Abbreviation | FRC |
---|---|
Predecessor | Nigeria Accounting Standards Board |
Formation | 1982 |
Type | Regulatory body |
Legal status | Active |
Purpose | Set standards for accountancy in Nigeria |
Headquarters | Lagos, Nigeria |
Official language | English |
Executive Secretary | Shuaibu Adamu Ahmed |
Parent organization | Federal Ministry of Industry, Trade and Investment |
Website | http://www.financialreportingcouncil.gov.ng/ |
The Financial Reporting Council (FRC) of Nigeria, formerly the Nigerian Accounting Standards Board (NASB), is an organization charged with setting accounting standards in Nigeria. On Thursday, 6 May 2021, Shuaibu Adamu Ahmed was inaugurated by the Minister of Industry, Trade and Investment, Adeniyi Adebayo, as the Executive Secretary/Chief Executive Officer of FRC. [1] [2] [3]
NASB was established in 1982 as a private sector initiative closely associated with the Institute of Chartered Accountants of Nigeria (ICAN). NASB became a government agency in 1992, reporting to the Federal Minister of Commerce. The Nigerian Accounting Standards Board Act of 2003 provided the legal framework under which NASB set accounting standards. Membership includes representatives of government and other interest groups. Both ICAN and the Association of National Accountants of Nigeria (ANAN) each nominate two members to the board. [4]
The primary functions as defined in the act of 10 July 2003 were to develop, publish and update Statements of Accounting Standards to be followed by companies when they prepare their financial statement, and to promote and enforce compliance with the standards. [5] IASB had published many of the earlier standards prepared by the International Accounting Standards Committee and its successor the International Accounting Standards Board, but was more involved in enforcement than in updating to the more modern International Financial Reporting Standards (IFRS). [6]
A 2010 report commissioned by the International Monetary Fund said that the NASB did not have adequate funding to achieve its statutory role. NASB urgently needed to hire new staff, retrain existing staff and offer more attractive pay. [4] In June 2010 Mr. Godson Nnadi, Executive Secretary of Nigeria Accounting Standards Board, spoke in favour of a new body to set accounting and auditing standards for Nigeria and other African nations. The new body would be independent of both ANAN and ICAN. As well as ensuring consistency between countries, costs to each country would be lower due to sharing of the effort. [7]
On 18 May 2011, the Senate passed the Financial Reporting Council of Nigeria Bill, which repealed the Nigerian Accounting Standards Board Act and replaced it with a new set of rules. [8] The decision was in line with a report submitted by Senator Ahmed Makarfi, Chairman of the Senate committee on Finance. [9] The Executive Secretary of NASB, Jim Osayande Obazee, had strongly supported this bill, which he said would align Nigeria with other countries and improve investor confidence. [10] In June 2011, the Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, spoke at a fundraising dinner organized by the NASB for the IFRS academy. Sanusi said that the move to adopt the IFRS would help attract foreign direct investments to Nigeria. [11] At the same event, the NASB Chairman, Michael Adebisi Popoola, called for the abrogation of regulations and laws that are incompatible with IFRS. [12]
The Financial Reporting Council Bill was signed into law on 20 July 2011. According to Olusegun Aganga, minister of Industry, Trade and Investment, "More meaningful and decision enhancing information can now be arrived at from financial statements issued in Nigeria because accounting, actuarial, valuation and auditing standards, used in the preparation of these statements, shall be issued and regulated by this Financial Reporting Council. The FRC [13] is a unified independent regulatory body for accounting, auditing, actuarial, valuation and corporate governance. As such, compliance monitoring in these areas will hence be addressed from the platform of professionalism and legislation". [14]
Membership includes: [15]
Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. Accounting, which has been called the "language of business", measures the results of an organization's economic activities and conveys this information to a variety of stakeholders, including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. The terms "accounting" and "financial reporting" are often used as synonyms.
International Public Sector Accounting Standards (IPSAS) are a set of accounting standards issued by the IPSAS Board for use by public sector entities around the world in the preparation of financial statements. These standards are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
The Institute of Chartered Accountants of India (ICAI) is the largest professional accounting body of India under the ownership of Ministry of Corporate Affairs, Government of India. It was established on 1 July 1949 as a statutory body under the Chartered Accountants Act, 1949 enacted by the Parliament for promotion, development and regulation of the profession of Chartered Accountancy in India.
The Financial Reporting Council (FRC) is an independent regulator in the UK and Ireland, responsible for regulating auditors, accountants and actuaries, and setting the UK's Corporate Governance and Stewardship Codes. The FRC seeks to promote transparency and integrity in business by aiming its work at investors and others who rely on company reports, audits and high-quality risk management.
Generally Accepted Accounting Principles (GAAP) of Canada provided the framework of broad guidelines, conventions, rules and procedures of accounting. In early 2006, the AcSB decided to completely converge Canadian GAAP with international GAAP, i.e. International Financial Reporting Standards (IFRS), as set by the International Accounting Standards Board (IASB), for most entities that must follow AcSB standards. For publicly accountable enterprises, IFRS became mandatory in Canada for fiscal periods beginning after January 1, 2011. Privately accountable enterprises had the option of adopting IFRS, or a new set of standards called Accounting Standard for Private Enterprises (ASPE).
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The Institute of Chartered Accountants of Nigeria (ICAN) is a professional accountancy body in Nigeria. It is one of the two professional accountancy associations with regulatory authority in Nigeria, the other being the Association of National Accountants of Nigeria (ANAN). The relationship between the two organizations has been tense. In 2007 ICAN attempted to have a bill declaring ANAN void.
The Institute of Chartered Accountants of Pakistan is a professional accountancy body in Pakistan. As of 2022, it has over 8,000 members working in and outside Pakistan. The institute was established on July 1, 1961 to regulate the profession of accountancy in Pakistan. It is a statutory autonomous body established under the Chartered Accountants Ordinance, 1961. With the significant growth in the profession, the CA Ordinance and By-Laws were revised in 1983.
In Bangladesh, the profession of accountancy was developed during the British colonial period. The basic requirements for financial reporting by all companies in Bangladesh were provided by the Companies Act of 1994. Today, it is represented by two professional bodies, the Institute of Cost & Management Accountants of Bangladesh (ICMAB) and the Institute of Chartered Accountants of Bangladesh (ICAB).
The Association of National Accountants of Nigeria (ANAN) is one of the two professional accountancy associations with regulatory authority in Nigeria, the other being the Institute of Chartered Accountants of Nigeria (ICAN). A consultant offering financial services in Nigeria must be a member of either ANAN or ICAN.
The Chartered Institute of Taxation of Nigeria (CITN) is a professional organization in Nigeria whose members are certified as qualified tax practitioners or administrators.
The National Board of Accountants and Auditors (NBAA) is an accounting professional and regulatory body operating under the Ministry of Finance and Economic Affairs, the sole body to certify accountants in Tanzania. It began operating on 15 January 1973.
The Association of Accountancy Bodies in West Africa (ABWA) is a regional organization of the International Federation of Accountants (IFAC). As of 2011 there were ten West African accounting institutes represented in ABWA.
The Nigerian Accounting Association (NAA) is a member driven association of academics in the accountancy profession. It is the successor to the defunct Nigerian Association of Accounting Teachers (NATA). NATA was established in 1972 with the objective of "contributing through research and education, to the improvement of accounting profession and accounting education in Nigeria". The NAA is an academic society aimed at advancement of the accounting discipline and accounting profession in Nigeria. Members are usually members of the Association of National Accountants of Nigeria (ANAN) and/or the Institute of Chartered Accountants of Nigeria (ICAN).
The Chartered Institute of Cost and Management Accountants (CICMA) is a Nigerian – based professional accounting body offering Accounting education and professional qualifications in cost and management accountancy and related subjects, focus on accounting, business and government operations. The head office of the institute is in Kaduna. The institute also has regional offices at Abuja, Kano, Jos and Port Harcourt. As at September 2015, it had 8,200 members working in and outside Nigeria. It also has 4,500 registered students.
Mohammed Akaro Mainoma is a professor of Accounting and Finance from University of Abuja. He is the immediate past Vice Chancellor of Nasarawa State University, Keffi, Nassarawa. He is recently appointed as the President of the Association of National Accountants of Nigeria.
Sen. Binos DaudaYaroe is the senator representing Adamawa South Senatorial District of Adamawa State at the Nigerian 9th National Assembly.
On Thursday, 6 May 2021, Shuaibu Adamu Ahmed was inaugurated by the Nigerian Minister of Industry, Trade and Investment, Adeniyi Adebayo as the Executive Secretary/Chief Executive Officer of the Financial Reporting Council (FRC) of Nigeria.