ABSTRACT

This study is aimed at the appraisal of the theory and application of depreciation in the manufacturing industry a Case study of Nigerite Limited Ikeja the main objectives of the study are to evaluate the practice and theory of depreciation  manufacturing organization. To evaluate the factors that affects the rates and techniques of depreciation of asset. to evaluate the theory and practice of' depreciation in an inflationary situation such as Nigeria and to make recommendation on how to tackle the problems of depreciation in the manufacturing organizations The methodology adopted for the study is the simple  random sampling technique. The research instruments are structured questionnaires contain both opens and closed ended questions Chi-square (X²) is used of validity of research hypothesis. Also the coefficient of Association is used to determine the degree of relationship between the dependent and independent variables. The findings are that the manufacturing company for  the study -- Nigerite  limited Ike a, has good accounting system and books of accounts, that's the company is both labour and machine intensive That depreciation is applied in all the assets of the company. That due to the high rate of inflation, provision for depreciation is not considered effective means for assets replacement and lastly that most of the manufacturing companies used straight line techniques of depreciation along side with other ones such as reducing balance method. The key recommendations made for the study arc that manufacturing companies should ensure that their staff arc well trained in accounting and bookkeeping. That assets should be re-valued only when it is quite necessary to update the value of the asseth. And lastly, the Nigerian Accounting standard Board, should update the current . standards on Assets depreciation in an inflationary situations.