Financial Reporting and Ethics - The Institute of Chartered ...

More documents

Recommendations

Info

FINANCIAL REPORTING AND ETHICS4.2 CONTENTS OF A COMPANYANY’S ’S ANNUAL REPORTS TS AND ACCOUNTSAs provided in section 334 of CAMA 2004 (as amended), the financialstatements of a company should contain the following items:(a) Statements of accounting policies.(b) The balance sheet as at the last day of the financial year.(c) A profit and loss account/income statement or in the case of nonprofitorganisation, an income and expenditure account for the year.(d) Notes to the accounts.(e) The Auditor’s report.(f) Directors’ report.(g) Statement of Cash Flow.(h) Value Added Statement for the year,(i) Five year financial summary, and(j) In the case of a holding company, the group financial statements.Section 334(3) stipulates that the financial statements of a private companyneed not include the matters stated in paragraphs (a), (g), (h) (and (i) above.It should, however, be noted that this is the minimum requirement, and privatecompanies should be encouraged to include those items in their financialstatements.Financial statements are the accounting reports in respect of economic activitiesof an enterprise, prepared periodically and usually at the end of every financialyear. These statements form an integral part of the company’s annual reportand accounts, and they are components specified not only in CAMA, but also inthe Statement of Accounting Standard (SAS) No. 2, issued in November 1984by the Nigerian Accounting Standards Board (NASB). This SAS provides thatall accounting information that will assist users to assess the financial liquidity,profitability and commercial viability of a reporting entity should be disclosedand presented in a logical, clear and understandable manner.This reporting requirement is also emphasised by the International FinancialReporting Standard (IFRS) 5 in relation to information to be disclosed infinancial statements of a company. The Generally Accepted AccountingPrinciples (GAAPs) also describes all the accounting conventions, postulates,rules, and procedures necessary to define accepted accounting practice to beadopted by reporting entities at any given time and in any given situation.Over the years, GAAPs have been developed in various countries. For instance,the pace of development of UK and US GAAPs has always supported thedevelopmental process of accounting principles and practices of developingcountries, like Nigeria. At the international scene, International AccountingStandards have been harmonized and worked upon to the extent that, witheffect from January 2005, all the listed European Union (EU) companies mustprepare their consolidated financial statements in accordance withInternational Accounting Standard. Many countries in the developing world(Nigerian inclusive) have also adopted IAS where there are no local alternatives.68
ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTSSAS No. 2 provides that the financial statements of a reporting enterpriseshould state the following:(a) the name of the enterprise,(b) the period of time covered,(c) a brief description of its activities,(d) its legal form, and(e) its relationship with significant local and overseas suppliers, includingthe immediate and ultimate parent, associated or affiliated companies.Furthermore, the financial statements are required to include the following:(a) Statement of accounting policies(b) Balance sheet(c) Profit and loss account or income statement(d) Notes on the accounts(e) Cash flow statement(f) Value added statement, and(g) Five –year financial summaryAn in-depth examination of the annual report and accounts of variouscompanies (especially public limited liability companies) will show clearlythat in addition to the items listed above, the following may also be found insuch reports:(a) Results at a glance(b) Notice of Annual General Meeting(c) Chairman’s Statement(d) Report of the Directors(e) Report of the Audit Committee(f) Performance charts ( such as Bar charts, Pie charts, etc.)(g) Statement of Unclaimed Dividend Warrants(h) Proxy Form( or proxy card); and(i) Admission Form( or Admission card)It should be noted that whereas ratios are usually calculated from the financialvariables obtainable from the balance sheet and profit and loss account, thetask of interpreting financial statements cannot be adequately dischargedwithout reference to information available from the remaining components ofthe Annual Reports and Accounts.4.3 DISCLOSURE REQUIREMENTS OF CONSOLIDATED FINANCIALSTATEMENTSTEMENTSConsolidated financial statements are the financial statements of a grouppresented as those of a single enterprise. According to Section 337 of Companiesand Allied Matters Act (CAMA) 2004 (as amended), Schedule 2 part IV,paragraph 60, “The group account laid before an Annual General Meeting of aholding company shall be consolidated accounts comprising:69
Page 4:
FINANCIAL REPORTING AND ETHICS1.3.3
Page 11 and 12:
ACCOUNTING AND REPORTING POLICIESsu
Page 13 and 14:
ACCOUNTING AND REPORTING POLICIES(j
Page 15 and 16:
ACCOUNTING AND REPORTING POLICIES(i
Page 17 and 18: ACCOUNTING AND REPORTING POLICIES2.
Page 19 and 20: 3AMALGAMATION, ABSORPTION ANDRECONS
Page 21 and 22: AMALGAMATION, ABSORPTION AND RECONS
Page 67: 4ANALYSIS AND INTERPRETATION TION O
Page 71 and 72: ANALYSIS AND INTERPRETATION OF FINA
Page 89 and 90: 5ACCOUNTING STANDARDS5.0 LEARNING O
Page 91 and 92: ACCOUNTING STANDARDS(i)(ii)(iii)(iv
Page 93 and 94: ACCOUNTING STANDARDSThere is no SAS
Page 95 and 96: ACCOUNTING STANDARDS5.2.4 Borrowing
Page 97 and 98: ACCOUNTING STANDARDS(iii)Certain pe
Page 99 and 100: ACCOUNTING STANDARDSby venture capi
Page 101 and 102: ACCOUNTING STANDARDSIFRS 7 Financia
Page 103 and 104: ACCOUNTING STANDARDSactivity, non-c
Page 105 and 106: ACCOUNTING STANDARDSin the year inc
Page 107 and 108: ACCOUNTING STANDARDS(v)(vi)(vii)whe
Page 109 and 110: ACCOUNTING STANDARDS(v)Actions requ
Page 111 and 112: ACCOUNTING STANDARDSAccounting stud
Page 113 and 114: 6ETHICAL FRAMEWORK, CONCEPTSAND VAL
Page 115 and 116: ETHICAL FRAMEWORK, CONCEPTS AND VAL
Page 117 and 118: ETHICAL FRAMEWORK, CONCEPTS AND VAL
Page 119 and 120:
ETHICAL FRAMEWORK, CONCEPTS AND VAL
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
7THE ENVIRONMENT: CORPORATE,PROFESS
Page 149 and 150:
THE ENVIRONMENT: CORPORATE, PROFESS
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
8PROFESSIONAL ETHICS8. 0 LEARNING O
Page 173 and 174:
PROFESSIONAL ETHICSobjectivity are
Page 175 and 176:
PROFESSIONAL ETHICS(c)(d)The type o
Page 177 and 178:
PROFESSIONAL ETHICSabout conflicts
Page 179 and 180:
PROFESSIONAL ETHICS(d)(e)Confidenti
Page 181 and 182:
PROFESSIONAL ETHICSA. III onlyB. II
Page 183 and 184:
9DECISION MAKING IN ETHICS9. 0 LEAR
Page 185 and 186:
DECISION MAKING IN ETHICS9.2 A FRAM
Page 187 and 188:
ETHICAL THREATS AND SAFEGUARDS(d)We
Page 189 and 190:
DECISION MAKING IN ETHICS4. A perso
Page 191 and 192:
10ETHICAL THREATS TS AND SAFEGUARDS
Page 193 and 194:
ETHICAL THREATS AND SAFEGUARDS(iv)(
Page 195 and 196:
ETHICAL THREATS AND SAFEGUARDSto th
Page 197 and 198:
ETHICAL THREATS AND SAFEGUARDSpayab
Page 199 and 200:
ETHICAL THREATS AND SAFEGUARDS(a)Fi
Page 201 and 202:
ETHICAL THREATS AND SAFEGUARDSimmin
Page 203 and 204:
ETHICAL THREATS AND SAFEGUARDSHowev
Page 205 and 206:
ETHICAL THREATS AND SAFEGUARDS(iii)
Page 207 and 208:
11CORPORATE GOVERNANCE11.0 LEARNING
Page 209 and 210:
CORPORATE GOVERNANCE11.3.1 Nature(a
Page 211 and 212:
CORPORATE GOVERNANCEThe company sho
Page 213 and 214:
CORPORATE GOVERNANCEtrust, possible
Page 215 and 216:
CORPORATE GOVERNANCEAn agent has im
Page 217 and 218:
CORPORATE GOVERNANCE(a)(b)(c)(d)(e)
Page 219 and 220:
CORPORATE GOVERNANCE11.6.1 The law
Page 221 and 222:
CORPORATE GOVERNANCEILLUSTRAUSTRATI
Page 223 and 224:
CORPORATE GOVERNANCEimitated. They
Page 225 and 226:
CORPORATE GOVERNANCE(a)(b)Greenbury
Page 227 and 228:
CORPORATE GOVERNANCE11.9.2 Boards d
Page 229 and 230:
CORPORATE GOVERNANCErelationship wi
Page 231 and 232:
CORPORATE GOVERNANCE(e)(f)(g)(h)(i)
Page 233 and 234:
CORPORATE GOVERNANCE(vi)Inquisitive
Page 235 and 236:
CORPORATE GOVERNANCE(e)ConsultancyA
Page 237 and 238:
CORPORATE GOVERNANCEThe incoming au
Page 239 and 240:
CORPORATE GOVERNANCEIn summary, acc
Page 241 and 242:
CORPORATE GOVERNANCEAccording to Th
Page 243 and 244:
CORPORATE GOVERNANCE3. A body corpo
Page 245 and 246:
12SOCIAL AND ENVIRONMENTALISSUES IN
Page 247 and 248:
SOCIAL AND ENVIRONMENTAL ISSUES IN
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
APPENDIX ISUGGESTED SOLUTIONS TO RE
Page 265 and 266:
SUGGESTED SOLUTIONS TO REVISION QUE
Page 267 and 268:
SUGGESTED SOLUTIONS TO REVISION QUE
Page 269 and 270:
APPENDIX IICOMPREHENSIVE QUESTIONS
Page 271 and 272:
COMPREHENSIVE QUESTIONS AND SUGGEST
Page 273 and 274:
Page 275 and 276:
Page 277 and 278:
APPENDIX IIICASE STUDY 1Karsashi, a
Page 279 and 280:
CASE STUDIES(iii)(iv)The floor sale
Page 281 and 282:
CASE STUDIESShare price and dividen
Page 283 and 284:
CASE STUDIESSUGGESTED SOLUTION(A) A
Page 285 and 286:
CASE STUDY 3The following informati
Page 287 and 288:
CASE STUDIESCASE STUDY 4Ologobojo i
Page 289 and 290:
APPENDIX IVTable 1:SUMMARY OF INTER
Page 291 and 292:
SUMMARY OF INTERNATIONAL ACCOUNTING
Page 293 and 294:
APPENDIX VGLOSSARY OF TERMSAbsorpti
Page 295 and 296:
GLOSSARY OF TERMSEthical Objectivis
Page 297 and 298:
APPENDIX VIBIBLIOGRAPHYChambers Ham
Page 299 and 300:
APPENDIX VIISTUDY AND EXAMINATION T
Page 301 and 302:
STUDY AND EXAMINATION TECHNIQUES7.3
Page 303 and 304:
INDEXAAbsorption, 17, 19, 39, 40, 4
Page 305 and 306:
INDEXProfessional Behaviour, 136, 1
Page 307 and 308:
307
Page 309:
309
show all

Financial Reporting and Ethics - The Institute of Chartered ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?