Impact Of Different Methods Of Depreciation On The Profitability Of A Company
(A Case Study Of Anammco Motor Enugu State)
The main purpose of this study is to measure the impact of different methods on the profitability of accompany the differ methods of providing for depreciation has been posing a problem to many people because the understanding and the use of these methods provide varying depreciation expenses on the sane fixed asset in viler of these when profit is reported using deferred methods part the service potential of a depreciable asset is exhausted in the cost revenue generating process each period the cost of these services meets be deducted from revenue of the period in order to measure the periodic income the expired cost must be recovered before a business is considered as well as at the beginning of the period and troublesome area in accounting.
Deprecation was actually a cost of doing business executive tended to view depreciation as a matter of setting aside speciation during prosperous period for the replacement of depreciation assets.
Chapter one we examined the need for the study, finding out what impact depreciation on the company’s profitability and tax. It also looked into the significance of the study that is building funds for the study of their asset at the end of the existing asset useful life. The scope was ANAMMCO, Niger gas limited and premier Breweries Plc.
Chapter two examined and reviewed the causes of depreciation that can be physical deterioration from wear and tear, the different method of calculating depreciation. Like straight-line method, revaluation methods etc. its impact on income statement and the evaluation of depreciable methods.
Chapter three dealt with research design and methodology.
Chapter four discussed the presentation analysis and interpretation of data the different method of depreciation and tested the hypothesis stated in chapter one.
Chapter five was the findings, recommendations and the conclusion.
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Title Page
Abstract
Table Of Contents
List Of Tables
Chapter One
1.0 Introduction
1.1 Preamble
1.2 Statement Of The Problem
1.3 Objectives Of The Study
1.4 Hypothesis Formulation
1.5 The Signification Of Study
1.6 The Scope Of The Study
1.7 Limitations Of The Study
Reference
Chapter Two
2.0 Literature Review
2.1 The Nature Of Depreciation Accounting
2.2 Causes Of Depreciation
2.3 Methods Of Calculating Depreciation
2.4 The Impact Of Depreciation On Income Statement
2.5 Evaluation Of Depreciation Methods
2.6 The Concept Of Profit
2.7 Definition Of Profit
2.8 Relationship Between Balance Sheet And Profit And Loss Account
2.9 Depreciation Method And Management Decision
2.10 Decline Productivity Controversy
2.11 Impact Of Inflation
2.12 Cost Of A Plant Asset
2.13 Estimated Life Of A Fixed Asset
2.14 Terminal Value Of A Fixed Asset
References
Chapter Three
3.0 Research Design And Methodology
3.1 Introduction
3.2 Instrument For Data Collection And Procedures
3.3 Sources Of Data
3.4 The Sample Size Calculations And Selection Computation Of The Sample Size
3.5 Valuation Of The Questionnaires
3.6 Questionnaires Administration And Collection
3.7 Statistical Treatment
3.8 Decision Rule
Reference
Chapter Four
4.1 Presentation Analysis And Interpretation Of Data
4.2 Bases Of Computation Using The Different Methods Of Depreciation
Chapter Five
5.0 Findings, Recommendations And Conclusion
5.1 Findings
5.2 Recommendations
5.3 Conclusion
Bibliography
Appendix 1
Questionnaires
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