Oyewale Ariyibi, Chief Financial Officer of FBN Holdings Plc, on Thursday urged equity investors in the nation’s capital market to embrace the culture of knowledge by always seeking financial advice before making investment decisions, as part of maximizing returns.

Ariyibi, who spoke at the June virtual knowledge sharing session of the Capital Market Correspondents Association of Nigeria (CAMCAN), warned that financial market investing “is not gamble or betting.”

Speaking on the theme: “Understanding Financial Statement for Business Reporting,” he said “you should invest money you don’t have need for immediate use, invest for medium and long-term, also invest in stocks that have good fundamentals for capital gains.”

There is enormous value proposition offered about a company from its financial statement stressing: “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 relevance of financial statement to users, Aribiyi 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, 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.”

Financial statements, he continued, ensuring that the business operates in accordance with laid down rules and regulations aimed at protecting the interests of all stakeholders.

He added that regulatory authorities and agencies rely on company financial statements, while bankers and creditors assess the financial capacity/capability of the company, its creditworthiness and “going concern” status with the financial statement.

On the adoption of the IFRS, Ariyibi said it has brought some level of transparency, stressing: “I feel is a good thing to financial world.”