The Emergence of Accounting Theory from Practice Towards General Accounting Theory in a Corporate Organizations in Nigeria

Abstract

This study focused on the emergence of accounting theory from practice towards general accounting theory in corporate organization in Nigeria. It was carried out, using Guinness Nigeria PLC. The study is based on primary and secondary sources of data. Data were gotten from the audited financial statement of organization for a period of four years (2014-2017) through simple random sampling technique. Regression analysis is used to test the hypothesis for this study at 5 per cent level of significance. Findings revealed that there is a significant relationship between accounting theory and accounting practice in corporate organization. It is recommended that organization should be consistent with type of accounting theory adopted in preparation of their various accounting records, since there is proportional relationship between accounting theory and financial reporting.

Keywords: Accounting Theory, Accounting Practice, Corporate Organizations, Financial Statement, Normative Accounting Theory, Positive Accounting Theory.