INTERNATIONAL JOURNAL OF ADVANCE RESEARCH
IN MULTIDISCIPLINARY

This study looked at the behaviour of accounting practices from an international accounting, Neuroaccounting and the generally accepted accounting principles perspectives. The study adopted a thematic analysis approach for the empirical review, which was appropriate due to the numerous contributions by scholars on the behaviour of accounting policies. The research suggested that the selection of accounting practices by a company can be linked to an attempt to reduce costs of contracting, and that the distinct accounting practices employed by a reporting entity can have a notable effect on the comprehension of financial reports when studied through ratio analysis. It is important to remember the effect of changing accounting policies on the income statement and financial position, as it can have both direct and indirect effects on significant ratios, including return on capital employed and gearing. The findings of this study point to the fact that understanding accounting policies is important for effective business management. This study suggests that companies should provide more information about the evaluation of assets, including land and buildings, the depreciation policy, the system used to evaluate the worth of inventory, the liquidity rate based on cost flow assumptions (LIFO, FIFO, etc.), the treatment of overhead costs, the choice of temporal or closing rate method for translating foreign transactions, leases allocation and goodwill valuation in the statement of financial position. Additionally, it is recommended that top management be trained in neuroscience accounting, as this new discipline may completely change the future of accounting.