AN ASSESSMENT OF ACCOUNTING INFORMATION AND ITS ROLE IN THE MANAGEMENT OF ORGANISATION

AN ASSESSMENT OF ACCOUNTING INFORMATION AND ITS ROLE IN THE MANAGEMENT OF ORGANISATION

BACKGROUND OF THE STUDY

In order to make economic decisions, all corporate organizations require information. Information, according to SINHA (2002), is an integrating force that combines organizational resources into a cohesive whole, directed toward the realization of organization in such a fundamental way that it is critical that information be effectively organized and efficiently handled, which is accomplished through what has become known as management information system (MIS) (Agbon, 2009). A management information system that gives individual managers with the data they need to make decisions in their areas of responsibility (Dung, 2010). As a result, it's critical that management is kept up to date on the content and significance of pertinent data. According to Olannye and Nana (2006), the majority of managerial tasks are focused on an organization's financial element. As a result, the pre-requisite for this research, which uses Premier Breweries Plc, Onitsha as a case study, is awareness of the substance and commercial value of accounting information.

Onitsha's Premier Breweries Plc was founded on January 23, 1976. It became a public Limited Liability Company (Plc) on October 19, 1992, which means it is now traded on the stock exchange market. Premier Breweries Plc makes Premier Larger Beer and Premier Multi-Malt. Finance and planning, sales and marketing, quality control, production, and administration are the sections that make up the organization. The finance and planning division is separated into four sections: financial accounting, Treasury, data processing, and payroll. Each of these parts is written by a professional accountant (Oyerinde, 2009).

1.2 STATEMENT OF PROBLEM

The topic of this research project is "Accounting Information and Its Roles in Organizational Management." It focuses on the issues and challenges that prevent accounting information from attaining its desired outcomes. Poor personnel quality, unsigned accounting information channel, late accounting information delivery, machine breakdown, nonchallant attitude of financial managers toward some aspects of financial management, administrative problem, and lack of use of some information by top management are among the issues (Dung, 2010).

1.3 OBJECTIVES OF THE STUDY

The purpose of the study of this research is to examine critically and of course objectively:

i. The content of term “Accounting information”

ii. The role of accounting information in the management of an organization.

iii. The problem and difficulties hindering accounting information from achieving desirable goals.

iv. To make some useful suggestions towards the achievement of set objective.

1.4 RESEARCH QUESTIONS

The researcher raised the following questions to serve as guide in the study.

1. Does accounting information have any relationship with effective cash management?

2. Does Accounting information have any relationship with effective pricing policy?

3. Does accounting information assist in attaining profit maximization and cost minimization?

4. Does errors and untimely delivery of accounting information hinder accounting information from achieving it’s desirable goals?

5. Does Non-challant attitude to some aspect of financial management by financial managers and lack of use of some information by top management hinders accounting information from achieving it’s desirable goals.

1.5 SIGNIFICANCE OF THE STUDY

The findings of this research will enable management and others to get abreast with the composition/content of the term accounting information. It’s role and relevance in the management of an organisation. This study is equally aimed at determining the problems and difficulties hindering accounting information from achieving it’s desirable goals.

1.6 SCOPE OF THE STUDY

This research project was carried out to cover premier Breweries Plc, Onitsha. It intends to assess the composition/content of the term accounting information, its roles; uses and relevance in the management of tin organization and also to highlight the problems and difficulties hindering accounting information from achieving it’s desirable goals. The study was delimited by inadequate time due to the fact that the researcher need to carry out his official assignment at his place of work financial problems was equally another hindrances as information inflationary trend made prices of stationary items rose up almost unresearchable.

1.7 LIMITATION OF THE STUDY

During the conduct of this research work, some factors posed as constraints to the determined efforts of the research to carryout the research study to such a depth and in such a manner that it ought to have been carried out judging from its relevance to management, such factors include:

Management Restriction: it’s no doubt that management usually refused to allow access to information that are considered very confidential in nature like detail information of the organizational corporate profile. As a result of the restrictions the researcher was able to work with only the information that was accessible.

Time Constraint: Time is also another factor tat acts as hindrances in carrying out this research study. This is as a result of the fact that other things were still being attended to in the course of carrying out this research work.

Financial Constraint: money also acts as a problem in the conduct of the research work. Traveling expenses were incurred in getting the materials for the research work. Also incurred, were expenses for the typing and distribution, building and a lot of other expenses.

1.9 DEFINITION OF TERMS

a) Economic Entities: Economic entities are otherwise called business entities or business organisation. That are two types of economic entities; profit motivated e.g Premier Breweries Plc and Non- Profit motivated entities such as Delta State Polytechnic Otefe Oghara.

b) Cashflow: According to Emery and John (2000) sees cashflow as a financial statement which reports on the movement of cash in an organization. It attempts to report on the sources from which cash is obtained- share issues, Loans, internal generated profit and the uses for which it is applied, fixed assets acquisition, dividend and Taxation payments.

c) Cost center: According to Isreal (2006) defined cost center as a location, person or items of equipment (or group of these) in respect of which costs may be ascertained and related to cost units for control purposes.

d) Cost Unit: According to A. Abohi (2003) defines it to be a qualitative unit of product or services, in relation to which costs are ascertained.

e) FundFlow: According to Jordan (1999), obligation view fundflow as a statement designed to show the flow over time of financial resources. They are intended to give information on liquidity. Fundflow statements are some what similar to cashflow statements, The essential difference between them is that whereas fundflow reports are mixture of both cash and accrual based figures, the cashflow statement attempts to report only cash movement.

f) Liquidity: Douglas (2000), states that the liquidity of a company measures the ability of the company to find cash to meet maturing obligations

g) Solvency; Solvency means the ability of a company to pay it’s debts.

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