ABSTRACT
Discussions have been raised in
recent years to assess the appropriateness of the traditional financial report
of firms. This is because the existing accounting standards and firms'
reporting of their assets of intellectual capital to the business environment
is insufficient, especially, now that organizations are investing more in
intellectual assets like human resources and investing less in physical assets
like machineries. The purpose of this study is to evaluate the intellectual
capital reporting practices in Nigeria, and evaluate the effect of
capitalization of intellectual assets on the value of firms. Survey data was
obtained from 170 respondents to researcher designed instrument. Panel data of
Profit before Tax (PBT) and net worth of Associated Bus Company PLC were
extracted for a period of 2000-2009, and their human resource cost for the same
period capitalized in line with the methodology adopted by Otter (2007) and
Ihendinihu (2010). Data were analysed using Descriptive, Regression, and Paired
Sample T-test techniques. The results obtained reveals that investment in human
resources provide future benefits to the firm and at such its capitalization
will increase the value of firms and provide adequate information for
decision-making. The results also show that about 48.8% improvement in the net
profit could be attributed to capitalization of human resource cost. With
t-value of 9.094 being significant at 1% level, this work disclosed that the
application two of different accounting treatment to human resource cost have
significant effect on the net profit of ABC Transport PLC. Despite the problems
facing the capitalization of intellectual assets, the work recommends that the
reporting of intellectual assets should be adopted by Nigerian firms, and
standard setting bodies in accounting profession should strive to produce a
standard that will support intellectual capital reporting.
GEORGE, I (2021). Evaluation Of Intellectual Capital Reporting Practices Un Nigeria (A Study Of Associated Bus Company Plc). Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/evaluation-of-intellectual-capital-reporting-practices-un-nigeria-a-study-of-associated-bus-company-plc-7-2
I, GEORGE. "Evaluation Of Intellectual Capital Reporting Practices Un Nigeria (A Study Of Associated Bus Company Plc)" Mouau.afribary.org. Mouau.afribary.org, 03 Sep. 2021, https://repository.mouau.edu.ng/work/view/evaluation-of-intellectual-capital-reporting-practices-un-nigeria-a-study-of-associated-bus-company-plc-7-2. Accessed 01 Nov. 2024.
I, GEORGE. "Evaluation Of Intellectual Capital Reporting Practices Un Nigeria (A Study Of Associated Bus Company Plc)". Mouau.afribary.org, Mouau.afribary.org, 03 Sep. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/evaluation-of-intellectual-capital-reporting-practices-un-nigeria-a-study-of-associated-bus-company-plc-7-2 >.
I, GEORGE. "Evaluation Of Intellectual Capital Reporting Practices Un Nigeria (A Study Of Associated Bus Company Plc)" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/evaluation-of-intellectual-capital-reporting-practices-un-nigeria-a-study-of-associated-bus-company-plc-7-2