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

1.0 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.
A. 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.