Examination of Fair Value Measurements in Determination of Profitability of Listed Manufacturing Firm

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

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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