1. TERMS OF REFERENCE
1.1 The most authoritative basis for the preparation and presentation of financial statement is the one issued by the International Accounting Standards Board (IASB) which states that "the objective of financial statement is to provide information about the technical position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions" (IASB, 2003).
1.2. All over the world, billions of dollars are spent annually preparing, auditing and publishing financial statements to satisfy the interest of various users who can be classified as both internal and external users. They include the management, shareholders, prospective investors, customers, suppliers, government or its agencies, lenders, financial analysts and the public at large. The importance of and information needs of the financial statements to all concerned cannot be over emphasized as its contents determine the extent of satisfaction. Financial statements and most of its content are historical in nature, and investment decisions favoured will be based on the current information. Its preparation and level of objectivity has continued to make its content, to serve as the most authentic financial information point concerning any company for either analysis or investment decisions.
1.3 As rightly stated by (IASB, 2003), "the financial position of an enterprise is affected by the resources that it controls, its financial structures, its liquidity and solvency, and its capacity to adapt to changes in the environment in which it operates".
1.4 It is on this premise that I have decided to execute this research by critically analyzing the financial situation of Intercontinental Bank Plc. This will be in terms o ...