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07030248044CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Okadigbo (2004:12) defines deprecation accounting as a system of accounting which aims to distribute the cost of other basic value of tangible capital assets less salvage (if any) over the estimate useful life of the unit (which may be a group of asset) in a systematic and rational manner. It is a process of allocation, not of valuation; depreciation for the years is the portion of the total charge under such as system that is allocated to the year.
According to Oloh (2008:79) depreciation is an allocation of the entire cost of depreciable asset to the operating expenses of series of fiscal period. Depreciation is the exhaustion of the effective life of a fixed asset owing to use or obsolesces (Uguru, 2006:9).
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