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EFFECTIVENESS OF TAXATION AS AN INSTRUMENT FOR CONTROL OF MONEY IN CIRCULATION

By Eze Judith Chinwendu

This research work is been designed to untold the effect of Taxation on the Economy of Nigeria. The aim and objective is to find out if taxation constitutes significant impart as an instrument for control of money in circulation such as the effect on the rapid rise in price on Revenue, Expenditure and credit; the extent to which the tax system may be effective in preventing or combating an inflation; And how taxation can be used to breach the vicious circles of poverty, to find out if taxation can be used to industrialize a developing economy like Nigeria. The research instrument used for data collection was questionnaire which contained 15 items. The data collected were analyzed through the use of percentage. From the findings, it was discovered that taxation can help in regulating the level of money in circulation and can be used to combated inflation and also breach the wide gap between the rich and the poor. Based on the finding, recommendations were made which the researcher hope would help to understand that taxation can be used as an instrument of control of money in circulation.

Published: 09/03/2012

Tags: TAXATION, ECONOMY, NIGERIA, REVENUE.

Size: 588.67KB

THE EFFECT OF HISTORICAL COST ACCOUNTING ON THE REPORTED PROFIT OF A COMPANY: AN EVALUATION OF CURRENT COST ACCOUNTING AS AN ALTERNATIVE REPORTING METHOD

By Egbe Ndubuisi

This study evaluates the effect of historical cost accounting on the reported profit of a company: An evaluation of current cost accounting as an alternative reporting method. In a high – inflationary and distorted economy like Nigeria with high uncertainties, the conventional historical cost method of profit reporting has misled many companies into liquidation since it has been found inadequate in accounting for the uncertainties. The persistent nature of this phenomenon has called for a fair and suitable reporting method of profits in times like this. The profits retained by the company are affected by costs and appropriations of income. A higher cost will leave little income for appropriation and to be retained in the company. The amount of profit will depend on the reported method in operation. The historical cost method makes low depreciation to be charged while leaving high profit for tax and dividends payments. In the light of the above, the objectives of the study were to determine the nature of relationship between historical cost methods and reported profits of manufacturing companies in Nigeria, ascertain the extent to which current cost method affects the overstated profits made by manufacturing companies in Nigeria and to determine how current cost accounting can be used to remedy the inherent deficiencies in the historical cost methods. An ex post facto research design was adopted in this study. The population of the study comprises forty-eight ( 48) manufacturing companies in Nigeria under 24 industrial classifications. Financial statements of these companies are published annually for public consumption. But due to time lag, ten(10) manufacturing companies quoted in the first tier securities market were randomly selected . Secondary sources of data were used in the study. The data were obtained from the statistical bulletin of the Central Bank of Nigeria and Annual Reports of the Nigerian Stock Exchange. Depreciation charge served as the independent variables while Profits of the firm served as the dependent variables and were used to measure the profitability, capital adequacy ratio and improvement of shareholders` equity in the selected sampled manufacturing companies. The Pearson Product Moment Correlation Coefficient was employed to test the hypotheses one while Chi-Square were employed to test the hypotheses two and three. These were done at the alpha level of 5% with the aid of the SPSS 17.0 statistical software. The results of the study discovered that there is a positive significant relationship between historical cost method and the reported profits of companies in Nigeria , Current cost methods does not significantly affects the overstated profits made by these companies and the study recommended that: there should appropriate decision for current cost accounting method to be adopted so as to improve their capital maintenance level, and there should be further research on the causes of further research on the effect on historical cost accounting on the reported profits of companies in Nigeria.

Published: 11/03/2014

Tags: Accounting, Profits, Nigeria

Size: 793.25KB

INFLUENCE OF INFLATION ON REPORTED PROFIT FOR DECISION MAKING IN FINANCIAL INSTITUTIONS IN NIGERIA

By Chukwuemeka, Martina O.

The study is on Influence of inflation and reported profit: implication on decision-making. The
study was set to achieve the following objectives:, to determine the extent to which lending decision in
Nigeria banks were affected by inflation between 2006 – 2011, to ascertain the extent to which inflation
has impacted on the reported profits of commercial banks in Nigeria between 2006 – 2011, to examine the
extent to which reported profits under inflationary period affect investment decision of Nigeria banks
between 2006 – 2011, to find out other factors that influence decisions on reported profit apart from
inflation. The research design adopted in this study is ex-post factor research design which is characterized
as events that have taken place in the past. The target population of the study is all the banks quoted in
Nigeria stock exchange. The sample size is the first two new generation banks (FBN and UBA Plc).
Secondary data were sourced from Annual Reports of the banks under study. The data will be presented
using sample table frequency and the formulated hypotheses will be tested using linear regression
technique. The study discovered that there is no significant positive relationship between lending
decision and inflation on Nigerian banks and it is revealed that it could not be established that
inflation has adversely affected reported profits on Nigerian banks within 2006 to 2011 fiscal
year. Also it was found that investment decisions within the reported profits of Nigerian banks
have no direct relationship with inflation within the period under review and finally that
inflation on other decision factors (Gearing and Solvency) has no significant relationship on
reported profit on Nigerian banks. Also the decision of organization obeys the trends and
situation of the economy either in lending or reported profits, investment decisions, gearing and
solvency. Thus in the presence of all these factors inflation and reported profit have negative
influence on decision-making.

Published: 02/03/2018

Tags: INFLUENCE, INFLATION, FINANCIAL INSTITUTIONS, DECISION MAKING

Size: 923.33KB

Costing as an Essential Instrument in Materials Management and Control

By Nwamuo, Temple A. S.

is study which covered one of the cement fibre
manufacturing industries in the country was a mixture of
librarv research and empirical or survey method of research.
Both primary and secondary sources of data were utilized
in gatlzcring relevant information. The primsuy sources consist
t
of questionnaire and oral interview while the secondary
sources were gathered from existing literature on the subject
matter of the study.
Tabular presentation of data analysis was used whereby
the effect and relationship one data had with another was
quqntified ' by simple representation and the
hypotheses were statistically tested.
This study has proved that costing is a veritable
instsumci~t for materials control in any industrial
organization. Given the importance of effective material
management in any industry, this stvdy recommends the
recognition and of course thz creatipn of good working
!
enviroiiment to enable the department function effectively.

Published: 02/03/2018

Tags: Instrument , Management, Control, Costing

Size: 1.58MB

THE ROLE OF MICROFINANCE INSTITUTIONS IN THE MOBILIZATION OF FUND FOR MICRO CREDIT SCHEME IN NIGERIA

By Chima Nnenna Linda

In the course of carrying out this research, data were collected from both
primary and secondary sources to test the hypotheses. The Random sampling
technique was used to determine the sample size. In analyzing and presenting
data collected, tables and percentages were used. The Chi-square method was
used to test the hypotheses stated, and after a careful test on the data, it was
revealed that microfinance institutions play significant roles in the mobilization
for fund for micro credit scheme in Nigeria, that implementation of
microfinance policy in Nigeria is low and also that the attitude of commercial
banks as regards micro credit scheme in Nigeria is unfavorable. It is therefore,
recommended that government should enforce and monitor the implementation
of microfinance policies and also provide incentives for commercial banks that
involve in micro credit scheme so as to create a favorable or enabling
environment for the parties involved.

Published: 02/03/2018

Tags: MICROFINANCE, INSTITUTIONS, MOBILIZATION

Size: 414.32KB

AN APPRAISAL OF THE IMPACT OF RECAPITALIZATION OF BANKING INDUSTRY ON ECONOMIC GROWTH OF NIGERIA

By Chidolue, Chinenye Alfred

One of the major macroeconomic variables that compliment bank performance is availability of
capital. Economic theories show that inadequate capital contributes to bank failures and retards
economic growth. This study however, examined the impact of bank recapitalization of banking
industry on economic growth of Nigeria. It is the aim of this research work to examine the past
bank failures as a result of inadequate capital and how recapitalization exercise in the banking
industry in Nigeria has increased the minimum paid-up capital and increased the banks’ asset
qualities. This research work is carried out to achieve some objectives among which are: to
examine the impact liquidity ratio on economic growth in Nigeria pre and post capitalization
2005, to determine the impact of cash reserve ratios on economic growth in Nigeria pre and post
capitalization 2005, to examine the impact of money supply on economic growth in Nigeria pre
and post capitalization 2005, to examine the impact of loan-to-deposit ratio on economic growth
in Nigeria pre and post capitalization in 2005. The methodology adopted for this work was
based on the use of tables and charts, which established structured relationship between the
variables studied. The data collected were only from secondary data and variable specification
used were dependent and independent variable: while GDP was used as dependent variables,
money supply, loan-to- deposit ratio and cash reserve ratio are independent variable. The findings
indicate that liquidity ratio, cash reserve ratio have no positive and significant impact on
economic growth of Nigeria as opposed to money supply to GDP and loan to deposit of
commercial bank that have positive but non-significant impact on economic growth in Nigeria. It
is, however, recommended that government should make policies that are less stringent and more
favourable for the operators to have room to operate more freely.

Published: 02/03/2018

Tags: RECAPITALIZATION , BANKING INDUSTRY, ECONOMIC GROWTH

Size: 735.73KB

Examination of Fair Value Measurement in Determination of Profitability of Listed Manufacturing Firms in Nigeria

By Akwu, Onyekachi David

Examination of fair value measurement in determination of profitability of listed manufacturing firms
in Nigeria was influenced by the adoption of International Financial Reporting Standard (IFRS) in
Nigeria. IFRS are a set of accounting standards developed by the International Accounting Standards
Board (IASB) that is becoming the global standard for the preparation of public company financial
statements. The standard favours a basis of valuing assets and liabilities known as Fair Value,
different from Historical Cost promoted by Statement of Accounting Standards (SAS) and the former
International Accounting Standards (IAS). The Fair Value measurement values assets and liabilities at
their current market price as though the business is at liquidation and trying to realise its assets and
dispose its liabilities, while the Historical Cost convention values assets and liabilities at their original
costs of purchase or transfer thereby assuming a stable monetary unit disposition. The IFRS also
presents with reclassification of returnable packaging material (RPM) as long term asset, and the
depreciation of the components of a machine, instead of the whole machine. Previous research has
shown that method of valuation may significantly influence reported profit; the problem therefore is,
what effect would this newly adopted way of valuing assets and liabilities have on profitability? Thus,
the study sought to: (i) ascertain the influence of depreciation on profitability of the manufacturing
firms in Nigeria using fair value measurement and historical cost convention, (ii) examine the effect of
inventory on reported profit of manufacturing firms in Nigeria under fair value measurement and
historical cost convention, (iii) determine the relationship between volume of tax and reported profit
of manufacturing firms in Nigeria using fair value measurement and historical cost convention and
(iv) compare the mean of the two sampled populations. The ex-post facto research design was
adopted for this study. A cross sectional data from the financial reports of manufacturing companies
quoted on the 1st tier security market of the Nigerian Stock Exchange for Pre-IFRS of 2011 and Post
IFRS of 2012 periods were used. The dependent variable is profitability while the independent
variables are depreciation, inventory and taxation. The five companies studied were those that have
complied with IFRS and they include: Champion Breweries Plc, Guinness Breweries Plc,
International Breweries Plc, Nigerian Breweries Plc and 7-up Bottling Company Plc. The simple least
square regression technique, correlation coefficient, and t-statistic were analytical tool were used;
using Econometric Views (EViews) statistical software. Depreciation has positive and significant
impact on profitability using fair value measurement (R2
= 0.959; AR2
= 0.945; p-value = 0.0036) and
historical cost convention (R2
= 0.997; AR2
= 0.996; p-value =0.0001). Inventory has positive and
significant effect on profitability under fair value measurement (R2
= 0.939; AR2
= 0.918; p-value =
0.0066) and historical cost convention (R2
= 0.983; AR2
= 0.977; p-value = 0.0010). A positive and
significant relationship exist between taxation and profitability using fair value (r = 0.998) and
historical cost convention (r = 0.979). The two populations from which sample were taken have the
same mean (tcal = 0.467 < tcritical = 2.306, 0.05 significant level). Conclusively, depreciation, cost of
sales, and Taxation has significant and positive impact, effect and relationship respectively on what is
reported as profit under historical cost convention and under fair value measurement. Thus, indicating
that fair value measurement can serve as a replacement to historical cost convention. As such, fair
value should be encouraged.

Published: 02/03/2018

Tags: Examination, Value Measurement , Profitability

Size: 1.14MB

EFFECTIVENESS OF TAXATION AS AN INSTRUMENT FOR CONTROL OF MONEY IN CIRCULATION

By Eze Judith Chinwendu

This research work is been designed to untold the effect of Taxation
on the Economy of Nigeria. The aim and objective is to find out if
taxation constitutes significant impart as an instrument for control
of money in circulation such as the effect on the rapid rise in price
on Revenue, Expenditure and credit; the extent to which the tax
system may be effective in preventing or combating an inflation;
And how taxation can be used to breach the vicious circles of
poverty, to find out if taxation can be used to industrialize a
developing economy like Nigeria. The research instrument used for
data collection was questionnaire which contained 15 items. The
data collected were analyzed through the use of percentage. From
the findings, it was discovered that taxation can help in regulating
the level of money in circulation and can be used to combated
inflation and also breach the wide gap between the rich and the
poor. Based on the finding, recommendations were made which the
researcher hope would help to understand that taxation can be
used as an instrument of control of money in circulation.

Published: 02/03/2018

Tags: TAXATION, MONEY

Size: 588.67KB

Commensality: An Aspect of Social Principle

By Anigbo O.a.c

This article talks about the aspect of Social Principle where people of high status eat and drink in public with utmost carefulness.

Published: 01/03/2014

Tags: Commensality, Food, Principle

Size: 163.70KB

EFFECTS OF BANK MERGERS AND ACQUISITIONS ON LENDING TO SMALL BUSINESS BORROWERS IN NIGERIA

By Asogwa Cosmas .i.

Effects of bank mergers and acquisitions on bank loans to small businesses have raised significant concern among policy makers in Nigeria. Small business lending is a prime example of a banking product likely to be affected by bank consolidations. Although bank consolidations are likely to bring evolution in the banking product market, this kind of product had remained local in nature. By remaining local, the product may not likely appeal to consolidated banks that are forward looking. This scenario has raised questions for instance; to what extent do banking consolidations affect their ability to supply small credit loans. The information regarding this question has remained asymmetrical implying that policy capable of pulling down the economy may likely arise in near future. Therefore, this study seeks to mitigate such likely economic catastrophe by trying to analyze empirically the effects of bank mergers and acquisitions of emerging mega banks on small business lending. All the 24 banks that emerged successfully after the N25billion bank recapitalization mandate were selected for study as all of them were involved in the consolidation and recapitalization exercises. An Ex-Post Facto Research Design was engaged and secondary data were obtained from the CBN Statistical Bulletins and database of banks selected for study. Multiple regression analysis was used to analyze the data with the aid of E-View Software. The result indicated that changes in bank size after bank consolidation negatively affected banks’ decision to lend, which is not statistically significant ( β=-0.62; p-value >0.05). This means that as bank gross asset increases as a result of bank consolidation, bank loans to small businesses would likely fall. Changes in consolidated banks’ deposits negatively affected small business lending and it is insignificant ( β=-0.063;p-value> 0.05). This shows that as bank deposits of the consolidated banks increase, the credit availability to Nigerian small businesses begins to drop by 6% for every 1% positive changes. Changes in bank Market share after bank consolidation affected bank lending positively and it is insignificant ( β=0.02; p-value >0.05). The effect indicates that as banks increase their competitive stands due to consolidation, loans to small business as well increase. Finally, changes in equity positively affected banks’ decision to lend after consolidation, which is insignificant ( β=0.0197; p-value >0.05). This means that increases in shareholders’ funds encouraged banks to supply loans to small business borrowers after mergers and acquisitions. We concluded that bank mergers and acquisitions do not largely advance the interest of small business borrowers in Nigeria. Based on the conclusion, we recommended that government should encourage bank capital adequacy. Most importantly, they should encourage micro finance banks and other non-bank financial institutions to pick up loans dropped by the consolidating banks.

Published: 08/03/2014

Tags: Bank mergers, Business, Lending,

Size: 1.41MB