EFFECTS OF FINANCIAL ACCOUNTING REPORTING ON MANAGERIAL DECISION MAKING

Project Abstract

Financial accounting reporting plays a crucial role in influencing managerial decision-making within organizations. This research project aims to explore the effects of financial accounting reporting on managerial decision-making processes. The study will investigate how financial accounting information is utilized by managers to make strategic decisions that impact the organization's performance and long-term sustainability. The research will delve into the various components of financial accounting reporting, including financial statements, budgeting, cost accounting, and performance evaluation. By examining these components, the study seeks to understand how managers interpret and use financial information to assess the financial health of the organization, evaluate performance, and make informed decisions about resource allocation and strategic planning. Furthermore, the project will analyze the impact of financial accounting reporting on different aspects of managerial decision-making, such as investment decisions, pricing strategies, cost control measures, and performance evaluation. By examining real-world case studies and conducting interviews with managers, the research aims to identify the challenges and opportunities associated with using financial accounting information in decision-making processes. The study will also investigate the role of financial accounting reporting in enhancing transparency and accountability within organizations. It will explore how accurate and timely financial reporting can help managers track performance, identify potential risks, and communicate financial information effectively to stakeholders. By understanding the link between financial reporting and managerial decision-making, organizations can improve their decision-making processes and achieve their strategic objectives more effectively. In conclusion, this research project will contribute to the existing literature on the effects of financial accounting reporting on managerial decision-making. By examining the role of financial accounting information in shaping managerial decisions, the study aims to provide valuable insights for managers, policymakers, and academics seeking to enhance organizational performance and accountability through effective financial reporting practices. The findings of this research will have implications for how organizations utilize financial information to make informed decisions that drive sustainable growth and competitive advantage in today's dynamic business environment.

Project Overview

INTRODUCTION
1.1 BACKGROUND OF THE STUDYFinancial reports provides an overview of a business profitability and financial condition in both short and long term. They are necessary sources of accounting information about companies for wide variety of users. In. every business, there, needs information. This information needs ranges from financial, production, marketing etc. Generally, the larger the organization the greater the management need for information. Financial report plays a vital role in decision making process of business organizations. The main purpose of financial repots is the provision of financial information as a record making. It has been said that accounting is the language of business. It might also be said that the ability to apply accounting knowledge is critical to success in business: A business prepares various report at the end of each fiscal period. This report summarizes the changes that have taken place during the period. For this financial report to be useful, the data be presented in such a way that the user will recognize, Similarities, differences and trends form one period to another to enable them make decisions. The accounting information contained in the financial reports enables management to make more inform decisions. Financial reportshould provide adequate information in all areas of organization and economic activities; it should be able to disclose clearly the nature and accurate accounts of the transactions fun which the true and fair view financial position of the organization can be ascertained. Financial reports serve a lot of useful purpose to different users namely, shareholders, Creditors, Banks, government agents, employees, potential investors and the management of the entity it self. The above identified groups of persons rely on the information supplied by the given firm through financial reporting in which they have interest to ascertain the organization‟s state of affairs which serves as an important guide in deciding the extent to which they commit their fund. It is the “communication of financial information useful for decision making such as investment, credit and other business decisions” such communication include, general. Purpose financial statement, balance sheet, equity report, cash flow reports and notes to these statements.1.2 STATEMENT OF THE PROBLEMThe problem of this research is that, the management does not know the various ways of presenting financial accounting reporting, which often affects managerial decision making. There are no proper allocation of resources of the organization which leads to non-achievement of theprofit maximization objective. Also the inability of the management to recruit trained and professional personnel, as a result, the quality of the decision made by this organization are very poor.1.3 OBJECTIVE OF THE STUDYThe research work covers the effect of financial accounting reporting on managerial decision making. The studies have the following objectives: To know whether the various ways of presenting financial accounting reporting have any effect on managerial decision making in the company. To examine the attitude of management in the allocation of resources which often leads to achievement of profit maximization objective.To determine the level of which management recruit trained and professional personnel which leads to quality decision making.1.4 RESEARCH QUESTIONSBased on the objectives, the following research questions were developed:Does the various ways of presenting financial accounting reporting have any effect on managerial decision making of the company?What are the attitude of management in the allocation of resources which often leads to profit maximization objective?To what extent does management recruit trained and professional personnel which leads to quality decision making?1.5 STATEMENT OF HYPOTHESISBecause of the above research questions, the following hypotheses were formulated.HYPOTHESES 1
HO: The various ways of presenting financial accounting reporting does not have effect on managerial decision making of the company.
HI: The various ways of presenting financial accounting reporting have effect on managerial making of the company.
HYPOTHESIS 2
HO: There are no proper allocation of management resources which often leads to profit maximization objective.
HI: There are proper allocation of management resources which often leads to profit to profit maximization objective.
HYPOTHESIS 3
HO: Management does not recruit trained and professional personnel which leads to quality decision making.
HI: Management recruit trained and professional personnel which leads to quality decision making.1.6 SIGNIFICANCE OF THE STUDYThe significance of this study is that, it shows the effect of financial reports in the operation of the organization. This research is beneficial to internal and external users of financial report. The financial of this research will help managers determine the method of financial needs that will help in realization of their corporate objectives. The study will help the management to know the experts (accountants) that will be able to prepare an annual report that will enable the management to make well-informed decision that will enhance profit maximization. It will enable the external users to know whether the organization is making profit in coder to invest more. Thi0s study will also serve us resource material for other researchers for further research in related areas.1.7 SCOPE AND LIMITATION OF THE STUDYThe research work covered the whole of Enugu State manufacturing companies, but due to certain constraints the research is restricted to Nigeria Bottling Company PLC. Thus, the research investigate the effect of using financial reports in making management decisions.The limitation of this study is the time factor. Since the researcher carried out the research of the same time with her studies, there was limited time for to cover all the necessary areas of the research study. And also lack of audience from the despondence.1.8 DEFINITION OF TERMS ANNUAL REPORTThis is a comprehensive report on a company’s activities throughout the preceding year. Annual reports are intended to give shareholders and interested people information about the company‟s activities and financial performance.

MANAGERIAL DECISION: This is the decision concerning the operating of the firm, such as the choice of the firm size, firm growth rate, and employment.

INFORMATION: This can be seen as data which have been processed into a form meaningful to the recipient (receiver)

ORGANIZATION: Is an organized body of people working together for the pursuit of a particular purpose (s) called organization goals.REFERENCESIgben, R. (2009). Financial accounting made simple, Lagos: Roi publication.William, L. (2008). An introduction to financial management. London: McGraw –Hill Publication.