Description
Overview and application of accounting policies and its effect on shareholders’ investment in public liability companies – case study of Beta glass plc, Ughelli.
Abstract
This research project was designed to look into the problems and prospects associated with choice implementation and disclosure of accounting policies in public liability companies in Nigeria and its relationship with shareholder investment and the returns on such investments. This study was prompted by the fact that corporate disclosure is an inevitable activity such that the need to render a true and fair view of financial statements by management of resource owners (shareholders) who have entrusted them with limited resources. The literature review analyzed the stages of department though corporate disclosure has undergone and the need to identify the most reliable accounting decision policies adopted by the firm. The possible disclosure techniques and what influences such disclosure techniques. The economic and political implication of accounting policy disclosures was also put into consideration. The research design used in the study involves the use of questionnaires and the policy statement of one sample of limited liability companies. A total of 20 questionnaires items was developed and 50 questionnaires were distributed to members of management and staff of the company. The responses were tabulated and data were analyzed using the simple percentage method and the chi-square statistical analysis for accuracy. The result of the analysis showed that there are problems existing in the disclosure of accounting policies as well as defined prospects. The analysis also showed that there is a direct relationship between the accounting policies developed and adopted by a firm and the return on investment of shareholders.
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