Usefulness of Accounting Theory and Practices on University Financial Performance in Nigeria

This study examined the impact of accounting theory and practice on the financial performance of Nigerian Universities. The objective of the study was to examine the effect and usefulness of accounting theory and practice on the financial performance of Nigerian Universities. The study used ex-post factor research design using time series data analysis of financial information extracted from an audited University Financial Statement for the years 2008 to 2014 which is used to examine how an independent variable, present prior to the study, affects a dependent variable. The study is based on the theory of materiality concept. Findings revealed that accounting theory and practice have significant relationship with the financial performance of Universities in Nigeria. It is recommended that there should be collaboration between Accounting Standard setters and Regulators of the University system “National Universities Commission” in order to strengthen the Universities’ financial system. Keywords: Accounting Practices, Accounting Theory; Financial Performance; Public Finance Management; Materiality Concept