Tag Archives: Depreciation

Effect of Foreign Direct Investment on Exchange Rate of Naira: A Multi-Sectoral Analysis (Published)

This study examines the effect of foreign direct investment on exchange rate of naira. It covers the period between 1990 and 2016. The unusual depreciation of the naira accompanied by the declining trend of foreign direct investment inflows among other things necessitated this study. Ordinary Least Square Regression Analysis was used to estimate the model relationships. It made use of time series secondary data with five explanatory variables (FDI inflows to Agriculture, forestry and fishery, building and construction, manufacturing and processing, mining and quarrying and transport and communication) and one dependent variable (Exchange Rate). The data were sourced from Central Bank of Nigeria (CBN) statistical bulletin, World Bank Data and Journal Articles. Tests that were carried out include Unit Root Test, Co-integration test and Granger Causality test. The study reveals that there is a positive significant effect of FDI inflow to building and construction on real exchange rate; there is a positive significant effect of FDI inflows to mining and quarrying on real exchange rate and there is a positive significant effect of FDI inflows to transport and communication on real exchange rate. However, there is an universe effect of FDI inflows to agriculture, forestry, fishery on real exchange rate and an inverse effect of FDI inflows to manufacturing and processing on real exchange rate. Based on these findings, the study recommends: massive investment of local investors in the agricultural and manufacturing sectors to strengthen the exchange rate of naira and also serious efforts to increase foreign direct investment inflows in the building, mining and transport sectors in Nigeria be sustained and improved upon to have a strong exchange rate of naira.   

Keywords: Depreciation, Exchange Rate, Foreign Direct Investment, Naira, Study, building and construction, inflows, manufacturing and processing, mining and quarrying

Depreciation of Understanding Lexicon in Traditional Wedding Ceremony in South Tapanuli, Medan (Published)

This research focuses on the oral tradition performed in the traditional wedding ceremony in South Tapanuli. There is one problem discussed in this research that is the depreciation of understanding lexicon in South Tapanuli.  Oral tradition in the traditional wedding ceremony after being revealed has showing well-implicating manner and politeness rooted in South Tapanuli (Angkola, Mandailings, and Batak). Primary data is collected by recording traditional wedding ceremony and the secondary of data is taken through deepest interview with the subject of the research and other samples. The data are classified into 15 groups, the resulting in 264 lexicon, then the lexicon are shared by 240 respondents representing 40 samples in some cities in South Tapanuli.

Keywords: Depreciation, Moral Values, South Tapanuli, Traditional Wedding

Financial Accounting Methods and Executive Compensation: A Comparative Study of Pre and Post IFRS Adoption by Manufacturing Firms (Published)

This paper examines the relationship between financial accounting methods and executive compensation in pre and post IFRS era of manufacturing firms in Nigeria for a 7 year period .Financial accounting variables considered in the study are discretional receivable accruals, discretional inventory accruals and discretional depreciation accruals Tests were conducted to determine whether financial accounting methods variables have any statistically significant relationship with executive compensation variable using simple regression Analysis Executive compensation variable was regressed on financial accounting methods variable on both eras independently. The results from the analysis showed that discretionary accounts receivable accruals and discretionary inventory accrual have no statistically significant relationship with executive compensation of firms in the manufacturing sector of Nigeria in both pre and post IFRS periods. In Contrast to the other two variables of financial accounting methods, discretionary depreciation has significant relationship with remuneration of executive directors implying earnings manipulation and in sync with agency theory.

Keywords: Account Receivable Accruals, Depreciation, Discretional Accruals, Executive Compensation, Financial Accounting method, Pre and Post IFRS Adoption


By Definition, the cost method also known as the Depreciated Replacement Cost (DRC) method of valuation is a method of determining the value of a property or an asset by reference to the cost of replacing the property or asset as new, and then making allowance for depreciation to take care of age, wear and tear and other forms of obsolescence (Ifediora, 1993). In valuation practice, it is usually adopted where there is a lack of data for income method or where the property is new and there is no sufficient evidence of recent property transactions in the open market. The DRC method from the professional view point however relies on a good knowledge of construction costs or unit rates of construction as regards landed property or assets generally. This can pose serious challenges where relevant data is not available. It could in turn result to assumptions which are indefensible in a court of law.

Keywords: Construction Rate, Depreciation, Replacement Cost, Valuation