THE CHALLENGES OF AN ACCOUNTANT IN PROMOTING GOOD ACCOUNTING RECORD IN A MULTI-NATIONAL BUSINESS ENTERPRISE (A STUDY OF LG ELECTRONICS COMPANY)
This research work is aimed at “The Challenges of an Accountant in Promoting good Accounting Record in a Multi-National Business Enterprise” (A study of LG Electronics Limited, Uyo). Being investigative and description in nature make use of sample percentage statistical tools for analysis. In all is copies of questionnaire containing 20 question were sent out to the respondent which 13 copies of the questionnaire was successfully returned representing 86.6% and 2 copies was not returned representing 13.4%. Based on the findings, it is discovered that certain factors tend to pose problem to the affective striving and development of multi-national business enterprise accounting record. The investigation business enterprises accounting “LG Electronics company” is that, the incentive given by the auditor make Mr. LG not to see the need of having an accountant in his establishment. As a matter of fact, it is prudent for the under review study to have an accountant because at financial loss or mismanagement of financial data because the visit of the auditor is monthly and yearly which at any time in place problem may arise. While in the case of an accountant he is to cover the gap between the management and the auditor.
1.1 Background of the Study
The ultimate objective of all business undertaking is making profit. It would be very difficult, if not impossible to ascertain whether a business is making a profit or loss without the keeping of complete and up to date records of accounts. There is a common misunderstanding among new traders that everything that remains is their aim after paying for goods is profit. This obviously not true, it is of pay amount importance for any business man is general and new trader in particular to be able to calculate the firm’s profits correctly. A mistaker could lead to serious consequences goods may not price accordingly and a lot of unnecessary assumptions of big profits (Robbins and Decenzo, 1995). Again, most new traders depend on business for their livelihood. How much they should draw from the business for their personal use should depend almost entirely on the profitability of a business, a trader who is enable to ascertain his profit with a faire degree of accuracy is liable to make excessive drawing which could make it very difficult for him to meet business commitment. (Lassort and Clavier 1989) considering the above scenario, accountant plays accounting record in multinational business enterprises because; condition a business involves a number of transaction. Every transaction affects the financial position of the business. The multitude of this transaction forbids any attempt to trust all or any of them to memory. A proper record should therefore be kept of that at any required (Akpan 1999) moment a reference can be made to the records to find the effect of each transaction and the combine effect of the transactions. Akwa Ibom State is one of the developing states in Nigeria, more than 50 percent of the people are found to be engaged in agricultural sector and the rest are employed in service and industries. Unemployment is approximately 40 percent and the state lacks skilled manpower. However, the productivity of agriculture is falling down and the population of the state is at an increasing trend. Therefore, the traditional occupation is not enough to meet the growing need of the Akwa Ibom people. Now the people have started to think about the alternative source of income where financial institution defined by Ande (2008) as all business organization which hold money for individual and may borrow from them in order to give loan or make other investment; have been regarded to be the core alternative way of solving the problem. It is observed that the strength of its business development recently, financial needs of the economy development has been increased in size because of inadequate finance by the sole proprietor, partnership, entrepreneurs and investors. LG Company in particular has been offering assistance to this inscrutable sub-section of the economy. LG electronics company has expose people of Akwa Ibom to know and enjoy the benefit of electronic offered by LG company to their customers. The company has in many occasions been recognized as the major source of economics development especially through facilities like electronics.
1.2 Statement of the Problem
A number of business organization are yet to understand the fact that without accurate accounting record about their organization the perpetual and profitable existence of such activities is threatened. Since accounting information help in no meager measure in the attainment of the corporate goal of any organization this research intends to look at the problems drawn out by the following questions, the problems is:
- Lack of good accounting technique
- Lack of adequate information for managerial decision making.
- Poor price allocation techniques
- Lack of record for assessment enterprise ability
- Lack of adequate delegate to duties.
1.3 Objectives of the Study
The primary aim of this study is to examine the difficulties an accountant face in promoting good accounting records in a multi-national business enterprise. The major objective of this study is to find out the difficulties of an accountant in developing the multi-national business enterprises in Akwa Ibom State. The general objectives will include:
- To analyze the challenges of an accountant to multi-national business enterprises.
- To find out the implication of accountant’s challenges in multi-national business enterprise.
- To find the activities of multi-national business enterprise in Akwa Ibom State.
1.4 Significance of the Study
The research work would be of benefit to improve an explore ideas, reference materials to access the challenges of an accountant in promoting good accounting record in multi-national business enterprises.
- It is expected that the study was enlighten the employees.
- It would serve as a point of reference to the employers and other researcher who may carry out further research on this topic.
- It would also serve a point of benefit and adequately educate the interested group of the public who are researching on this very topic.
- It would serve as a benefit to the students who will further study of this topic.
1.5 Scope of the Study
The scope of this study covers the usefulness and examination of an accountant challenge in the drive to attain corporate survival of LG Company in Uyo.
1.6 Research Questions
- How does accounting record help in achieving the objectives of an organization?
- How does the management prove that their financial record can face the test of time?
- How does the management prove that a record is accurate and reliable?
1.7 Definition of Terms
Entrepreneurship: This is the willingness and ability of an individual to identify and successfully carryout investment opportunities is an environment (Nelson, August 2001:31).
Accountant: This is a person who specialized in recording, classifying and communicating of financial data of an organization or a firm. (P.E. Essien 2004).
Auditor: An auditor is a person who carried out auditing work (Urugbu, Angus O. and Obi, Bridgaet C. 2007).
1.8 Organization of the Study
This study is organized into five chapters. Chapter one deals with the background, information of the study. Chapter two deals with reviewed of the related literature outline in details. Chapter three deals with research methodology of the study. In chapter four data collected are stated, analyzed and interpreted to give the desire result. Finally, chapter five make a summary of the findings, conclusion and recommendations.