According to America Accounting Association, Accounting is the process of identifying, measuring, and communicating economic information to permit informed judgment and decisions by users of information. From this definition, it can be seen that the main objective of accounting is to provide economic information that will enable the users to make decisions. According to Patrick .A. Casabona (2006), Investors and creditors throughout the world base their decision on the information published in various financial and economic reports issued by business entities. The most important of these, are the annual and quarterly reports that depicts an entity profitability and financial condition, which investors and creditors reviews carefully before investing their fortunes. It is therefore, imperative that these reports convey information that reflects the economic reality of an entity in a meaningful, transparent and comparable fashion. Recently however, there have been a host of corporate financial scandals accompanied by fraudulent financial reporting in Nigeria, which have affected the very foundation of corporate financial reporting and investor’s confidence.
Obviously, this had an adverse effect on investor’s confidence in the Global financial reporting process and ultimately on the market values of corporate equity securities. These activities leads to swift actions by Government and their regulatory agencies, i.e. accounting and Auditing standards setter and other financial influential organizations around the world, in other to restore public confidence in the global financial system. The use of different accounting standards by different countries over the years has also had an adverse effects on the flow of investment capital across borders, which has negatively affects international economic growth an security valuations. However, due to economic, political and regulatory developments, progress toward attaining a convergent set of Global financial accounting reports in which users of accounting information base their opinion has to some extent be encouraging.
Financial accounting statements are summaries of monetary data about an enterprise and are used in an attempt to help make informed decision in the present and future. However, financial statement portrays the operation of transaction and other event by grouping them into element according to their economic characteristics. Many entities of the world utilize financial statements, those financial statement may be drawn up for private individuals non-profit organization manufacturers and service industries but it is worth noted, that the these groups that takes much advantage of the usefulness of financial statements are large corporations, governments and the third one which is the topic of discuss “investors”. Financial statement plays a decisive role in each of these entities. Corporations decided how much credit to extend to customers and how much should be distributed to investors as dividends. Investors use company’s financial statement to decide whether or not, it would prove advantageous to invest their fortune money and if so, what percentage to invest.
The government uses financial statement to determine how much an entity is required to pay as taxes, each decision stated above does not always require the same financial information however, a balance sheet would be used in the decision making process for assessing a competing firm and determining a customers credit unit. It provides the users with data about available resources as well as the claims to those resources. An income statement is prove useful in determining credit extension to customers, distribution of dividends, taxes and investment opportunities. It provides the users with data about the profitability of the enterprise. Detailing source of revenue and the expenses, which reduce profit. A cash flow statement would be a useful tool in each instance because it gives a brief description of how much cash is coming in, going out and where exactly, it reports on cash flow from investing, financing and operating activities. Although each one is unique in its own respect, each financial statement is a necessary tool in making any financial decision.
Research work is carried out to investigate into some areas where attention has not be focused. Some of these problem is researcher attempts to solve is the inability of most business organizations to sustain their existence on the long run which is attributed to academic weakness. However investors today no longer rely alone on the financial statements produced by the directors of company (Union Bank, Nig Plc), because of lost of confidence on the statements, that the set of financial statement might not represent the true and fail view of the company’s financial position, investors might also have the fear that the company have declared adequate profit through cash flow analysis in other to build investors confidence whereas that is not the true position of the company economic situation. Financial statement also does not guarantee the viability of the company and it does not reflect the substance of the company on the long run. These and many more problems a worth assessing in other to, advance a more realistic measure in making in investment decisions.
This research aims at achieving the following objectives;
1.      To determine if the state of Affairs of the company can attracts more investors to invest through than annual reports, analysis, advertisement or publication.
2.      To find out the confidence investor lay on the financial statement presented by the directors of the company.
3.      To ascertain if the fluctuation’s on the profit after taxation will attracts / dis-attracts investors in their investments decision and confidence build on the company
In attempting to reach a decision, it is useful to makes assumptions about the population involved in the study. Such assumptions which may not be true are called hypothesis. In this study the hypothesis will.
A.    To determines if there is any significances relationship between the state of affairs of the company and investors in there investment decisions. Ho: There is no significances relationship between the state of affairs of the company and investors in their investment decisions. Hi:  There is no significance relationship between the state of affairs of the company and investors in there investment decisions.
B.    Is there is significance relationship between the financial statement and the confidence build on the company.
Ho: There is no significances relationship between the financial statement and the confidence build on the company.
Hi:  There is significance relationship between the financial statement and the confidence investors lay on the company.
This research cantered on the investor’s reliance on the financial statement of the company. It shows the extent to which investors can make analysis of the Bank financial statement and for taking meaning decision as to, whether to invest / continue in businesses or to doctrine from investment on the company under review.
The study plays significant role in student, lecturers, analyst, government, institution and companies’ activities on their investment interest and judgment. However, the study should be able to help investors to realize the importance of analyzing financial statement by using ratio on a single year data before decision taking. The study is considered crucial for highlighting and analyzing the following views;
a)      Informing actual or potential investors whose concern are their returns on investment.
b)      Informing creditors who rely on the current financial position and solvency of the firm as a parameter for measuring the firms liquidity.
c)      Informing as many users of accounting information the need of proper analysis therefore taking decision.
Basically, there has been a number of limiting factors that affected this research work, thee factors includes;
1.      Time constraint: This research work was carried out amidst of the academic tight schedule and this in no small way affects the project work.
2.      Another limitation was the difficulties involved in reaching some top employees of the bank due to their tight schedule, who could have give me first hand information to enhance the research work.
3.      Non-co-operation of respondent; Respondent to the questionnaire were adamant in given first hand information that will aid the progress of the work.
Union Bank of Nigeria Plc was established as a colonial Bank with its first branch in Lagos in 1925. Barclays Bank acquired the colonial Bank, which resulted in the change of the Bank’s name to Barclays Bank (Dominion, colonial and overseas) following the enactment of the companies Act 1968 and the legal requirement for all foreign subsidiaries to be incorporated locally. Barclays Bank (D C O) in 1969 was incorporated in Barclays Bank of Nigeria limited. The ownership structure of Barclays Bank remained un-changed until 1971 when 8.33% of the Bank’s shares were offered to Nigerians. In the same year, the Bank was listed / Quoted on the Nigerian stock exchange. As a result of the Nigeria enterprises promotion act of 1972, the federal government of Nigeria acquired 51.67% of the Bank’s shares, which left Barclays Bank Plc, London with only 40%. By the enactment of the 1972 and 1977 Nigeria enterprises promotion acts, Barclays Bank international disposed its shareholding to Nigerians in 1979. To reflect the new ownership structure and in compliance with companies an Allied Matter Act of 1990. It assumed the name Union Bank of Nigeria Plc.
In line with the central Bank of Nigeria’s banking sector consolidation policy. Union Bank of Nigeria Plc acquired the former universal Trust Bank Plc and Broad Bank Ltd and absorbed its erstwhile subsidiary Union merchant Bank ltd. The Bank also increased its shareholders funds through a public offer/rights issue in the last quarter of 2005. With these developments, Union Bank remains one of the most capitalized banks in Nigeria. It has a shareholders funds of N119, 160 billions and operates through 405 network of branches that are well spread across the country all of which are on-line real time. Union Bank of Nigeria Plc have over the years had the below stated subsidiaries and associated companies subsidiaries;
a)      Union Home Saving and Loans Plc
b)      Union Trustees Limited
c)      Union Assurance Company Limited
d)      Union Bank UK Plc
e)      Banque Interational du Benin, Cotonau
f)       UTL Communications Services Limited
g)      UBN Property Company Limited
h)      Union Capital Markets Limited
i)       Union Registrars Limited
Associated Companies
(a)     Consolidated Discounts Limited
(b)     HFC Bank Ghana Limited
(c)     Unique Venture Capital Management Co Limited.
Union Bank Groups operates an interlocking organizational structure where by some board members of the Union Bank of Nigeria Plc act as external directors in the subsidiaries and associated companies. This arrangement ensures effective oversight and participation in the decision making process of these companies, thereby safeguarding the Bank’s investments.  Today, the Bank is a leading regional bank in sub-sahara Africa in terms of its diverse investments across the globe. A grance of the Bank’s financial summary reveals its solidity. As at 31st march, 2008 the Bank’s gross earnings was N112, 988 billion, profit before tax was N33, 012 billion, total assets was N1, 128 890 billion and shareholders find was N119, 160 billion.
The Bank’s management in headed by Dr. Barth B. Ebong. Oon as the Group Managing Director / Chief Executive, other includes; Ado Abduliahi Executive Director (Commercial Banking -South) Dr. Ks Adeyemi Executive Director (Commercial Banking -Lagos) S. I. Ayininuola Executive Director (Commercial Banking -South) E.U. Emereum Executive Director (IT and Operations) A.E. Esangbedo Executive Director (Risk management & control) W.C.O. Mbah Executive Director (Corporate Resources) A.I.N Obigwe Executive Director (Corporate and International Banking).
Section 331 of companies and Allied Matter Act 1990 (CAMA); defines “financial statement as those records required to prepared and kept by every directors of a company containing the day to day transactions of accounting information to take adequate decision about the organization. Those records include;
1.      Balance sheet: Which can also be referred to as the statement of financial position or condition, it reports on the company’s assets, liabilities and net equity as of a given point of time.
2.      Income statement: This can also be referred to as profit and loss account, it reports on a company’s income, expenses and profit / loss over a given period of time profit / loss account provider information on the operation of the enterprise. These information includes sales, and various expenses incurred during the processing state.
3.      Statement of return Earning: This explains the changes in a company are retained earning over the reporting period.
4.      Statement of cash flow: This reports on the company’s cash flow activities particularly its operating, investing and financing activities Professional Accountancy Tutors pointed out the following:
5.      Accounting information: There are set of data that are found in a financial statement of an enterprise.
6.      Accounting period: These are referred to as the times span, usually one year, which the financial statement of an enterprise covered. However, some organization produces quarterly, half year and some annual report.
7.      Notes on the accounts: This form an integral part of a financial statement and provide detailed or supplementary information in respect of items disclosed in the Balance sheet and profit and loss account.
8.      Sources and application of find statement: This provides information on the derivation and utilization of funds during the period covered by the financial statement.
9.      Value added statement: This reports on the wealth created by an enterprise during the period covered by the financial statement. It usually shows how the wealth created is distributed among various interest group (e.g. employees, government, creditors and proprietors).
10.    Historical financial summary: This enables an instant comparison over a period. Usually five years, of vital financial information about an enterprise- turnover, profit before and after tax, dividends, assets employed, issued and paid up capital, reserves, medium and long-term liabilities, earnings and dividends per share.

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