Title page i
Declaration ii
Approval iii
Dedication iv
Acknowledgements v
Abstract vi
List of Tables x
List of Figures xi
List of Appendixes xii
CHAPTER ONE INTRODUCTION 1
1.1 Background to the Study - - - - - - - 1
1.2 Statement of the Research Problem - - - - - - 4
1.3 Objectives of the Study - - - - - - - 6
1.4 Research Questions - - - - - - - - 6
1.5 Research Hypotheses- - - - - - - - 7
1.6 Scope of the Study - - - - - - - - 7
1.7 Significance of the Study - - - - - - - 7
1.8 Conceptual Definition of Terms - - - - - - 8
References - - - - - - - - - 10
CHAPTER TWO REVIEW OF RELATED LITERATURE 13
2.0 Introduction - - - - - - - - - 13
2.1 Conceptual Review - - - - - - - - 13
2.1.1 Brief History of Measurement - - - - - - 13
2.1.2 Meaning of Measurement/Measurement Theory - - - - 14
2.1.3 Uncertainty of Measurement - - - - - - 15
2.1.3.1 Expressing Uncertainty of Measurement - - - - - 16
2.1.3.2 Error versus Uncertainty - - - - - - - 16
2.1.3.3 Reasons for Uncertainty of Measurement - - - - - 16
2.1.3.4 Sources of Errors and Uncertainties - - - - - - 17
2.1.4 Reliability and Validity of Measurement/Measuring Instrument - - 18
2.2 Theoretical Review - - - - - - - - 18
2.2.1 Theory of Measurement in Accounting - - - - - 18
10
2.2.2 Theory of Valuation in Accounting - - - - - - 20
2.2.3 Input and Output Measurement Techniques/Assets and Liabilities Valuation 22
2.2.3.1 Historical Cost Accounting/Valuation - - - - - 22
2.2.3.2 Current Purchasing Power/Adjusted Historical Cost - - - 25
2.2.3.3 Net Realisable Value/Exit Value - - - - - - 25
2.2.3.4 Replacement Cost/Entry Values - - - - - - 25
2.2.3.5 Discounted Future Cash Flows/Present Values - - - - 25
2.2.3.6 Current Value Accounting - - - - - - - 25
2.2.3.7 Deprival Value - - - - - - - - 26
2.2.3.8 Fair Value Measurement/Accounting - - - - - 26
2.2.4 The Theory of Profitability - - - - - - - 28
2.2.5 Ordinary Least Square Regression Model - - - - - 30
2.3 Empirical Reviews - - - - - - - - 30
2.4 Summary - - - - - - - - - 36
References - - - - - - - - - 37
CHAPTER THREE METHODOLOGY 41
3.1 Research Design - - - - - - - - 41
3.2 Nature and Sources of Data - - - - - - - 41
3.3 Population under Investigation - - - - - - 41
3.4 Sample Size - - - - - - - - - 41
3.5 Sample Technique/Method - - - - - - - 42
3.6 Description of Research Variables - - - - - - 42
3.6.1 Dependent Variable - - - - - - - - 42
3.6.2 Independent Variables - - - - - - - 43
3.6.2.1 Depreciation - - - - - - - - - 43
3.6.2.2 Taxation - - - - - - - - - 43
3.6.2.3 Inventory/Stock - - - - - - - - 44
3.6.2.4 Stochastic Disturbance - - - - - - - 44
3.7 Model and Technique for Analysis - - - - - - 44
3.9 Model Specification - - - - - - - - 45
References - - - - - - - - - 48
CHAPTER FOUR PRESENTATION AND ANALYSIS OF DATA 49
11
4.1 Data Gathering - - - - - - - - 49
4.2 Data Presentation - - - - - - - - 51
4.3 Descriptive Statistics - - - - - - - 55
4.4 Test of Hypotheses - - - - - - - - 58
4.4.1 Test of Hypothesis One - - - - - - - 58
4.4.2 Test of Hypothesis Two - - - - - - - 61
4.4.3 Test of Hypothesis Three - - - - - - - 62
4.4.4 Test of Hypothesis Four - - - - - - - 63
4.5 Discussion of Findings - - - - - - - 64
4.5.1 Findings Based on Road Map Committee Recommendation - - 64
4.5.2 Findings Based on Descriptive Statistics - - - - - 64
4.5.3 Findings Based on Objectives - - - - - - 64
4.5.3.1 Objective One - - - - - - - - 64
4.5.3.2 Objective Two - - - - - - - - 65
4.5.3.3 Objective Three - - - - - - - - 65
4.5.3.4 Objective Four - - - - - - - - 65
References - - - - - - - - - 67
CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS 68
5.1 Summary of Research Findings - - - - - - 68
5.2 Conclusion - - - - - - - - - 69
5.3 Recommendations - - - - - - - - 70
5.4 Suggestions for further Research - - - - - - 71
5.5 Contribution to Knowledge - - - - - - - 71
Bibliography - - - - - - - - - 72
Appendixes - - - - - - - - - 79
INTRODUCTION 1.1 Background to the Study: The 20th century witnessed a shift in the accounting practice, from the reporting entity unilaterally setting its own generally accepted accounting practice (GAAP) to an independent body/board setting the financial reporting standards, in a bid to satisfy the users of accounting information, and enhance the ‘information to be disclosed and comparison need’ of the financial statements (Emerson, Karim & Rutledge, 2010; Ezejelue, 2008; Glautier & Underdown, 2001; Wood & Sangster, 1999; Zeff & Keller, 1985). This shift is greatly in response to the dynamism in the business environment and it was partly responsible for the birth of the Accountants International Study Group (AISG) in 1967 and subsequently, the formation of the International Accounting Standard Committee in 1973 (Emerson, et al, 2010; Ezejelue, 2008; Glautier & Underdown, 2001). The International Accounting Standards Committee (IASC) eventually became the International Accounting Standard Board (IASB) in 2001 (ICAN, 2009a).
