ACCOUNTING CONCEPTS, CONVENTIONS, AND FINANCIAL REPORTING.

ABSTRACT

This study examines the role and extent to which the application of accounting concepts and conventions influences the quality of financial reporting The study employed descriptive survey research design. The questionnaire is the main research tool employed in the study to gather the necessary data from the sample of respondents. The analytical tool used in the study was a random sampling technique, specifically convenience sampling and a sample size of one hundred and sixty (160). The Statistical analytical correlation method was used in the research work. The dependent variable for the study is financial reporting quality. And the predictors were Concept Influence, Framework Establishment, and Decision-Making Adequacy. The result showed that there is a significant positive relationship between adherence to accounting concepts and conventions and the preparation of financial reports. Also, the study revealed that there is a significant positive relationship between accounting concepts and conventions and the framework for constructing financial reports. The study also showed that adherence to accounting concepts and conventions significantly affects the adequacy of financial reports for decision-making. Lastly, the study revealed that deviations from accounting concepts and conventions significantly impact the reliability of financial reports. The study recommends that manufacturing companies should continue to prioritise and strictly adhere to accounting concepts and conventions. Also, companies should emphasize the significance of using accounting concepts and conventions as the foundation for constructing financial reports and should implement strict internal controls and oversight mechanisms to prevent deviations. The research further recommends that accounting employees should be trained and educated, and also enhance communication with stakeholders about financial reporting practices.