The study examined the implications of accounting policies on firm performance in Nigeria. It made use of two objectives being to: examine how accounting policies in disclosure of inventories and in disclosure of receivables affects return on assets of firms in Nigeria. Ex – post facto research design was adopted for the study while secondary data of the listed consumer goods sector were extracted from CBN statistical bulletin and the financial statements. Random panel regression model was used to test the two null hypotheses of the study. The study revealed that accounting policies in disclosure of inventories and disclosure of receivables significantly affect return on assets of firms in Nigeria. The study therefore recommends that companies in Nigeria should adopt all necessary accounting practices to enhance comparability of accounting information. They should equally ensure consistency in use of accounting policies so as to check unwholesome practices of the management. Furthermore, regulatory agencies and other stakeholders should hold the companies accountable for the lapses in the adoption of sound and acceptable accounting practices. Government should enact regulatory laws that will ensure that companies professionally carry out their accounting responsibilities.
Keywords: Accounting policies, Inventories, Receivables, Return on assets, Nigeria
Hkay, C., Ph.D., J & ANDREA, I (2021). IMPLICATIONS OF ACCOUNTING POLICIES ON FIRM PERFORMANCE IN NIGERIA.. Afribary. Retrieved from https://afribary.com/works/implications-of-accounting-policies-on-firm-performance-in-nigeria
Hkay, Chuka, et. al. "IMPLICATIONS OF ACCOUNTING POLICIES ON FIRM PERFORMANCE IN NIGERIA." Afribary. Afribary, 01 Oct. 2021, https://afribary.com/works/implications-of-accounting-policies-on-firm-performance-in-nigeria. Accessed 18 Oct. 2021.
Hkay, Chuka, JOHN Ph.D. and ISAMADE ANDREA . "IMPLICATIONS OF ACCOUNTING POLICIES ON FIRM PERFORMANCE IN NIGERIA.". Afribary, Afribary, 01 Oct. 2021. Web. 18 Oct. 2021. < https://afribary.com/works/implications-of-accounting-policies-on-firm-performance-in-nigeria >.
Hkay, Chuka, JOHN Ph.D. and ISAMADE ANDREA . "IMPLICATIONS OF ACCOUNTING POLICIES ON FIRM PERFORMANCE IN NIGERIA." Afribary (2021). Accessed October 18, 2021. https://afribary.com/works/implications-of-accounting-policies-on-firm-performance-in-nigeria