Title page 



Table of content 


1.1 Introduction 

1.2 Statement of the Problem 

1.3 Purpose of the Study

1.4 Significance of the Study 

1.5 Research Aims and Objectives 

1.6 Scope of the Study 

1.7 Definition of Terms


2.1 Literature Review 

2.2 Constituent of Financial Reporting 

2.3 Parties Interested in Financial Reporting 

2.4 Types of Ratio

2.5 Significance of Financial Ratio

2.6 Limitation of Ratio Analysis 


3.1 Research Methodology 

3.2 Research Instrument and Techniques 

3.3 Briefly Historical Background of Guinness Nigeria Plc

3.4 Research Design and Procedure 

3.5 Selection of Population Sample 

3.6 Questionnaire Design and Assumption 

3.7 Conduct of the Field Work

3.8 Procedure for Data Analysis 


4.1 Data Presentation and Analysis 

4.2 Application of Financial Ratio

4.3 Analysis Findings and Interpretation of Data 


5.1 Summary of Findings, Conclusion and Recommendation 

5.2 Summary 

5.3 Conclusion 

5.4 Recommendation 




An accounting report consist of items that are contained in the annual report of a company. These reports are also termed “financial statement” these reports are necessary and compulsory in any business organizations and they show the true and firm position of such company at a given period of time. They are usually on annual basis and they provide information to the user of the report to give an informed judgment about a company. These analysis of financial report include:

(a) The profit and loss account which shows the profit for a year before and after take and a profit to be retained 

(b) The balance sheet which shows the statement of asset and liabilities 

(c) Statement of sources and application of funds

(d) Auditor’s report 

(e) Director’s report

(f) A value added statement 

The management cannot only direct the affairs of the company but also by the shareholders. And in order to measure the performance of a business entity, the management need this accounting report.

Statement can be prepared to indicate either the historical result of these transactions or the financial conclusion of the business and interpreting the result therefore to the interested parties”

Public company as it will be used throughout this study refers to as public limited liabilities whose shares are quoted in the stock exchange market, various groups such as owners, creditors, managers, government agencies, employees etc. are interested in the ability of the company to pay its debt as at when due and to earn a reasonable amount of income. These ideal concepts or objectives of a company are referred to as factors of solvency and profitability. A company which fails to meet the standard expected of it by its creditors in a timely basis is likely to experience difficulties in obtaining credit which eventually lead to deadline in its profitability. Similarly, a company whose earning is lower than those of its competitors is likely to beat a disadvantage in obtaining new capital from stock holders. Therefore, accounting reports are of great importance to any company.


 This study is specifically undertaken to examine the contributions and usefulness of various accounting reports to a public company. It should be noted that information provided by the various accounting report sometimes might not be accurate thereby causing a set back in it ability to give an informed judgment to it hence the interpretation to this accounting reports in other to show the liquidity position of a company and how solvent it is therefore, it shall examine.

i. Whether accounting reports are eventually useful to public company

ii. Whether the user can actually give various interpretations to eat and deduce and informed judgment from it.

iii. Whether the information provided is constant 

iv. Whether the tools used in analysis actually give good result 


In the early history, it is popularly believed that the primary purpose of financial reporting was to detect errors, but with the development of the new intellect about the primary objective financial statement or reporting. The purpose is to give report which includes the following:

(a) THE APPRAISAL OF PAST PERFORMANCE: The decision maker will access the success of the business and the effectiveness of the management by looking at the information  such as sale volume cash flow.

(b) PREDICTION OF FUTURE POTENTIALS: This involves the provision of information which will provide effective decision making by the future of an enterprise and suggest the necessary solution for the firm or enterprises to respond to any future economic changes or development.

(c) EVALUATION OF PRESENT CONDITION: The decision makers will require information such as asset owned by the enterprises; equity ratio etc. in general, financial statements are prepared for the purpose of presenting a periodical report of progress made by the management. The financial statement and their adherence to general accepted accounting principles and conventions.


The financial procedure is very significant in as much as its attempt to achieve these objectives.

1. To provide other needed information about changes in economic obligations 

2. to provide reliable information about changes in non-resources of an enterprise that result from profit oriented activities.

3. its objectives are to provide reliable financial information and economic resources and obligation of business enterprises 

4. it provides financial information that assist in estimating the earning potentials of the enterprises 

5. to assist management in decision making from the above significance of financial statements, it can be deduce from that it has three main significances.

From the above significance of financial statements, it can be deduced from that it has three main significance.

(a) To ensure that directors properly managed the asset of the company (steward functions)

(b) To know the present financial position of the company 

(c) To know the future prospect of the company, it ability to employ, pay dividend and to repay loan.


In order to give this research work some degree of validity, the following questions were formulated.

i. TO establish whether the procedure can reduce the degree of errors 

ii. To investigate the usefulness of financial reporting as a means of information in an organization 

iii. To ascertain the practice of standard an means of information 

iv. To establish whether the introduction of financial reporting aids to detect all kinds of fraud in the financial statement of an organization 

v. Finally to find out the standard and importance of financial reporting 


The focal point this study is to examine the various accounting reports kept by public companies such as Guinness Nigeria plc, enlightens the usefulness of these accounting reports and their characteristics. This scope of the study is strictly to its Lagos office due to the fact that they keep the same accounting records.

Chapter one this research deals with the statement of the problem, purpose of the study, significance of the study, research questions, scope of the study and definition of terms.

Chapter two will show the literature review constituents of financial reporting, parties interested in financial statement, ratio and types of ratio, significance of ratio and limitation of ratio analysis.

Chapter three deals with research methodology, research instrument and techniques, brief historical background of the case study, method of interpretation, research design and procedure, selection population sample, questionnaire design and assumption, conducts of the field works, problems encountered and procedures of data analysis.

Chapter four will show the presentation and analysis of data application financial ratio analysis findings and writer predation of data.

Chapter five deals with summary, conclusion and recommendation of this research.


In this study, various definitions will be used in order to give a true knowledge of the research work. These terms are analysis below:

(a) EXPENSES: This is the cost which has been paid or to be paid for the resources used in the accounting period 

(b) REVENUE: This is often referred to as income or money received ot to be received in respect of ordinary business transaction or in respect of other expenses uses of assets 

(c) BALANCE SHEET: This is a statement which shows the true financial position of the business entry in given period 

(d) DIVIDEND: This is referred to as the contribution paid to the shareholders as benefit of a business. It is stated as a specific amount per share of capital stock.

(e) FINANCIAL STATEMENT: This is an accounting reports, which summarizes the financial position and operating result of a company.

(f) OWNER’S EQUITY: This is the amount of owner’s investment, which has been retained in the business. 



In the real sense, an accounting report which is also known as financial statement is part of what a company’s annual report is prepared by public company. It is a must that various information that must be in it must include financial statement and it is mandatory for all public companies to prepare financial report for publication.

SECTION 335(1) of the companies and allied matter decree 1990 requires that the financial statement shall comprise with the schedule two of the decree (in all area that are applicable) with respect to their forms and content and with the laid down statement of accounting standard board that such accounting standard do not conflict with the provisions of the degree of schedule two. The decree further state that:

(A) The bounce sheet shall give a true and fair view of the state affaires of the company as at the end of the year and profit and loss of the company for that year.

(B) The statement of source and application of fund shall provide information on the generation and utilization of funds by the company during the years 

(C) The value added statement shall report the wealth created by the company during the year and its distributors among various interest group such as employees, government, creditors and shareholder of the company.

(D) The five years financial summary shall give a report for company of five years or more of vital financial information.

The decree also provided that were the balance sheet or profit and loss account prepared in accountancy with schedule two of decree would not provide diffident information to meet true and fair view requirement, any necessary additional information shall be provided in the balance sheet or profit and loss account. Financial statement also known as accounting report can be termed as amount a piece of a company because it constitutes a report on managerial performance attesting to managerial success or failure and flashing warning signal of impeding difficulties.

The primary use of financial statement or accounting report is for evaluation of performance and predicating performance. The ultimate effect of analysis financial statement is to make financial decision. After an analyst must have the organization would fare, it will then decide whether to buy sell or hold common stock. The managers and financial community (banking officers and stockholders) help in evaluate the operating and financial out look of an entity all the information needed for this evaluation are got from the accounting report for example, creditors would want assurance of being paid in full and on time, the information needed for this is from accounting reports.

The information needed by the accounting users are normally the same since their needs to the users. However, the various needs for which they can be classified under the following 

PERFORMANCE MEASUREMENT: Accounting information can be used to measure the performance of the organization that is corporate performance of division, performance of product and services, performance of equipment or persons. This performance can be measured in terms of profitability liquidity, credit worthiness, risk are not necessary at pad. This means that various uses means different meaning and solvency and interims of collection and repayment period. In assessing the above ratio absolute figure, standard and projections are used.



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