THE ROLE OF ACCOUNTING INFORMATION FOR EFFECTIVE CORPORATE FINANCIAL REPORTING: A CASE STUDY OF FLOUR MILL OF NIGERIA

Nwanji, T. I. and Howell, Kerry E. and Faye, Sainey and Ben-Caleb, Egbide and Otekunrin, A. O. and Lawal, A. I. and Obadiaru, E.D. and Eluyela, F. D. and Ifeyinwa, S. D. (2020) THE ROLE OF ACCOUNTING INFORMATION FOR EFFECTIVE CORPORATE FINANCIAL REPORTING: A CASE STUDY OF FLOUR MILL OF NIGERIA. Journal of critical Reviews, 7 (19). pp. 5832-5847. ISSN 2394-5125

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Abstract

Financial reporting shows the state of affairs of the company at a given period using one year. The information from the financial statement enables users of the financial information to make an investment decision. Other stakeholder of the company relies on the financial statement to assess the performance of the company to make its own decision. The main objective of financial reporting is to provide excellent and sufficient financial information concerning economic entities, mostly financial, useful for economic decision making. This paper focuses on the role of accounting information for effective corporate financial reporting using Flour Mill of Nigeria as a case study. Data for the study were collected using a survey questionnaire and an annual report of the company. Using a mixed-method of analysis, we found that effective financial reporting to meet the users of the financial information. Our finding showed that prominent organisations like the Flow Mill of Nigeria benefit from effective financial reporting that meet on corporate governance regulation which providing confidence to the users of the financial report in making an investment decision. Our finding is in context with the literature on financial reporting and suggests that the organisation adopted the corporate regulation with an active audit committee perform better with a lower cost of capital and increase financial penances. Overall, the result from this study is in line with other studies that claimed that an effective financial reporting helps users of the financial information make an investment decision that will impact on the financial performance of the company.

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