Using panel data of 60 firm years obtained from the annual reports of the 15 companies listed on the DSE, this study found that company size, internal financing, labour force intensity, and the proportion of non-executive directors were the main determinants of the choice of accounting methods. The results of this study are important to the IASB and accounting regulators in Tanzania in the determination of the flexibility of accounting practices as well as the disclosures required to aid the users of financial statements. The study is also important to investors in developing countries who must interpret financial statement numbers while making investment decisions. Furthermore, the study contributes to our understanding of what determines the choice of accounting methods in developing economies, especially Tanzania.