THE ROLE OF ACCOUNTANTS IN MANAGING AND LIQUIDATING DISTRESSED BANKS

By

NWACHUKWU EVAN .C.

Presented To

Department of Accountancy

CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

Accountant is a person who undergo a training in accounting system. He has to obtain a certificate as an evidence that he has concepts of accounting efficiently

A banker is any person carrying out the business of banking which includes accepting of deposits from customers, accepting and keeping others valuables from their customers etc.

Management can either be persons vested with the responsibility of directing the affairs of an organisation or an act of doing such. Liquidation is then that process and work which the appointed liquidation should do.

1.1 OBJECTIVES OF THE STUDY:

This research work studies the role of accountants in managing and liquidating distressed banks. More especially the objective of these study are:

To find out the roles which the accountant can play in managing and liquidating distress banks.

To find out the roles which the ways that the banks can liquidated.

To find out the problems being encountered by the management during this period.

1.2 IMPORTANTS OF THE STUDY:

The importance of the study is that it will highlight the importance and consequences of not managing the distressed banks properly. Some of the benefits that may occur from this research work ae as follows:

Banks will give them a way to face the problems that leads to liquidation on time, that is to say that it will reveal to them the causes of bank liquidation which they must guard against.

The masses and accountants will equally benefit from this study because implementations of findings and recommendation in this study will automatically leads to improve standard of managing and closing the distressed banks.

1.3 SCOPE AND LIMITATIONS OF THIS STUDY:

This study basically covers the managing totally some of the distressed banks in the country. However, the researcher being a student combining this research with other academic work and also as a result of other constraints such as communication barrier, time factor, money and so on the scope of this study has been limited to only few distressed banks.

The researcher was faced with some problems through the process of carrying out this research study and much obstacles had contributed to the limitations of the entire research work and some of the constraints encountered include:

a. TIME FACTOR: Time was one of the greatest limitating factor in carrying out this research, work because the research had to be carried out concurrently with normal lecture schedule.

b. FINANCE: Availability of funded certainly contributed in determining the researcher's area and special of investigations. Prices of all materials needed for the worth and its production led sky rocked to almost 12 times their prices in the recent past due to inflation.

1.4 DEFINITION OF TERMS:

BANK; This is an organisation that provides various financial services, and accepting of valuables from their customers.

LIQUIDATING: It is process of closing a business and selling everything it owns in order to settle their debtors.

ACCOUNTANT: An accountant is that person who undergo a training in accounting system.

DISTRESSED: It is a problem caused by not having enough money.