Ariyibi said financial advisers would guide investors on
fundamental stocks to invest in to maximise returns on investment.
“As an investor, investing in financial market is not gamble
or betting, you need financial adviser for investment decision.
“You should invest money you don’t have need for immediate
use, invest for medium and long-term, also invest in stocks that have good
fundamentals for capital gains,” Ariyibi said.
Speaking on the theme: “Understanding Financial Statement
for Business Reporting,” he raised an awareness on the value derived from
financial statement of a company.
Ariyibi said: “A financial statement represents a formal
record of the financial activities of an entity; it reflects the financial
effects of business transactions and events on an entity.
“It is prepared by following certain logical and consistent
accounting principles; and it is usually audited to ensure accuracy for tax,
financing, or investing purposes.”
Explaining relevance of financial statement to user, he said
“For Management, it is used for planning, controlling and decision-making
process, to evaluate the organisational performance and position, so that the
necessary measures are taken for improvement.
“For shareholders and investors, financial statement can be
used to analyse the viability and profitability of their investments and to
assess the ability of the business/organisation to pay dividends and determine
any future course of action.
“While employees and trade union can used it to evaluate the
financial health of the business with a view to determining their job security,
the possibility of future remuneration, retirement benefits and employment
opportunities.”
Ariyibi said it helps in ensuring that the business operate
in accordance with laid down rules and regulations aimed at protecting the
interests of the stakeholders.
He added that regulatory authorities/agencies rely on
company financial statement, while bankers and creditors assess the financial
capacity/capability of the company, its creditworthiness and going concern with
the financial statement.
On the adoption of the IFRS, Ariyibi said it has brought
some level of transparency.
“It has improved transparency and I feel is a good thing to
financial world,” he said.
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