Assessment of Accounting Policy Choices on Accounting Practices: Evidences from Accountants in Nigeria

Abstract

The fundamental aim of this study was to investigate the assessment of accounting policy choices on accounting practices in Nigeria. The survey research design was used for this study, and the population was the total number of accounting and related practitioners in Nigeria, which was categorized as an infinite population. However, samples of 672 were chosen using a multistage non-finite population method. The structured questionnaire was used as the primary source of data, and data was collected using a Google form. The words in the questionnaire were carefully chosen to address the study's primary objectives. The questionnaire was divided into two sections, A and B. Section A contained biographical information on the respondents, whereas Section B contained remarks about the study's objectives or hypotheses. The response options were a 5 likert scale system with Strongly Agreed, Agreed, Undecided, Disagreed, and Strongly Disagreed scored from 5 to 1. For descriptive statistics, a basic frequency table was utilized, whilst analysis of variance (ANOVA) and ordinary least squares (OLS) were used to draw conclusions from the hypotheses developed. Cronbach's Alpha was also employed to determine the internal consistency of the scale used along with the research items. The result showed R of 76.0% which indicates a very positive and strong model. The overall fitness of the model is established based on the outcomes of the study which showed that the three aspects of accounting policy choices have a joint significant influence on Nigerian enterprises' accounting practices (F= 76.001, p-value =0.000). The study concluded that the three dimensions (revenue recognition, depreciation and inventory valuation policies) of accounting policy choices all have significant influence on accounting practices of Nigerian firms. Therefore, this study recommended that Nigerian firms, corporate or otherwise should ensure that appropriate income recognition policy be se

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