BUDGETING AS TOOL FOR PLANNING AND CONTROL IN A MANUFACTURING FIRM (A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC, ENUGU)
 
ABSTRACT
 
The increased complexity of the society and high level of competition in the business world has made it imperative for business organization to do serious planning and control in order to survive volatile business climate. This research work studied budgeting as a tool for planning and control in a manufacturing firm with particular emphasis on Nigerian Bottling Company PLC, Enugu. The main objective of this study was to x-ray the relevance of budgeting as tool for planning and control in manufacturing firm. And also to ascertain the effect of non-existence of budget on the performance of business organization. The methodology adopted were simple percentage and chi-square statistical methods to deduce general statement about the effect of budgeting on planning and control is relevant for the survival of manufacturing companies. Also, budgeting is a tool for measuring efficiency and performance in manufacturing firm. The recommendations put forward was that management of every organization should prepare budgeting and adhere strictly to the provisions of the budget. There should also be a regular and periodic review of the budget in order to detect variations. The research work will serve as a template to managers, entrepreneurs, creditors, and employees on how to effectively allocate scarce resources judiciously through budgetary planning and control.
 
CHAPTER ONE
 
1.0   INTRODUCTION
The success of every organization depends largely on effective planning and control. Planning and control are pre-conditions for the attainment of organizational goals. The objectives of organization are realized through a careful plan of action and control. Both public and private organizations are established for the purpose of achieving specific objectives. Budgetary planning and control are managerial functions responsible for setting specific targets or expectation to be met. Budgeting is not only a management planning device but also a basic accounting model for managerial control. In manufacturing firm, planning and control are used to set profit target, revenue, prices and cost.
Hence, planning is the process of deciding ahead of time, what a firm seeks to achieve and how it seeks to achieve them. Planning is future-oriented. Control on the other hand, is the evaluation of performance and the putting in place of corrective measure where necessary. Control seeks to compare plans with actual goal realized. Control entails restrain, supervision, safeguarding, checking or even to correct deviations.
 

• BACKGROUND OF THE STUDY

In a manufacturing industry, and other business organization, top or line managers are faced with problems of limited resources due to organization policies. Such policies may include income and expenditure policies, raw material utilization policy, purchasing policy, production policy, labour and time limit policies, it is viewed against the above mentioned background that the concept of budgeting as a tool for planning and control is pertinent. It is about making plans for future, implementation, and monitoring of activities to see whether it conforms to the plan.
Budget is thus, a formal expression of managerial plan in quantitative and monetary terms encompassing different phases of operation aimed at assisting management in the realization of organization’s objectives. Budgeting is a financial and quantitative interpretation, prior to a defined period of a policy to be implemented in order to achieve a given objective.
 
 

• STATEMENT OF THE PROBLEM

Generally, organizations are faced with limited resources and the allocation of scarce resources to meet competing needs. The problem bedeviling most organization is how the available scarce resources can be allocated effectively and efficiently to achieve organizational objectives.
The problem therefore, is most manufacturing firm do not appreciate the relevance of budgetary planning and control for its survival.
Another glaring issue is the attitude of employees toward budget implementation. Budgeting may create a sense of confusion, frustration, suspicion and even hostilities within organization because employees regard the goals of the organization as alien to their individual goal.
Most often, government establishment feel that budgeting is a mere paper work that can be toyed with, thus, most management executive do not adhere strictly to the budget or implement it religiously. While many private firms feel that there is no enabling law binding on them to prepare a budget. This often makes them to operate without a formal budget.
 

• OBJECTIVES OF THE STUDY

The objectives of this study shall include:

• To ex-ray the relevance of budgeting as tool for planning and control in manufacturing firm.
• To ascertain the possible effect of non-existence of budget on the performance of business organization.
• To create an opinion as to whether budgeting is actually an effective tool for profitability planning and management control.
• To ascertain the extent to which budgetary planning and control aid management in decision making.

• RESEARCH QUESTIONS

The following research questions are formulated for the study.

1. To what extent does the private sector appreciate the relevance of budgetary planning and control?
2. What is the attitude of employees towards budget implementation?

• How can budgeting be used as a performance evaluator?

1. What are the problems involved in the implementation of budget?

• HYPOTHESIS FORMULATION

The success of this research work depends on the formulation and testing of hypothesis and the drawing of conclusions from it. The hypothesis is as follows:
 
HYPOTHESIS I
H_o:   Budgeting is not a tool for measuring efficiency and performance in manufacturing firm.
 
H_i:    Budgeting is a tool for measuring efficiency and performance in manufacturing firm.
 
HYPOTHESIS II
H_o:   That successful business organization does not make use of formal budget as management tool.
 
H_i:    That successful business organization make use of formal budget as management tool.
 
HYPOTHESIS III
H_o:   Effective budgetary planning and control is not relevant for the survival of manufacturing companies.
 
H_i:    Effective budgetary planning and control is relevant for the survival of manufacturing companies.
 

• SIGNIFICANCE OF THE STUDY

The significance of this study is that if the aforementioned objectives are achieved, this research work will enable managers and employees of organization to appreciate the relevance of budgeting as a control tool for performance evaluation and measurement.
The study will also aid top management of business organization to work out effective strategies to surpass corporate failure.
 
 
 
 
Resources to competing alternatives in order to meet organizational goals, small business will be able to evaluate performance and correct deviation where necessary.
 
 

• SCOPE OF THE STUDY

This research work shall focus on the “relevance of budgeting as tool for planning and control in manufacturing companies”.
In carrying out this study, the researcher focused attention only on a particular manufacturing firm, even though, there are many others. In Nigeria since the searcher could not visit all the manufacturing firms, he limited the scope of his study only on Nigeria Bottling Company, Enugu.
The decision to study the relevance of budgetary planning and control about Nigeria Bottling Company was borne out of its international outlook. It has gained goodwill in its operating environment in spite of the notable nature of Nigeria’s economy; it has been surviving for many years amidst many competitors. Therefore, references to any other business organization are just for the sake of clarity and emphasis within the scope.
 

• LIMITATION OF THE STUDY

In the course of carrying out this research work, the researcher encountered a lot of hurdles. Many organizations are not willing to disclose detail information relating to their business operations. This affected the collection of reliable information.
Financial constraint also affected the researcher since much is needed for transportation and the procurement of materials.
The time frame was not also enough to complete a research of this magnitude since the researcher was also involved in his course work, and other official work.
 

• DEFINITION OF TERMS

1. Budget: A budget is a plan quantified in monetary terms prepared and approved prior to a defined period of time, usually showing planned income to be generated and expenditure to be incurred during that period and the capital to be employed to attain a given objective.
2. Budgeting: This is the process of making future plan of action formulated by management for the whole organization or a section, expressed in monetary terms.
3. Budget manual: Budget manual is an instruction or information manual about the way budgeting operates in a particular organization and the reasons for having budgeting.
4. Planning: Planning is the selection of short and long term objectives and the drawing up of tactical and strategic plans to achieve those objectives.
5. Efficiency: This is the minimum cost of input required to produce a desired amount of output.
6. Effectiveness: This is the extent to which actual performance compares with targeted performance.
7. Economic Order Quantity (EOQ): This is the size that minimizes the sum of carrying and ordering cost.
8. Cost Centre: This is any location, person or items or equipment for which costs may be ascertained and used for the purpose of cost control.
9. Profit: This is the difference between revenue and cost.

AUDITOR’S ROLE IN SAFEGUARDING THE GOING CONCERN CONCEPT IN NIGERIA
                                                         
                                                          ABSTRACT
This study dealt on Auditors role in safeguarding the going concern concept in Nigeria. The burden of preparing the financial statement lies with the director, the auditor is required to report on these financial statements. A lot of people have failed to understand that the role of an auditor is not to detect fraud or error but the key role of an auditor is to “examine the financial statement prepared by the director of the company and report on it to shareholders. This study sought to investigate the relationship between the role of an auditor and the going concern of the company, to assess the effect of Auditors beneficial shareholdings on the credibility of audit report, to ascertain the effect of auditors non audit engagement services on the credibility of external audits, to examine the impact of non-compliance with audit rotation policy on audit performances. In achieving this objective, a number of research tools were employed both the primary data and the secondary data. The research did not limit herself to a particular audit firm in a state, indefinite statistical formula was used and the five hypotheses was tested using the chi-square. The result drawn from the tested hypothesis reviewed that there is a relationship between the role of an auditor and the going concern concept, auditors’ beneficial holding affect the credibility of audit report, there is significant relationship between auditors engagement in non audit services and the credibility of external audit, here is a strong correlation between non-compliance with audit rotation policy and audit performance. It was therefore recommended that the big four audit firms in Nigeria should be used for further study.

AUDITORS’ LIABILITIES TO ORGANIZATIONS AND SOCIETIES IN GENERAL

 
ABSTRACT
The belief that whenever an auditor is engaged with any business organization, the objective(s) of such organization are likely to be achieved, seems not to stand the test of time, considering the rate of business failures and the inherent loss of economic resources resulting from such failures by the stakeholders.
Financial statement is one of the tools which companies employ to present and ex-ray their performance or position over a period of time. It is the duty of Auditors to examine these financial statements and ensure that what companies claim to have, really exists. Stakeholders place their reliance upon these audited statements for their economic decisions. Surprisingly, some of these financial statements that have been reported to have shown a true and fair view and complied with relevant statutes by an auditor, turns out to be a reverse.
It is on the premise of the above, that this research project was set out to actually position. Those factors, which are responsible for the unreliable reports that subsequently lead to business failures, have been unraveled. The researcher also went ahead to portray the impact of these unreliable company financial statements in economy and the possible panacea.
Primary and secondary sources of data were employed, questionnaires were served to company Directors, Financial controllers and senior Accountants engaged with the selected organizations. These companies are manufacturing industries, financial institutions and trading concerns that prepares annual financial statement. On collection of the information (data) from the respondents, they were analyzed using tables, percentages, bar charts and chi-square (X²).
Discoveries were made at the end of the study as follows: That business organizations don’t achieve their objectives with the engagement of auditors, irrespective of the fact that these auditors certify the financial statement after a thorough examination. This unreliable report from corporate  auditors goes a long way in misleading the shareholders, government and the entire society leading to the rampart business collapse in the recent time. It was also discovered that the non-independent of auditors and their dual role (e.g. being financial adviser and auditor at the same time) to a company, influences them to give a misleading report.
After the above findings, recommendations were made, thus: Different arms of the law, including Banks and other Financial institutions Board (BOFID), Companies and Allied Matters Decree (CAMD), According  Professional Bodies and other regulatory agencies should step in through educating all the concerns, instituting monitoring teams that will ensure compliance to all the laws enacted.
These steps if followed, will no doubt, restore reliance and accountability in relation to the company financial statements in one hand, and the auditors’ report in the other hand
 

CHAPTER ONE

• INTRODUCTION
• BACKGROUND OF THE STUDY:

The origin of auditing is as a result of the separation of ownership from control. It is instituted to protect the interest of the owners by ensuring that financial statements are justifiable. Because of the separation of ownership from control, it becomes necessary of those managers entrusted with the owners of financial and economic resources to present their financial reports to their employer. The reports presented might contain errors, omission, and frauds or even refuse to disclose relevant information. For these reasons, the owners may hold some reservations about the credibility of the managers’ reports.
For the owners to be satisfied and even for the managers to be justified to establish and maintain their integrity, it becomes necessary to invite an independent party, one who is not involved with either party to examine the reports for the purpose of expressing an opinion as to the truth and fairness of the reports. The independent party’s duty is not just mere examination of the accounts from which the financial statements were prepared, rather, it include collection of all relevant information thought necessary to satisfy section 360 (3) of companies and Allied Matters Decree (CAMD) 1990. It is obvious that the owners may not be skillful enough or have time to go through this reports in order to assure themselves that the report presented contain no errors or omissions. This independent party is known as AUDITORS or professional accountants. They go extra miles in order to ensure that the financial statement contains no errors, omissions or frauds or where it exists, they detect it. These become their statutory duties or liabilities to organization that invited them.
In the past, investors rely solely on the advice given to them by their financial consultants rather than analyzing the financial statements by themselves. Today there has been a great change on that direction. Many stakeholders including the Government focuses on the financial statements as one of their most reliable source or instrument of assessing the viability or otherwise of companies. Below are some of the interested parties:

1. Owners or share holders of companies
2. Creditors and debenture holders.
3. Employees of organizations
4. Government agencies
5. Accountants and
6. The general public

One question which these managers seem to ask when they report to the owners is: can the owners believe the report? Since the report may contain errors, non-disclosure of frauds, and some omission, thereby  misleading.
The panacea to this problem of misleading financial statements lies in appointing independent auditors to investigate the accounts and reports. It is therefore the responsibility of these auditors to ensure that they discharged their duties according to the law. Since it is a liability on the auditors, they should exercise reasonable care and skill to enable them form an unbiased opinion based on their findings.
Auditors are liable under different laws: the common law; the civil law; and the criminal law.
 
1.1.2  Under Common Law
The general presumption is that any one who is under obligation to exercise care and skill (whether imposed by specific contract or otherwise) must exhibit a reasonable level of care and skill that will conform with the general standards of that particular trade. Failure to exercise such care and skill will render a person liable for damages for any person to whom such duty is owed.
 
1.1.3  Under Civil Law
          Under section 368(1) of CAMD 1990, a company’s auditor must exercise all such skill and diligence, as is reasonably necessary in each particular circumstance. Where a company suffers loss or damage as a result of the failure of its auditor to discharge the fiduciary duty imposed on him as set out above, the auditor shall be liable for negligence and the directors or members can institute an action against him for negligence.
For a company that is in the process of winding-up the auditor may be held liable as an officer of the company and if found guilty of misfeasance, he may be required to contribute to the extent of the loss arising from his breach of trust.
 
1.1.4  Under Criminal Law.
          The auditor may be found criminally liable in the following circumstances:

• If he willfully makes a statement which he knows to be materially false.
• If he publishes or allows to be published a statement which he knows to be false or misleading.
• If he makes a forecast which he knows to be misleading with a view to inducing someone to enter into an agreement.

There are many situations where some reckless auditors fail to comply with the above laws, their fiduciary duties and responsibilities, and consequent upon that, held liable. It may be interesting to sight some of these cases.
 
1.1.5  Arthur Anderson v. Enron (2003).
Enron, an energy company in America indicted Arthur Anderson – the 5^th rated world leading Auditing firm also in America on March 14^th, 2002, for satisfying a misleading financial statement prepared by Enron staff without reporting the discrepancies to the shareholders. The charges include:

1. Shredding documents relating to Enron.
2. Failure to report to the shareholders the main disclosure of some subsidiaries of Enron in the financial statement which he audited;

• Failure to report to the shareholders the non provision for contingent liabilities in the same statement; and

1. Outright destruction of an account, which he audited when the matter is already under investigation.

Similarly, the same Andersen was made to refund one hundred and thirty million dollars ($130M) for a questionable audited account by Waste Management Company also in America in 1990.
 
1.1.6  R.V WALICE V. STONE (1954)
It was submitted that stock and work-in-progress had been valued at a figure considered to be false, accepted an explanation by the managing Director of various alterations in the stock sheets without making any independent investigation, the auditor was convicted in respect of his having signed the report recklessly and was fined $ 299, or alternatively go to jail for six months.
 
1.1.6  RE-LONDON V. GENERAL BANK (1895).
          The Bank had advanced large sums of money to customers on securities, which were grossly inadequate. The interest on these loans were ordinarily credited to the profit and loss account but were never realized. Had adequate provisions been made, the profit and loss account would have shown a loss. The auditor failed to report to the shareholders, the fact that the financial statements are not properly drawn-up. On liquidation, an action was brought against the auditor for negligence and was held liable.
THE COMPANIES AND ALLIED MATTERS DECREE (CAMD) 199-, SECTION 360
This decree gives all the companies in Nigeria, the guideline for their operations. It also went further to stipulate the duties and rights of auditors. In section 360 (1) it stated that their duty is to investigate all the records to enable them give their opinion. In section 360(3) it also state that they should state their findings after investigations .Section 360(3) gave them rights of access to all the documents and information of the company which they are auditing . Section 368(2) stipulated the fines or charges to any auditor who deviates from his responsibilities, and so on.
Cases of the above nature are not exhaustive but only to serve as a deterrent. Different arms of the law have codified the duties, rights, responsibilities and liabilities of auditors such that it becomes embarrassing for any person who held himself out as a professional auditor to deviate from the laws. However, in such an attempt, such an auditor may be made to bear the consequences.
 
1.2     STATEMENT OF THE PROBLEM
The liability of an auditor appointed by the owners or shareholders of any organization is to ensure that the financial statement prepared from the books and records of that enterprise portrays the actual position of that entity. It is also the auditors’ liabilities to report to the owners of the business whether the financial statement  show a true and fair view of that organization and also comply with the relevant laws, these  liabilities / duties are spelt out by an Act governing the activities of companies in Nigeria. The Act is known as Companies and Allied Matters Decree (CAMD) 1990. Section 360(1) stated their duties as to investigate all relevant books and documents to enable them give an unbiased opinion. Section 360(3) gives them their rights of access to the documents, while section 368(2) gave enough clue as to what might be their punishments when they go astray.
In view of these facts, there is a popular belief that with the appointment of an auditor in any business organization, the objective (s) of that enterprise, to a great extent, may be achieved. This belief however, appears not to stand the test of time since an auditor is supposed to be a watch-dog, considering the rate of business failures irrespective of the presence of auditors in many business organizations today.
Since the engagement of auditors in business organizations seem not to bring about achievement of organizational goals, one may begin to enquire as to, what might be the cause of such anomalies; whether the cause could be that some auditors are not qualified before going into practice or that some of them are influenced by the managers for selfish interest. More still, whether they exercise enough independence or not well remunerated. The writer argues that none of the above factor is enough for an auditor to compromise his integrity and repute. For an auditor to certify a financial statement which might contain some errors, omissions or even frauds, thereafter misleads the owners of the company and the interested public is a serous offence that demands adequate punishment.
This study is therefore commissioned to investigate the cause(s) of the aforementioned problem. It is also the intension of the researcher to seek for the solutions and thereafter offer some recommendations based on the findings.
 
1.3     OBJECTIVE OF THE STUDY
          With the perception that some auditors do not discharge their responsibilities as required by the law and that some company directors and staff may sometimes prepare a faulty financial statement, thereby misleading the owners of businesses and societies in general contributing to the failures in businesses in the recent time, the objective of this study among others are:

1. To evaluate the performance of auditors in carrying out their statutory duties.
2. To identify the duties and rights of auditors under the law.
3. To determine the extent of independence which auditors exercise in their duties.
4. To ascertain the perception of auditors Vis-à-vis the liabilities and the relevant punishments.
5. To evaluate the appropriate penalty that can be metered to erring auditors.
6. To determine to what extent can the deviation of auditors from the norms, could contribute to business failures.
7. To determine the extent of reliance which the owners of businesses and societies place on auditors.
8. To see whether these financial statements could actually contain some errors, omission or frauds and what factors may influence the perpetrators.
9. To finally make recommendations, based on the research findings, on how to ensure the independence of auditors, and thereafter ensure that the users of financial statement can rely on them.

 
1.4     SIGNIFICANT OF THE STUDY
This study is primarily designed to identify the duties and rights of auditors in relation to financial statements- prepared by the directors of companies. It will also help to clarity the penalties to the auditors who may deliberately or recklessly give a false impression on the financial statement, which they audited. It will at the same time discourage those auditors who may deviate from the independence [as the major trait in audit] and dance to the tune of management for selfish interests.
Furthermore, the shareholders and other potential investors will henceforth rely on the reports issued by the auditors. The auditors would realize the extent owners of businesses and societies in general place on them and ensure that their integrity is not brought down.
The government and all its agencies, the societies and all stakeholders will assure themselves that their investments and interests are well protected. Finally the investment environment would be stable and crises free. Furthermore, the already disenchanted investors and the society in general will have a course to smile.
 
1.5     SCOPE/LIMITATION OF THE STUDY
          This study is primarily directed to company auditors, the owners or shareholders of business organizations, senior employee of various organizations, Government owned companies and the society in general.
The study is expected to research through different business organizations like: Manufacturing Industries, financial institutions and trading concerns established throughout Nigeria but owing to various constraints including time and financial resources, it would be narrowed to Enugu and Anambra states respectively.
Un-co-operative attitude from the company employees, who may not want to given out information (for fear of implication) could be a serious constraint, but the researcher is of opinion that with his wealth of opinion such hindrance may be insignificant.
 
1.6     HYPOTHESIS
It is the belief of the researcher and the general belief that with the appointment of an auditor in any business organization, the objective(s) of that organization may be achieved. The purpose of this study is therefore to establish whether that general belief is true or false. So many factors may be responsible for this belief. Some of these factors are stated below:

1. Auditors are specifically trained to assist business organizations with a view to achieving their goals.
2. Auditors are statutorily supposed to work independently.

• Auditors appreciate the extent of reliance being placed upon them by business owners, Government and the societies.

1. Punishment awaits any auditor who may deviate from his statutory responsibilities.

Hypothesis will be formulated such as to uphold or reject the general belief that with the appointment of an auditor in any business organization, the objective(s) of that organization may be achieved.

Formulation of hypothesis

HO:   Business organizations achieve their objective(s) when an auditor is engaged.
H1:    Business organizations don’t achieve their objective(s) when an auditor is engaged.
If the Null hypothesis (Ho) is upheld from the data collected, the Alternative hypothesis (H1) is therefore rejected.
Where the Null hypothesis is rejected, in which case, the alternative hypothesis is accepted, whichever may be the case, the prospects of statutory auditors engaged with business organizations, analysis would be carried on that in subsequent studies.
 
1.7     DEFINITION OF TERMS
 
LIABILITY
Liability is something for which one is responsible for, especially by law.

AUDITOR

An auditor is a person who examines the financial statement with a view to expressing an opinion as to whether these statements give a true and fair view and comply with the relevant statutes.

FINANCIAL STATEMENT

          Financial statement is the summary of the financial transactions of an organization for a given period, for example, one year. It is prepared from the documents and records of a financial nature of that organization.
TRUE AND FAIR VIEW.

1. True: means consistent with the relevant facts. It is a matter of facts and not subject to judgment or opinion.
2. FAIR: This definition is imprecise as it involves a number of thoughts, and can only be defined under the following headings:
   • Expectation: Any user of financial statement for instance, has a reasonable expectation that it should conform to generally accepted accounting principles.
   • Relevance: from the point of view of a reader (financial statement), fair implies that the view given by the financial statement is relevant to the information needs of the user.
   • Objectivity: The user considers the financial statements by reference to externally verifiable facts. Such verifiable facts are the existence of specific assets such as cash. Debtors, stocks, etc.
   • Freedom from bias: The reader assumes that the producer of the financial statement does not have any personal bias.

INDEPENDENCE
This means freedom from any bias. It also implies an objective opinion without any pressure from all angles against the auditor or whoever may be in such position.

SHAREHOLDERS

The shareholders are the owners of business organizations and other potential investors.
FRAUDS
          Frauds exist when officers of a given organization collude among themselves or with the third parties to do away with the cash or other assets of that organization

ABSTRACT
This study was conducted to ascertain the role of accountants and auditors in checking distress in Nigeria banks. To achieve this objective, the following Nigerian banks were used as study areas before their acquisition by more viable banks- Intercontinental bank, Oceanic bank, Afribank and Bank PHB. Primary data were collected by using validated questionnaires and secondary data collection was by oral interviews and examination of some bank documents. Two hundred and fifty questionnaires were distributed among staff of the aforementioned banks in Enugu State and thereafter, two hundred and  thirty-five of the returned questionnaires were valid and were subsequently subjected to descriptive statistical analysis to ascertain the roles and involvement of auditors in distress in Nigerian banks in line with the elements of the questionnaires. Analytical statistical tools such as means, standard deviations and percentages were used for the analysis. Chi-square and Student t-test were used as the major statistical tools for testing the hypotheses and comparing mean values. Result of the study indicated that there were collusion between accountants/auditors and management and there is aiding and abetting of management by external auditors to commit fraud. It was also found that there is gross negligence and improper performance on the jobs by accountant/auditors and in some instances, accountants/auditors are gagged by management and directors. Experience of accountants/auditors was also found to play a significant role in the quality of report submitted.
The major conclusion of this study is that auditor’s reports presented for distressed and failed banks fulfilled only the letter of the law. It is thus recommended that the law should be amended to make auditors criminally liable for negligent performance of duty in addition to the current civil liability.

ASSESSING THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY OUTLAY ON FINANCIAL PERFORMANCE OF SELECTED MANUFACTURING COMPANIES IN NIGERIA

ABSTRACT
 
This study explores the impact of Corporate Social Responsibility Outlay on Net Profit Margin, Return on Assets and Return on Equity of manufacturing companies quoted on the Nigerian Stock Exchange. The study embodies a survey in which data were generated from Annual Reports of selected manufacturing companies in Nigeria. The Annual Reports and the hypotheses were statistically analysed using simple regression analysis. It was found that CSR has a positive and significant impact on the Net Profit Margin (a = 0.008, p =0.005< 0.05), Return on Equity (a=0.004, p=0.01<0.05) and Return on Assets (a = 10.64, p = 0.03<0.05) of the manufacturing companies in Nigeria under study. This implies that, to an extent, CSR influences the Net Profit Margin, Return on Equity and Return on Assets of the manufacturing companies under study. The study concluded that, regardless of the harsh and unfriendly business environment in which the firms operate, companies that are socially responsible continue to flourish, partly as a result of CSR activities yielding its return. Finally, the study recommends that CSR should be given great attention and more commitment from manufacturing companies in that it brings about increase in financial performance.
CHAPTER ONE                                                     
INTRODUCTION
 
1.1       Background to the Study
The performance of business organisations is affected by their strategies and operations in market and non-market environments. Hence, there is a debate on the extent to which company directors and managers should consider social and environmental factors in making decisions. In essence, Corporate Social Responsibility (CSR) may be described as an approach to decision making which encompasses both social and environmental factors. It can, therefore, be inferred that CSR is a deliberate inclusion of public interest into corporate decision-making, and the honouring of a triple bottom line which are People, Planet and Profit (Harpreet, 2009). However, CSR has been defined in various ways. Majority of these definitions integrate the three dimensions: economic, environment and social (Mirfazli, 2008). According to him, the triple bottom line is considering that companies do not only have one objective-profitability but that they also have objectives of adding environmental and social values to society.
CSR has been defined as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (GreenPaper Promoting a European Framework for Corporate Social Responsibility, 2001). Helg (2007) also defined CSR as the set of standards to which a company subscribes in order to make its impact on society.
McWilliams and Siegel (2001) stated that the definition of CSR was not always clear, and they define CSR as actions that appear to further some social good, beyond the interests of the firm and what is required by law. A modern concept of CSR states that the business enterprises that are in their usual process of business decision making, should pay due attention to the social interests of the hosting community. A company is not only an economic entity but a social and political entity also. Most of the decisions taken by the companies not only affect the stockholders but also the creditors, debtors, employees and the society at large in one way or the other (Kapoor & Sandhu 2010 as cited in (Uadiale & Fagbemi, 2012).
 
A wide variety of definitions of firm’s performance have also been proposed in the literature. Both accounting and market definitions have been used to study the relationship between corporate social responsibility and firm performance (Orlitzky, Schmidt & Rynes  2003). However, since most social responsibility scholars seek to understand the ways that socially responsible corporate activities can create or destroy shareholder wealth, market definitions of firm performance seem likely to be more appropriate than accounting definitions of firm performance in this context (Margolis & Walsh, 2001). Today`s competitive and dynamic market environment has created new sets of challenges for any business which are not related to economics only. To survive and prosper, firms must bridge the gaps in economic as well as social systems. Maximizing shareholder`s wealth is an every time essential but fulfilling that condition alone is no more valid in measuring financial prosperity (Senarante & Wijesinghe, 2011).
 
This study was undertaken with a view to assessing the impact of CSR on the financial performance of manufacturing companies quoted on the Nigeria Stock Exchange.
1.2       Statement of the Problem
The past two decades have witnessed a remarkable change in the way businesses are operated and managed, with the quest for excellence and all-round growth. The pursuit of financial growth does not always lead to social advancement, and is often detrimental to the environment, resulting in unhealthy workplaces, exposure to toxic substances and urban decay and, sometimes, death of the populace due to inhalation of toxic waste (Shehu, 2013). Societal conflicts arise due to the concern of host community of manufacturing companies over negative and potentially negative effects which businesses bring to the community. Managers and practitioners are often criticized for being single-minded about value maximization. The turn of events has pressurized firms to put serious efforts into a wide range of Corporate Social Responsibility (CSR) activities. CSR has become a critical aspect in strategic decision-making of companies primarily due to pressures from host community and a drop in investors’ confidence.
 
 
Series of arguments based on researches are found in literature as to the relevance or otherwise of CSR on the host environment, as there is no unanimous agreement on the subject matter due to peculiarities of different sectors and the variation in methodologies adopted by the studies. Some of the studies argue in favour of CSR, as it leads to profitability increments, societal and environmental stabilities (Freeman, 1984) and Donaldson and Preston as cited in (Amole, Adebiyi, & Awolaja, 2012). Others argue that it is a waste and unnecessary leading to diversion of company’s resources to projects that have no explicit bearing on profit motive. (Friedman, 1970) and Balotti & Hanks 1999 as cited in (Amole et al 2012). This stimulated the need to undertake a study of a specific sector in order to ascertain the consequential effect of implementing CSR.
In view of the above, this study assesses the impact of CSR outlay on financial performance of companies in Nigeria with special reference to manufacturing companies.
1.3       Objectives of the Study
The broad objective of this research study is to assess the impact of CSR outlay on financial performance of manufacturing companies in Nigeria. The specific objectives are to:

1. Evaluate the impact of Corporate Social Responsibility outlay on the Net Profit Margin of manufacturing companies in Nigeria.
2. Determine the effect of CSR outlay on Return on Equity of manufacturing companies in Nigeria.

iii.  Ascertain the effect of CSR outlay on Return on Assets of manufacturing companies in Nigeria.
1.4       Research Questions
This study is designed to yield empirical evidence that would be used to answer the following research questions;

1. To what extent does CSR outlay impact Nigerian manufacturing companies’ Net Profit Margin?
2. What is the impact of CSR outlay on Return on Equity of manufacturing companies in Nigeria?

iii.        To what extent does CSR outlay impact on Return on Assets of manufacturing companies in Nigeria?
1.5       Research Hypotheses
The following Research Hypotheses were formulated for the study:
i There is no significant impact of Corporate Social Responsibility outlay on Net Profit Margin of manufacturing companies in Nigeria.
ii There is no significant impact of Corporate Social Responsibility outlay on Return on Equity of manufacturing companies in Nigeria.
iii There is no significant impact of Corporate Social Responsibility outlay on Return on Assets of manufacturing companies in Nigeria.
1.6       Significance of the Study
The study should be of significance in the following ways:
It would assist government in settling conflicts and disputes between companies and the hosting environment.
The study should serve as a reference point to those that want to research further into the area. It would enable them have more insight into the subject under study.
It would assist government in settling conflicts and disputes between companies and the hosting environment. This could be possible by coming up with an acceptable benchmark as to what should be expended for CRS to the hosting community
Finally, this study will add to the existing literature on the subject matter of Corporate Social Responsibility and financial performance and also compliment the work of other authors on this subject.
1.7       Scope of the Study
This study covers ten (10) selected manufacturing companies quoted on the Nigeria Stock Exchange (NSE), namely, Beta Glass Nigeria Plc, Nestle Nigeria Plc, Nigeria Breweries Plc, Unilever Nigeria Plc, Guinness Nigeria Plc, A. G. Leventis Plc, West Africa Portland Cement Nigeria Plc, Neimeth International Pharmaceuticals Plc, Vita Foam Nigeria Plc and Berger Paints Nigeria Plc. The impact of Corporate Social Responsibility outlay on the financial performance of these companies was assessed. The choice of manufacturing companies was informed by the fact that manufacturing companies have great pollution effect etc. on the environment. This study is limited to ten (10) year period from 2004-2013, the time frame is chosen due to availability of data. The indices consist of Net Profit Margin, Return on Equity and Return on Asset. Also, the study measured CSR based on CSR outlay (donations, community development and charitable gifts) of these companies as disclosed in their Annual Report. This is because firms perceive and practice CSR as corporate philanthropy (Adebayo, Oluwatosin & Olurin, 2012).
1.8.      Limitations of the Study
Collection of financial statements was difficult as some of the manufacturing companies under study were not easily accessed and some of them did not have the number of years required by the researcher on their website.
The researcher cob the limitation by visiting the Nigerian Stock Exchange and some of the selected companies used in this study to assess their Annual Reports.
1.9       Operational Definition of Terms
Accounting: The book-keeping methods involved in making a financial record of business transactions and in the preparation of statements concerning the assets, liabilities, and operating results of a business.
Corporate financial performance: This can be defined as measuring the results of a firm’s policies and operations in monetary terms. These results are reflected in the firm’s size, return on investment, return on assets, value added, etc.
Corporate Responsibility:  An umbrella term embracing theories and practices relating to how business manages its relationship with the society
Corporate Social Responsibility: A company’s sense of responsibility towards the community and environment (both social and ecological) in which it operates.
Corporate Social Performance: The accomplishment of a given task measured against standards of accuracy, completeness, cost and speed.
Corporate Social Responsibility Reporting: The report of corporate organisations on the impact of their activities on customers, suppliers, employees, shareholders, community and other stakeholders as well as the environment.
Financial Performance: This involves measuring the results of a firm’s policies and operations in monetary term
Profit Maximization: The ability for a company to achieve a maximum profit with low operating expenses.
Social Accounting:  This method utilizes the basic principles of accounting in social aspect of economics. The social aspects include environmental and medical accounting systems.
Social Responsibilities: The obligations of an organization’s management towards the welfare and interests of the society in which it operates.
Stakeholders: A person, group or organization that has direct or indirect stake in an organization because it can only affect or be affected by the organization’s actions.

APPRAISAL OF NIGERIAN BANKS COMPLIANCE WITH CBN CODE OF CORPORATE GOVERNANCE AND IT’S EFFECT ON BANK PERFORMANCE
 
ABSTRACT
In the immediate past two decades the financial services industry has experienced fluctuating fortunes leading to high profile cases of corporate failure and consequent near loss of public confidence and hence, the banking reform kick starts in 2004. The industry’s problems in Nigeria are consequences (directly or indirectly) of bad corporate governance. The lack of effective corporate governance in Nigeria has worked to the decrement of shareholders and created a class of stakeholder who has lost interest in the banking system. The study therefore appraised Nigerian banks’ compliance to the CBN code of Corporate Governance as well as its effect on bank performance. Analysis of variance (ANOVA) was used to measure Nigerian bank’s compliance to the CBN code of corporate governance, while the panel data ordinary least square regression to measure the compliance effect on bank’s profitability. Among other codes of corporate governance for board size, audit committee, board diversity, and power separation. Nigerian commercial banks’ compliance to CBN best practice for board size was statistically insignificant. Therefore, commercial banks in Nigeria were up till the date of this study non-compliant with the CBN best practice for board size. The same was discovered for board diversity, audit committee, and power separation as the f-statistics evidenced in analysis of Variance showed a significant variance between the Nigerian commercial banks’ observed practices and the best practice code as dictated by the Central Bank of Nigeria (CBN). Nonetheless, Nigerian commercial banks significantly complied with the CBN best practice code for commercial banks’ board composition. This was evidenced in the analysis of variance as the f- calculated was less than the f- critical, signifying very little variance between commercial banks’ observed practices and the CBN best practice code for corporate board composition. It was recommended that Central Bank of Nigeria should strictly monitor Nigerian banks’ compliance to the code of corporate governance, especially board size, audit committee, board diversity, power separation, as a percentage increase in general compliance to the best practice. In conclusion, Compliance to Central Bank of Nigeria code of corporate governance significantly impacted on banks’ profitability in Nigeria. CBN code of corporate governance raises profitability of Nigerian banks by 3.53 percent. The direct relationship between general compliance to CBN code of corporate governance and profit of commercial banks will boost the profitability of the commercial banks.
 
TABLE OF CONTENTS
Title page                                                                                                                    i
Declaration                                                                                                                  ii
Approval                                                                                                                     iii
Dedication                                                                                                                  iv
Acknowledge                                                                                                              v
Abstract                                                                                                                      vi
Table of Content                                                                                                         vii
List of Tables                                                                                                              viii
List of Figures                                                                                                             ix
 
CHAPTER ONE: INTRODUCTION

• Background of the Study 1
• Statement of the problem 4
• Research objectives 5

1.4.      Research Hypotheses                                                                                      5
1.5.      Scope of the Study                                                                                         6
1.6.      Significance of the Study                                                                              6
References                                                                                                      8
 
 
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 CONCEPTUAL FRAMEWORK                                                                                    10
2.1.1The Concept of Corporate Governance                                                              10
2.1.2 Corporate Governance in Banking Sector                                                         12
2.1.3 External Corporate Governance Mechanism                                                     13
2.1.4 Internal Corporate Governance Mechanism                                                      14
2.1.5 Corporate Governance in Nigeria                                                                      15
2.1.6 Key Areas of Failure of Corporate Governance in Banks                                 17
2.1.7 Enhancing Corporate Governance in Banks in Nigeria                                     22
2.2. THEORETICAL FRAMEWORK                                                                      34
2.2.1 Agency theory and the study of corporate governance                                     36
2.2.2 Agency Costs and Corporate Governance Solutions (Origin and
Development)                                                                                                 40
2.2.3 Agency Problems and Corporate Governance Solutions                                   41
2.3 REVIEW OF EMPIRICAL LITERATURE                                                       43
2.3.1 Corporate Governance and Bank Performance.                                                            46
2.3.2 Board Structure and Corporate Financial Performance in Nigeria.                   52
2.3.3 Corporate Performance and Executive Compensation                                      55
2.3.4. Existence of Audit Committee and Bank Performance                                   55
2.3.5. Separation of Functions of the Chairman and the CEO and Bank
Performance                                                                                                    56
2.3.6. Board Diversity and Bank Performance                                                           57
2.3.7 Board Activity and Bank Performance                                                             57
2.3.8 Board Size and Bank Performance                                                                    58
2.4.      SUMMARY                                                                                                   59
References                                                                                                                  61
 
CHAPTER THREE: METHODOLOGY                        

• Research Design 68
• Nature and sources of data 68
• Population Size 68

3.4       Sample Size                                                                                                     69
3.5       Data Analysis Technique                                                                                69
3.6       Operationalization of the Variables                                                                71
3.7       Model Specification                                                                                        73
References                                                                                                      75
 
CHAPTER FOUR: DATA PRESENTATION AND ANALYSES
4.1.      Data Presentation                                                                                            76
 
4.2       Commercial Bank’s Compliance to CBN Code of Corporate Governance   77
4.3       General Compliance to Code of Corporate Governance (COMP)
and Profit after Tax (PAT)                                                                             84
4.4       Test of Hypotheses                                                                                         90
 
 
 
 
 
 
 
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1       Summary                                                                                                         93
5.2       Conclusion                                                                                                      96
5.3.      Recommendations                                                                                          96
5.4       Contribution to Knowledge                                                                           97
5.5       Suggested Future Research Areas                                                                 97
Bibliography                                                                                                   98
Appendices

APPRAISAL OF ACCOUNTANTS’ ROLE IN STRATEGIC PRICING FORMULATION
 
ABSTRACT
In any flourishing business today, pricing has been their key function.  This is so because the rate with which modern business is growing coupled with the worldwide inflationary trends, more dimensions will be added to the problem of pricing.  In any market economy where goods and services are traded, pricing is very crucial as the prime mover of trade, for instance, pricing ration out scarce good.  This is a rise in price of good indicates that the good is in relative short supply. Pricing can be used to discourage unnecessary pressure on some commodities; this is price serving as a gauge.  Price indicate the direction of want and also pricing as a means by which factors of production are awarded and as a result, many professionals in business are beginning to play major roles in pricing decision and strategic pricing formulation. This study was done on the appraisal of accountants’ role in strategic pricing formulation. Its objectives were: (i) to determine the extent to which accountants participate in strategic price formulation; (ii) to find out if accountants are responsible for the computation of a company’s product worth alongside considerations for the company’s cost of capital and owners’ returns; and (iii) to examine the functions of accountants in strategic pricing formulation development. The design of the study was a cross sectional survey. Primary data were only used and were collected from a randomly selected 95 accounting staff of PRODA and JUHEL Pharmaceutical Co. Ltd. Enugu State Nigeria. All the data collected were presented and analyzed using cross-tabulations, frequencies and percentages. Hypotheses were tested through the use of chi-square (X2) and Pearson’s Product Moment Correlation Coefficient (r), which was run on SPSS version 15.0. The study found that accountants significantly participate in strategic pricing formulation. It further found that they (accountants) are responsible for the computation of companies’ product worth alongside considerations for cost of capital and owners’ returns. Finally, the study found that accountants have significant functions/roles that they carry out in strategic pricing formulation. It was however concluded that accountants play chief roles in strategic pricing formulation. They were recommended for constant trainings and development.
CHAPTER ONE
1.0     INTRODUCTION
1.1     BACKGROUND OF THE STUDY
          Pricing is one of the most powerful levers to increase profitability. Studies over the years have shown on average that, a 1% increase in price leads to a 7-8% increase in profits- making optimal pricing more effective than improving volumes or variables and fixed costs (HSB Consulting, 2008). Also, pricing is one of the first, if not the most significant signals a firm sends to the market place about its product, its business and its competitive positioning (Strickland, 2010). According to this author, the pricing may be developed on a product-by-product basis, as a company-wide strategy, or somewhere in between these. Whatever the approach, the price a firm puts on its product tells everyone where the firm is positioning itself viz-a-viz other players and what it believes customers are thinking, feeling or ultimately valuing its products with. Failing on ‘product pricing’ can lead to a failure on the entire market opportunity for a product; failure to connect with customers or a market; and not getting any chance to adjust the price and try again. The reality is that, pricing is more art than science (Strickland, 2010). It requires an understanding of market conditions, customers, and competitive factors that matter most to customers, cost structures and many other elements that relatively few businesses have traditionally included in their pricing process.
When a company develops the right pricing for its products, it will be able to maximize its profits, it will effectively match its product price to each market segments with an ability to attract buyers and retain them once they buy, and the right price will aid the company to match its pricing to its strategic objectives. The strategic objectives translated into the language of pricing are sometimes but not always the same language as used for business and strategic plans. Some of which could be maximize current profits, maximize profit margin, (Per unit profit margin), recover direct costs, break-even (survival, stay-in business), remain status quo: maintain price stability, maintain current growth rate, etc (Strickland, 2010). These are strategic pricing objectives. To formulate or set prices that can help to achieve these objectives, thus the roles of accountants must be clearly understood despite that the responsibility is part of the sales and marketing function which has the best knowledge of current pricing in the marketplace.
Griffin (2008) observes that an optimal or strategic price for a product or service cannot be set or decided without knowing the cost of such product or service. It is however, the role of cost accountants who are primarily concerned with ascertainment of costs. There are many other roles that accountants play in the setting of optimal prices. An appraisal of these roles is the essence of this study.
 
 
1.2     STATEMENT OF PROBLEM
Managements of most businesses (small, medium and large) in Nigeria seem not to realize how crucial the roles of accountants are especially when setting prices for strategic purposes. The roles commonly known to many of them are financial functions that relate to the collection, accuracy, recording, analysis and presentation of a business, organization or company’s financial operation. They (i.e some of the managements) sometimes rely on the rule of thumb when setting strategic or optimal prices and do not involve accountants in the setting of the prices. This therefore constitute the problem that this study seeks to solve by finding out if accountants actually play any significant role in the setting of strategic prices.
Except in some accounting texts, a detailed study on the roles of cost accountants have not been researched into let alone their involvement in strategic pricing formulation in Enugu State Nigeria.
It is against this uneven response that this study has been carried out, at least to evaluate the roles of accountants as useful to managements of businesses in Enugu State in strategic pricing formulations.
 
 
 
1.3     OBJECTIVES OF THE STUDY
The main objective of this study is to evaluate the roles of accountants in strategic pricing formulation. The specific objectives for the study are as stated below:

• To determine the extent to which accountants participate in setting strategic price formulation.
• To find out if accountants are responsible for the computation of a company’s product worth alongside considerations for the company’s cost of capital and owners’ returns.
• To examine the functions of accountants in strategic pricing formulation development.

 
1.4     RESEARCH QUESTIONS
In order to address the above stated objectives, the following research questions were designed for investigation purposes in this study.

• To what extent do accountants play significant roles in the setting of strategic prices?
• Are accountants responsible for the computation of a company’s product worth?
• Do accountants have any functional roles in strategic pricing formulation?

1.5     RESEARCH HYPOTHESES

1. i) H₀: Accountants do not play significant roles in the setting of strategic

prices.
H₁:     Accountants play significant roles in the setting of       strategic prices.

1. ii) H₀: Accountants are not responsible for the computation of a company’s

product worth.
H₂:     Accountants are responsible for the computation of a company’s
product worth.
iii)     H₀:     Accountants do not have any functional roles in strategic pricing                       formulation
H₃:     Accountants have functional roles in strategic pricing                                formulation.
 
1.6     SIGNIFICANCE OF THE STUDY
This study is significantly educative; aiming to enlighten managements of businesses that do not seem to appreciate the roles of accountants in the formulation of strategic prices; as well as to equip accounting personnel and students of their need to be strategically thoughtful when choosing their careers in accounting.
 
1.7     SCOPE OF THE STUDY
This study covered the fundamental roles of accountants in very organization but delimited to their costing roles, products worth determining roles, and their involvement in the development of pricing strategies only. The study was carried out in Enugu State in two manufacturing companies from different industries.
 
1.8     LIMITATIONS OF THE STUDY
The main limitation of this study was on data collection and collation. Others limitations include:

• Finance: The study should have been made to cover as many companies as possible in Enugu, even in the country at large, but because of inadequate funds, the researcher had to reduce the study to the two manufacturing companies used.
• Time: The allowed time for the completion of this study was inadequate. The researcher could only cover the areas that time could permit.
• Attitude of the respondents towards the survey: Some of the respondents were reluctant at filling the questionnaires. Through this attitude or mind set, there might have been some important data they must have held to themselves which should have been useful for this study.

1.9 DEFINITION OF TERMS
Accounting
This is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are; in part at least, of financial character and interpreting the results thereof. It can also be defined as the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by the users of information.
Accountants
An accountant is one whose professional duty is to record, classify and summarize and report transactions and events in monetary terms for use of management in decision making (Williams, 2001). There are accountants of different categories, such as Cost Accountant, Management Accountant, Forensic Accountant, Financial Accountant, etc. All of whom have their various crucial areas of impacting the smooth running of a business.
Cost Accountant
This is an accountant whose primary role is to ascertain the cost of an activity, event, project, or product for profitability determination purposes.
 
 
 
Financial Accountant
The financial accountant does the recording, classifying and analyzing transactions in monetary terms and in an orderly manner suitable for reporting and use of outsiders and management.
Management Accountant
Responsible for producing annual budgets and five year rolling estimates, quarterly management accounts and ad-hoc reports as required.
Strategic Price
In this study, strategic price is conceptualized to mean a price set to achieve a strategic purpose. It could mean a price set to penetrate into a market (Penetration Strategy); a price set to maintain status quo in a market turbulent environment; or else.
Strategic Pricing
This is the process of setting a purposeful price for a product item.

APPLICATION OF ACCOUNTING METHODS AND TECHNIQUES IN APPRAISING RIVAL PROJECTS IN SITUATIONS OF RISK AND UNCERTAINTY
CHAPTER ONE
 
1.1     BACKGROUND OF THE STUDY
Many accounting techniques and methods are available for appraising projects. Such techniques include: the net present value (NPV), internal rate of return (IRR), accounting rate of return (ARR), the profitability index (PI). Many of the accounting techniques available for appraising projects is based upon a basic assumption of certainty as regards the ultimate outcome of an  investment opportunity. This assumption of certainty makes such techniques unrealistic and therefore inadequate in appraising projects in the practical world of business.
Since conditions of certainty are not tenable, or are at best very rare, in the investment world, it becomes imperative to make an enquiry into the use of accounting techniques in appraising rival projects in the situations of uncertainty and risk. In the practical world, mangers of business often have to make decisions in situations of risk and uncertainty as regard which   project to invest in or which project to reject. Such decisions, if necessary made, could result in heavy losses to the organization. In order to be able to make the best decisions in such situations, mangers should be aware of the various techniques which could be used in appraising the projects to determine their viability or otherwise.  Managers should also be aware of which   particular techniques to use in any particular given situation.
To a large extent, it is this need for managers to be able to make decisions when appraising projects in situation of risk   and uncertainty that motivates this study into   this particular topic.
 
1.2     Statement of the Problem
Investors in the business world of risks and uncertainties are confronted with problems of selecting rival projects. This may be due to in adequacy of funds, limited managerial ability and mutual exclusiveness of some projects, investors, have to choose between two or more rival projects.
This research will also try to compare the performance of those businesses that use accounting techniques to appraise their projects in situation of risk and uncertainty with the performance of those businesses that do not use .
 
1.3     Objectives of the Study
The objectives of this study will include the following:-

1. An evaluation of the various accounting methods and techniques

available for appraising projects in situations  of risk and uncertainty.

1. Ascertain the extent, if at all, company management use accounting

techniques when appraising  their rival projects in situations of risk
and uncertainty.
iii.      A comparative analysis of the performance of companies that use
accounting techniques in appraising their rival projects in situations
of risk and uncertainty with  that  of companies that do not.
 
1.4     Significance of the Study
Up to now, companies and organizations have tended to dwell so much on those accounting techniques which assume certainty as regards the outcomes of projects. However since situations  of  certainty  are indeed very rare  in the  investment  world,  the significance  of this study  can hardly  be over-stressed.
When completed, this study will help in highlighting to companies, those accounting techniques available for appraising projects in situations of risk and uncertainty in order to achieve higher returns and maximize the utility of the organization.
This study will also serve to highlight the highpoints and short-coming   of these various techniques and also establish which methods would be best to use under given conditions.
Finally, this study will also be significant in the area of aiding other researchers and research scholars who may wish to carry out further research on the subject matter or on other related topics.
 
1.5     Research Questions

1. What are the various accounting techniques available for appraising projects in situations of risk and uncertainty?
2. What are the highpoints and short-comings to these techniques?

iii.      To what extent, if at all, are those techniques being used by organizations in practice?

1. Does companies that use accounting techniques in appraising rival projects in situations of risk and uncertainty perform better than other companies that do not use these techniques?

 
1.6     Research Hypothesis
The following hypothesis shall be subjected to testing:

1. Ho: Business, in practice, do not use accounting techniques in

appraising projects in situations of risk  and uncertainty.
Hi:     Business, in practice, use accounting techniques in appraising
projects in situations  of risk  and  uncertainty.

2. Ho: There is no difference between the performance of

businesses that use accounting techniques in appraising their
projects in situation of risk and uncertainty and those that do not
use them.
Hi:     There is different between the performance of businesses that use
accounting  techniques in appraising  their projects in situation  of
risk and uncertainty and those  that do not use them.
 
1.7     Conceptual and Operational Definitions

1. Cash Flow

“Is the same thing as the various receipts and payments that are made throughout the life span of a project”. These receipts are termed cash inflows, while payment are termed cash outflows.
 

2. Certainty:

This is a situation “Where a potential investor has full knowledge of the ultimate outcome of an investment opportunity”. A condition of certainty exist where the probability  of realizing out come is one.
 
 
 

3. Capital Rationing

This is the allocation of scare capital resources among competing economically desirable projects which cannot all be carried out due to capital or other constraints.
 

4. Management

This refers to a group of  people charged with the responsibility of directing, planning, controlling, organization to ensure the achievement of organizational goals and objectives.
 

5. Ranking

This is the arrangement of projects in order of preference or viability.
 

6. Risk

A condition of risk exist “Where an investors knows the range of possible outcome to expect from an investment opportunity as well as the likelihood (probability) of each outcome.
 
 
 

7. Uncertainty

This is a situation of near ignorance of the future outcome of decisions. It arises where the decision taken has no dependable information about the nature of significance of factors which affect the investment.
 
1.8     Limitations of the Study
The scope of this work is limited by the following:

1. Time: The time available to the researcher to carry out this piece of research could not allow very extensive research into the subject matter. In addition, the researcher also has to carry out her normal class work along side this research project.
2. Finance: the amount of funds available to the researcher also helped to limit the scope of this wok. Some materials that may have aided the research could not be acquired, also transportation costs and cost of other logistic did not allow the researcher to visit all the companies she would have wanted to visit.

 
 
 
1.9     Scope of the Study
This study has been designed to cover investment decisions of profit oriented organizations in situations of risk and uncertainty. Thus charitable organizations and non profit making organization are outside the scope covered by this study.

ANALYSIS OF MANAGEMENT OF REVENUE GENERATION AND ACCOUNTABILITY IN PUBLIC ENTERPRISES IN NIGERIA  (A  STUDY OF SELECTED PARASTALS IN NIGERIA)       
 
ABSTRACT
The Management of revenue and accountability in Nigeria telecommunication limited and power holding company of Nigeria came under focus in recent time. The aim of this study is to investigate the effects, and problems of management of revenue generation and accountability   with the view of finding feasible solutions to these recurrent problems. Both primary and secondary data were used in the study of selected parastatals in Nigeria. Primary data were collected through questionnaire and interview as an instrument of data collection. Chi-square was used for the data analysis, which was needed to test the formulated hypothesis, consequently the following findings were made from the research. The researcher envisaged the misappropriation of funds/or diversion of funds and inappropriate recording of financial statement.  Administrative and Bureaucratic bottle-neck constitute delays in payment of salaries and wages of the staff of these parastatals and this leads to poor service delivery to their customers. The researcher identified that non incorporation of GSM and advanced technological innovation has drastically reduced the revenue profiles of these parastatals and non prompt payments of bills by the customers. Based on the above findings the following recommendations were made: proper financial mechanism and routine auditing, checking of financial records and budgetary process should be enhanced to ensure increase in revenue base and accountability of these parastatals.