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Effect Of Published Financial Statement On Shareholder Investment Decision
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The corporate report published in 1994 by a working paper setup by
Accounting Standard Committee (ASC) to be reexamined the scope and aims
of published financial reports identified seven user groups to include:
1) The equity – investors group
2) The analysis – advisory group
3) The employee group
4) The creditors
5) The business contact group
6) The government and its agential
7) The public
Bell
(1998) identified (15) fifteen information needs of users of financial
statements, which art concisely summarized here as the financial need of
shareholders in the published financial statement of any business
entity. These includes information for
(a) Evaluating the performance of the entity.
(b) Assessing the objectives established previously by its management members or owners.
(c) Evaluating managerial performance, efficiency and objectives including employment, investment and profit distribution plans.
(d) Assessing the liquidity of the entity.
(e) Assessing the economic stability and inevitability of the reporting entity.
(f)
Assessing the capacity of the entity to make future realer nation of
its resource for either economic or social purposes or for both.
(g)
Estimating the future prospects of the entity which respect to dividend
payment remuneration and other cash outflows and predicating future
levels of investment, production and employment.
(h) Predicting, compressing and evaluating potential cash flow
Guinness
Nigeria is a Nigerian Brewery founded in 1962. It engages in brewery,
packaging and marketing of spirits, wines and beer in Nigeria. It offers
its
products under Guinness Foreign Extra Stout (1962) Guinness Extra
Smooth (2003) Malta Guinness (1990) Harp Lager Beer (1974) Gordon’s
Spark (2001) Smirnoff Ice (2006) and Satzenbrau (2006).
The company
was incorporated in 1950 and it’s headquartered at 24 Oba Akra Avenue
Ikeja industrial estate, Ikeja Lagos Nigeria. Guinness and unlevered are
the main shareholders, although some of the shares are locally owned.
Guinness Nigeria plc is a company that believes in enriching its
community. This it has achieved by embarking on laudable corporate
social responsibility projects in several communities. In Nigeria these
projects are water of life initiative, which currently provides potable
water of over 500,000 Nigerians spread across several rural communities
from Northern to Southern Nigeria.
The company was listed in exchange
market in the year 1965, with its managers/ directors. Engr. (Chief)
R.A. Alabi, OON (Chairman) Mr. N. Blazquez (vice chairman) Mark R.M.
Taylor (MD/CEO) and B.A. savage (OMD) of Guinness Nigeria Plc, and so
many other staffs.
The company’s registrars is union registrars
limited 2, Burma Road Apapa Lagos. And there end of accounting year is
every 30th June of every year as the case maybe. The company has four
branches in Nigeria so far, they have been to grow their turnover at
average ratio of 20.7% per year over past five years and they are
currently on track to overtake their turnover for the 2011 full year.
Based on this result the return on equity improved from 0.17 to 0.31,
this leads to an estimated full year return on equity of 0.60. They have
a current ratio of 1.56 and a quick ratio of 0.98.
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