreign parent companies. In that same year, government started acquisition of participating interest in the operation of these companies while citizens also acquired varied shareholding interests in the assets of these companies.

The Petroleum Profit Tax Act 1959(PPTA) provides for the imposition of tax on the chargeable profits of companies that are engaged in petroleum operations in Nigeria. Petroleum operations is defined under the PPTA as “the winning or obtaining oil in Nigeria by or on behalf of a company for its account by any drilling, mining, extracting or other like operations or process, not including refining at a refinery, in the course of a business carried on by the company engaged in such operations, and all operations incidental thereto and any sale of or any disposal of chargeable oil by or on behalf of the company” Nigeria economy is dependent on oil, as it cannot finance social and economic growth in the absence of a large oil revenue base. Oil accounts for about 90-95% of the export revenue, over 90% of foreign exchange earnings and about 80% of government revenue.

Gelb (1981) averred that oil and gas production had been reveiving favorable tax treatment for many years, although one special provision dealing with percentage depletion was repeated for most oil and gas produces in 1975.The whole of the industry from exploration to production is filled with risks. From the high possibility that a hole in the ground will not yield reserves, the risks that the reserves if discovered will not be in commercial quantity to justify the investment, the technology risk in oil field development, to the failure of operations and vagaries of international oil prices. Thus upstream investment remains very risky and unpredictable. Most times development of new fields involve the sinking of capital before actual production reveals the reservoir characteristics, unlike most other economic activities. The objectives of petroleum taxation according to Nwete (2004) are numerous among which are: taxing in the petroleum industry is a way of achieving government’s objective of exercising right and control over the public asset, Government imposes very high tax as a way of regulating the number of participants in the industry and discouraging its rapid depletion in other to conserve some of it for future generation.

1.2. STATEMENT OF PROBLEM

Many researchers have argued the impact of Petroleum profit tax administration on economic growth of any nation. Some are of the opinion that tax administration has great effect on the growth of Nigerian economy while some of the authors are of the opinion that Petroleum profit tax administration has no effect on economic growth of the country rather the level of implementation of the revenue through government expenditure. In 2008, the Federal Government’s retained revenue increased to N3,193.4 billion or 13.3 per cent of GDP, from N2,333.7 billion or 11.2 per cent of GDP in 2007. Analysis of the revenue showed that the share from the Federation Account was N1,847.0 billion (57.8%); VAT Pool Account, N58.3 billion (1.8%); Federal Government Independent Revenue, N114.0 billion (3.6%); Budget Augmentation, N385.7 billion; share of excess crude account, N106.5 billion (15.4%); and “others” accounted for the balance of N682.0 billion (21.4%) (CBN, 2008). In terms of tax efforts, measured as a ratio of Internally Generated Revenue (IGR) to total revenue (TR), overall, the consolidated IGR/TR ratio of the state governments improved from 14.8 per cent in 2007 to 15.0 per cent in 2008, indicating that state governments made appreciable efforts to shore up their internal revenue (CBN, 2008). It is obvious from the statistics above that the potential of taxation as a source of government revenue is not adequately tapped in Nigeria.

Despite all these incentives available for the oil exploration companies, the industry still encounter the following identified problems: on provision of corporate social responsibilities in the communities of oil extraction where their land has been depredated and unsuitable for agricultural produce, and the people are living below United Nations standard of living./This has resulted in destruction of production installations and cut down in production level; there is recorded poor tax administration and weak fiscal policies; there is pronounced tax avoidance and tax evasion which have negated the quantum of income expectation from this important sector of the economy.

Nigeria has the potential to build a prosperous economy, reduce poverty significantly, and provide the health, education, and infrastructure services to its population needs. However, available evidence indicates that these resources have not been judiciously used to meet the need of the population in terms of human capital development. Nigeria generated about 23 trillion naira (191 billion US dollars) from oil between 1981 and 2006, which is about 83% of total government revenue. However, tax revenue constitutes a major component of national income in a modern economy. It is the main source of government recurrent revenue in most developed countries.

Identifying critical petroleum profit tax administration challenges and measures required to meet these challenges is crucial to improved revenue base for national development and attaining socio-economic goals of taxation. In this wise, it is needful to critically examine and document the impact of tax administration reforms under the FIRS (Establishment) Act 2015, even though, looking through the past decade which has witnessed significant developments in petroleum profit tax administration at the Federal level leading to an unprecedented increase in the revenue generated by the FIRS, yet the Nigerian Tax system still continue to suffer from challenges ranging from poor compliance, inefficient tax administration, corruption and fraud.

Finally, Petroleum Profit Tax is a major source of revenue for the Federal Government of Nigeria to meet its statutory obligations of ensuring the economic development of Nigeria. It assists the government to achieve the country’s macroeconomic objective in the areas of fiscal and monetary policies. However, it has been observed that non-provision of corporate social responsibilities in the communities where there is extraction of crude oil result into constant destruction of production installations, and hindrance to production; tax avoidance and evasion d poor tax administration, and weak fiscal policy have been negating the increase in tax income generated.

1.3. OBJECTIVE OF THE STUDY.

Nwete (2004:1-23) said Nigeria cannot finance social and economic growth in the absence of a large oil revenue base. Oil in Nigeria accounts for about 90-95per cent of its export revenues, over 90percent of foreign exchange earnings and about 80% of government revenue.as a result of this the main objectives of this research study is to assess the problem and prospect of petroleum profit tax administration in Nigeria.

Other specific objective includes:

Evaluate the relationship of petroleum profit tax and economic development in Nigeria.

Assess the petroleum profit administration with a view to putting in place a good policy of administering the tax system

Assess the negative effect of tax evasion and tax avoidance on income generation.

Eliminate the constraint encountered in revenue generation and installing a good tax control system in petroleum tax administration.

Determine the impact of the tax reforms under the FIRS(Establishment) Act on petroleum profit tax administration at the Federal level.

Suggest recommendation for problems of administering petroleum profit tax in Nigeria.

1.4.RESEARCH QUESTION

For the purpose of the research study, the following research questions were asked:

Are there any relationship between petroleum profit tax and economic development in Nigeria ?

What is the effect of the weak and poor administration of petroleum profit tax on Federal Government revenue generation in Nigerian economy?

Are there any negative effect of tax evasion and tax avoidance on income generation?

What are the constraints encountered in revenue generation and installing a good tax control system in petroleum tax administration?

Impact of the tax reforms under the FIRS(Establishment) Act on petroleum profit tax administration at the Federal level?

Recommendation for problems of administering petroleum profit tax in Nigeria?

1.5. STATEMENT OF HYPOTHESIS

Two hypotheses stated in null forms were formulated to carry out this work. Hypothesis One

There is no significant relationship between petroleum profit tax and economic development of Nigeria.

Hypothesis Two

Tax evasion and avoidance and tax avoidance has no negative impact on revenue generation through petroleum profit tax administration in Nigeria.

1.6. SIGNIFICANCE OF THE STUDY

There cannot be a better time to work on the critical challenge/reforms in the Petroleum profit tax sector in Nigeria than now. The research work would contribute immensely to the existing literature by focusing on the reform of petroleum profit tax administration in Nigeria with a view to identifying the critical challenges such as, corruption among tax administration, tax evasion, tax avoidance, non-compliance and weak and unfriendly tax administrative systems and procedures that have been confronting the tax system .

This study will continue to be of interest to majorly the governments, civil servants, government establishment, agencies, parastatals, and other public corporation in the public sectors.

It will also be of great importance to various management of oil and gas companies( both in the upstream and downstream sector), tax administrators, revenue collector, and tax officials and other users of laws and policy; It will also give them general insight on the challenges affecting effective petroleum profit tax administration in Nigeria.

The work will be of immense benefit to students of tax policy, tax administration and taxation generally as it will provide them insight into the various challenges of tax administration.

Finally this study will be of great significance to schools and students, it will serve as a reference point for future researchers who will want to research more on the topic.

1.7. SCOPE OF THE STUDY

The focus of this paper is to evaluate the challenges and prospect of petroleum profit tax administration on the growth of Nigerian economy, and the enhancement of the economic well being of its citizens. Petroleum profit tax is a major source of the income being generated by the Federal Government of Nigeria. The industry remains the largest and most important industry in Nigerian economy.

From the foregoing discussion, the research shall focuses on the problems, prospects of petroleum profit tax administration in Nigeria using the Federal Inland Revenue Service (FBIR) Ondo State Office as a case study.

1.8. LIMITATION OF THE STUDY

Limitations envisage in this research work are:

1. Information Generation: The work however, has experienced limitations by way of extracting information from some staffs of Federal Inland Revenue Service (FBIR) Ondo State Office, who for some reasons found it difficult to respond to questions.

2. There was insufficient interaction between the researcher on one side and business establishments, government departments and research institutions on the other side. A great deal of primary data of non-confidential nature remain untouched/untreated by the researchers for want of proper contacts.

3. The researchers also encounter the difficulty of adequate and timely secretarial assistance, including computerial assistance. This causes unnecessary delays in the completion of research studies.

4. Library management were not functioning enough for acquisition of research materials, this is not satisfactory enough and most of the time and energy of researchers are spent in tracing out the books, journals, reports, etc., rather than in tracing out relevant material from them.

1.9. DEFINITION OF TERMS

Tax administration: according to Dale , implies tax policy making and execution. That is, it involves planning, organization, commanding, coordination and control.

Tax evasion: refers to any intentional, illegal reduction of tax payments, which usually takes the form of underreporting income, sales or wealth, or overstating deductions (Schneider, Braithwaite & Reinhart 2001), including failure to file appropriate tax returns.

Tax Avoidance: refers to the reduction in tax burden by means of practices that take full advantage of the tax code or exploiting the loopholes in the tax laws to reduce tax liabilities by arranging ones tax affairs using tax shelters in the tax law, and avoiding the tax traps in the tax laws.

Tax allowance is a form of incentive used to ameliorate the difficulties and high tax burden inherent in a fiscal regime in order to include, promote and sustain investment in that fiscal regime.

Capital Allowance: Capital allowances are granted to companies engaged in petroleum operations in lieu of depreciation in accordance with Petroleum Profit Tax Act (PPTA) 1990 broken into two types.

Petroleum Operation is defined as: “The winning or obtaining and transportation of petroleum or chargeable oil in Nigeria by or on behalf of a company for its own account by any drilling, mining, extracting or other like operations or process, not including refining at a refinery, in the course of a business carried on by the company engaged in such operations, and all operations incidental thereto and any sale of or any disposal of chargeable oil or on behalf of the company

Joint Venture: This is an arrangement under which the Federal Government through the Nigerian National Petroleum Corporation (NNPC) enters into a joint operating agreement with multinational companies as joint venture partners.

Assessable Tax: This refers to the tax arrived at using the appropriate tax rate on the chargeable profit. In other words, it is the amount of assessable tax less certain tax offset.

Chargeable Profit: This is the amount of assessable profit of the accounting period less the sum total of capital allowances provided in the Second Schedule to the Act.

Economic development can be defined vices as efforts that seek to improve the economic well-being and quality of life for a community by creating jobs and supporting or growing incomes and the tax base.

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