Financial Reporting Council of Nigeria
Encyclopedia
The Financial Reporting Council of Nigeria (FRCN), formerly the Nigerian Accounting Standards Board (NASB), is an organization charged with setting accounting standards in 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) nominate two members to the board.
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.
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).
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.
In June 2010 Mr. Godson Nnadi, Executive Secretary of Nigeria Accounting Standards Board, spoke in favor 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.
The decision was in line with a report submitted by Senator Ahmed Makarfi
, Chairman of the Senate committee on Finance.
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.
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.
At the same event, the NASB Chairman, Michael Adebisi Popoola, called for abrogation of regulations and laws that are incompatible with IFRS.
The Financial Reporting Council Bill was signed into law on 20 July 2011.
According to Olusegun Aganga, minister of 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 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".
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
.
Nigerian Accounting Standards Board
NASB was established in 1982 as a private sector initiative closely associated with the Institute of Chartered Accountants of NigeriaInstitute of Chartered Accountants of Nigeria
The Institute of Chartered Accountants of Nigeria 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 .The relationship between the two...
(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
Association of National Accountants of Nigeria
The Association of National Accountants of Nigeria is one of the two professional accountancy associations with regulatory authority in Nigeria, the other being the Institute of Chartered Accountants of Nigeria ....
(ANAN) nominate two members to the board.
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.
IASB had published many of the earlier standards prepared by the International Accounting Standards Committee
International Accounting Standards Committee
International Accounting Standards Committee was founded in June 1973 in London and replaced by the International Accounting Standards Board on April 1, 2001...
and its successor the International Accounting Standards Board
International Accounting Standards Board
The International Accounting Standards Board is an independent, privately funded accounting standard-setter based in London, England.The IASB was founded on April 1, 2001 as the successor to the International Accounting Standards Committee...
, but was more involved in enforcement than in updating to the more modern International Financial Reporting Standards
International Financial Reporting Standards
International Financial Reporting Standards are principles-based standards, interpretations and the framework adopted by the International Accounting Standards Board ....
(IFRS).
A 2010 report commissioned by the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
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.
In June 2010 Mr. Godson Nnadi, Executive Secretary of Nigeria Accounting Standards Board, spoke in favor 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.
Financial Reporting Council
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.The decision was in line with a report submitted by Senator Ahmed Makarfi
Ahmed Makarfi
Ahmed Mohammed Makarfi is a Nigerian politician. He was governor of Kaduna State in Nigeria from 29 May 1999 to 29 May 2007, and was elected Senator for Kaduna North in April 2007. He is a member of the ruling People's Democratic Party...
, Chairman of the Senate committee on Finance.
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.
In June 2011 the Governor of the Central Bank of Nigeria
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...
, Sanusi Lamido Sanusi
Sanusi Lamido Sanusi
Mallam Sanusi Lamido Sanusi was appointed Governor of the Central Bank of Nigeria on 3 June 2009.He is a career banker and ranking Fulani nobleman, and also serves as a respected Islamic scholar....
, 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.
At the same event, the NASB Chairman, Michael Adebisi Popoola, called for abrogation of regulations and laws that are incompatible with IFRS.
The Financial Reporting Council Bill was signed into law on 20 July 2011.
According to Olusegun Aganga, minister of 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 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".
Membership
Membership includes:- Central Bank of NigeriaCentral Bank of NigeriaThe Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...
- Corporate Affairs Commission
- Federal Inland Revenue Service
- Federal Ministry of CommerceNigerian Federal Ministry of CommerceThe Nigerian Federal Ministry of Commerce is a ministry department of the Nigerian government that regulates commerce.-Leadership:The ministry was headed by Nigerian Industrialist Charles Ugwuh from July 2007....
- Federal Ministry of Finance
- Auditor-General for the Federation
- Accountant-General of the Federation
- Securities and Exchange CommissionSecurities and Exchange Commission (Nigeria)The Securities and Exchange Commission is the main regulatory institution of the Nigerian capital market.It is supervised by the Federal Ministry of Finance....
- Nigerian Accounting AssociationNigerian Accounting AssociationThe Nigerian Accounting Association is a member driven association of academics in the accountancy profession.It is the successor to the defunct Nigerian Association of Accounting Teachers ....
- Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture
- Nigeria Deposit Insurance CorporationNigeria Deposit Insurance CorporationThe Nigeria Deposit Insurance Corporation was established on 15 June 1988 to strengthen the safety net for the newly liberalized banking sector, following the recommendation of former Central Bank of Nigeria governor Ola Vincent...
- Institute of Chartered Accountants of NigeriaInstitute of Chartered Accountants of NigeriaThe Institute of Chartered Accountants of Nigeria 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 .The relationship between the two...
- Association of National Accountants of NigeriaAssociation of National Accountants of NigeriaThe Association of National Accountants of Nigeria is one of the two professional accountancy associations with regulatory authority in Nigeria, the other being the Institute of Chartered Accountants of Nigeria ....
- Chartered Institute of Taxation of NigeriaChartered Institute of Taxation of NigeriaThe Chartered Institute of Taxation of Nigeria is a professional organization in Nigeria whose members are certified as qualified tax practitioners or administrators.-Organization:...