FBNH harps on importance of financial statement to drive investments

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By Itohan Abara-Laserian

FBN Holdings (FBNH) Plc stressed the importance of financial statements to stimulate investment in the country.

FBNH CFO Oyewale Ariyibi said this during the June knowledge sharing session of the Capital Market Correspondents Association of Nigeria (CAMCAN) on Thursday in Lagos.

The Nigerian News Agency (NAN) reports that the virtual forum was part of the association’s drive to equip capital market correspondents with the knowledge to improve their reporting.

Ariyibi said understanding financial reports will help investors make the right investment decisions.

He also urged investors in the country’s capital market to always seek financial advice when making investment decisions to maximize returns.

Ariyibi said financial advisers will guide investors on which fundamental stocks to invest in to maximize returns.

“As an investor, investing in the financial market is not a game or a gamble, you need a financial advisor to make an investment decision.

“You should be investing money that you don’t need for immediate use, investing for the medium to long term, also investing in stocks that have good fundamentals for capital gains,” Ariyibi said.

Speaking on the topic: “Understanding Financial Statements for Business Reporting,” he underscored the importance of financial statements for investors, regulators and financial advisers, among others.

“A financial statement is 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 generally audited to ensure accuracy for tax, financing or investment purposes.

“For management, it is used for the planning, control and decision-making process, to assess the performance and position of the organization, so that the necessary actions are taken for improvement.

“For shareholders and investors, financial statements can be used to analyze the viability and profitability of their investments and to assess the ability of the business / organization to pay dividends and to determine any future course of action.”

He also highlighted financial analysis tools such as: cross-sectional analysis; common size declaration; time series analysis and ratio analysis, among other ratios. (NAA)

(NAN)

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