FBN Holdings (FBNH) Plc has advised investors in the nation’s capital market to always seek financial advice for investment decisions to maximise returns.
The Chief Financial Officer of FBNH, Oyewale Ariyibi, said this at the Capital Market Correspondents Association of Nigeria (CAMCAN) June knowledge sharing session on Thursday.
Ariyibi said financial advisers would guide investors on fundamental stocks to invest in to maximise returns on investment.
“As an investor, investing in the financial market is not gamble or betting, you need a financial adviser for an investment decision.
“You should invest money you don’t have the 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 awareness on the value derived from the 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 the relevance of financial statements 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, the 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 operates 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 statements, while bankers and creditors assess the financial capacity/capability of the company, its creditworthiness and going concerned 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 the financial world,” he said.