Corporate Objective And Disclosure Of Accounting Data

1.0 Introduction

1.1 Background of the Study

The corporate objective of an enterprise can be said to be board or slome hold by a group of company dealing with out ward things, which are influenced by personal feeling or opinion. Also published accountings report are a means which an undertaken communicate information about its familial affair to interest individual or group of individuals. The report normally comprises the historical or balance sheet and profit and boss account but may include other statement such as found statement and for cast or profit or dividend.

The proprietors of a company are recognized in law being that person owning its capital. The capital divided into slare and stock and by arguing slonc, investor became shareholder as evidence of their legal title share hare transferable right and may be negotiated ether individual wishing to incorporate themselves for the purpose of caring and trade which are called promoter and to24 their responsibility to arrange for the process of incorporation this involve lodging a number of document with the register of companies and paying the require fees.

The two most important document are the memorandum of association which defines the power and objective of the comparison, and article of association which contain the rules for its internal regulation. The names, objective and capital clauses are found in memorandum of association

Once share have been issues, they become the property of individual investor who have accursed them and these investor are free to sell their share to anyone. The sale price to negotiate between the buyer and the seller and the dead may be affected through a stock if the shame are quoted share. The seller transfers his share formally to the buyer by noties to the company and the buyer is registered in the registered share holder as the new share holder. Share transfer in this way one known as registered share. An alternative type of share holding, which is resisters by law in same countries is know as a bearer share which does not need to be registered in the registered of shareholder consequently bearer. Shares are transfer rabble by hand

A company receives only the issue of a share and the legal effort of share holding is to grant ownership rights in respect of the farction of capital represented by the share and right to receive the appropriate perform of corporate net profit distribution in the form of dividend. Companies usually retain a portion of net profit for investment and distribute the balance as dividends.

The distinction between ownership and management is one of the most distention featime of corporate activity. As owner share holder may be considered and having ultimate control over the activities of the company through their right to appoint directors

Once appointed director exercise day to day control of the company affairs and although they are accountable to share holders, the diffusion of share among many shareholders, usually place direct in a very strong position. Although they are treated as statement of corporate asset on behalf of shareholders, the affective power to make decision of major importance in respect of those assets lays almost entirely in their hands.

Social changes is attacking the traditional method of regulating corporate objective of an enterprises in a number of ways

First the reorganization of the right of employee to share managerial responsibility is an important feature of the democratization of corporate control. Employee participation in the management of companies in an explicit admission that the interests of employee are as important as those of shareholder.

Secondly, the concept of social responsibility which broaden the classical nation sterorship as definition of function of director to include a responsibility to all section of society having an interest in the activities of corporaty enterprises.

This consumers as well as the local community are including in the group of those having a rested in the nation of corporate activities.

1.2 Statement of the Problem

The decision to undertaken an impact of corporate objective and the disclosure of accounting dta as a problem to study could be made under the imperfect knowledge of this following factors: given the increasing complexity and detail of report information with more emphasis on greater disclosure of accounting data like to know to whom a corporate financial report should be directed to the information and adoption of incorrect criteria for measuring the efficient of an enterprises the management of existing shareholders wealth the content of financial statement.

1.3 Objective of the Study

The study seek to elicit readers about the shareholders understanding of the corporate objectives and the disclosure of accounting data and as such the following are the and of this study.

First, I attempted to find out the classic objectives of bossiness enterprises which are assumed to be the maximization of existing shareholder wealth.

Secondly, I endeavoured to find out and study the welfare of the economy"s, shareholder, have been pursued and their information needs to describe in volition from their holder of the financial abst.

Thirdly the formulation and adoption of incorrect criteria for measuring the efficient of the management of the form and the rationality of their decision, and finally I try to find out to know whom corporate financial report are directed to

1.4 Significance of the Study

The study is relevant because it will expose the general data requirement of an ordinary commercial company. A corporate report is a package of information which describe the economic activities of an organization such as a limited company, it include the financial statement (Balance sheet and profit and loss account e.t.c)
The following characteristic of useful information identified for corporate report to contain

Comprehensibility

Reliability

Relevance

Objectivity

More also, the following provision must be complied with as regards disclosure in the balance sheet

Loan advance

Deposit

Other investment

1.5 Scope and Limited of the Study

a. Scope:

This project is carried out with in a manufacturing company breweries of 7up, pepsi and mirinda

b. Limitation of the Study:

The limitations are grouped user the following contract.

І. Time:

Time is one of the major constrain militating against this project, the time of the time. I was too slort and because of the shortness of the time, I was able together information which does not have much effect on the out come of the study

�'�"�'�". Financial Constraint:

Financial is one the major limitation to the study in fact, the research sited the company for survey for quit a number of times before I could finally get good response from the company.

Unfortunately, it was during this project that the commercial drivers were charging exorbitant transport fare in the city

�'�"�'�"�'�". Lack of good accounting system and adequate information:

This another constraint, company is yet to install proper accounting system and by this the account could not required information for this study.

1.6 Definition of Terms

Accounting:

Is the skill or practice of keeping and preparing business account or the recording of the financial transactions of a business in such a methodical manner that information on any point in relation to the tramsection be quieckly obtained.

DATA:

This are series of observation measurement or fact information which are gathered in an organization or in finding of any project

Accounting Data:

Is the skill or practice of keeping and preparing business account through series of observation measurement or fact and information gathered in an organization.

Promote:

Is any person or individual wishing to incorporate themselves for the purpose of carrying or trade, or help toward or move up to a higher rank in an organization.

Shareholder:

This are risk bearer in a company if the company is prosperous they are given large amount of dividend if the company did not make a profit, ordinary share holder get no dividend, they have control over the activities, of the company through the right to appoint directors

Enterprises:

Is the entry into a bold or difficult undertaking or bold sprit run by individual that is involve which can

Private enterprise

Public enterprise

Bond:

This are bound, a committed certain or tied in a business of an organization.

Capital:

This one money stock, funds or good or asset used in establishing a business, or amount ith which the company proposes to start business.

Involve:

Those are individual or group of people who law out (money, tome effort) for profit or advantage and once share have been issued. It become the properties of individual investor who have acquired them and they are free to sall their share to anyone.

Ordinary Share:

Is a unit in the capital student of a company which the shareholder in a company share. A great majority of enterprenure or investor stake their fortune in the comapany through share.

5.0 Summary, Conclusion and Recommendation

5.1 Summary

The consequence of this write up is based on the share holder interest that corporate goals should be compatible with the goals of an efficient capital market.

Argument has been made on the pursuit of maximizing goals of the current disposal value that it may at times lead to attitudes and decision inconsistency with the goals of a n efficient capital market and therefore inconsistent with the interest of efficiently diversified share holder .

The capital evidence firmly support the market efficiency in immediately absorbing all information published and indicate that of the many potential uses are not the company shareholder but stock exchange jobbers and other sophisticated information processors. The primary purpose of providing them with these information that they require is to allow them do their function of establishing market price, which approximate as nearly as possible to the intrinsic value of security with the dual effect of reliving shareholder of the burden of ascertaining , whether prices are over or under valued and of helping to direct the efficient allocation of funds to the most profitable uses.

By disclosing all information, that are relevant to participation in mentioning in mentioning management, share holder interest are better sewed .

The purpose of this study is to present a case may specific disclosure or amendment to current accounting practices such as forecasting of profit and price level adjusted statements.

5.2 Conclusion

Conclusively, it is in the best interest of share holder that information should be pass ed to the most efficient information processors in the market .it follows that the scope and complexity of information that have been disclose should not be circumscribed by any pre -conceived notion of the limited capacity of shareholder to assimilate and process the information disclosure be contained by management effort to provide a set of articulated statement which propose to encapsulate a measure of the firm"s efficiency and the value of it economic resources o the firm"s efficiency and the value of it economic resources in a certain from and in compliance with the requirement of law and the best accounting practices.

Those who make use of financial reports, may and it . Necessary to make their economic based decision to view the company from a number of perspective, for example, The historical cost of the company"s resources before and after some adjustment for exchange in money"s purchasing power value of those resources , their replacement value and even the cash flows that have and they are expected to generated.

The relevance of information cannot be over emphasized and cannot be ascertained by some prior principle but by identification of the need of those who are recognized to be very efficient processor of accounting information. Its is laid down that with holding any information relevant to those needs is contrary to shareholder interest, expected if the information interest, expect, if the information may concede or create a material advantage to competitors or conflict with legislate internal goal - setting budget these consideration apart , only the fear of litigation remains to hinder management from returning beyond the minimum standard of disclosure especially if the count award damage against those found to be negligent in audit or financial report , preparation . Finance, to promote. The quick allocation of resources by improved quality of publish information are too important to be restricted by fears of in appropriation penalties obtained.

5.3 Recommendation

Despite the immense contribution of the corporate objective and disclosure of accounting data, the conflict is noted between the corporate financial operating objective and corporate reporting objectives of maximizing shareholder wealth because share holder are risk bearer of the company fund. There should be wisely maximization of profitability.

Management should be honesty use and responsible to the resources used and there is need for the settle conflict among the top management . The publication of disclosure of accounting data of the firm must be disclose at the end of the financial year of operation to the users of the accounting information and the general public. Also to be accurate as possible with the time limited.

There should be effective in the monitoring of the competitor so for the company product to remain longer in the market and put a good internal control system particularly staff training which well assist a lot in their skill which will be at advantage of the company.

The company should make a proper research on the product available as this well reduce interception in the organization operation.

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