Overview And Application Of Accounting Policies And Its Effect On Shareholders’ Investment In Public Liability Companies (A Case Study Of Beta Glass Plc, Ughelli)

ABSTRACT

This research project was designed to look into the problems and prospect 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 resources 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 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 questionnaire and the policy statement of one sample 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 problem 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 shareholder.

TABLE OF CONTENTS

Title                                                                                                            i

Approval                                                                                                    ii

Dedication                                                                                                 iii

Acknowledgement                                                                                     iv

Abstract                                                                                                     vi

Table of contents                                                                                      vii

Chapter One - Introduction

1.1    Background of the study                                                                1

1.2    Statement of problem                                                                      3

1.3    Objective of the study                                                                     4

1.4    Research Question                                                                         5

1.5    Research Hypothesis                                                                     6

1.6    Significance of the study                                                                 6

1.7    Scope of the Study                                                                          8

1.8    Limitation of the Study                                                                    8

1.9    Definition of Terms                                                                          8

1.10  History of Beta Glass Plc                                                                10

Chapter Two - Literature review

2.1    Introduction                                                                                     12

2.2    Accounting Policy Formulation                                                       13

2.3    Conceptual Basic of Accounting and Policy Disclosure               15

2.4    Accounting Policies and Disclosure Techniques                          21

2.5    Disclosure of Accounting Policies and its Economic/

Political Implication                                                                         25

2.6    Major Accounting Policies                                                              27

2.7    Application of Accounting Policies in Beta Glass Plc                    29

Chapter Three - Research methodology

3.1    Introduction                                                                                     34

3.2    Research Design                                                                             34

3.3    Population and Sample Size                                                          35

3.4    Instrument of Data Collection                                                         35

3.5    Reliability of the instrument                                                            36

3.6    Validation of the Instrument                                                           36

3.7    Method of data collection                                                                36

3.7    Data analysis                                                                                   33

3.8    Statistical Data Analysis                                                                 37

Chapter Four - Data Analysis and Interpretation

4.1    Data presentation                                                                            38

4.2    Data Analysis and Discussion                                                        38

4.3    Hypothesis Testing                                                                         38

Chapter Five - Summary conclusion and recommendation

5.1    Summary                                                                                         47

5.2    Conclusion                                                                                       48

5.3    Recommendation                                                                            49

References                                                                                      52

Appendix                                                                                          53