Financial Reporting and Ethics - The Institute of Chartered ...
Financial Reporting and Ethics - The Institute of Chartered ...
Financial Reporting and Ethics - The Institute of Chartered ...
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5ACCOUNTING STANDARDS5.0 LEARNING OBJECTIVESAfter studying this chapter, the reader will be able to underst<strong>and</strong>:! <strong>The</strong> responsibility <strong>of</strong> the Nigerian Accounting St<strong>and</strong>ards Board (NASB);! <strong>The</strong> International Accounting St<strong>and</strong>ards Board (IASB) <strong>and</strong> the;! International Federation <strong>of</strong> Accountants (IFAC);! <strong>The</strong> various Accounting St<strong>and</strong>ards issued by NASB, IASB <strong>and</strong> IFAC; <strong>and</strong>! <strong>The</strong> compliance requirements <strong>of</strong> the st<strong>and</strong>ards.5.1 INTRODUCTION<strong>The</strong> Nigerian Accounting St<strong>and</strong>ard Board (NASB) is the government agencyshouldered with the responsibility <strong>of</strong> issuing Statements <strong>of</strong> AccountingSt<strong>and</strong>ards (SAS) on various accounting topics. <strong>The</strong> Board was established inSeptember 1982, at the instance <strong>and</strong> sponsorship <strong>of</strong> the <strong>Institute</strong> <strong>of</strong> <strong>Chartered</strong>Accountants <strong>of</strong> Nigeria (ICAN), having realized the necessity <strong>of</strong> setting localaccounting st<strong>and</strong>ards that would take into account the customs, laws, level <strong>of</strong>economic development <strong>and</strong> other peculiarities <strong>of</strong> the country. <strong>The</strong> first SASissued by the Board was on Disclosure <strong>of</strong> Accounting Policies, in 1982. <strong>The</strong>Board was made a parastatal <strong>of</strong> government, under the supervision <strong>of</strong> theFederal Ministry <strong>of</strong> Commerce, in May 1992. It was made an autonomous bodyin 2003, with the enactment <strong>of</strong> Act No.22 <strong>of</strong> the National Assembly, the NASBAct 2003. <strong>The</strong> composition <strong>of</strong> the institutions/organisations represented on theBoard was enlarged from eight in 1984 to fourteen in 2003 <strong>and</strong> from thirteencouncil members to eighteen council members.At the international level, there are International Accounting St<strong>and</strong>ards (IASs)issued by the International Accounting St<strong>and</strong>ards Board (IASB) <strong>of</strong> theInternational Federation <strong>of</strong> Accountants (IFAC), as well as the International<strong>Financial</strong> <strong>Reporting</strong> St<strong>and</strong>ards (IFRSs) issued also by the IFAC. Many IASs<strong>and</strong> IFRSs have been issued to ensure uniformity in the application <strong>of</strong> variousaccounting principles <strong>and</strong> to guide preparers <strong>and</strong> users <strong>of</strong> financial statements.With SASs in place, preparers <strong>of</strong> financial statements in Nigeria are tode-emphasize compliance with the provisions <strong>of</strong> a similar InternationalAccounting St<strong>and</strong>ard (IAS). In other words, if there is any conflict between the89
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