The Role of financial statement in the investment decisions of a micro finance institution (MFI) : Bamenda Police Cooperative Credit Union Limited, Yaounde (BAPCCUL Yaounde)

Abstract

Today, it is possible to present financial statements in many ways. This makes it difficult to compare the financial statement of organisations within the same geographical area to suit the report of investors. For example, some organisations choose to provide a significant line of item detail, while others do not. By creating a single standard, we could provide investment decision makers with an improved starting point. This study therefore investigates the role of financial statements on investment decisions.

The main explanatory tools used are the balance sheet, income statement, and the cash-flow statement. Investment decisions enable corporate leadership to analyse various investment opportunities and to show how departments should make good commercial bets.

Primary and secondary sources of data were used. These data were analysed with the use of frequency tables with the outcome being, financial reporting has a role to play on investment decisions as shown by the responses. A result, management should ensure a timely and orderly presentation of reports to help boost investments.