ABSTRACT

This

research work was conducted on with special reference to the impact stock valuation

method has on financial report statements of manufacturing company with reference

to Seven up Bottling Company. For a longtime now the Accounting profession has

not been able to come up with any particular technique or method to be used

uniformly in valuing stock. This research work examined if the method used was

as a result of the prevailing economic circumstances. A survey research design

was adopted for the study; data collected were gotten from both the primary and

secondary sources. An infinite population of over 3000 was used and a finite

population of 220. Three hypotheses were tested at 5 percent level of

significance. Tables and percentages were employed to answer the questionnaires

while the statistical regression coefficient analysis and Z- test were used to

test the hypotheses. It was found amongst others that the prevailing economic

parameter influences the decision of choice of stocky valuation method used.

The study recommends that accounting professional bodies should try as much as possible

to adopt a particular method of inventory valuation and the weighted average

method was recommended as a method that can withstand any economic challenges