ACCOUNTING CHOICE AND INCOME STRATEGY OF MANUFACTURING COMPANIES IN NIGERIA.

This study examines the relationship between accounting choices and income strategies of firms in Nigeria, with particular focus on listed consumer goods companies. The research investigates how firm-specific factors such as company size, debt ratio, profitability, ownership concentration, and board composition influence managerial decisions regarding accounting policy selection. Grounded in the Positive Accounting Theory (PAT) and Agency Theory, the study employs both descriptive and quantitative research designs. Secondary data were collected from the published annual reports of ten consumer goods firms listed on the Nigerian Stock Exchange for the 2024 financial year. Using statistical analysis, the study evaluates how these determinants affect the adoption of income-increasing or income-decreasing accounting methods. The findings reveal that company size, internal financing capacity, and the proportion of non-executive directors significantly influence the accounting methods selected by firms. The results also indicate that managers often exercise discretion in accounting choices to meet internal incentives such as bonus plans, debt covenants, and political cost considerations. The study concludes that accounting choices are not merely technical decisions but strategic tools used by managers to achieve organizational and personal objectives. It recommends that regulatory authorities, such as the Financial Reporting Council of Nigeria and the IASB, strengthen disclosure requirements and monitoring mechanisms to enhance the transparency of accounting policies. This research contributes to the understanding of how accounting policy decisions affect income reporting and provides insights for investors, regulators, and policymakers in developing economies.