Abstract
The financial statements on financial decisions analysis, and the degree of benefit from them, and to identify what financial statements, what is its importance for the institutions within the framework of the Kingdom’s Vision 2030 of ideas and trends, and to identify the contribution of financial statement analysis to financial decision-making. The study was based on the descriptive and analytical approach, and the study population consisted of all financial decision makers. The study was based on a simple random method (70) of financial decision makers. The study was based on the questionnaire and consisted of the following axes (financial statements in companies, financial decision-making, the effects of analysis of financial statements on financial decision-making). The study came out with a number of results, the most important of which are: There is approval by the respondents to all paragraphs of the first axis “financial statements in companies”, with a relative weight of 82.8%. There is an agreement by the respondents on all paragraphs of the second axis “making financial decisions in companies”, with a relative weight of 81.3%. There is strong approval by the respondents on all paragraphs of the third axis “the effects of analysis of financial statements on financial decision-making”, with a relative weight of 86.4%. The financial statements are a key tool to know the financial position of the company, so they must be accurate and reliable before being published by management. The lack of credibility in the financial statements leads to mistrust in the company by investors, and does not give them the possibility to diagnose and make sound decisions. In light of the previous results, the study recommended the following: • Organizing several forums, conferences and forums to clarify the mechanism of preparing the financial statements and how to analyze them, and the need to raise awareness of financial decision makers about the importance of financial statements in the financial decision-making process.
CHAPTER ONE 1.1 INTRODUCTION
The aim of this chapter is to bring together views of different relevant literature connected with financial statement analysis in Nigeria. It seeks to discuss the information available in Nigeria and elsewhere as it is considered pertinent to the study. The study analyses the extent to which investors can place reliance on financial statement presented by the directors of the company under view. In order that this will be well placed, a general view of the financial statement is also being considered. It however, not worthy to mention that there is the shortage of materials for analyzing the degree investors can rely on financial statement of companies in Nigeria, as it is a relatively new concept. Consequently, what is being highlighted is the diverse discussion and opinions of various writers and commentators. The present study therefore seeks to bring different views into focus in an attempt to obtain a good understanding of the nature of financial statement preparation and presentation.