Comparative Analysis Of The Impact Of Depreciation Methods On The Financial Performance Of Manufacturing Companies. (A Study Of Unilever Nigeria Plc Aba, Abia State)
ABSTRACT
The priority of financial managers is
to ethically manage the company br profitability and long-term growth.
Companies have policies and practices that align management of the companies
with the interest of their shareholders. According to Osunkeye (2008), this
brings about beneficial relationship in the long-term. He believes that good
corporate governance is a critical factor in achieving business success.
Financial managers, who are not bully aware of these responsibilities to
shareholders, are therefore not working to achieve the best implementation of
depreciation methods and good corporate governance. Furthermore, it has
observed that many companies in Nigeria use straight line method of
depreciation. According to Achebe (2011) leases in which significant portion of
the risks and rewards of ownership are retained by the lesser are classified
as operating leases. Payments made under operating leases are charged to profit
and loss account on a straight-line basis over the period of the lease. This
therefore shows that for property, plant and equipment, the carried value of
such fixed assets, the depreciation is calculated to write-off the
costs/valuation of the fixed assets on a straight-line basis over the expected
useful lives of the assets.
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UKANWOKO, I (2021). Comparative Analysis Of The Impact Of Depreciation Methods On The Financial Performance Of Manufacturing Companies. (A Study Of Unilever Nigeria Plc Aba, Abia State). Mouau.afribary.org: Retrieved Nov 02, 2024, from https://repository.mouau.edu.ng/work/view/comparative-analysis-of-the-impact-of-depreciation-methods-on-the-financial-performance-of-manufacturing-companies-a-study-of-unilever-nigeria-plc-aba-abia-state-7-2
IKECHUKWU, UKANWOKO. "Comparative Analysis Of The Impact Of Depreciation Methods On The Financial Performance Of Manufacturing Companies. (A Study Of Unilever Nigeria Plc Aba, Abia State)" Mouau.afribary.org. Mouau.afribary.org, 28 Jul. 2021, https://repository.mouau.edu.ng/work/view/comparative-analysis-of-the-impact-of-depreciation-methods-on-the-financial-performance-of-manufacturing-companies-a-study-of-unilever-nigeria-plc-aba-abia-state-7-2. Accessed 02 Nov. 2024.
IKECHUKWU, UKANWOKO. "Comparative Analysis Of The Impact Of Depreciation Methods On The Financial Performance Of Manufacturing Companies. (A Study Of Unilever Nigeria Plc Aba, Abia State)". Mouau.afribary.org, Mouau.afribary.org, 28 Jul. 2021. Web. 02 Nov. 2024. < https://repository.mouau.edu.ng/work/view/comparative-analysis-of-the-impact-of-depreciation-methods-on-the-financial-performance-of-manufacturing-companies-a-study-of-unilever-nigeria-plc-aba-abia-state-7-2 >.
IKECHUKWU, UKANWOKO. "Comparative Analysis Of The Impact Of Depreciation Methods On The Financial Performance Of Manufacturing Companies. (A Study Of Unilever Nigeria Plc Aba, Abia State)" Mouau.afribary.org (2021). Accessed 02 Nov. 2024. https://repository.mouau.edu.ng/work/view/comparative-analysis-of-the-impact-of-depreciation-methods-on-the-financial-performance-of-manufacturing-companies-a-study-of-unilever-nigeria-plc-aba-abia-state-7-2