TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 PURPOSE OF THE STUDY
1.4 SIGNIFICANCE OF STUDY
CHAPTER TWO
2.0 REVIEW LITERATURE
2.1 ACCOUNTING ASPECT
2.2 ACCOUNTING PRINCIPLES
2.3 INSURANCE ASPECT
2.4 TYPES OF INSURANCE
CHAPTER THREE
3.0 SUMMARY
3.1 FINDINGS
3.2 RECOMMENDATION
REFERENCES
Accounting is very essential in every profit making
organization that has economic resource such as money, machinery and building, while it has bee called the language of business. It has serves as a language to provides financial information about non profit oriental businesses organization such as churches, government, charities, hospital, club etc.
In addition once role or objectives in life as a manager. Politician, investor, student he wile find the knowledge of accounting as one of his needs.
Many people have try to answer two importance questions about organization such lie:
Now will if it doing a given period and where does the organization stand one a given day. Nevertheless accounting ads in answering these question by showing where and when money has been spent and how committed it has been made by evaluating performance and indicating the financial implication fractions of choosing once plan verse another.
The accounting fractions are govern by money concepts and principles on accounting.
The background of the study implies on the rules that govern
how accountant measure process and communicate financial information fall under the heading “General Accepted Accounting Principles (GAAP).
Managers and accountants of difference insurance companies like National Insurance Corporation of Nigeria (NICON) Niger Insurance Company, African Prudent Insurance Company etc.
Share the same view as regard to this problem study. All the rules and ethics that are used in accounting are applied by insurance companies and they equally keep receipt and payment accounts, cash book, bank reconciliation statement, balance sheet etc.
Although some companies that don’t keep their accounts with the Central bank of Nigeria (CBN), meaning that they have and registered with the registrar of companies and not recognized to be in existence yet they operate.
Ikoku defines insurance business as an investment that protects the insured from national and man made disaster for which the essence is to be place the insured on the position he was immediately before the less”, while Joged defined insurance as a transfer of risk be the insured to the insurer for a consideration called premises; however, Horngren also defines “accounting as the system that measure business activities, process that information into report and communication these findings to decision maker”.
Ikoku went further to classify insurance business into life insurance and non life insurance business, companies are divided into two classes namely; proprietary companies and mutual companies. Non-life insurances business are categorized into five; accident motor vehicles, workman’s compensation, marine aviation and transport and miscellaneous insurance business. At this point, one can be justified to assert that the proper functioning of the accounting aspect of an organization is dependent on how well the accounting principle are being applied, therefore the proper applications of accounting principles is important to insurance companies, policy holders funds are made up of premium received on all policies. In this opinion Jejede said that prudent management of this fund are vital in order to prevent its diversion into irrelevant areas thereby having in adequate cash to settle claims promptly.
The need therefore is to curb this diversion informed the idea of accounting. This can only be effective if the principle of accounting are applied to the later.
In managing the resource of the public, the accountant has to
achieve to certain basic laid down rules. As mentioned earlier these rules are referred to as accounting principles and concepts.
If financial records are not put strength analyzed and interpreted correctly, there will be bound to be total financial break down in the organization. Lack of proper accounting is one of the factors that precipitated the incidence is one of acquisitions, mergers, takeovers and even failure in the financial industry in recent. Against this backdrop, the researchers wishes to address this work to the following”
The dubious and fraudulent economic events that manifest
itself in Nigeria business environment brings the need for careful and prudent management of financial transaction in order to ensure economic survival and growth.
for this reason, the researcher would tend to form on the following: To determine the accounting principles
In the modern accounting, the application of accounting
principles will abet insurance companies a proper and continuous checking of their financial statement which will help to fight against embezzlement of organizational fund.
The data provided by accounting and good application of its principles by insurance companies with the help to show the relationship between the organization and those who have contractual dealings or obligation with it. It is the language through which the public read and understand what is going on in an organization around them.
It facilitate the efficient and effective operation of the management because with accosting information they make decision and plan for the future and even take correction whenever they may have cried.
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