Volume 7, Issue 6, December 2019, Page: 150-158
Effect of Fair Value Accounting on Assets of Consumer Goods Firms in Nigeria
Ubesie Madubuko Cyril, Department of Accountancy, Enugu State University of Science and Technology (ESUT), Enugu, Nigeria
Akparhuere Godwin Oghenekohwo, Department of Accountancy, Enugu State University of Science and Technology (ESUT), Enugu, Nigeria
Mba Chris Chukwuemeka, Department of Marketing, Enugu State University of Science and Technology (ESUT), Enugu, Nigeria
Received: Oct. 10, 2019;       Accepted: Nov. 28, 2019;       Published: Dec. 13, 2019
DOI: 10.11648/j.sjbm.20190706.13      View  252      Downloads  64
Fair value of a firm’s asset is one of the determinants of its net-worth and marketability. It is a rational and unbiased estimate of the potential market price of a good (commodity), stock, service or asset of a firm. The main objective of the study is to determine the effect of fair value accounting on assets of consumer goods manufacturing companies in Nigeria. The study adopted ex-post facto research design and data were sourced from three selected companies through purposive sampling technique. Analysis was carried out on ten years pooled data on total assets (the dependent variable), fair value (proxy by share value), market value (proxy by Net Assets), and depreciation value. The findings show that fair value has significant effect on assets of consumer goods firms in Nigeria. The study recommends that management of consumer goods companies should consolidate on improvement of fair value of firms through their assets management and appropriate policies, adopt the best practices that would raise the share prices and maintain higher book values of the firms, and use depreciation as a source of replacement of old assets thereby stabilizing the Net worth of the firms.
Fair Value, Assets, Consumer Goods Firms
To cite this article
Ubesie Madubuko Cyril, Akparhuere Godwin Oghenekohwo, Mba Chris Chukwuemeka, Effect of Fair Value Accounting on Assets of Consumer Goods Firms in Nigeria, Science Journal of Business and Management. Vol. 7, No. 6, 2019, pp. 150-158. doi: 10.11648/j.sjbm.20190706.13
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