Regulations of Financial Reporting in Nigeria
REGULATIONS OF FINANCIAL REPORTING IN NIGERIA
INTRODUCTION
Regulation of accounting information is aimed at ensuring that users of financial statements receive a minimum amount of information that will enable them take meaningful decisions regarding their interest in a reporting entity.
The bodies responsible for these regulations are often statutory agencies such as the Financial Reporting Council, Securities and Exchange Commission and the Stock Exchange, Central Bank of Nigeria, The Nigerian Insurance Commission.
Each of these regulatory authorities has an enabling law that guides the activities of the various institutions operating in the sector. The CBN has the Banks and Other Financial Institutions Act (BOFIA) 1991, NAICOM has the Nigerian Insurance Act 2003, while the Securities and Exchange Commission has the Investment and Securities Act, 1999. These Acts provide some specific requirements relating to the Accounts of every corporate entity within its fold BOFIA, for instance provides specific requirements relating to the minimum paid up capital, statutory reserves, lending limit, classification of assets, returns and publication of annual accounts by banks. The Insurance Act also provides for the minimum paid up capital, types and classification of insurance businesses, statutory deposit, books and accounting records to be kept, maintenance of technical reserves and solvency margin required by all insurance businesses in Nigeria. The Investment and Securities Act on the other hand makes provision for the registration of capital market operators, public offer and sale of securities and mergers, take-over and acquisitions.
The NASB was first set up on September 9, 1982 with the task of promoting the application of the highest standards of financial reporting in Nigeria through the development and issuance of Statements of Accounting Standards for users and preparers of financial statements,
INTRODUCTION
Regulation of accounting information is aimed at ensuring that users of financial statements receive a minimum amount of information that will enable them take meaningful decisions regarding their interest in a reporting entity.
The bodies responsible for these regulations are often statutory agencies such as the Financial Reporting Council, Securities and Exchange Commission and the Stock Exchange, Central Bank of Nigeria, The Nigerian Insurance Commission.
Each of these regulatory authorities has an enabling law that guides the activities of the various institutions operating in the sector. The CBN has the Banks and Other Financial Institutions Act (BOFIA) 1991, NAICOM has the Nigerian Insurance Act 2003, while the Securities and Exchange Commission has the Investment and Securities Act, 1999. These Acts provide some specific requirements relating to the Accounts of every corporate entity within its fold BOFIA, for instance provides specific requirements relating to the minimum paid up capital, statutory reserves, lending limit, classification of assets, returns and publication of annual accounts by banks. The Insurance Act also provides for the minimum paid up capital, types and classification of insurance businesses, statutory deposit, books and accounting records to be kept, maintenance of technical reserves and solvency margin required by all insurance businesses in Nigeria. The Investment and Securities Act on the other hand makes provision for the registration of capital market operators, public offer and sale of securities and mergers, take-over and acquisitions.
The NASB was first set up on September 9, 1982 with the task of promoting the application of the highest standards of financial reporting in Nigeria through the development and issuance of Statements of Accounting Standards for users and preparers of financial statements,
References: • INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA STUDY PACK • THE NIGERIAN ACCOUNTING STANDARDS BOARD ACT, 2003 • Financial Reporting Council of Nigeria Act, 2011 – Web Base • IASB Conceptual Framework FW 2010 –Web base • International Financial Reporting Standards – Advantages- Web base