CHAPTER ONE1.0 INTRODUCTIONCorporate organizations owe a duty to fully disclose mattersconcerning their operations so as to aid investors in making investmentdecisions. Both large and small organizations in addition to satisfyingthe legislating requirement tend to retain existing investors and toattract potential ones through the publication of their financialstatements where the capital stock of a corporation is widely held andits affairs are of interest to general public relations. The discussions andillustrations of the study will be centered on the financial statementpresented to shareholders and also available for potential investors,bond holders and trade creditors as a tool of information forinvestment decision. Financial statement based on result on pastactivities are analyzed and interpreted as a basis for predicting futurerate of returns and assessment of risk.Financial statement provides important information for a widevariety of decision, investors draw information from the statement ofthe firm in whose security they contemplate investing. Decision makerswho contemplate acquiring total or partial ownership of an enterpriseexpect to secure returns on their investment such as dividends andincrease in the value of their investment [capital gain]. Both dividendsand increase in the value of shares of company depends on the futureprofitability of the enterprise. So investors are interested in futureprofitability. Past income dividend data are used to forecast returnsfrom dividend and increase in share prices.1.1 HISTORICAL BACKGROUNDFor the purpose of this research, first bank plc. Anyigba branchkogi state is selected as a case study for academic purposeAccording to google.com [electronic library] first bank of NigerianPlc. was established in 1894 as the first bank in Nigeria, a premier inWest African and the leading financial service solution provider inNigeria. From being the only bank for decades, weathered the bankingexposure of the 1930,s to 1950s followed by the era of governmentownership and control to a flurry consolidations and then gradualgrowth in number banks up to the early 1980s, then yet anotherindustry growth spurt in early 1990s when the banking sector wasderegulated, leading to an industry shake-up in the late 1990s, whichreduced the number of banks from 126 to 77. At later resuscitation andgrowth to 89 banks leading al through the seasons, first bank plc hasremained resilient dependably dynamic and truly the first.Based on the researchers’ oral interview with the bank officials,the Anyigba branch of first bank plc. was established in the then kwarastate in the 1978. They render other services than safe keeping ofmoney like giving loan to their customers and hire purchase. Thebranch presently has about 288 customers.