Stock repurchases have become a common practice among publicly traded companies, and the accounting treatment of these transactions has significant implications for firm financial performance. This research project aims to investigate the effect of accounting for stock repurchases on firm financial performance. The study will explore the impact of stock repurchases on financial statements and performance metrics, analyzing the accounting treatment of stock repurchases and its implications for firm performance. By examining the relationship between accounting for stock repurchases and financial performance, this research seeks to provide insights into the effects of stock repurchases on firm financial performance, with implications for investors, financial analysts, and corporate decision-makers. The findings of this research are expected to contribute to the existing body of knowledge in the field of corporate finance and accounting, offering practical implications for financial analysis, accounting practices, and strategic decision-making in the context of stock repurchases and firm financial performance.