Chapter one

CHAPTER ONE BACKGROUND TO THE STUDY 1. 0 Introduction Financial Accounting may be defined as the process of identifying measuring, and communicating economic information to permit informed judgments and decisions by users of the information. It is the maintenance of daily record of all financial transactions in such manner that it would help in the preparation of suitable information regarding the financial affairs of a business or an individual. Financial Accounting is a pre-requisite for good management of business and non-profit making organizations. Lack of accounting efficiency has led to abnormalities in the financial administration of both public and private institutions in this country. Keeping record and development of an effective communication system are very essential in every human activity. Such practices do not only serve as a source of reference but also may provide source of understanding for future decisions. The improvement in accounting education besides moral training has significant ways of improving the efficient operation for economic sector of the country’s development. Financial Accounting is the discipline that plays this important role in business with regard to recording and reporting the financial performance of an entity. Due to the importance of financial accounting for national development, Ghana has an institute which is responsible for conducting examinations and training professional accountants in the country. The institution has been named institute of Chartered Accountants, Ghana (I. C. A Ghana). It was established by an Act of parliament Act 170, which was officially announced on April 19, 1963. It is internationally affiliated to Association of Accounting Bodies of West Africa (A. B. W. A) and International Federation of Accounting (IFAC). Financial Accounting as a subject was introduced by the authorities of Kumasi High School (KUHIS). Kumasi High School was established in the year 1962 as a mixed school known as Kwame Nkrumah Secondary School at Asouyeboah a suburb of Kumasi. Financial accounting was introduced for the reason being that many students were having interest in offering it. Due to the well-known of Financial Accounting a lot of students were offering it and others offering Science, Art and Home Economics. The authorities of the school introduced the subject (Financial Accounting) so that the various areas of interest of students could be fulfilled and also to keep the institution running in a smooth manner, so that is will balanced, in order to maintain a high student’s population. In spite of the fact that the objectives for introducing Financial Accounting in Islamic Senior High School have been achieved considerably, there is more room for sustainability of Financial Accounting in the school. The aim of this research is to help improve upon the interest in Financial Accounting by students in Islamic Senior High School. 1. 1 Statement of the Problem Kumasi High School is highly respected for its academic performance in business, especially Financial Accounting. Statistics has it that in 2007/2008 academic year, out of sixty-two (62) student who sat for Financial Accounting, 83. 3% (percent) passed. For the 2008/2009 academic year, out of thirty-five (35) candidates for Financial Accounting 92% (percent) passed. However, more than sixty (60) percent of the students offering business are not interested in Financial Accounting. This can be noticed from their attitude and the way they approach Financial Accounting most of the students absent themselves during Financial Accounting period or lesson. Some of the current students in form one (2008/2009) academic year have shown less interest in doing financial accounting as their major area. 1. 2 Purpose of the Study This research seeks to find out why students of Islamic Senior High School are not interested in Financial Accounting. This research is to find out the reason for the in ability of students to perform well in financial accounting in Islamic Senior High School. It is also to find out why students of the school have little interest in financial accounting. 1. 3 Research Questions The study seeks to answer the following research questions 1. Are students interested in the subject Financial Accounting? 2. Are there appropriate and enough text books in Financial Accounting for students? 3. How can students be encouraged to study in group or individually? 4. Are times for Financial Accounting in Islamic Senior High School conducive for studying? 1. 4 Significance of the Study The research will assist business students offering Financial Accounting in Islamic Senior High School overcome the difficulties that hinder them from performing well in Financial Accounting. It will also assist other stakeholders enhance their roles in the teaching and learning of Financial Accounting in Islamic Senior High School. 1. 5 Limitation of the Study The limitation of the study cannot be over emphasized. The following are the limitations 1. The action research is a new sort of research to the researcher, so it took along time for the researcher to get in depth understanding of what he was doing. 2. Time factor was another limitation of the said research. The researcher has to combine teaching at Islamic Senior High School with the writing of the action research. 3. Inadequate financial resources are also another limitation of the research. The money was not enough for the research to do a lot of research on the internet. Money for transportation became a problem for the researcher to locate some of the parent of students and interview them. 1. 6 Scope of the Study The research was limited to the second year financial accounting students of Islamic Senior High School. 1. 7 Definition of Terms 1. Financial Accounting: Wood and Sangter (2005) defined accounting as the process of identifying, measuring and communicating economic information to permit informed judgment and decision by users of the information. 2. (ISHS) means Islamic Senior High School 3. (ICA) means Institute of Charted Accountant 4. (FA) means Financial Accounting 5. (IFAC) means International Federation of Accountant 6. (ABWA) means Association of Accounting Bodies in West Africa 1. 8 Organization of the Study The study is being organized was in six chapters. Chapter one deals with the introduction of the study, which covers the background of the study, statement of the problem, purpose of the study, research questions, significance of the study, limitation of the study, scope of the study and organization of the study. Chapter two deals with the views of other people on the problem statement . Chapter three is concern on the methodology used to get information for the research. Chapter four covers interventions designs and implementations. Chapter five deals with the outcome of the study and finally, chapter six is on reflections, conclusions and recommendations.