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Depreciation in Plant and Machinery Valuation in Nigeria:A Pedagogic Framework

Iroham, C.O. and Durodola, O. D. and Akinjare, O. A. and Mosaku, T. O. (2013) Depreciation in Plant and Machinery Valuation in Nigeria:A Pedagogic Framework. JOURNAL OF THE NIGERIAN INSTITUTION OF ESTATE SURVEYORS AND VALUERS, 38 (1). pp. 7-15.

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Abstract

The uncordinated approach by estate surveyors and valuers' in handling depreciation during plant and machinery valuation which amongst others resulted to disparate values via the rule of the thumb method is a point of concern. At this time when the Financial Reporting Council Act of 2011 is enacted it reinforced the need for scientific approach to depreciation. The age-life methods of valuation and the unit of production approach together with the provision for obsolescence were discussed with an entreaty for usage of declining balance technique as it tends to capture characteristics of plant and machinery. However in case of undue uncertainties particularly as regards usefulife of machines amongst others, probability factors should be factored in by usage of Monte Carlo simulation principles. The authors opined that the undue competition amongst cognate professionals would be eradicated when estate surveyors and valuers start approaching their statutory preserve with precision and in a more professional manner. This can invariably be achieved when a unified approach of cost/summation method of handling plant/machinery is adopted coupled with the apposite depreciation technique advocated

Item Type: Article
Uncontrolled Keywords: Depreciation, Plant and Machinery, Valuation, Estate Surveyors and Valuers, Nigeria.
Subjects: H Social Sciences > HD Industries. Land use. Labor
T Technology > TA Engineering (General). Civil engineering (General)
T Technology > TH Building construction
Divisions: Faculty of Engineering, Science and Mathematics > School of Civil Engineering and the Environment
Depositing User: Mr Solomon Bayoko
Date Deposited: 23 Mar 2014 20:11
Last Modified: 23 Mar 2014 20:11
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/2237

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