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CHAPTER ONE

GENERAL INTRODUCTION

1.             INTRODUCTION

Accounting is a body of knowledge which does not have a gingle definition, vicarious and several actions have come up with different definitions which reflects the period in the evolutionary  stages of accounting thoughts during which definitions were made.

There are several definitions of the concept as the number of people that attempt to define it.

According to A. H. Mill Champ in his book, Foundation Accounting (An instructional manual for Accounting Students) submitted that “Accounting is the process of identifying, measuring and communicating economic information to permit informed judgement and decisions by the user of the information and also explained further to mean and in terms of money transactions and events which aid, is part at least of a financial character, and interpreting the results thereof.

1.                  Soyede accorded that “Accounting is concerned with providing information to decision making within an organization to enable management to take decisions about the level of output, the most optimal choice of reflecting competition and other changes in the economy.

Accounting system has become a major quantitative information system in almost every organization just as a well designed information system has become an integral part of organizational activities. Information for economic decision making is the main product of accounting.

The origin of financial accounting dates back to the 15th Century when a Franciscan MONK, Rev. father Luca Pacioli wrote his famous book “Summa de Arithetica, Geometrica, proportion et proportionality” in Venis in 1914. The first known book on book-keeping enunciated most of the principles on which today’s book keeping is kept. The main emphasis was on the stewardship function. The regular calculation of profit, and thus the preparation of a profit and loss account, was not yet seen to be important and profitable when calculated was usually at the end of particular contribution. Father Pacioli accorded him the recognition of Father of Accounting.

The whole purpose of ancient accounting was not to measure the rate of profit or loss but to keep accurate records of acquisitions and out goings in money and kind and expose any losses due to dissolute on negligence. This seemingly laudable objective of engaging the services of book-keeping to keep accurate records of their wealth, business concerns and value possible expose frauds. However, the increase in the number of multiple ownership, joint ventures, partnership etc.

The profit and loss account grew in importance the extension of credit transaction and the requirement of tax collection systems increased the need for the measurement of profit.

1.1       BACKGROUND OF THE STUDY/STATEMENT OF PROBLEM

Haier Paterson Cussons Nigeria Plc is a joint Venture between PZ Cussons Nigeria Plc over 120 years of commercial experience in Nigeria has been the proud manufacturer of Thermocool brand for over 37 years. Over the time, THERMOCOOL has won the trust and loyalty of Nigerian consumers.

Haier is the world’s fourth largest white goods manufacturer and is the official home appliances sponsor of the Beijing 2008 Olympic Games. As of 2008, the Haier Group has established a total of trading companies (19 located overseas) 29 manufacturing plant (24 overseas), 8 design centres (5 overseas) and 16 Industries parks (4 overseas) consistent with Haier’s position as a global brand, the company employs over 60,000 people ground the world. In addition, Haier boasts a 58,800 story sales network which last year accounted for a global turnover of 122.billion RMB (17.5 billion USD).

The Partnership between these two  world famous companies through Haier-Thermocool brand aims to deliver reliable quality in all products that are manufactured. This is achieved by producing products that are specifically designed to meet the needs of the Nigerian environment.

The elegant new designs and innovative technologies all Haier Thermocool products are tropicalized (Nigerian used) to deliver optimum value for cool. Haier Thermocool has a world-class after sales services centres which dedicated customer care line: 01-7303333 Pan-Nigeria-Name.

The organization as related to Haier Paterson Cussons Nigeria Plc is organized into six (6) sections, namely: production, personnel, packaging, finance, sales and purchases and each of these sections headed by a manager except finance which is headed by a Chief Accountant. All these heads of the sections reported directly to the Chairman. The line of authority/responsibility are depicted in the organization chart.

Every individual in HPY has an assigned responsibility in which their performance is judged on how well they meet up with these responsibilities. The sum of the responsibility structure is allocated among people at several levels of management . division of responsibility and authority among several levels of management enables the enterprises strike effectively in achieving their objectives.

1.4. PROJECT OF THE STUDY

       A wide range of users of users accounting information rely on periodic financial state to assist them in making a variety of economic decision. The quality of accounting information before them, therefore directors are constantly concern with  assessing the quality of their management and to effectively do this they have again to rely heavily on accounting information and statement.

         Accounting  information affect the way the society allocate resources and also how it distributes income. The aggregate economic development of a society has become a function of the quality of accounting information available to it. In the light of the above mentioned this research will try to:

1.To examine the weakness of the accounting information and the result and effect of this on the other sector of the economy.

2.To examine the concept of accounting information as indispensable economic factor.

3.To show in clean terms the need for accounting information as well as the contributions to meeting societal requirements.

4.To mention the extent to which accounting information has been able to adapt to the ever changing societal requirement.

5.To comprehensively highlight the role of accounting as a societal function, societal fund and accounting information as well as social issue in accounting.

6.To take on current method of and suggest further improvement of financial reporting.

1.5   SIGNIFICANCE OF THE STUDY

        Due to the global economic depression in general and the Ngeria depressed economic climate in particular, only the astute business manager will try. However for a business manager to be successful, he/she needs accurate and timely information to perform his/ her managerial function. Every individual business company or entity, engaging in economic activity is faced with several questions e.g what are the available assets or resources, what is the return or expected return of the funds invested elsewhere, etc? the answers to all these questions involves the rise of accounting information and therefore it’s  relevance can not be over-emphasized.

1.6   RESEARCH QUESTIONS FOR HYPOTHESIS

1.       H0: That the rapid progress of the organization could not be attributed to the level of decision made by the management staff.

H1: That the rapid progress of the organization could be attributable to the level of decision made by the top management staff.

1.       H0: that the accounting report is not an essential instrument in planning.

H1: That the accounting report is an essential instrument in planning.

1.       H0: That instrument of the accounting personnel could affect the accounting report of the organization.

1.7       RESEARCH METHODOLOGY

This as stated above is the techniques and strategy which the researcher concluded on to use in order to be able to carry out an objective investigation in an organized and efficient manner to help in decision making.

In this case, I had intention in my own study, to rather information through oral interviewing and questionnaire which shall be directed to the following classes of people with Haier Paterson Cussons Nigeria Plc.

1.         the management staff
2.      the technology staff
3.    shareholders

I also conducted relevant textbooks, magazines, write-ups, seminar papers etc.

1.9       SUMMARY OF CHAPTERS

Chapter one of this research work will centre on the general introduction while chapter two review the relevant literature which is the importance of Accounting information, concepts, principles of Accounting. The chapter three will focus on the methods used in this research work while chapter four will have to analyze and present the data accordingly. The chapter five of this research work will summarize, recommend and conclude the whole project then finally give you the references of the project research