AN APPRAISAL OF THE IMPORTANCE OF ACCOUNTING INFORMATION IN PUBLIC CORPORATION
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1.1 BACKGROUND OF THE STUDY
Public corporation can be defined as the types of business organization that are established by a special act (or ordinance) of the parliament. Public corporations and business owned and financed by the federal, state and local government, as the case may be in the public interest.
They can be explained and described also as the type of business) organization thoroughly and solidly established by act of parliament to provide public utilities. This participation in the productive and commercial part of a country’s economy.
There are some areas in the economy where it is felt that the free enterprises system and private sector competition should not allowed, as they would exploit the public such as should be run by the government in the pubic interest. Therefore, in Nigeria, where there is a three-tier system of government; The local government, state government and the federal government do run certain enterprise so as to provide essential service for the people.
It was learnt that markets who where programmed to load NNPC products in tankers from Ibadan, ore and Ilorin depot were referred to NIPCO plc and other private depot in apapa, which have through put agreement with the corporation.
Also between Ibadan and Ilorin, there was a total of 122 beak point.
A pipeline fire cause by vandals at arepo in ogun state in September had disrupted the distribution of products in system 2B, which distributes about 12million liters of petrol daily in the south west.
However, the NNPC at the weekend said it had restored the ije-ododo pipeline to normally and that pumping or petrol had also resumed in earnest to the depot in the system 2B, spanning from altlas-cove to Ilorin.
About 60 per cost of petroleum product, imported by the NNPC is discharged through the system 2B and pumped to the fire depot to ease pressure of tankers on the private depot at apapa.
Data made available by the NNPC showed that the pipeline between atlas cove and Ilorin depot was vandalized on over 774 point.
1.2 STATEMENT OF PROBLEM
The statement of this study in the use of accounting information in public corporation, NNPC as a case study considering the behavior relationship the uses of accounting information in public corporation.
The independent petroleum markets association of Nigeria, (IPMAN) has commended the management of the Nigerian national petroleum cooperation (NNPC) and its downstream and marketing subsidiaries, the pipeline and products marketing company (PPMC) for the comprehensive rehabilitation of pipeline and depots under the system 2B pipeline which services the southwest geopolitical zone of the country and the Ilorin axis.
The acting group general manager group public affairs of the division of NNPC, tumini green, who disclosed this in a statement made available to journalist stated that IPMAN appreciation was conveyed to the cooperation in a letter jointly signed by its western zonal secretary, Dr. .A. .O. idowu and the chairman of mosimi, Ibadan, ore, satellite and Ilorin depots.
1.3 THE PURPOSE OF THE STUDY
The purpose of the study was to examine how useful accounting information is in public corporation.
- To supply petroleum to the domestic market at minimal operation.
- To provide excellent customer services efficient transporting crude oil to the refineries and moving petroleum product to the market
- To market special product competitively in the domestic and international markets.
- To ensure security of supply of petroleum products to the domestic market at low operating costs, market specials product competitively in the domestic and international.
- To provide conformity with the management culture of total quality and pursuant to the directive of the parent cooperation the Nigeria national petroleum cooperation (NNPC).
1.4 SIGNIFICANT OF THE STUDY
This study is deducted; the result could help the management and board of directors to show its stewardship and Accountability in the operational activities of their workers.
1.5 SCOPE OF THE STUDY
According to the termilogy of the institute of cost and management accountability budgeting is a plan, qualified in monetary terms, prepared and proved prior to defined period of time, usually to attain a given objectives.
1.6 RESEARCH HYPOTHESIS
Its discuss important considerations in the development of NNPC (Ilorin) and hypothesis in defining objectives for research. The significant of constructing a good research question and developing hypothesis for the successful design of a research study.
The presence of a number of research question will affects and potentially increase the complexity of both the study design and subsequent analysis.
1.7 DEFINITION OF TERM
- Budget Control: Is the establishment of budgets relating to responsibilities of executive to the requirement of a policy end the continue compassion of actual with budgeted result either to cure by individual action, the objectives of the policy or to provide a basis for it revision
OBJECTIVE OF BUDGETARY CONTROL
The objectives of budgetary control are to:
- Combine the ideas of all levels of management during budgetary preparation.
- Centralize control
iii. Show management when action is needed to remedy a situation.
- Plan and control income and expenditure.