Evaluation of Challenges Facing Adoption of International Public Sector Accounting Standards (IPSAS) in Valuation Reporting in Nigeria (Published)
The issue of International Public Sector Accounting Standards (IPSAS) has come to stay in Nigeria, and interests of scholars as regard to financial reporting in the public sector are geared to it. IPSAS have been embraced by many countries because of it numerous benefits in the area of transparency and accountability. However, this study evaluates the challenges facing adoption of international public sector accounting standards (IPSAS) in valuation reporting in Nigeria. And the aim is to examine the challenges facing adoption of international public sector accounting standards (IPSAS) in valuation reporting in Nigeria with a view to providing information that will enhance implementation in the relevant sectors of government. The research objectives are to identify the relevant content of the IPSAS that will be apply to valuation reporting, to analyze the challenges facing adoption of IPSAS, and to identify the extent of adoption IPSAS in valuation reporting in Nigeria for financial reporting. Questionnaire, key informant interviews, and content analysis were adopted. Nine hundred and thirty-four (934) Estate Surveyors and Valuers both in private and public sectors, in addition to twenty six(26) accountants in different ministries all-in Nigeria were sampled. Data obtained were analyzed with the use of the following statistical tools: Relative Importance Indices (RII), Mean, Frequency and Percentage Distribution. Findings indicate that political Challenges ranked first in both respondent’s views’ with (RII = 4.69) and (RII =5.00) respectively. And others variables followed which affects adoption of IPSAS. The study recommends that, for transparency, accountability and to be in line with international best practices that all the variables analyzed in this study should be fully considered and get right.
Citation: Chinaza Henry Obineme, Ifeanyichukwu Valentine Nwafor, Stanley Chika Nwaogu (2021) Evaluation of Challenges Facing Adoption of International Public Sector Accounting Standards (IPSAS) in Valuation Reporting in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.9, No. 6, pp.64-77
Keywords: Estate Surveyors and Valuers, Financial Report, IPSAS, Valuation, accrual accounting
The Valuation of Modern Software Investment in the US (Published)
To know whether the investment made profits or losses, value analysis is done on the asset or the project. In the current time, value analysis is critical for business managers and an enterprise. This makes the enterprise owner able to negotiate the price of the assets or items when conducting commercial transactions. Since the US is the largest tech and software market globally, this article classifies the various methods used to do value analysis for modern software investment in the US. Therefore, the method is evaluated and presented according to the Model-Driven Interoperability theory, which includes cost, income, and intellectual capital markets to measure the value of software. The main importance of this research paper is to clarify the reason for the need to introduce proper investment valuation models in software. The research methodology is based on the inferences of the methods of software valuation, while the attention is based on various historical existing literature and practical examples. This study demonstrates the different aspects of current valuation methods to determine software value. Analysing the existing literature shows various valuation models under the income, market, cost, real option and cost-benefit analysis approaches used to value the software. Furthermore, this research recognised various methods that can be relied upon to estimate the value of software. Some of them include direct assessment for the future income, which estimates the income of a given software, real option valuation, which depends on the opportunity of software to generate income in future. Moreover, the relief from royalty method estimates the value of software based on hypothetical royalty payment that the company saves. The suggested methods in this paper would help business managers uncover the value of modern software and better decision-making when acquiring or developing software.
Keywords: Investment, Methods, Software, Valuation
Estimating The Reinstatement Or Replacement Cost In Valuation: A Case for the Estate Surveyor and Quantity Surveyor to Work in Tandem in Perfecting Valuation Briefs When Using the Contractor’s Method (Depreciated Replacement Cost Method) In Determining the Value of Properties (Published)
This paper seeks to highlight the need for Estate Surveyors and Valuers in Nigeria to improve on their current cost estimation techniques when valuing non-rent yielding and specialized properties using the DRC method of valuation and most importantly engage the services of Quantity Surveyors in ensuring that accurate cost estimates are provided for use in the valuation process. The research methodology adopted in actualizing the aim of this work made use of primary and secondary sources of data which included questionnaires and oral interviews. The measurement analysis of data made use of statistical tables and simple percentages. The postulated hypotheses on the other hand was tested and analyzed using the chi-square Statistic technique with a significance level of 5% (0.05). The findings showed that indeed there was a dearth of information on the part of Estate Surveyors and Valuers when it came to the knowledge and use of current cost estimating methods when valuing properties using the DRC method of valuation. These findings also highlighted the fact that the services of Quantity Surveyors most times are not commissioned when these cost estimates are to be determined for valuation, hence leading most times to properties being undervalued or overvalued. In a nutshell, the recommendations postulated dwelt on improving the cost estimating knowledge of Estate Surveyors and Valuers through seminars, symposiums and workshops organized by NIESV and NIQS, awareness of the need for Valuers to work with Quantity Surveyors to perfect valuation briefs involving the use of the DRC method and changes made to the curriculum of the study of the course Estate Management in tertiary institutions.
Keywords: Depreciated Replacement Cost, Estate Surveyors, Properties, Quantity Surveyors, Valuation
Sources of Anchor Data and Adjustment Amounts in the Valuation of Residential Properties (Published)
This paper ascertained how valuers generate anchor data based on past valuations experiences and how adjustments were made on the anchors to obtain capital values of residential properties. From a Total population of 260 registered firms, 164 were located. Yamane’s (1967) formula with 0.05 sampling error was adopted in determining sample size. It was found that sources of anchor and what valuers have been adjusting for varies. Additionally, generating anchor data from local experts was more common than from firms’ records; while general adjustment of anchor for differences in identified attributes has highest adoption rate (92.3%). Previous value experience of subject property is the most common of considered anchor sources. Externally generated anchor ranked higher in use than internally generated anchor; but ranked lower in terms of adjustment. Adjusting without identification of differences in attributes should be avoided to prevent misrepresentation of comparable and loss of clients’ confidence
Keywords: Adjustment, Valuation, anchor, data, residential property
CHALLENGES OF USING THE COST METHOD OF VALUATION IN VALUATION PRACTICE: A CASE STUDY OF SELECTED RESIDENTIAL AND COMMERCIAL PROPERTIES IN AWKA AND ONITSHA, ANAMBRA STATE, NIGERIA (Published)
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