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Impact of Depreciation Accounting Education on Students’ Ability to Determine the Carrying Amount of Non-Current Assets in Nigerian Universities

Abstract

This study examined the impact of depreciation accounting education on students’ ability to determine the carrying amount of non-current assets in Nigerian universities. Depreciation accounting education refers to students’ understanding of the principles, methods, procedures, and accounting treatments used in determining the depreciation of non-current assets. The ability to determine the carrying amount of non-current assets relates to students’ capacity to correctly calculate the value of assets remaining in the accounting records after accumulated depreciation and other relevant adjustments have been considered. The study was motivated by the importance of accurate asset valuation in financial reporting and the difficulties some accounting students experience when applying depreciation principles. The study therefore investigated whether adequate depreciation accounting education improves students’ ability to determine the carrying amount of non-current assets. Depreciation is an important accounting concept because non-current assets are generally used over several accounting periods and their costs need to be appropriately allocated over their useful lives. Students are expected to understand concepts such as cost, residual value, useful life, depreciable amount, accumulated depreciation, and different depreciation methods. A weak understanding of these concepts may result in errors when calculating depreciation and determining the carrying amount of assets. Strong depreciation accounting knowledge can therefore help students accurately interpret asset-related accounting information and apply appropriate procedures when preparing or analyzing financial statements. The study adopted a survey research design. The population comprised accounting students in selected Nigerian universities, from which an appropriate sample was selected using a suitable sampling technique. Data were collected through a structured research instrument designed to assess students’ depreciation accounting education and their ability to determine the carrying amount of non-current assets. The instrument was validated by experts in accounting and accounting education, while appropriate reliability procedures were conducted to establish its consistency. Data collected were analyzed using descriptive and inferential statistical techniques, with the relevant hypothesis tested at a 0.05 level of significance. The study is expected to establish that depreciation accounting education has a significant positive impact on students’ ability to determine the carrying amount of non-current assets. Students with stronger knowledge of depreciation principles are expected to demonstrate greater accuracy in calculating depreciation and determining the value of assets reported in financial statements. Adequate knowledge may also improve students’ ability to distinguish between asset cost, accumulated depreciation, and carrying amount. Conversely, inadequate understanding of depreciation concepts may lead to calculation errors, incorrect asset valuation, and difficulties in solving practical financial accounting problems. The study also emphasizes the importance of practical approaches to teaching depreciation accounting in Nigerian universities. Lecturers can improve students’ understanding through worked examples, practical calculations, case studies, and classroom exercises involving different types of non-current assets and depreciation methods. Students should be encouraged to practice determining depreciation expenses, accumulated depreciation, and carrying amounts under different accounting situations. Such activities can help students connect theoretical concepts with practical financial reporting applications and improve their confidence in solving asset valuation problems. The findings of the study are expected to be useful to accounting students, university lecturers, accounting departments, curriculum developers, and professional accounting organizations. For students, improved depreciation accounting knowledge can strengthen their ability to accurately determine asset values and prepare financial information. Lecturers may use the findings to identify areas where students experience difficulties in understanding depreciation and improve their teaching approaches. Curriculum developers may also strengthen financial accounting courses by including more practical exercises on depreciation and non-current asset accounting. The study recommends that Nigerian universities should strengthen depreciation accounting education through practical calculations, worked examples, case studies, and regular assessment of students’ understanding of non-current asset accounting. Lecturers should provide students with sufficient opportunities to apply different depreciation methods and determine the carrying amount of assets in realistic accounting situations. Students should also engage in continuous practice and independent study to improve their competence in depreciation accounting. Overall, the study concludes that effective depreciation accounting education is important for improving students’ ability to determine the carrying amount of non-current assets and strengthening their competence in financial accounting and reporting.

Keywords: Depreciation Accounting Education, Carrying Amount, Non-Current Assets, Depreciation, Accumulated Depreciation, Asset Valuation, Financial Accounting, Accounting Education, Accounting Students, Depreciation Methods, Asset Cost, Residual Value, Useful Life, Financial Reporting, Nigerian Universities.