EFFECT OF FAIR VALUE ACCOUNTING ON BIOLOGICAL ASSET (A CASE STUDY OF NESTLE NIGERIA PLC 2014-2023)

This study critically reviewed the Effect Of Fair Value Accounting On Biological Asset (A Study Of Nestle Nigeria Plc. 2014-2023. The objectives of this study are; (i). to examine the relationship between fair value accounting and profit before tax of manufacturing companies in Nigeria, (ii) to examine the relationship between fair value accounting and return on assets of manufacturing companies in Nigeria, (iii) to ascertain whether any significant difference exist between profit before tax of manufacturing companies in Nigeria under fair value accounting and historical cost conventions, (iv) to ascertain whether any significant difference exist between return of assets of manufacturing companies in Nigeria under fair value accounting and historical cost conventions. The study adopted secondary sources of data collection in obtaining all the data, for each of the period under evaluation in this study. Findings of this study revealed that; there is significant effect between fair value accounting and profit before tax of manufacturing companies in Nigeria between fair value accounting and return on assets of manufacturing Nigeria. there is significant effect between fair value accounting and return on assets of manufacturing Nigeria. Based on these findings, it was recommended among others that there is need for agricultural firms to adopt the fair value accounting system in other to keep proper records of its biological assets. Fair value accounting of non-current assets such as land and building, machine, plant and equipments, amongst others should bemonitored since they help to optimize biological assets in the company. Since the biological assets interacts positively with productivity of the quoted Nigerian firm, Nestle Nestle Nigeria Plc should work towards increasing their commitments into improving earnings from their business transaction.There is need for Nestle Nestle Nigeria Plc to adopt the fair value accounting system in other to keep proper records of its biological assets.