ACCOUNTING INFORMATION, CONCEPTS AND APPLICATION FOR PLANNING AND DECISION MAKING (ACASE STUDY OF AZ PLC)

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ACCOUNTING INFORMATION, CONCEPTS AND APPLICATION FOR PLANNING AND DECISION MAKING

(ACASE STUDY OF AZ PLC)

CHAPTER ONE

GENERAL INTRODUCTION

  • INTRODUCTION

Accounting is a body of knowledge which does not have a gingle definition, vicarious and several actions have come up with different definitions which reflects the period in the evolutionary  stages of accounting thoughts during which definitions were made.

There are several definitions of the concept as the number of people that attempt to define it.

According to A. H. Mill Champ in his book, Foundation Accounting (An instructional manual for Accounting Students) submitted that “Accounting is the process of identifying, measuring and communicating economic information to permit informed judgement and decisions by the user of the information and also explained further to mean and in terms of money transactions and events which aid, is part at least of a financial character, and interpreting the results thereof.

  1. Soyede accorded that “Accounting is concerned with providing information to decision making within an organization to enable management to take decisions about the level of output, the most optimal choice of reflecting competition and other changes in the economy.

Accounting system has become a major quantitative information system in almost every organization just as a well designed information system has become an integral part of organizational activities. Information for economic decision making is the main product of accounting.

The origin of financial accounting dates back to the 15th Century when a Franciscan MONK, Rev. father Luca Pacioli wrote his famous book “Summa de Arithetica, Geometrica, proportion et proportionality” in Venis in 1914. The first known book on book-keeping enunciated most of the principles on which today’s book keeping is kept. The main emphasis was on the stewardship function. The regular calculation of profit, and thus the preparation of a profit and loss account, was not yet seen to be important and profitable when calculated was usually at the end of particular contribution. Father Pacioli accorded him the recognition of Father of Accounting.

 

The whole purpose of ancient accounting was not to measure the rate of profit or loss but to keep accurate records of acquisitions and out goings in money and kind and expose any losses due to dissolute on negligence. This seemingly laudable objective of engaging the services of book-keeping to keep accurate records of their wealth, business concerns and value possible expose frauds. However, the increase in the number of multiple ownership, joint ventures, partnership etc.

 

The profit and loss account grew in importance the extension of credit transaction and the requirement of tax collection systems increased the need for the measurement of profit.

 

1.1       BACKGROUND OF THE STUDY/STATEMENT OF PROBLEM

Haier Paterson Cussons Nigeria Plc is a joint Venture between PZ Cussons Nigeria Plc over 120 years of commercial experience in Nigeria has been the proud manufacturer of Thermocool brand for over 37 years. Over the time, THERMOCOOL has won the trust and loyalty of Nigerian consumers.

Haier is the world’s fourth largest white goods manufacturer and is the official home appliances sponsor of the Beijing 2008 Olympic Games. As of 2008, the Haier Group has established a total of trading companies (19 located overseas) 29 manufacturing plant (24 overseas), 8 design centres (5 overseas) and 16 Industries parks (4 overseas) consistent with Haier’s position as a global brand, the company employs over 60,000 people ground the world. In addition, Haier boasts a 58,800 story sales network which last year accounted for a global turnover of 122.billion RMB (17.5 billion USD).

 

The Partnership between these two  world famous companies through Haier-Thermocool brand aims to deliver reliable quality in all products that are manufactured. This is achieved by producing products that are specifically designed to meet the needs of the Nigerian environment.

 

The elegant new designs and innovative technologies all Haier Thermocool products are tropicalized (Nigerian used) to deliver optimum value for cool. Haier Thermocool has a world-class after sales services centres which dedicated customer care line: 01-7303333 Pan-Nigeria-Name.

 

The organization as related to Haier Paterson Cussons Nigeria Plc is organized into six (6) sections, namely: production, personnel, packaging, finance, sales and purchases and each of these sections headed by a manager except finance which is headed by a Chief Accountant. All these heads of the sections reported directly to the Chairman. The line of authority/responsibility are depicted in the organization chart.

 

Every individual in HPY has an assigned responsibility in which their performance is judged on how well they meet up with these responsibilities. The sum of the responsibility structure is allocated among people at several levels of management . division of responsibility and authority among several levels of management enables the enterprises strike effectively in achieving their objectives.

 

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