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ADOPTION OF IFRS AND ITS IMPACT ON IT SYSTEMS IN NIGERIA

2012-09-15T19:57:00.002-07:00

How adoption of IFRS will impact IT systems in Nigeria

Monday, 18 June 2012 00:00 TOPE ALADENUSI

The directive by regulatory bodies for companies to adopt International Financial Reporting Standards (IFRS) as the new basis of financial reporting, and the release of the adoption roadmap, requires that companies quoted on The Nigerian Stock Exchange (NSE) publish their financial statements in accordance with IFRS with effect from years ended 31 December 2012.

This effectively means that the transition day to IFRS is1 January 2011: on this date, the organization is required to prepare its “opening balance sheet” in accordance with IFRS. It is quite surprising that as of now, most of the organizations in that category are yet to start the transition process.

This is probably due to misconceptions surrounding the conversion to IFRS; many think it’s just an “accounting event” that can be handled by “Corporate/Finance”, some others think it’s simply a need for new templates and rollups in their financial reporting applications that it has no real impact on other areas of the business and the people involved. Perhaps some are just not yet bothered and think it can be handled in their typical “fire brigade approach” at the last minute. It is even more startling that some companies assumed they have already converted to IFRS when, in reality, they haven’t. A banker recently told me that his bank has converted to IFRS over 2 years ago and I immediately knew where he was missing it. It is possible to ‘convert’ your audited financial statement to IFRS, but this is entirely different from recording of daily transactions on IT systems in accordance with IFRS, which is what we should already be doing.

It will come as a surprise to many especially the unprepared that the IFRS adoption is an event that will affect IT systems to their core; something that requires planning and coordination across functional lines (accounting, tax, treasury, HR, IT) and it is only through well planned execution before a company can benefit from its adoption. Viewing the adoption of IFRS as simply a reporting change can lead to costly rework at a later date and/or cumbersome and inefficient processes.
A typical IT environment supporting financial processing has five components - Source Systems, General Ledger, Data Warehouse, Reporting System and the physical Infrastructure. IFRS adoption may impact all these components depending on the industry and the level of standardized systems and data in an organization.

Some examples of IT areas that may be impacted by IFRS include:

-General provision of 1% on performing loan already configured on bank’s IT systems may need to be replaced by specific provision while the current provisioning method for “non-performing loans” may be replaced by’ source systems’ that captures the result of impairment tests according to IAS 39.

-IT systems should be able to breakdown and recognize information components of Property, Plant and Equipment in line with IFRS 8.

-IT systems that maintain spot exchange rates may replace the use of average quarterly or annual exchange rates by some entities for their foreign currency transactions.

-Effective interest rate for income recognition may be configured on IT systems to replace the current method being adopted by some financial institutions.

In order to see the whole picture of IT system changes that would be required, organizations need to spend time understanding the technical accounting difference between Nigerian GAAP (SAS, CAMA, BOFIA, SEC Rules)and IFRS as it relates to their own operation, thereby identifying the key impact on IT, and strategically designing future state systems. The time to do so is NOW.

I find it mind-boggling that some companies have already issued request for proposals to reputable IT vendors seeking for middleware to address IFRS conversion issues without first taking time to understand the technical accounting difference between their current reporting requirements and IFRS. Just as it doesn’t make much sense to recruit someone before consideration is given to drawing up his job description, organizations need to prepare a functional requirement blueprint that stems out of a detailed gap analysis between the capabilities of your current IT systems and required future state systems that is “IFRS compliant”.

It may interest you to know that in other parts of the world where IFRS have been adopted, some organizations had 3 to 5 years conversion plan in order to benefit maximally from the adoption of IFRS. In Nigeria, we are already beyond the transition date and with just a few months left to 2012, quoted companies and significant public entities will have to work harder and faster if their conversion must be successful.

It is pertinent to mention that companies should implement IFRS in a way that makes sense for their organization. No One Size fits all. The assessment phase is crucial. During a thorough assessment phase, you can evaluate cost/benefit trade-offs carefully. Project Management is also crucial to a successful adoption of IFRS; a project management office should be set up to establish a program structure to develop the IFRS conversion roadmap.

IFRS adoption has some benefits and organizations should view the conversion as an opportunity to consider the long term vision/plan for an information platform. System design should include an adequate level of flexibility to incorporate additional accounting and regulatory changes in the future. The program should include a strategic knowledge transfer plan to convert the new processes into the “business-as-usual” state. The key to achieving benefits to IFRS is to understand that it’s not just accounting. Starting to understand where you are today will help you lay out a roadmap to be ready when it’s time to “flip the switch”.

N5000 NOTE: JONATHAN PUSHES FOR A SHOW DOWN WITH NIGERIANS

2012-09-15T19:42:00.001-07:00

N5,000 NOTE: Jonathan pushes for a show down with Nigerians

On September 8, 2012 · In Special Report

3:07 am

Jumping from one inconclusive economic and political issue to another appears to be a factor that is fast defining the Presidency of Nigeria’s Dr. Goodluck Jonathan.
The latest move of the Central Bank of Nigeria, CBN to convert the current N5, N10 and N20 notes to coins and also step the currency note to N5,000 denomination by 2013 which has already gotten the nod of the President amidst mountainous agitations by Nigerians has become one controversial issue in the life of the nation at the moment.
Will the ruling class have its way as against the wish of most Nigerians? That seems to be the question Saturday Vanguard’s JOHN BULUS tries to find answers to in this special report.
“I will continue to fight for your future, because I am one of you. I will continue to fight, for improved medical care for all our citizens. I will continue to fight for all citizens to have access to first class education. I will continue to fight for electricity to be available to all our citizens.
I will continue to fight for an efficient and affordable public transport system for all our people. I will continue to fight for jobs to be created through productive partnerships. You have trusted me with your mandate and I will never, never let you down.
I know your pain, because I have been there. Look beyond the hardship you have endured. See a new beginning; a new direction; a new spirit. Nigerians, I want you to start to dream again. What you see in your dreams, we can achieve together.”
With these words, President Goodluck Jonathan on his inauguration as the new Nigeria’s President on May 29, 2011 sealed a pact with Nigerians promising to turn their dreams into reality while declaring that the years of locusts and cankerworms are over.

Even prior to the time, he had during the campaigns, as he crissed-crossed the length and breath of the country drew up similar words that may have prompted Nigerians who massively voted for him during the Presidential election. But when finally he settled in office, President Jonathan appears to be pursuing programmes and polices that obviously don’t receive the endorsement of many Nigerians whose future he promised to secure. More so, they become much more controversial than expected.
Consequently, every step he takes meets stiff resistance from the people.
And so, one wonders if the President is actually serving the interests of Nigerians that voted him into power or that the people themselves have suddenly not seen good the policies of the man they voted into power.
Past events
Some past issues since the inception of the present administration in May, 2011 may have indicated that most moves taken by the Federal government are rather making the regime unpopular. Barely 7 months in office and at a time Nigerians expected a quick fix of the economy, President Jonathan thought it necessary to delve into heavy political matters.
Thus, he canvassed for a single seven- year term for President and Governors. The issue generated unusual dusts from several quarters that when the bill finally got to the National Assembly, it was already dead on arrival. Yet, in May this year, the President also came up with the change of name of the University of Lagos to Mushood Abiola University.Till date, the controversy surrounding the development still persists in some sections of the society .

President Goodluck Jonathan

Then came the removal of oil subsidy, the biggest of all policies that attracted almost zero applause from the people. For nine days in early January, 2012, Nigerians closed shop and went on aggressive strike to protest the removal of oil subsidy that suddenly sky-rocketed the pump price of petrol from N65 to N141.
To some analysts, it was not actually the call by the Nigerian Labour Congress, NLC that gave vent to the strike but the pangs of poverty fuelled by anger and the time upon which the subsidy removal came.
And so, there was a spontaneous rash condemnation of the decision from the people who insisted that it must be reversed. Obviously, when it appeared that the showdown could totally cripple the economy, it then became very necessary for the Federal Government to shift grounds and peg the pump price on N97 Naira, per liter of petrol.
Similarly, President Jonathan’s advise to Nigerians to start thinking in the direction of controlling birth rate as a way of circumventing the harsh economic realities of the present age recently was yet another issue that would have stirred up another round of controversy had it been allowed to thrive.
Current Issue
Penultimate week, the Governor of the Central Bank of Nigeria, CBN, Alhaji Sanusi Lamido Sanusi audaciously dropped a bombshell. He said that the apex bank has concluded plans to convert the existing N5, N10 and N20 notes to coins and introduce into the Nigerian market, N5,000 currency note next year. In swift response, organizations, groups, professional associations and Nigerians in their numbers condemned the plan by the CBN, citing several reasons why it must not scale through.
Nigerians React
Envisaging the concomitant effects of the policy largely on Nigerians, the Senate asked the Central Bank to stay action on the planned move to introduce the note. The Chairman, Senate Committee on Banking, Currency and other Financial Institutions, Senator Bassey outrightly asked the CBN governor to put brakes on the move.
He said: “I believe that a project of this nature requires parliamentary approval because there are numerous and fiscal implications on the entire economy.
“This type of action is only taken where there is a major crisis and the CBN must be very careful in order not to send a wrong signal or message to households, domestic sector and even the external ones that the Nigerian currency is valueless, which I believe is definitely not, and that for every unit of value, they need to carry a large quantity of cash.
“The CBN in 2008 and 2009 came up with a proposal to re-denominate the currency; that was even to take off the zeroes. This was just 2008 and 2009 and here we are in 2012 seeing a kind of policy somersault even though we understand the dynamics of the sector very well. I believe that we have to be well briefed on this.
“Also in 2005, the CBN undertook a major currency restructuring which ran into billions of naira. Till date, a proper value has not been done to know its cost to the Nigerian taxpayers and the extent of the benefits in that 2005 coinage. I think it did not work at all because goldsmiths and blacksmiths converted the coins to molding bangles, earrings and so on. So, we believe that the coinage works very well where there is infrastructure to take it like a half, probably like parking where you go and put it.
“We have not developed that real basic infrastructure and those coins, most of them are nowhere to be found. So, the CBN will have to prove that the policy is not a clear contradiction or at variance with its cashless society, which they are even yet to justify and whether this is the popular economic way to go.”

Mallam Lamido Sanusi

He further stated, “Actually, we are not really going to rely on laws perse. What we are trying to do here is what is best for the Nigerian people. The Senate is not really against the independence of the CBN, but what we want in place is proper check and that there should be checks and balances in all these things that we do. So, I believe that at some point, we will be able to sit down together and look at the merits and demerits, but till now, we do not know anything about it and we do not know what the people stand to gain and until that is properly put through, we say everything about it must stop.”
Similarly, the House of Representatives through its Banking Committee Chairman, Chukwudi Jones said: “Unfortunately, we are on vacation and we can’t take any legislative action now. But when we are able to get a few members of the committee, we can do something based on the urgency of the matter”.
The lawmaker also stressed that “Our primary concern is that the measure will not hurt the economy and will not affect the daily lives of the average Nigerian”.
Governors’ Forum not aware
The Nigerian Governors Forum is astonished that such a decision has not come up in the National Economic Council which has the Governors of the 36 states of the federation as members.
Hear Governor Gabriel Susuwan of Benue State who is a member of both Groups: “Let me tell you that economically, I don’t support that. I am not an economist, I don’t know what informed that but quite frankly, it means that our naira would be devalued. I don’t know how it would address the economic issues that are confronting us by printing N5, 000 notes, but like I said, I am not an economist. So, I don’t know the nuances of printing N5, 000 notes. If we are saying that we would promote a cashless society and in the same vein printing N5,000 that can make it possible for somebody to carry N10 million in his pocket, I am a bit confused about that. But I expect that this should have been addressed at the National Economic Council meeting. We have never discussed it at any point in time. I am as confused as the man in the street”.

Nigerian Medical Association, NMA, reacts:
The Nigerian Medical Association, said that the decision was borne out of sheer insensitivity by Nigeria’s leaders.
The President of the Association, Dr. Osahon Enabulele, told journalists in Abuja, that the insistence of the CBN governor to carry on with the widely condemned policy was among several critical national issues discussed at the just-concluded National Executive Council (NEC) meeting of the NMA, which held in Owerri, the Imo State capital.
Enabulele also told journalists that the NEC expressed great worry over the proposed introduction of the single N5,000 note, N20 and N50 coins into circulation, on account of the naira devaluation and rise in inflation, which many Nigerians and economists have continued to point out since the policy was first contemplated by Sanusi. He further charged Nigerians to join their voices in the condemnation of the decision.
The position of the Nigerian Bar Association, NBA, is no less of its NMA counter-part.
In a speech in Abuja at the Annual General Conference of the association which held recently, Mr. Joseph Daudu, the immediate past national Chairman of the bar said that the proposal would further
devalue the naira.
“The CBN’s introduction of the N5,000 notes would devalue the naira and it is against the cashless policy being currently promoted by the bank. The proposal by the CBN is shallow and should not be allowed to further damage the already fragile economic system”, he said.
Reacting to the development, Lagos State erstwhile governor, Senator Ahmed Bola Tinubu said the plan is insensitive: “The economy is on reverse, it’s a yoyo economy. This government is not serious; they don’t know
what they are doing.”
In his own reaction, Ita Enang, Chairman of the Senate Committee on Business and Rules,foresees a situation where the present controversy stirred by Sanusi will truncate President Jonathan second term bid. Said he: “I pray Mr. President should be sensitive to this and take action against the move because I am certain the plan is intended to embarrass the President of the Federal Republic of Nigeria and to make the government of Goodluck Jonathan unpopular in years to come so that people will not like to vote for him in the next election.
“I think what Sanusi is aiming at with the introduction of the plan against Nigerians is to ensure that the people will be so unhappy with the President that in the next election they would not like to vote for him. Mr. President should therefore call the CBN governor to order with immediate effect”.
The Nigerian Labour Congress, NLC has vowed to stop the process.
It said: “Psychologically, for the working people, it means they work so much for little notes with introduction of N5000. This may fuel crisis of expectation for more wage increase as bigger banknotes will be chasing fewer goods. Nigeria is better with smaller banknotes that can deliver goods and services rather than higher bills without any value”.
Comrade Abdulwaheed Omar said in Lagos: “Comrades, the recent proposal by the Central Bank of Nigeria is

President ,Nigerian Labour Congress (NLC),Omar Abdulwaheed (middle) Photo by Gbemiga Olamikan.

one of those policies we must be prepared to vigorously oppose. We see in the proposal a policy contradiction that completely exposes our policy makers as playing the devil’s advocate. Most of these policies are clearly not designed by them but obviously by institutions outside our shores. Comrades, we must collectively oppose this and we must not allow the CBN continue with this clearly unnecessary project. We believe the CBN should not supervise the total collapse of our economy with the introduction of a policy that has historically led to the total collapse or subjugation of the economies of some countries in Africa, Europe and South America”.
He added: “There is no genuine reason for the introduction of N5000 note in a country that is dwindling in production and suffocating under high inflation. While our government complains about lack of funds to reactivate infrastructures critical to economic development, the CBN is planning to spend over N40 billion to produce new denominations of our currency”.
General Secretary of the labour union Comrade Issa Aremu told newsmen in Kaduna recently that the bank should rather be more concerned about improving the value of the Nigerian currency as against others in the international market.
“The current highest bank note of N1000 was introduced in 2005. We had currency review in 2007 and 2009. It should not be customary for every CBN governor to change the nation’s bank notes. Incessant turning out of higher bank notes is an attempt to legitimize the devaluation of the Nigerian currency.
There is a direct relationship between higher bank notes and devaluation of the currency. The CBN should concentrate on stabilizing the value of the Naira rather than legitimizing the devaluation of the currency. CBN under Sanusi Lamido Sanusi should continue with the good work they are doing with respect to revival of manufacturing sector and management of inflation and interest rates.
The double digit inflation rate as we currently have cannot take us out of the economic crisis”, Aremu said.
The Conference of Nigerian Political Parties, CNPP, in a statement signed by its General Secretary, Willy Ezeugwu, accused Sanusi and the economic team of hiding under the new currency to further devalue the naira.
The statement reads: “The decision of the CBN, as endorsed by the so-called economic team, flies in the face of reason, especially when all the explanations and analysis that these clueless officials have so far given are reminiscent of the sing song they engaged in January during the ill-conceived removal of petrol subsidy.
The assurances given at that time turned out to be false as Nigerians feared because today, we all know that the quality of life has worsened since the partial removal of subsidy while most of the supposed palliative buses have vanished into thin air.”
Also, Founder and President of Oodua Peoples Congress (OPC), Dr. Fredrick Fasehun has described the insistence of the government to introduce the N5, 000 note despite people’s opposition as autocratic
and insensitive.
The Medical Doctor said: “Government is in place for the people and not people in place for the government. We will resist the unpalatable morsel they are trying to force down our throat. We will not allow those in power at our instance to dictate undemocratic policy to us and expect us to swallow it hook, line and sinker”.
Apart from the unanimous agitations against the proposal by the associations, some Nigerians have physically staged protests to register their feelings on the issue. For instance, former Federal Lawmaker in the House of Representatives, Honourable Dino Melaye on Thursday led a group of protesters to CBN headquarters in Abuja against the issues.
Under the aegis of Anti Corruption Network, Melaye reiterated the opposition of Nigerians to the currency restructuring policy of CBN. He told Tunde Lemo, Deputy Governor of CBN who received the protesters that the introduction of a single N5000 note will result in inflation and that Nigerians are opposed to it and asked the CBN Governor, Alhaji Sanusi to listen to the views of the people on the matter.
FG’s Meal of Surprise/Defense
Nigerians who had waited to get a good deal from the Federal Government upon whose approval, the CBN carries out the plan were rather flabbergasted when the federal government during the week, arising from the National Economic Management Team (NEMT) threw its weight behind the CBN governor on the action, conspicuously ignoring the cries and submissions of the Nigerian people.
The NEMT, which is headed by the President, comprises the Minister of Finance and coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala; Sanusi Lamido Sanusi, the CBN Governor; Minister of National Planning Dr. Shamsudeen Usman; Director General of the Security and Exchange Commission (SEC); Director General of the Bureau for Public Enterprises (BPE); one representative each of governors of the South and the North as well as key private sector players.
Dr. Shamsheen Usman, the Economic and National Planning Minister said of t6he plan:
“Clearly, the N5,000 note will not lead to higher inflation. There is absolutely no link. I am an economist; I have been deputy governor(Operations) of the Central Bank. During the last review of the introduction of N1000 note and the various coins, I was deeply involved; it was my responsibility at the Central Bank.
There is absolutely no link between inflation and the currency denomination. So, obviously, the discussion today was basically to endorse. Mr. President had already approved; that is the only requirement by law. The CBN is to propose and Mr. President is to approve. And since Mr. President has approved, really, what is important is to just explain.
I personally had some concerns about the coins but since some
discussion with the CBN governor, he has actually clarified that even the media didn’t understand.
“The coins are being introduced on an introductory basis so that if people accept them and are using them,
then gradually they will withdraw the other notes but they will run concurrently with the notes.
Those were my concerns, initially, because you remember during my time in the CBN, we introduced the one naira and two naira coins. Unfortunately, they were not utilized at all. Part of that is really the value of one naira and two naira today; what can you buy?
So because they are higher denomination, they may be accepted. I think even that aspect didn’t come out well in the communication and so the CBN is going to communicate to Nigerians that the coins will run concurrently with the note.
“They are like testing the waters; if they get accepted and are being utilized, only then will they take subsequent actions.”
Dr. Usman has lieutenants and supporters who see no wrong in the act. One of them is Mr. Atedo Peterside, a banker and NEMT member who argued that besides the fact that it does not add to increase in cost of printing of currency, money, being a store of value, the higher the denomination, the better it is for the economy as those who made money legally and illegally will want to keep their loot in naira rather than hard currency.
He said: “If I were the CBN governor, I will prefer to print N10, 000 notes. Last year, Nigeria spent N47billion to print these small, small notes. If we were printing bigger denominations, we will print fewer number and you make phenomenal savings. Secondly, money is a store of value, all these thieves, rogues and vagabonds running around in various states and all over the country, when they steal money, they will want to keep it outside the banking system.”
Lending his voice in support, the Access Bank Managing Director Aigboje Aig-Imoukuede described the reactions trailing the N5000 note as unfortunate.
He said: “It is very rare for you to have a central bank that does not look at the issue of currency management and issue new notes from time to time based on the reality of the economy. In the case of Nigeria, our economy is such that a N5000 note which is in effect a $30note is not strange.
The greatest argument I have heard about is causing of inflation; the other argument is that it will cost money to introduce the new note.
There is no relationship between the issuance of higher legal tender and inflation. It is unfortunate that some have misled people into thinking that it will lead into higher inflation. Every central bank by the nature of currency management will issue new notes all the time. So, printing of notes is an ongoing operation that every central bank engages in”.
Of course, the big African business mogul and a member of the Economic Team of the President Jonathan, Alhaji Aliko Dangote would have said otherwise just as his counter-part in the oil business, Femi Otedola would as well.
Dangote said: “The introduction of the N5,000 note has nothing to do with inflation. I think it is even to protect the economy. The cost of printing is not anything different from the amount they are using in printing any other note. It is the same cost”.
Meanwhile, CBN’s Director of Corporate Affairs, Mr Ugochukwu Okoroafor said CBN would instead sensitize the public on the introduction of N5,000 note into the economy.
He said: “We are about to carry out sensitization campaign on the introduction of N5000 note and the restructuring of the nation’s other currencies.
Everything will not take off at the first quarter of next year. We are starting with a particular currency in the first quarter of next year; there will still be currency and coins for the denominations that will be coined like N5, N10 and N20 so that both will be operational side by side.”
He added: “We want to be among the top 20 largest economy in 2020; we believe in it. What we should do is pray for Nigeria to have a financial system that can support one of the world’s largest economies. We cannot do it, if we don’t have the right framework. We want to ensure that life is made a lot easier for Nigerians and will continue to improve the system.”
Okoroafor said the report that N40 billion would be spent to print the N5000 note is false, saying the cost is in the CBN annual report.
Analysts have submitted that some other reasons why the decision can’t be allowed to fly at this time included the inability of the government to better the lots of the citizenry.
They asserted that coming at a time the country’s leadership has incessantly pooh-pooed in its promise to restore the security of lives and property, improve on the welfare of the ordinary Nigerians and provide basic social infrastructures, the government not expect that the Nigerian people will gladly accept what is clearly going to be the reserve of the rich.
Again, in the light of CBN’s cashless society campaign, keen observers queried why a society that does not carry physical cash but makes transfers should suddenly concern itself with the introduction of a higher denomination.
Apart from eclipsing the opportunity posterity would have in knowing Alvan Ikoku and Murtala Mohammed, Nigerian fallen patriots whose faces appear on the N10 and N20 Naira notes respectively, another argument against the CBN’s move is that it will completely obliterate the N5, N10 and N20 notes when converted to coins and ostentatiously give rise to high cost of common goods.
For instance, they said that a sachet of (pure) water will automatically become N50 which will certainly make
mockery of the Naira.
In a similar move by the same CBN under Professor Charles Soludo during ex-President Olusegun Obasanjo regime, the government assured the people that N1.00 note when converted to coins will be a tool for figure counting for infants and posterity. But today, suffice it to say, N1.00 is neither seen in circulation as such nor carried by anybody even traders.
Indeed, with this array of threats and condemnation, most analysts posit that a little less, if not more of what Nigerians experienced during the oil subsidy strike in January this year, might be in the offing should the Federal Government and CBN forge ahead with the currency devaluation exercise. But until then, Nigerians are watching with keen interests.

SANUSI LAMIDO SANUSI (BRIEF HISTORY)---CBN GOVERNOR

2012-09-15T19:32:00.000-07:00

Sanusi Lamido Sanusi

From Wikipedia, the free encyclopedia

Sanusi Lamido Sanusi

Sanusi at the 2011 Time 100 gala
Governor of the Central Bank of Nigeria
Incumbent
Assumed office 3 June 2009
Preceded by	Prof. Charles Chukwuma Soludo, CFR
Personal details
Born	(1961-07-31) 31 July 1961 (age 51)

Mallam Sanusi Lamido Sanusi (born 31 July 1961) 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. The renowned global financial intelliegence magazine, The Banker, published by the Financial Times, has conferred on Mallam Sanusi Lamido Sanusi two awards. He has been recognised with the global award for Central Bank Governor of the Year, as well as for Central Bank Governor of the Year for Africa. The TIME magazine also listed Sanusi in its TIMES 100 list of most influential people of 2011

Birth and education

Sanusi was born on July 31, 1961. His father was a Permanent Secretary in the Ministry of Foreign Affairs in the 1960s and his grandfather was Emir of Kano and Islamic Scholar, Alhaji Muhammadu Sanusi. Sanusi graduated from King's College Lagos in 1977 and studied at Ahmadu Bello University (ABU), Zaria earning a BSc in Economics in 1981. He then taught economics at ABU from 1983 to 1985. He also obtained a degree in Islamic law from International University of Africa, Khartoum.

Banking career

In 1985 Sanusi joined Icon Limited (Merchant Bankers), a subsidiary of Morgan Guaranty Trust Bank of New York, and Baring Brothers of London. He moved to the United Bank for Africa in 1997 in the Credit and Risk Management Division, rising to the position of a General Manager. In September 2005, he joined the Board of First Bank of Nigeria as an Executive Director in charge of Risk and Management Control, and was appointed Group Managing Director (CEO) in January 2009. He was also the Chairman, Kakawa Discount House and sat on the Board of FBN Bank (UK) Limited. Sanusi is recognized in the banking industry for his contribution towards developing a Risk Management culture in the Nigerian banking sector. First Bank is Nigeria's oldest bank and one of the biggest financial institutions in Africa. Sanusi was the first Northerner to be appointed CEO in First Bank's history of more than a century.^[

Governor of the Central Bank

Governor Lamido Sanusi speaking at Warwick Economics Summit

President Umaru Musa Yar'Adua nominated Sanusi as Governor of the Central Bank of Nigeria on 1 June 2009 and his appointment was confirmed by the Senate on 3 June 2009, in the middle of a global financial crisis. Analysts believed that Sanusi's tempered mien would serve as a counterpoise to the more aloof disposition of his predecessor, Charles Chukwuma Soludo. Based on his past record it seemed probable that as governor of the central bank he would impose stricter controls.
In August 2009, the Sanusi led Central Bank of Nigeria bailed out Afribank, Intercontinental Bank, Union Bank, Oceanic Bank and Finbank with 400 billion naira of public money, and dismissed their chief executives. He said "We had to move in to send a strong signal that such recklessness on the part of bank executives will no longer be tolerated." 16 senior bank officials face charges that included fraud, lending to fake companies, giving loans to companies they had a personal interest in and conspiring with stockbrokers to boost share prices. In September 2009 he said that 15 of the current 24 Nigerian banks might survive reform in the banking sector.
In a wide-ranging interview with the Financial Times in December 2009, Sanusi defended the extensive reforms that he had initiated since taking office, dubbed by some as the "Sanusi tsunami". He noted that there was no choice but to attack the many powerful and interrelated vested interests who were exploiting the financial system, and expressed his appreciation of support from the Presidency, the Economic and Financial Crimes Commission, the Finance minister and others.
In January 2010 Sanusi said that banks will only want to give credit to the Nigeria’s Small and Medium Enterprises (SMEs) if the government gives adequate attention to the provision of infrastructure.
In January 2010 Sanusi admitted that since 2005 the Central Bank had not conducted routine examinations of the 14 banks allocated to it under the sharing arrangement with Nigerian Deposit Insurance Corporation (NDIC).Abubakar Nagona, president of Integrated Development and Investment Service (IDIS), a venture capital investment company urged Sanusi to "not be cowed and succumb to undue pressure from operators of the same sector he is striving to bring sanity to." At a February 2010 conference on banking in Nigeria, Sanusi described his blueprint for reforming the Nigerian financial system. He said that it was built around four pillars of enhancing the quality of banks, establishing financial stability, enabling healthy financial sector evolution and ensuring that the financial sector contributes to the real economy. Talking later that month, Sanusi said that the crash in the capital market was due to high level financial illiteracy on the part of the Nigerian investors.
The Banker unanimously recognised him as the Central Bank Governor of the Year 2010 citing his radical anti-corruption campaign aimed at saving 24 banks on the brink of collapse and pressing for the managers involved in the most blatant cases of corruption to be charged and, in the case of two senior bankers, imprisoned.
Governor Sanusi has spoken at many distinguished events, including Warwick Economics Summit in February 2012 where he spoke about Banking Reforms in Nigeria and their impact on the Economy.^[20]

Sharia authority

In parallel to his banking career, Sanusi contributed to the debate over Sharia law. In 1997, Sanusi obtained a degree in Sharia and Islamic Studies from the African International University in Khartoum, Sudan.^[ Writing in the Weekly Trust in September 2000, he noted the problem of reconciling "belief in the universal and eternal applicability of the Shariah with the need for a wholesale adoption of its historically specific interpretation to meet the requirements of a particular milieu." He further said that "Even a cursory student of Islamic history knows that all the trappings of gender inequality present in the Muslim society have socio-economic and cultural, as opposed to religious roots."
At a conference in 2000 in Kaduna, Sanusi delivered a lecture on Islamic economics called Institutional Framework of Zakat: Dimension and Implications. He argued that although collection of zakat is the responsibility of the state, it may be the responsibility of the Nigerian government rather than the emirs in Northern Nigeria. In July 2001 at a seminar in Abuja he talked on Basic Needs and Redistributive Justice in Islam – The Panacea to Poverty in Nigeria. He took the mainstream position that zakat is an instrument for redistributing income, but argued in favor of giving the role of redistribution to the government.
In October 2002 he published a paper on The Hudhood Punishments in Northern Nigeria: A Muslim Criticism. In July 2003 he presented The Shari'a Debate and the Construction of a 'Muslim' Identity in Northern Nigeria: A Critical Perspective at a seminar at the University of Bayreuth. In August 2003 he presented Democracy, Rights and Islam: Theory, Epistemology and the Quest for Synthesis at an international conference on Shari'ah Penal and Family Law in Nigeria and in the Muslim World: A Rights-Based Approach in Abuja.^]
There are two underlying themes to Sanusi's position. First, Islam is concerned with delivering justice and should not be a tool for self-seeking political agendas. Second, the Wahhabist rhetoric of fundamentalists is counter to genuine Muslim interests. He explains that Sharia is not divine but merely religious, and is neither uniform nor unchanging

CURRENT ISSUES FACING THE ACCOUNTING PROFESSION ( world Accountants)

2012-09-15T19:04:00.000-07:00

        Regulatory oversight and change is the most important issue currently facing the accounting profession.
       Large-scale changes, such as the proposals by the European Commission and the PCAOB to reform audit firm rotation and the auditor’s report have potentially far-reaching implications on audit quality and competitiveness in the accounting industry. I believe that any new regulation needs to be studied carefully to ensure it will truly enhance audit quality and will not have unintended consequences for our profession or the investors and businesses we serve. In addition, we need to ensure that regulation is not so restrictive that it damages the audit profession’s Advertisement
     Overall, I think the regulators for our industry both here and abroad take the approach of seeking input from many parties prior to enacting new regulations, and I believe it is important that these activities continue. However, I ultimately don’t believe independence, skepticism and objectivity can be legislated. Quality, objectivity and ability to be competitive or to maintain its status as a sought-after career alternative for the best and brightest students.integrity are values that auditors have embraced for many years and ones that have enabled our profession to be one of the most respected. To further embed these values at McGladrey, we recently created a new professional judgment framework with three professors from the Brigham Young University School of Accountancy. All assurance professionals have received a printed copy and are being trained in the framework this year.
In addition to the regulation of our own industry, the significant number of new regulations that affect the clients and industries we serve could also have huge implications for McGladrey and other accounting firms. We have to stay abreast of the changing regulations in our clients’ industries and align our work products and advice accordingly. In addition, we expect to see an increase in demand for assurance, tax and business consulting services as a result of these regulations, particularly in the middle-market companies McGladrey serves.
Companies of this size typically have more limited resources and lack the capacity to implement complex standards and regulations on their own. McGladrey’s leadership team, organizational structure and strategy are centered on providing this type of support to our private clients. With more than 6,500 employees working in 75 offices across the country, we are able to provide national and international expertise with the local touch of a service team in our clients’ markets. We believe our understanding and experience will enable us to help our clients navigate these new business and compliance challenges.
Joe Adams -- Managing partner and CEO, McGladrey LLP

     Loss of investor confidence in audit firms and their opinions. Also, loss of investor confidence in financial statements. Also, loss of investor confidence in the fairness of capital markets (Mary Schapiro has made speeches about this very issue). Unfortunately, much of this has been caused by large audit opinions somehow being associated with accounting scandals and audit failures.
Dave Albrecht -- Professor of accounting, University of South Carolina Upstate

    Attracting and retaining young talent has been an issue for many years, but I think that with the sharper dropoff in recent years the issue has become acute. We, as a profession, need to make a more concerted effort to fundamentally change how we work. The AICPA and various state societies are working hard to project a more attractive image tailored to the qualities that the next generation is seeking in a career, but if their experience doesn’t meet these expectations, we will continue to see a talent drain.
Mark Albrecht -- CEO, XCM Solutions/Xpitax LLC

I believe the most important issue currently is whether there will be adoption of International Financial Reporting Standards by U.S regulators and how that will affect current accountants (different rules for small business than large business?), future accountants (do schools teach the new standards or GAAP?), and financial statement uses, who may have to reconcile two equally acceptable standards, which may be inconsistent with each other.
John Ams -- Executive vice president, National Society of Accountants

How to generate sustained growth and adequately reward existing and aspiring partners.
Rick Anderson -- Chairman and CEO, Moss Adams

      The accounting profession has many facets. The top challenge faced by the majority of practitioners (the small and medium-sized firms) is the overwhelming burden of new regulations and standards. This one issue impacts several areas of the firm, from quality control, risk management to training.
Where there are so many regulations and standards, it forces accountants (especially in smaller firms) to spend less time helping their clients solve real problems. The same might be true for larger firms, since the service providers are more concerned (read spend more time) about compliance and risk management, rather than on other issues the client may be facing.
How can we expect CPAs to be nimble in a world with overwhelming new regulations and standards?
August Aquila -- President and CEO, Aquila Global Advisors, LLC

   There are many, but the most important one is the same one that we’ve been facing for the past six years -- the poor economy. But for us, this tough economy has been a real motivator because it enforces a constant discipline upon our teams that requires them to be much better than our competition. The crash and slow economic recovery have exerted downward pressure on tax and audit prices and made the competitive landscape very challenging. But this has forced us to get much better at everything and to develop strategies that require us to look at our clients much more holistically so that we become a business solution provider and not just vendors of technical expertise.
Our firm focuses on the aspirations of our clients and we help them achieve those aspirations. The strategies we craft for them and the products we help them deploy must all work to that purpose and must give them a competitive advantage. We must bring our know-how and ingenuity to a comprehensive package of service and provide insight that CFOs and other executives need to survive and flourish in this economy. We’ve expanded into many areas that we never thought we’d move into, such as our growing customer relationship management practice within our consulting group or our AMF Media Group division, which provides strategic branding and marketing support, public relations and corporate communications for a very wide variety of clients. The bottom line is that if we diligently hone our strategy, improve our technical expertise and keep looking at the horizon for new trends, when the economy does turn, we will be ahead of the pack in terms of reputation and capabilities and will experience even greater growth and profitability.
Andrew Armanino -- Managing partner and CEO, Armanino McKenna

   Technology is clearly transforming how firms provide services to their clients. Clients are looking for their firms to collaborate with them and leverage technology to improve their capabilities and digital presence. Client accounting is probably the greatest growth opportunity for the profession, due to these capabilities driven by cloud computing. To me, embracing change and making the right technology choices to fully transform into what we are calling a digital CPA is one the most important issues going forward.
Erik Asgeirsson -- CEO, CPA2Biz

   The uncertainty of the financial/economic market, which continues to give our clients concern and caution.
Kenneth Baggett -- Managing principal and CEO, Reznick Group

     People are not going to like this, but I’d say: relevancy. Many CPAs are nothing more than high-priced bookkeepers and unless they move away from the idea that they’re historians with bad memories, who can only report on the past, on lagging indicators, they’re future is perilous.
You go into a lot of these firms and they’re doing very low-level work and then they sit around and complain and moan that it’s a commodity. Well, sure. It’s relatively low-value stuff, and if that’s all you’re doing, then you’re going to be stuck with government regulation and compliance revenue, and I see that as the biggest threat to our profession.

MAJOR BREAKTHROUGH FOR ANAN

2012-09-15T18:53:00.001-07:00

                            By Anayo Ezugwu           sunday,22 july 2012





     Association of National Accountants of Nigeria, ANAN, is now set to become member of the International Federation of Accountants, IFAC

     The Association of National Accountants of Nigeria, ANAN, is in the threshold of getting recognition by the International Federation of Accountants, IFAC. Maryam Ladi Ibrahim, president of the association, said during a courtesy visit of the association to Newswatch last Wednesday, that ANAN recorded a major breakthrough in connection with its quest for membership of IFAC recently   when the application form it submitted for registration was endorsed by the Institute of Chartered Accountants of Nigeria, ICAN.

Ibrahim recalled that in 2010 when ANAN initially submitted its application together with sponsorship report from the Institute of Public Accountants, IPA, of Austria, the application was not processed because it was not accompanied by sponsorship report from ICAN. That hurdle is over. ICAN has now submitted a sponsorship report and given ANAN a clean bill of health for IFAC membership. She explained that based on the progress so far recorded in the processing of the application, IFAC verification telephone conference was held with ANAN on February, 20, 2012. “We now await the report of the processing of our membership application,” she said.

Apart from its efforts to secure IFAC membership registration, ANAN under her leadership has become popular. It has also achieved a lot in fostering a good relationship with key institutional heads in both the private and public sectors of the economy and the legislative arms of government at the federal and state levels. She said ANAN has done a lot in helping national development through its contributions to policy making, and building a better future for the accounting profession in the country.

The association under her leadership, commissioned a “Think Tank” committee to assist the government realise its transformation agenda and to produce a position paper on the economic thrust of the country. “The association under my leadership has continued to contribute meaningfully to national debate by adding its voice to the topical issues that affect the profession and the country at large,” she said.

She also has plans to reposition ANAN. She wants ANAN to become a virile home-grown accountancy body, which would provide a path to a recognised professional qualification of the highest international standard. The National College of Accounting where ANAN trains graduates take a two-year intensive professional course before they can join ANAN as members will soon move to its permanent site in Jos, Plateau State. She said the goal was to turn it into a centre of excellence for teaching accountancy in Nigeria and Africa. According to the ANAN president, the temporary site would be turned into an entrepreneurship training centre, where the members could go for skills development. Presently, the association has about 19,000 membership fully registered and trained by the college, with over 3,000 students undergoing training in the college. The association also retains all it members and evaluates them every three years, for them to be more relevant to the profession. ANAN has also equipped accounting departments of many universities and polytechnics and organised series of interactive sessions with accounting students across the country.

The association is also currently battling to correct the disparity between the products of ICAN and ANAN in the point of entry into the civil service. “The law of the land stipulates that any professional should be placed on grade level 10, but ANAN members are all placed on level nine. She is hopeful that this would be corrected soon.

She said the association abhors corruption in all its ramifications among its members. Against this background, she said that ANAN   was ready to punish any member of the body involved in corruption if the organisation where such person works reports the case. In such cases, the body would set up a panel to probe such persons.

Ibrahim was accompanied to Newswatch by Terkaa Iyoryer Gemade, registrar of the association. Gemade told Newswatch that the association was moving to the next level in the drive to achieve its mission. “The association has recorded landmarks under the new president even though there were few challenges occasioned by the state of the nation’s security. This administration has been in top gear in organising programmes that are of benefit to members of the association,” he said. He commended Newswatch for blazing the trail in journalism in the country.

Femi Ige, chief operating officer of Newswatch who welcomed the management team of ANAN to the corporate headquarters of the company in Oregun, Lagos, promised the association full support in realising its objective of promoting professionalism in accountancy in Nigeria.

The formation of ANAN in 1979 met stiff opposition as ICAN claimed that by virtue of ICAN Act 15 of 1965, the institute has the sole regulatory power over accountancy profession in Nigeria. Its leaders had argued that as long as the Act remained in force, no other professional body could come into existence, unless authorised by the institute.    However, in recent times both ICAN and ANAN have put the bitter rivalry behind them and have been working together in the interest of the accountancy profession in particular and the nation at large.

COOPERATION BETWEEN ICAN & ANAN

2012-09-15T18:44:00.001-07:00

HOS EXPRESSES DELIGHT OVER CO

OPERATION BETWEEN ICAN & ANAN

OFFICE OF THE HEAD OF THE CIVIL SERVICE OF THE FEDERATION

Press Release

HOS EXPRESSES DELIGHT OVER COOPERATION BETWEEN ICAN & ANAN

The Head of the Civil Service of the Federation, Alhaji Isa Bello Sali has expressed delight that the main professional accountancy bodies in Nigeria, the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN) now relate cordially and are cooperating with each other to move the profession forward.
Alhaji Isa Bello Sali made this remark when the members of the Council of the Association of National Accountants of Nigeria (ANAN), led by its President and Chairman of Council, Hajiya Maryam Ladi Ibrahim paid him a courtesy call in Abuja.
Speaking further, the Head of Service said that the time has come when what should be of paramount importance to members of the two professional bodies is to fully join governments nationwide to fight the scourge of corruption, which he said their members are strategically placed in the public service to do.
On the issue of entry point for some professional cadres in the civil service, the Head of Service explained that the National Council on Establishments at its last meeting held at Akure, Ondo State, resolved to re-examine the issue holistically and ensure that a unified method is adopted for all professional bodies in the country.
Earlier in her address, the President and Chairman of Council of the Association, Hajiya Maryam Ladi Ibrahim, briefed the Head of Service on developments in the accountancy profession in Nigeria and on some establishment issues that are of relevance to the Association.

Signed

Tope Ajakaiye
Deputy Director (Press & Public Relations)
For: Head of the Civil Service of the Federation
26th July, 2012.

GUIDELINES TO THE APPOINTMENT OF AUDITORS TO AUDIT GOVT. PARASTATALS, AGENCY ETC

2012-09-12T15:37:00.000-07:00

Office of the Auditor General for the Federation

Guidelines on the Appointment of Auditors to Audit the Accounts of Federal Government Parastatals, Agencies and Commissions

In line with the provision of section 85(3)(a) of the constitution of the Federal Republic of Nigeria, 1999, and the relevant sectors of the enabling acts of the various parastatals, Statutory corporations, commissions and agencies, the following guidelines must be followed In the appointment of Auditors to audit the account of Federal Government Parastatals, Agencies and Commissions.

A) Registration
The audit firm to be appointed must have been registered or renewed its registration with the Office of the Auditor-General of the Federation in the year for which appointment or renewal of appointment is being sought, as evidenced by the list of accredited firms issued by the Office of the Auditor-General for the Federation .

B) Tenure of the Auditor
The tenure of the Appointed Auditor should be one year in the first instance, renewable annual subject to satisfactory performance for 3 years and on no account should annual renewal extend the total tenure of the appointed firm or firms beyond 5 years. This is to ensure that the independence of the auditor is not placed in jeopardy.

C) Fees
Quotations based on the scale on the scale of fees issued by the Institute of Chartered Accountant if Nigeria (ICAN) should be obtained from at least three audit firms from the list of accredited firms issued by the office of the Auditor-General for the Federation in determining the fee to be paid as part of the final selection process. The fee so agreed upon or re-negotiated should together with the comparative figure, be forwarded to this Office for clearance.

D) Personel Not qualified to be appointed as auditor
The following persons cannot be appointed as auditors of Federal Government Parastatals, Agencies and commissions
(i) An Officer or servant of the Parastatal, Agency or commission
(ii)A person who is a partner of or in the employment of an officer or servant of the parastatals, Agency or commission
(iii) A person who is an auditor of a company where a principal officer or servant of the parastatal is a director
(iv) A person having personal relationship with an officer or servant of the Parastatal, Agency or Commission. Personal relationship for this purpose include mutual business interests, close friendship and relationship by blood or marriage
(v) A person who is a contractor to the Parastatal, Agency or Commission or a relation or nominee of a contractor t the Parastatal, Agency or commission

OVERVIEW OF CISA

2012-09-12T15:25:00.001-07:00

1. Successful completion of the CISA Examination
The examination is open to all individuals who have an interest in information systems audit, control and security. All are encouraged to work toward and take the examination. Successful examination candidates will be sent all information required to apply for certification with their notification of a passing score. For a more detailed description of the exam see CISA Certification Job Practice. Also, CISA Exam Preparation resources are available through the association and many chapters host CISA Exam Review Courses (contact your local chapter).
The CISA examination is offered twice a year, in June and December. The Exam Registration Information Bulletin of Information (BOI) is published online when it becomes available for each exam. You may also request a BOI by emailing your complete mailing address to certification@isaca.org. You may register online or by completing the registration form within the BOI and faxing or mailing it to ISACA for processing. For registration dates and deadlines please see the Exam Information page.

2. Submit an Application for CISA Certification

Once a CISA candidate has passed the CISA certification exam and has met the work experience requirements, the final step is to complete and submit a CISA Application for Certification. A minimum of 5 years of professional information systems auditing, control or security work experience (as described in the CISA job practice areas) is required for certification. Substitutions and waivers of such experience, to a maximum of 3 years, may be obtained as follows:

A maximum of 1 year of information systems experience OR 1 year of non-IS auditing experience can be substituted for 1 year of experience.
60 to 120 completed university semester credit hours (the equivalent of an 2-year or 4-year degree) not limited by the 10-year preceding restriction, can be substituted for 1 or 2 years, respectively, of experience.
A bachelor's or master's degree from a university that enforces the ISACA-sponsored Model Curricula can be substituted for 1 year of experience. To view a list of these schools, please visit www.isaca.org/modeluniversities. This option cannot be used if three years of experience substitution and educational waiver have already been claimed.
A master's degree in information security or information technology from an accredited university can be substituted for 1 year of experience.

Exception: 2 years as a full-time university instructor in a related field (e.g., computer science, accounting, information systems auditing) can be substituted for 1 year of experience.
As an example, at a minimum (assuming a 2-year waiver of experience by substituting 120 university credits), an applicant must have 3 years of actual work experience. This experience can by completed by:

3 years of IS audit, control, assurance or security experience

2 years of IS audit, control assurance or security experience and 1 full year non-IS audit or IS experience or 2 years as a full-time university instructor.

It is important to note that many individuals choose to take the CISA exam prior to meeting the experience requirements.

This practice is acceptable and encouraged although the CISA designation will not be awarded until all requirements are met.
The work experience for CISA certification must be gained within the 10-year period preceding the application date for certification or within 5 years from the date of originally passing the exam. The CISA Application for Certification is available at www.isaca.org/cisaapp. Note that candidates have 5 years from the passing date to apply for certification.

3. Adherence to the Code of Professional Ethics

Members of ISACA and/or holders of the CISA designation agree to a Code of Professional Ethics to guide professional and personal conduct.

4. Adherence to the Continuing Professional Education (CPE) Program

The objectives of the continuing education program are to:

Maintain an individual's competency by requiring the update of existing knowledge and skills in the areas of information systems auditing, control or security.
Provide a means to differentiate between qualified CISAs and those who have not met the requirements for continuation of their certification
Provide a mechanism for monitoring information systems audit, control and security professionals' maintenance of their competency
Aid top management in developing sound information systems audit, control and security functions by providing criteria for personnel selection and development

Maintenance fees and a minimum of 20 contact hours of CPE are required annually. In addition, a minimum of 120 contact hours is required during a fixed 3-year period.
5. Compliance with the Information Systems Auditing Standards

AN OVERVIEW OF BECOMING A CHARTERED FINANCIAL ANALYST ( CFA)

2012-09-12T15:19:00.002-07:00

Definition of 'Chartered Financial Analyst - CFA'

A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial analysts. Candidates are required to pass three levels of exams covering areas such as accounting, economics, ethics, money management and security analysis.

Investopedia explains 'Chartered Financial Analyst - CFA'

Before you can become a CFA charterholder, you must have four years of investment/financial career experience. To enroll in the program, you must hold a bachelor's degree. The CFA charter is one of the most respected designations in finance, considered by many to be the gold standard in the field of investment analysis.

Where CFAs WorkThe following skills are valued by employers and can be identified by the CFA course of study. A student has to pass three exams before obtaining the CFA charter.

Level I is about learning investment applications
Level II is about applying investment applications
Level III is about using different applications for defining investment strategy and performing portfolio management

Although all three exams focus on different aspects of the course, the main topics are indicated by the CFA Candidate Body of Knowledge (CBOK), listed on the CFA Institute, as follows:

I. Ethical and Professional Standards
II. Quantitative Methods
III. Economics
IV. Financial Reporting and Analysis
V. Corporate Finance
VI. Equity Investments
VII. Fixed Income
VIII. Derivatives
IX. Alternative Investments
X. Portfolio Management and Wealth Planning

According to the CFA Institute, "The CFA Institute membership in more than 100 countries can be seen as a microcosm of the global investment profession, with virtually every type of investment professional at every type of investment firm represented."

Most CFAs are employed within the following industries and companies:

Source: CFA Institute

The following lists the types of industries and companies:

Buy Side - 55%

Investment Companies/Mutual Funds - 25%
Private Client Wealth Manager Advisor - 11%
Hedge Funds/Fund of Hedge Funds -6%
Banks - 7%
Insurance Companies - 4%
Pensions and Foundations - 4%
Private Client Wealth Manager/Advisor - 2%

Sell Side - 16%

Investment Bank/ Broker Dealer - 16%

Other - 29%

Consultancy
Government/Regulator
University/College
Research Firm

Look to Where Growth is Needed for CFAsOne way to determine what industries or companies value CFAs is to look at surveys that compare salaries between CFAs and those with other designations. The CFA Institute conducts an annual Compensation Survey that in 2007 covered 11 countries. These surveys are only available to CFA Institute members. If you are not a member but are interested in gaining insight into compensation differentials between CFAs and non-CFAs, contact your local analyst society, which can found on the CFA Institute website. This can help answer your questions about industries and companies that pay premiums for the CFA.

The value of the CFA is increasing in areas where membership is growing. Although CFA Institute membership is increasing in the U.S., it is growing faster in other countries that are realizing the benefit that comes with hiring CFAs. According to Bob Johnson, deputy chief executive officer of the CFA Institute says that's a sign of growing interest in the certification by employers, and the greater availability of training at colleges.

ConclusionIt is evident that interest in the CFA is growing and that there is a significant benefit in terms of career growth and compensation for those who obtain it. However, the decision to commit to the rigorous study required cannot be taken lightly. The CFA Charter, although extremely difficult to obtain, provides tremendous benefits but only within certain industries and business sectors. The question of whether to commit to pursuing the designation requires a lot of introspection and a little bit of research. If you do decide to become a candidate, make sure your decision is based on a passion for investing and the material to be studied. Simply stated, if your strengths and ambitions lie within the careers and industries that require the CFA designation, then it may makes sense for you to commit to obtaining one.

The CFA ProgramBefore we get into the nitty gritty, it's important to understand what the whole program entails. The Chartered Financial Analyst program, offered by the CFA Institute in Charlottesville, Virginia, is designed to teach those in the investment profession a "candidate body of knowledge" (CBOK). The CBOK tests candidates on ethics, quantitative analysis, financial statement analysis, economics, portfolio analysis, corporate finance, and the analysis of stocks, bonds and alternative investments. (To learn more about this designation before jumping in with both feet,
It consists of three levels, each of which culminate in a brutal six-hour exam. The first exam is administered both in the late spring or late fall, and level 2 and 3 exams are offered only in the late spring. After passing all three levels of the exam, each CFA candidate who has four years of professional investment experience is eligible to receive the Chartered Financial Analyst designation.

Are you up for the challenge? The keys to success are to get organized, develop an effective study program and review.

Key No.1: Get OrganizedOnce you've made the decision to sit for the upcoming CFA exam, you need to develop a course of action. Here are some tips:

Start early. The CFA Institute estimates that at least 250 hours of independent study is necessary to pass each exam. In other words, a candidate starting six months before exam day should plan to devote no less than 10 hours a week to studying.
Preview the material before starting. After registering for each level, you will receive a curriculum that is divided into about 18 study sessions. Broadly preview each session to determine your familiarity with each topic.
Develop a game plan. Get out your calendar and determine which weeks you will be studying which sections. Plot this on Excel, Outlook or a similar schedule-making program. Schedule your studying so that you finish with all the sections at least one month before the exam, so you can review. Also, schedule in review days as you go along.
Select a review course. In no way should a review course substitute for studying the material. However, a good review course can augment your study program by clarifying or pinpointing concepts you may be having trouble with. The key is to pick only one course, so that you can spend more time focusing on the CBOK.

Key No.2: Develop an Effective Study ProgramAn effective study program will make the difference between passing and failing. To develop an effective program, consider the following:

Study all "learning outcome statements" (LOS). The CFA Institute defines LOS as "knowledge, skills and abilities that you should be able to apply after completing a reading and all associated exercises and problems." To master each LOS, develop an outline and write down any important terms, definitions and formulas relating to each one. You'll be more likely to remember these points later if you take time to write them down as you come across them.
Use flash cards. Homemade flash cards are an effective way to master the material. Flash cards are portable, much lighter than carrying the entire CFA curriculum with you and can be quickly reviewed while commuting to work, during a lunch break, etc.
Use memory techniques. Mnemonic devices, such as taking the first letter of each word in a concept to spell one word, are helpful. There are other tricks, such as catchy slogans. For example, "SiP a CoKe" can be used to remind you of option put-call parity: The prices of a Stock + the Put = those of the Call + the present value of the striKe price.Also, don't fail to take the value of auditory memory cues into account.
Study quantitative and qualitative material differently. When studying quantitative material, working on problems is important. First study the concept, then learn by doing these problems over and over again. Once you understand how to solve a problem, return to the material for further understanding. Read qualitative subjects, such as ethics or behavioral finance before working on any problems. Approach these readings as if you were enjoying a good book. Many ethical problems are scenario-based and easy to read.
Work through as many practice questions as you can. Use the curriculum provided by the CFA Institute to show which problems you must work on. Enhance your studying by working on additional problems from reputable exam preparation providers.
Use your approved calculator. Part of the challenge in passing the CFA exams is the ability to answer questions in a short period of time. Practicing with the calculator you will use on exam day will allow you to achieve the greatest efficiency.
Stay motivated. Focus on why you are earning your CFA charter and how you will reward yourself after you take the exam.
Maintain a healthy lifestyle. Eat healthy meals, sleep right, avoid excessive alcohol or caffeine, and remember to exercise. People who are healthy are better learners.

Key No.3: ReviewHopefully, you've been reviewing the material as you progress. However, you will still need a solid month to review the material again once you have gone through all the sessions. Do not take this part of the study process lightly.

Here are some helpful tips for your review stage:

Finish early. Finish covering all materials at least one month before the exam.
Use practice tools. Tools like CDs or online exams are available to assess your strengths and weaknesses. Find out where you need to build on your strengths and practice in areas where you are weak.
Work problems offline. Do your work like you would on the day of the exam – with a calculator and pencil in hand.
Take practice exams. Take these beginning on a Saturday several weeks before exam day and try to replicate the actual testing environment as much as possible. Time yourself and allow no interruptions. This will allow you to become used to writing two three-hour exams in one day. You might also want to invest in a set of good ear plugs; these will come in handy during the actual exam.
Do a test run. The Saturday before the exam, drive down to where you will be taking the test and check out the site. Determine where you will park and the quickest way to get from there to the exam room.
Make time for yourself. If possible, take off the week before the exam. This will allow time for your final review, and reduce stress levels before the exam. Stay at home, study the material and allow no interruptions.
Sleep tight. Take it easy the night before. Lightly review the material, brush up on weak spots and eat a nice dinner. Pack a lunch for the next day to eat during your two-hour break. Also remember to pack your calculator, pencils, erasers, required medications, exam ticket, photo ID and ear plugs. Get to bed at a decent time.
EXAM DAY. Wake up early and eat a good breakfast. Go over some broad concepts. Start with ones that are easy for you; then work a few problems. Don't go into the exam cold. Leave the house in plenty of time to get to the exam.
Take (and pass) the exam. Relax and take a few deep breaths. Avoid talking with others about the exam. If you see someone you want to talk to, try not to talk about the exam. This will only stress you out and hurt your performance.

ConclusionIf you're a candidate in the CFA program or are planning to register, you need to plan in order to succeed. Organize your material, study effectively and review. In this way, you should be well on your way to passing each level of the CFA program on your first try.

What Is the CFA Designation?
The CFA designation is given to investment professionals who have successfully completed the requirements set by the globally recognized CFA Institute (formerly the Association for Investment Management and Research, or AIMR). To be eligible for the CFA designation, candidates must meet the following criteria:

1. Pass three rigorous, six-hour exams over several years.
2. Have 48 months of “acceptable professional work experience.” Although the CFA institute allows a fairly broad interpretation here, the experience usually has to be financial in nature. 3. Join the CFA institute by committing to the CFA Institute's Code of Ethics and Standards of Professional Conduct.

What Is the CFA Institute?
The CFA Institute is a global non-profit professional organization of more than 100,000 charterholders, portfolio managers and other financial professionals in 135 countries. Its stated mission is to promote and develop a high level of educational, ethical and professional standards in the investment industry.

The CFA Exams
Most people considering the CFA designation tend to worry about one thing – the exams. The exams are divided into three levels. Level 1 is written twice per year in June and December. It tests the candidates' knowledge of investment theory, ethics, financial accounting and portfolio management.

Level 2 and Level 3 exams are held once per year in June. For a complete breakdown of the sections, check out CFA Level II Exam and CFA Level III Exam. This is not an easy test. The CFA institute estimates that at least 250 hours of studying is needed to pass each exam. For professionals attempting to study while still working in their field, this can be a daunting number. However, many candidates consider the concentrated study required a better education than graduate school because of its total focus on investment management and practice.

CFA Pass Rates
This course of study was formed in 1962 and is constantly updated to ensure that the curriculum meets the demands of the global investment industry. This graduate-level curriculum generally entails six months of study prior to each exam date. Pass rates vary from year to year, but since the first exam was given in 1963, the overall rate is 44% and the 10-year average pass rate sits at 39% as of 2010. Moreover, fewer than 20% of the candidates pass all three tests in the first three attempts, so it is important for candidates not to get discouraged. (We’ve got you covered! Check out
CFA CareersCFA charterholders often seek careers at institutional investment firms (such as hedge funds or mutual funds), broker-dealers, insurance companies, pension funds, banks and universities. Some go on to work for governments in the areas of regulation and public policy. By the time the designation is earned, the charterholder will have the generally acquired four years of work experience, which also helps prepare them for a higher level financial profession. (For more on this check out

What Do CFA Designations Mean to Investors?
When an investor is dealing with a CFA charterholder, he or she can make some basic assumptions. In generally, a CFA is committed to becoming better at his or her craft, whether it is security analysis, portfolio management, business reporting or some other service. In addition, the individual has agreed to maintain a higher level of integrity by following CFA Institute's Code of Ethics and Standards of Professional Conduct.

In other words, investment professionals with a CFA designation have put in a significant amount of time and effort to better their skills and knowledge on behalf of their clients. This will come as a great comfort to most investors – especially if they are depending primarily on professional advice in managing their financial affairs.

Limitations of the CFA
Although there is a certain mastery required by the CFA exams when it comes to financial concepts and markets, having the CFA designation does not automatically make one a better stock picker or more successful investor. Stock picking is a practical skill that must be developed through experience. While the knowledge gained through studying for the CFA exam won’t hurt, the certification alone isn’t going to make a market maven out of every charterholder.

That said, there are some very well-known investment professionals who hold the CFA charter: Abby Joseph Cohen, Gary Brinson and Sir John Marks Templeton, among others. The reasons why these famous names pursued the CFA designation may vary, but it is safe to say they all have one thing in common: the desire to be the best.

Bottom Line
The CFA designation does distinguish the charterholder from other practitioners in the eyes of professionals and investors. The successful CFA charterholder has proved his or her ability to withstand rigorous testing, shown a capacity for learning and made a serious commitment to conduct his or her professional life according to high ethical standards. It’s not magic, but it may be the next best thing.

Nigeria: Banks Are Undermining EFCC, Lamorde Says

2012-09-12T14:43:00.000-07:00

Banks are shielding corrupt persons by doctoring or hiding relevant information on them and their transactions, thereby undermining the work of anti-corruption officials, chairman of the Economic and Financial Crimes Commission has said.
Mr. Ibrahim Lamorde, who was speaking yesterday in Abuja at a meeting with officials of the Chartered Institute of Bankers of Nigeria, said this behavior of the banks is sabotaging the EFCC.
Anti-money laundering laws require banks to turn in information on "suspicious" transactions to the EFCC, and the banks routinely post notices in their premises warning customers that certain funds movements would be reported to the authorities.
But Lamorde said yesterday that banks play hide-and-seek with investigators seeking statements of account of some suspects.
"If you send letter to the bank to avail you the details of such account, the reply you will get is that such account does not exist. If you insist, then you will be told that such records are not on the front desk, that it is only the managing director or the deputy managing director that manages the account. This is not a healthy banking development," he said.
Lamorde listed other unethical practices to include "the secrecy surrounding private banking, doctoring or non-disclosure of true position of statement of accounts of suspicious account holders and non-compliance with Know-Your-Customer, KYC, principle," a statement by EFCC spokesman Wilson Uwujaren said.
The EFCC chairman said while he appreciated the need for the banks to protect their customers, this must not be to the extent that it would harm the society in general.
"We want our society to be better. Nobody would want to be treated in an unfair manner outside the shores of this country just because he/she is carrying a green passport," he said, referring to the Nigerian international passport.
Earlier, CIBN president Segun Aina urged the EFCC to enforce the Dishonour Cheque Offences Act, which prescribes penalties for issuers of bounced cheques.
"The law is there, but people issue cheques and the cheques get bounced and nothing happens. We want to collaborate with the EFCC to ensure that the law is enforced," he said.
Aina said private banking is an arrangement where the banks gives special services to some customers who are not expected to join the queue in the banking hall, but added that there was no reason for secrecy over such accounts.
"There is no reason why the account of such customers should be made secretive and not be made available to the EFCC upon request," he said

Nigeria: Bankers Back CBN On N5,000, Say It Will Reduce Interest Rates

2012-09-12T14:38:00.001-07:00

Bank managing directors under the aegis of the Bankers Committee have thrown their weight behind the plan by the Central Bank of Nigeria (CBN) to restructure the nation's currency and introduce N5000 notes, saying it would reduce interest rates.
The banks also pledged their commitment to work with the Economic and Financial Crimes Commission (EFCC) to rid the system of fraudulent transactions.
Chairman of the commission Ibrahim Lamorde had Monday raised an alarm that banks were shielding corrupt persons by doctoring or hiding relevant information on them and their transactions, thereby undermining the work of anti-corruption officials
Addressing journalists after its 309th meeting in Abuja yesterday, the Managing Director of UBA Mr Philip Oduoza stated that "all the cost savings from the restructuring will eventually be passed on to the customers leading to reduction in interest rates.
He argued that "one of the things that lead to high interest rates is the cost of operations, so as that goes down you will find that the benefits will also go to the customers."
He added that "N5000 will definitely reduce cost of doing business in the system. The cost that will be saved by the banking industry from the introduction of N5000 notes will eventually trickle down to the customers. The lending rates of bank is made up of many components once this goes down you will see it in lending rates, if all things are equal. It will be beneficial to the industry, the government and the customers," he said.
In terms of efficiency and cost reduction to the banking industry, Oduoza noted that "the currency restructuring of the CBN makes more sense because fewer higher denomination currencies will now fit into ATMs, moving cash between locations will result in less number of runs for the banks."
On the recent allegation by the Economic and Financial Crimes Commission (EFCC) that banks were frustrating its fight against money laundering, the bankers said they have done a lot to champion anti-money laundering and through the Know Your Customer (KYC) programme.
He exonerated the banks of any wrong doing stressing that they (bankers) have been reporting suspicious transactions.
According to him, "suspicious transactions are reported and eliminated and only good customers are brought into the banking system, the reports are being filed, as an industry we would like to engage the EFCC to know the specific areas."
The banks he said have all stood for anti-money laundering but would like to engage the EFCC to know areas for improvements that the industry should look at.
Currently the bankers committee, he said has a standing committee that carries out financial literacy and awareness to both customers and staff but the banking industry would work together with EFCC to find our the specific areas that needs to be addressed.
Restructuring of currency he said is the role of the CBN which has many benefits associated with it. The bankers in lending their support to the CBN plans said the cost of printing a single currency remains the same irrespective of denomination. The UBA boss insisted that the cost of printing higher denomination notes reduces cost of of printing currencies.
However, he pointed out that the CBN or the banks will not impose N5000 notes on anyone, stating that "it will be based on demand."
When the CBN spends less to print money the bankers maintained that the surplus will be given back to government to provide infrastructure that will benefit the common man.
The director of corporate communication of the CBN Mr. ugochukwu Okoroafor stated at the event that "the cost of printing the restructured currency notes will be in the N20 billions." Coins he said last for about 20 years but notes last for about four to six months before they are reprinted.

CHALLENGES OF MIGRATING FROM NASB TO IFRS

2012-09-12T14:29:00.000-07:00

Challenges, gains of migrating from NASB to IFRS
By NIKE POPOOLA
Monday, 17 Jan 2011
L-R: Fola Daniel, Olateru-Olagbegi, Jegede
The insurance sector has decided to embrace the International Financial Reporting Standard. NIKE POPOOLA analyses the impact the new approach will have on the industry’s financial outlook. As part of efforts to embrace international standards in insurance sector’s financial reporting, the National Insurance Commission recently introduced the International Financial Reporting Standards into the industry.
The new reporting method now overrides the provisions of the Companies and Allied Matters Act and the Nigerian Accounting Standards Board, which the insurance firms had been using.
The major aim of the new approach is to grow local insurance firms into international standards (companies) that can earn people’s confidence and attract foreign investors’ interest.
Under the new development, the insurance companies are expected to start their transition from January 2011, while insurance brokers will take their turn in 2012.
The commission has given insurers and reinsurers only three months to prepare for the transition – a directive described by stakeholders as placing operators in a challenging situation to quickly adjust to the regulator’s requirement.
According to the arrangement, NAICOM expects the companies to prepare dual accounts in 2011 and prepare IFRS-complaint accounts in 2012.
Embracing this new approach, however, is definitely a challenging one, which operators are trying to adapt to with the assistance of their regulator.
One of the reasons why it remains a challenge is that operators, in most cases, have yet to really understand the technicality involved in the method, at least, for them to build the necessary capacity for enhancing a smooth transition.
The Managing Partner, Sirius Associates, Mrs. Oluwakemi Adeniran, says IFRS refers to a series of standards, interpretations and pronouncement published by the International Accounting Standards Boards.
She explains that the relevance of this is to help those preparing financial statements throughout the world to produce and present high quality, transparent and comparable financial information.
According to her, the benefits of IFRS include improved management information for decision making; better access to capital, including those from foreign sources; reduced cost of capital and ease of using one consistent reporting standard in subsidiaries from different countries.
Other advantages, she adds, include facilitation of mergers and acquisition, enhancement of healthy competitiveness and efficiency in domestic and cross-border financial reporting.
Now that the sector is embracing the method, she lists some limitations that the industry may face to include shortage of personnel (who are technically competent), limited availability of personnel at affordable cost (in terms of both technical assistance and staff time) and time constraint.
Others are the difficulty in coping with rapid frequency and volume of charges in keeping pace with the new standards, transition adjustments and large scale disruption to staff and management time due to training and capacity building.
The Managing Director, Oceanic Insurance Group, Mr. Lafor Olateru-Olagbegi, says that though the companies are trying to adjust to the new accounting model, with time, they will be able to.
He notes that the former accounting model that the sector was used to did not encourage foreign investors because they found it difficult to understand it.
He says, “If we adopt the international practice now, investors will come and we will benefit from it in many more ways. Most investors do not understand our accounts. But with the IFRS, it is easy for any investor from any part of the world to take up your book and understand what you are doing. So, it is a right step in the right direction”
The Managing Director, NICON Insurance Plc, Mr. Emmanuel Jegede, says that insurance is an international business, and if the sector must move forward to the next level, then, the industry must comply with international standards.
He notes that this is a major reason why companies have to present their results based on the standard required by global community
He observes that the operators are learning to adjust quickly to the new accounting method.
He says, “When a new method is introduced, there will be challenges. Most of us are learning, and with time we will get to understand it better.”
The Commissioner for Insurance, Mr. Fola Daniel, says the commission is committed to the adoption of IFRS, not only because it is one of the initiatives of the insurance industry, under the FSS2020 programme, but also because it is an imperative for the recognition of the country’s insurers and reinsurers internationally.
While considering the short time that the road map allows for transition and the dearth of skills needed for it, he observes that many operators may be facing huge challenges over the estimated cost and appropriateness of the strategy to be adopted in the pursuit of a seamless transition.
The commissioner says, “Furthermore, we noted the urgency and importance of the project and thus decided to deal with it ahead of other major industry initiatives we had slated for 2011.”
For this reason, he adds that NAICOM decided to support operators by facilitating an arrangement that it hopes will ease a seamless transition to IFRS.
The NAICOM boss explains that the local standard seems out of date and may not be sufficiently comprehensive to form a basis for preparation of high quality financial statements.
The adoption of the IFRS, he notes, will result in high quality, transparent and comparable financial statements that are based on modern accounting principles and concepts that are being applied globally.
Speaking on the expectations from the new IFRS, Partner, Akintola Williams Delloite, Mr. Oduware Uwadiae, says that the transition to IFRS will help insurance companies to improve the sophistication of their risk management practices.
According to him, IFRS intends to help the companies arrive at a better economic view of their business portfolio, which will likely lead to improved management of the business.
He notes that IFRS provides an opportunity for firms to substantially improve internal controls, stressing that greater transparency may lead to greater levels of accountability for risk management practices.
Uwadiae says, “The increased transparency and greater disclosure-related risk, as introduced by IFRS, combined with capital adequacy frameworks, will lead to insurance companies being held to greater levels of accountability for their risk management practices.”
Changes in reporting due to IFRS, he explains, will empower investors and analysts, who will make easier comparisons across companies and hold management to heightened levels of accountability.
Explaining the effect of IFRS on life underwriters, he says the implementation of IFRS requires insurers to develop a deeper understanding of their products, by examining their entire books of business to enable the classification of products as insurance contracts or financial instruments.
He says as insurance companies increasingly become aware of these factors, the additional information flowing from the adoption of IFRS will lead them to properly price these embedded derivatives and do so at a fair value.
According to him, with the new accounting system, it is likely that certain life insurance products and annuities may be discontinued, redesigned or priced higher.
He explains that under IFRS, the modelling of liabilities, especially for non-life insurers, will become more complicated with the advent of discounting techniques.
He adds that companies offering long-term insurance products, such as general liability, commercial automobile, workers’ compensation and specialty lines of insurance that seek to cover the long tail lines of business will find the estimation and modelling of liability cash flows the most challenging, as these lines have weak observable market data, high volatility and potentially large payouts.
He says, “Further, as insurance companies provide more details in their financial statements regarding how risk is priced, for example, through increased disclosure related to the calculation of risk and service margins, assumptions and sensitivities based on actuarial modelling, the concentration and mitigation of risks and claims development, the pricing of risk will likely become more transparent.”

IFRS ISSUES

2012-09-12T14:23:00.001-07:00

How adoption of IFRS will impact IT systems in Nigeria

Monday, 18 June 2012 00:00 TOPE ALADENUSI

Some examples of IT areas that may be impacted by IFRS include:

-IT systems should be able to breakdown and recognize information components of Property, Plant and Equipment in line with IFRS 8.

-IT systems that maintain spot exchange rates may replace the use of average quarterly or annual exchange rates by some entities for their foreign currency transactions.

-Effective interest rate for income recognition may be configured on IT systems to replace the current method being adopted by some financial institutions.

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INTRODUCTION TO ENVIRONMENTAL ACCOUNTING AND REPORTING

2012-09-12T13:50:00.001-07:00

Sep 12, 2012 1:45pm

Environmental Accounting and Reporting 101

by Charles J. Coate
University of Kansas

Karen J. Frey
Gettysburg College
and

Nikkie S. Sakuvich
Spring, Corporate Audit Services

Introduction

Accountant's eye shades may soon be turning from money green to environmental green. Why? Because environmental accounting and reporting are of increasing importance for businesses. Environmental accounting deals with recognizing and disclosing a company's environmental costs and liabilities in financial reports. Because the concepts are relatively new, environmental accounting may not be covered in the text or even listed in the index of your favorite accounting book. However, some more recent textbooks (Wallace, p. 954; Horngren, et. al, p. 435) contain a paragraph or two on the issue, and professional and academic journals are more commonly addressing the subject. As environmental issues and their related costs grow in dollar size and in public awareness, accounting professionals must be prepared to incorporate their impact into financial decisions and reports.

Environmental expenses have been estimated to be between two and five percent of the gross national product (GNP). Legal and regulatory requirements imposed on environmental wrongdoers formally drive these expenditures. However, consumers are more frequently considering a company's environmental responsibility in deciding whether to purchase its products or services. Hence, good business practice can require that firms abide by "socially imposed regulations" as well. Environmental responsibility, then, may not only protect the firm from a variety of charges from government agencies, but also enhance its reputation in the community.
Yet, even as businesses become more aware of environmental liabilities, they are often uncertain how to account for them. Surveys by Price Waterhouse revealed that, at one time, most respondents with known exposure to environmental liabilities were reluctant or slow to record them in the financial statements. As late as 1990, only a small minority of firms had policies to address environmental issues. More recently, the trend has been to increasing disclosures and/or recording of environmental liabilities. By 1995, most companies had developed formal statements of environmental policies.

Federal Environmental Acts and Environmental Audits

Environmental costs and liabilities are primarily driven by increasing federal regulation and enforcement. Federal environmental acts establish requirements for remediation, abatement, and prevention of hazardous waste sites. The three major acts are:

The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). Better known as Superfund, this act requires potentially responsible parties (PRPs) to incur costs for remediation. The EPA identifies PRPs as firms with operations involving hazardous waste and site contamination.
The Resource Conservation and Recovery Act of 1976 (RCRA) is concerned with preventing events that could lead to contamination and result in the need for future site cleanups. It establishes responsibility for the monitoring, transportation, treatment, storage, and disposal of hazardous wastes.
The Clean Air Act Amendments of 1990 (CAAA) attempt to reduce pollution by requiring public utilities to restrict the amount of sulfur dioxide and nitrogen oxides that their generating units may emit.

Violation of these statutes can result insignificant fines, remediation costs, or even imprisonment. The EPA, through the Department of Justice, charges 5 to 10 engineers and business people per week with criminal violations of environmental regulations. Liability for environmental wrongdoing is strict, joint and several, and retroactive. Furthermore, lack of knowledge is not a defense and negligence may result in imprisonment. thus, companies need to be particularly careful when dealing with environmental laws.

As with legal liabilities, accountants must rely on the work and opinions of experts in other fields to determine the impact of environmental issues. Firms may undergo an environmental audit to determine the legislation applicable to the firm, to assess the compliance of the firm with the legislation, and to assist in estimating environmental liabilities.

A team of internal and external experts, including environmental engineers and legal counsel, performs the audit. The team reports findings to company management by issuing a formal environmental audit report. Where appropriate, this report includes recommendations for attaining regulatory compliance and improving environmental cost efficiency.

Recording Environmental Liabilities

Although accounting for environmental exposure is one of the six issues considered tremendously important to the SEC, no environmental-specific GAAP has yet been issued. Accountants rely on existing GAAP (FASB #5, FIN #14) to account for environmental issues. Consequently, there is an increasing need for accountants to be familiar with the substance of and potential financial treatment of environmental liabilities and costs.
Currently, the major financial accounting issue in environmental accounting is estimating and recording environmental liabilities in the financial statements. Treating environmental costs as loss contingencies is most common in practice. FASB #5 provides guidance in defining and determining how to report loss contingencies, and FIN #14 provides guidance in estimating them. FASB #5 defines a loss contingency as:
An existing condition, situation or set of circumstances involving uncertainty as to possible gain or loss to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur.
Environmental liabilities often fit this description. The possibility of a company's noncompliance with environmental regulations is the "uncertain condition." The "future event" that resolves his uncertain condition is the declaration by regulatory agencies that the company is or is not liable to pay damages for harming the environment.

To test your readiness for the world of environmental accounting, try the short quiz below. These questions represent the types of challenges accountants routinely face as new GAAP emerge.

Quiz.

In questions 1-3, suggest the appropriate accounting treatment for each of the situations. In questions 4 and 5, provide a short answer. You have one professional career to complete this quiz.

Question 1: Suppose a pharmaceutical company is concerned that its disposal of hazardous waste may not be in compliance with recent environmental regulations, and hires a consulting team to perform an environmental audit. The team assesses the likelihood that the firm will be liable for cleanup costs as probable. The team's report further reveals that:
-The average cost for similar cleanups is unknown.
-The lowest cost estimate for this cleanup is $1 million.
-The most this cleanup will cost is $10 million.
-Evolving technology may reduce the cost of this cleanup to $500,000.

Question 2: Suppose, in contrast to question 1, the firm must decontaminate land rather than waste materials. Ten years prior to the environmental regulation requiring the cleanup, the land was purchased for $4,000,000. Current market value in the absence of any environmental liabilities is $7,000,000.

Question 3: Now suppose a firm purchases two similar tracts of land. Tract A is pollution-free and the firm pays $7,000,000. Tract B is purchased with pre-existing pollution (i.e., the firm did not contribute to its hazardous nature) with an estimated $1,000,000 cleanup cost. The firm paid $6,000,000 got Trace B. The cleanup of Tract B has begun ($500,000 expenditure), but is not complete.

Question 4: Are timing issues important considerations in environmental accounting? Why?

Question 5: How do the established concepts of 1) subsequent events, 2) changes in accounting estimates, and 3) accounting errors relate to environmental accounting ?

Quiz Answers.

Question 1. FASB #5 requires the accrual of a loss contingency, because the likelihood of loss is probable and the amount of the loss is estimable. FIN #14 requires that the minimum be accrued, when the reasonable estimate of a loss is a range, and no amount within the range is a better estimate than another. Thus, the firm should record a $1 million environmental liability and expense on the balance sheet and income statement, respectively: Notes to the financial statements must disclose the nature and amount of the potential liability.

Question 2. Questions like these must be carefully considered in the absence of environmental-specific GAAP. (Translation, there may be no right answer). Nonetheless, here are some questions to consider in formulating an "answer." Should the association of the environmental expenditure with site contamination rather than waste disposal change the accounting treatment? Specifically, since the contamination can now be associated with a particular asset, should the book value of the land be reduced? If setting up a contra asset account is an appropriate treatment, should cleanup expenditures be taken against this contra account? If the liability is greater than the book value of the land, should the land be presented as a liability?

Question 3. The value of Tract B is greatly increased by the cleanup. Should both tracts be recorded at cost? And if so, should the cleanup expenditures increase the land's book value (similar to capitalizing capital improvements)? If the firm, unaware of the pollution, purchased Tract B for $7,000,000, how should the environmental cleanup be recorded when discovered?

Question 4. Yes. Because . . . well . . .er . . I think you get the idea. But, think about the following. Consider that environmental cleanup may involve contaminated materials accumulated over the past three years, while the relevant environmental regulation became effective in the current year. The question arises whether the environmental expenses should be recognized in the period the regulation becomes effective, or during the period of physical contamination; that is, whether the expense should be recorded in the current period or in past periods. Or, if a new environmental regulation is to become effective next year, are there circumstances when environmental expenses should be recorded in the current year?

Environmental cleanup technology provides another twist to the timing issue. Suppose the firm has a $l,000,000 environmental liability accrued from the prior year. In the current year, prior to cleanup, new technology becomes available and the actual cleanup cost is $500,000. In what period should the reduction be recorded?

Question 5. You're on your own here. It's time to go out into the "real world."

Managerial Accounting and Auditing Concerns.

The impact of environmental issues on accounting professionals is not limited to financial reporting. It affects managerial accounting, environmental costs must be recognized, measured, and included in product costs and firm decisions. Practitioner journals are already responding to this need (Kreuze & Newell, 1994; Brooks, et. al, 1993). In auditing, environmental issues present substantial challenges. Not only muse auditors attest to the fairness and appropriateness of recorded environmental issues, but they must be aware of possible unrecorded environmental liabilities.

Conclusion

Environmental issues have increased in importance in past decades. That this trend promises to continue is reflected in the increasing financial attention firms are giving to these issues. Thus, accountants need to be aware of environmental issues and to consider their influence upon both internal and external reporting.
The evolution of the appropriate financial treatment (GAAP) for these issues will provide challenges to accounting professionals. This evolution is interesting both for its own sake and also for the perspective it provides on other emerging GAAP issues.

Bibliography

Anonymous. 1995. Price Waterhouse Study Focuses on Environmental Practices. Environmental Manager 10 (May): 11-12.

Brooks, P.L., L.J. Davidson and J. H. Palamides. 1993. Environmental Compliance: You Better Know Your ABCs. Occupational Hazards (February): 41-46.

FASB Statement of Financial Accounting Standards No. 5, "Accounting for Contingencies," 1975, par. 1.

Horngren, C.T., G. Foster and S. M. Datar. 1994. Cost Accounting : A Managerial Emphasis. Prentice-Hall.

Kreuze, J. and G. Newell. 1994. ABC and Life Cycle Costing for Environmental Expenditures. Management Accounting (February): 38-42.

Wallace, W. A. 1995. Auditing (Third Edition). SouthWestern College Publishing.

CURRENT PROBLEMS IN ACCOUNTING AND AUDITING---BY Rodney Gascoyne CA

2012-09-12T13:41:00.001-07:00

Toronto, July 2002

Current Problems in Accounting and Auditing

By Rodney Gascoyne CA

1: Standards Setting:

Standards and Guidelines for Accounting and Auditing are set mainly by the accounting bodies in the US, Canada, the UK and Australia with minor input from other institutions around the world. These have been generally accepted and supported by Regulators for the major stock markets and in some cases reporting requirements have been extended or modified by them. The main accounting bodies are the CPA or Chartered Accountant institutes and they in their turn are largely controlled and influenced by the partners of the major accounting firms internationally. Each Institute operates in these areas by leave of their national government and legislation, under their claims to protect the interests and rights of the general public. This power could now change because of recent events.

The current mess arises from the inadequacy of the Generally Accepted Accounting Principles (GAAP) and the non compliance by auditors to the Generally Accepted Auditing Standards (GAAS). In each separate country, the local Institute determines the requirements for companies registered in their jurisdiction or for those reporting to local stock markets where they are listed. In the case of international groups of companies they may be required to meet local standards in each place they operate and then the group accounts must follow the rules for the residency of the Head Office and places those group holding shares are traded. For many years there have been attempts to produce one set of internationally recognized GAAP or GAAS rules that would harmonize local rules and remove the reporting and related confusion. The European Union is only now starting to arrive at one set of comprehensive standards that might eventually apply across all their member countries.

US GAAP are a set of distinct rules for accounting treatment of specific items whereas other Institutes apply a principles based approach. The rules based method allows more loopholes and freedom to act in areas that are not specifically covered or where the stated conditions can be said not to fully apply. The principles based approach states the generally desirable goal for measures and requires the application of professional judgment to find the proper treatment for items based on that guidance. The US rules are generally less conservative and provided greater latitude for companies to play the rules as it best suited their interests. It also allowed lawyers and others to argue pedantically over wording and to ignore the application of appropriate judgment. This often led to inflation of Net Profit and Financial Statement values on translation from other to US rules.

When trying to arrive at International standards for GAAP and GAAS, the US body has always maintained a veto position and taken the view that they will only approve those measures that they like. This mainly means them only approving of items they originated and rejecting attempts from all the other bodies to widen or deepen any issues. It is hard to believe that this attitude will change given their current general approach to almost all matters from foreign policy on down.

The influence of the major accounting firms should not be underestimated. Those Institutes are basically at the 'beck and call' of their senior partners. Much of the committee work and other academic studies could not be carried out without a large amount of volunteer time from members and most for this work is staffed and led by members and partners from those firms. Their senior members also figure conspicuously each year on the leadership positions that seem to get rotated mostly among themselves or current business leaders who are audited by or were trained by the major firms. In effect, over the last many decades, nothing has come out of those Institutes that they would find inconvenient or has failed to serve their interests. It is hard to image how this can be changed in the short term.

2: Auditor Independence:

Back in the 80's the position of auditors started to change in small ways. Till then audit fees had been an almost automatic thing and were increased each year in line with costs and possibly a desire by firms to increase their margins. It was also normal to reappoint the auditor ad infinitum. Management of companies started to question this and initially put pressure on auditors to reduce their fees or at least their increases each year. To apply greater pressure it was also suggested that audits should be put up for open bidding on a periodic basis. Without their normal level of co-ordination on such issues of self interest, the firms began to tender against each other and this drove down the fees they would put forward. Part of their reasoning was that they could make up this lost ground from the lucrative tax and consulting work they could then attract from those audit clients. Their marketing for such services increased considerably at this time and this formed an atmosphere of mutual interests between them and senior management that is the root of our current problems. The audit fee situation became one of a 'loss leader' they could accommodate.

Costs were a main problem and so firms generally, not just the majors, began to look for ways to control and reduce them. For many years GAAS and academic studies had endorsed more efficient methods for conducting the audit work, using analytical review and some reliance on the client's systems of internal accounting control. This lessened the amount of detailed testing of transactions that was needed to provide adequate assurance and confidence. Many studies were also carried out to find acceptable methods for sampling that would provide some mathematical certainty and the basis to be able to estimate the impact of errors found in monetary terms. This should have added to the quality and depth of coverage that was then possible for all audits.

As fee and cost pressures increased, partners began to cut back on any work they considered unnecessary, not always accompanied by a reworking of their audit manuals and their stated standards and methods for achieving GAAS. Documentation and evaluation of internal controls were seen as a costly approach and required deeper training of staff. Much of this work was curtailed or abandoned altogether, but without the required increase of other work or testing levels to compensate. Sample sizes were also reduced and became what can only be described as judgmental samples and no longer representative ones that were statistically valid. At the same time they continued to apply estimation techniques to errors found when there was no longer a mathematical basis for so doing. Some firms even set an arbitrary maximum sample size like 40 items that had no bearing on audit risks or materiality for the audit in question.

At the time when companies were moving more and more to computerized accounting methods, the auditing firms also became less interested in performing work to document and understand the nature, control and conduct of those systems and hence the impact such practices could have on the associated audit risks, and the reliance that could be placed on financial statements prepared from those records. For similar reasons they often considered the use of Computer Assisted Audit Techniques (CAATs) to be generally unproductive, time and cost consuming, as well as requiring better trained staff and other resources that had their own overhead.

More and more emphasis was placed on esoteric analytical review and supposed use of judgment to support an audit opinion that was less and less evidenced and documented. The final partner review and clearing of issues, as well as their own intimate knowledge of the company and management, became the basis of reliance. But at the same time their own interests were more and more bound up with those of the client and in the need to gain additional fee generating work, to meet their own annually increasing targets and fellow partner expectations. We should not also underrate the influence and feelings of mutual symbiosis from interchanges between the auditing firms and their client companies - both auditors who joined management and the rarer opportunities for senior managers to transfer to the firms as consultants as they approached retirement.

To increase the appearance of proper auditing standards being applied, and in response to earlier scandals and evidence of inadequacies, many institutes introduced what were called 'peer reviews'. This provided for other firms to check the work, standards and methodology employed by firms together with a review of the evidence maintained in a sample of audit files. In the case of the big firms, this review work was largely carried out by other major firms on the argument they were best able to understand and assess the adequacy of the work carried out. Unfortunately they were also those most interested in not finding fault in those that also had to assess them. As in all other institutional issues, the major firms seem to act as a cartel and in their own joint interests, just as with standards setting and all other matters of regulation within the profession.

3: Corporate Governance:

The late 80's and early 90's were littered with a series of scandals, in the US with Savings and Loans, but elsewhere and other clients too, that disclosed problems of optimistic accounting treatments and the accompanying lack of auditor awareness or concern with the practices, that led to many spectacular company failures. Partly in response to that the US Congress started a process known as COSO to suggest and promulgate new means of corporate accountability combined with proper standards for corporate management practices. In Canada these were picked up and extended as CoCo and, in the UK, recommendations that followed from the findings of the Cadbury Commission. Australia also had their own response to the situation and ideas that spread worldwide.

Corporate governance was seen as the necessary protection for shareholders and other company stakeholders. By following risk management and control principles, combined with appropriate policies and practices, together with full accountability and annual statements of compliance from senior management, such recurrences were not meant to happen. In the absence of enforcement rules or independent assessments for adequacy, there was little direct change in practical terms. All that they introduced was a written statement by management that they had followed the recommendations and attained appropriate control, attached to their annual report, required for quoted members on major exchanges, but the initiative soon lost focus and interest. Major audit firms offered to train company staff at vast expense but otherwise had no part in the process. After a few years the goals to be achieved seemed to be forgotten, perhaps because management very rarely wants to be measured and criticized in any public way. Internal Audit departments also started to become vogue at the same time but it soon became obvious that management's wish was for the appearance of independent review of their performance rather than real substance.

By the late 90's the topic was passé and it slipped from everyone's attention. Recent events have caused the terms and ideals to be reawakened but the focus now seems to be more towards criminal punishment and personal responsibility than in setting up a coherent and workable solution to the malaise in business conduct. Another underlying cause was also the personal and corporate acceptance of the notions of greed, that emerged into common business motivations from energized expectations of potential profits, fired by the same unrealistic short-term goals that led to the bubble in Internet companies. Morals or honesty or even reputation were no longer seem as requirements or matters of long lasting importance. Make what you can, however you can, while you can. Accountability seemed escapable. Make you profits and get out quick.

4: Market Forces:

The factor of greed was widespread. Shareholders and investors were quite happy with spectacular and irrational rewards just as long as they were winning and share values kept rising. Over the 90's the markets rewarded companies and their managers while they could maintain an aggressive up tick for the shares and could continue to show ever increasing returns and values. There were and still are not any realistic limits to those expectations - its seems that the ideals of pyramid selling are all fine and well as long as the game continues to be played - just ask the Albanians where such excesses were state sponsored. Eventually every bubble will burst. Some of the major forces fanning these expectations were the financial services industry members themselves, albeit for very self interested reasons. Everyone's focus was on the very short term.

Rewards for management further fuelled this lunacy, almost encouraged by the market players whose clients' long term interests could only eventual suffer and take the resulting fall. Professional investors and money managers stood by as salaries and bonuses for senior management and particularly CEO's rose to hideous heights. Initially this was to be responsive to results achieved but as later markets fell, the same remuneration levels were maintained or ever increased again. A new tool for reward was also used widely by granting executives either options on shares or direct subsidies on company shares awarded to them that were used as a further incentive.

The eventual impact of many of these rewards was the reverse of that intended. Instead of making management focus on the real and continual increase in shareholder value over the long term, management were able to gain quickly by looking at short term increases and returns at the expense of the longer term needs of the company as a whole. Many service contracts also made provision for golden handshakes and golden parachutes either at retirement or when they were let go early. This was also mostly underpinned by exceedingly generous pension rights that would allow many executives to retire with immunity after only a few years commitment.

And lets not forget that the old shell game has always been present where directorships are rewards for friends who use their influence and connections in ways that best help their compatriots. Even 'outside directors' and their supposed control over audit committees and management remuneration, all measures introduced as a check on excessive actions by management and as an assurance for the recognition of shareholders' rights and interests, can now be seen as another shell game. In all this there has always been a conspiracy of silence by all those with personal interests, no matter what their professional background, to not rock the boat or cry wolf until the bitter end. Of course, those were not the same people who would pick up the cheque for the final and inevitable collapse - they are well aware of the methods by which they can hedge their risks.

5: Solutions:

Some of the same old remedies are being trotted out again for this set of scandals and malfeasance as for past times when accountability issues hit the headlines. Suggestions for new standards, for tighter control and criminal prosecutions head the list as well as suggestions for new oversight boards or commissions. For anyone with any real memory of the past 25 years or so, this all smacks at déja vu and gives one as much confidence as an aspirin for a major wound. It is very likely that those in the driving seat and responsible for the past will create yet one more shell game if they are left in place.

This is an international problem but yet it is not likely that some international body or set of standards could be created that could fix the problem. You only have to look at the United Nations to see that nothing sensible can come out of any international committee or body where only politics seems to be able to survive. The same with the EU for Europe - they would swamp everything in bureaucratic lunacy. Certainly there should exist a set of universal standards for GAAP and GAAS but how can they be arrived at even with limited national input while the US feels to be supreme and, in its own way, unaccountable to others.

Market oversight and regulation of the issues sounds attractive but then their interactions of the past have not had any noticeable impact nor have they prevented any failures to date. Who would be the master regulators and where they would be based are just two of the first hurdles, plus how would it be funded? No government inspired or run body seems capable of performing effectively and efficiently, let alone economically. What chances for a super regulator to work out?

A revamping of the current setup certainly needs to happen and then all the old ties need to be cut too. The main checks and balances thought to exist where different groups or professions were supposed to cross check each other has never really worked where they can find any mutual self interests. One body that does sound attractive is the professional fund managers who have the knowledge and leverage to hold management accountable and yet it can be seen that their own results and hence remuneration can also be dependent on and rewarded by the status quo.

Auditing firms that have no other business interests and where partners and senior staff are required to record all their outside financial interests, just like many politicians, could be one approach as well as extra reporting responsibilities such as for Corporate Governance. Their total independence and dedication to their duties must be assured to provide any confidence.

In addition, company directors, CEO's and others active in markets and publicly owned businesses should make an annual declaration, in writing, with respect to their compliance to tougher fiduciary responsibilities and regulations, such that proof that they lied in that statement would in itself be grounds for criminal prosecution and liability. Fines should ensure that any rewards from malfeasance are totally recovered from assets those people can control and/or benefit from. When found guilty those persons should be publicly identified and denied the right to act in those same areas for an appropriate period in those circumstances. If many people are not willing to act honestly on their own accord they should be compelled to recognize the overriding interests of the greater public. Perhaps they and public companies should also be required to carry full insurance coverage and then it would be those organizations that would have a vested interested in keeping everyone on track as well as protecting the innocent.

A flashback to February 1993 in The Bottom Line: (Unaltered from original copy)
After writing this paper I went back over some of my past articles and found the following:
Banner Title: Auditors At Risk of Becoming Irrelevant
Header: Viewpoint - Has auditing become a no-value service?
The problem with modern auditing is that there is often little - if any - value to the process accruing to shareholders, management, investors, creditors and the public at large.
Recently I had a conversation with a CFO of a multinational corporation based in Toronto.
He stated that he finds almost no value in the audits of his companies and that management's move to have the audits put up for tender at regular intervals is a reaction to ensure that it pays the least possible fee for this no-value service.
He is aware that the major firms are low-balling their quotes and that, as a result, the quality and extent of much of the work will deteriorate further.
Of even greater interest is the fact that I have heard senior audit people agree with this opinion of present-day auditing.
Why, you might ask, is this of concern for a columnist whose bailiwick is computer auditing and audit automation? In a previous article ("Are we giving up the lead in EDP Auditing?" - TBL November 1992, p.26), I stated that the weakening of current standards and auditing guidelines is affecting the audit of computerized systems. The problem is that the negative influences in this area also affect the way that many computer audits are conducted. "Auditing around the computer" is just one illustration - an international one, at that - of insufficient audit work that results from serious "underauditing".
What I am presenting here is my vision of the wider audit picture - which, if it can be cleaned up and corrected - will lead to proper computer-based auditing. This in turn, will help supply a large part of the added value that auditors can produce as an essential benefit of their audits.
Defensive Posturing
The apparent cause of this underauditing is defensive posturing by the major accounting firms and their over-competitive attitudes, which dictate that they must hold or build market share at any cost.
Because of the influence they have worldwide and with the major institutes, I believe they are responsible for the recent weakening and fudging of GAAS standards - both nationally and internationally - which makes it easier for them to do less work.
Part of their defensive posturing may also be based on the present litigious conditions that have arisen because of a long series of international frauds and financial sector and other commercial collapses, in which auditors were issuing clean opinions right up to the point of failure.
It is also clear that little has been done by any of the major institutes to seriously address the "expectation gap" - the well recognized difference between the public's expectations of what an auditor should do and the auditors' ability or willingness to deliver value and certainty as a result of their work.
It appears that we continue to refuse to recognize many of these obligations, and yet our institutes claim that their main responsibility is to protect the rights and interests of the public.
But all is not doom and gloom. What is required is "heads up" auditing, where we maintain a healthy interest and skepticism in all that we do and witness during our audit work.
The fact is that we know how to do our jobs properly; there are no gaps in our technical knowledge of the solutions and proper procedures. We have simply forgotten how to perform correctly because we have stopped doing so for a number of years.
We can, however, correct this position by educating the younger members of our audit teams and by providing revision course for more senior staff.
But this will require a change in the approach and attitude of the major firms; they will have to demand that correct and sufficient procedures are carried out on all jobs and strengthen national and international standards and auditing guidelines to ensure that all auditors are clearly aware of their obligations.
Such new and improved standards should also recognize the patently obvious fact that almost all audited financial records are now computerized and, therefore, should require that all audit work carried out includes the necessary computer auditing assessments and testing techniques.
This additional work will enable auditors to gain further knowledge and understanding of the companies they audit.
The sharing of this extra knowledge of the state of the business and its competitiveness, the state of management's control and the accuracy and completeness of its executive information systems, and the adequacy of the systems of internal control, including application and general computer controls, will supply added value that is gained as a byproduct of audit work but that can then be of direct benefit to management and shareholders.
Arguments are also being voiced to extend the role of external auditors. For example, some people believe that they should provide an independent analysis of the annual or periodic financial results, certify the adequacy of the internal controls system, or provide a running audit opinion of financial results that are provided electronically on a more regular and timely basis. Such additional responsibilities would provide even more value to the benefit of investors, creditors and the public at large.
The surprising but encouraging comment from the CFO I spoke with was that he would be quite willing to pay a much higher audit fee if his auditors would provide appropriate and substantial value to the numerous stakeholders in his companies.
Unless the leaders in the profession respond to this situation in a bold and positive manner, auditors run the risk of becoming irrelevant or even being relieved of some of their legislation-based duties.
We may not have much time left in which to respond to repeated calls to meet the standards the public and business community have been demanding for years.

ICAN TCI (Technology Competence Initiative) CENTERS IN NIGERIA

2012-09-12T12:16:00.001-07:00

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA

TECHNOLOGY COMPETENCE INITIATIVE (TCI)

LIST OF ACCREDITED TCI TRAINING CENTRES AS AT OCTOBER 15, 2010

S/N	COMPANY NAME	MODULES	OFFICE ADDRESS	TEL NO.	EMAIL	LOCATION
	A.J. SILICON	I, II & III	14B, Amara Olu Street, Off Zenith Bank, First Gate Bus Stop, Off Lateef Jakande Road, Agidingbi Ikeja Lagos.	07039273148, 08166272745 08055272046	info@ajsilicon.com	Lagos
	EDP Tecknowledge Education Centre, Lagos	I, II & III	EDP Center. Limson Road, River Valley Estate, Off Isheri Road, Berger Bus Stop Ibadan Expressway, Ikeja Lagos.	0802 3161357, 0802 4412611, 0803 5725283	solutions@edpaudit.com	Lagos
	EDP Tecknowledge Education Centre, Abuja	I, II & III	22, Kumasi Crescent, Off Aminu Kano Crescent, Wuse II Abuja.	0802 344-3867 0802 4412611, 0803 5725283,	solutions@edpaudit.com	Abuja
	Computer Audit Control & Security Associates (CACS) Ltd	I, II & III	9, Moronfolu Street, Off St. Finbarrs College Road, Akoka Lagos.	+234 (01) 7748109; 08033067208	ikpehai@yahoo.com, contact.cacs@yahoo.com	Lagos
	Mold Computers and Communications Limited	I & II	5b, Kukawa Avenue, (Near Barau Dikko Specialist Hospital), Off Independence Way, Kaduna	062-243334, 062-211118, 08033278803.	mold@skannet.com, mold@inet-global.com	Kaduna
	Projektlink Konsult Ltd.	I, II & III	Plot 16/17, Bolajoko Estate Adjacent to General Gas Basorun – Akobo Road Ibadan	08033229115,	projektlink@skannet.com	Ibadan
	Babatunde Ajala & Co	I, II & III	58A, Kudirat Abiola Way, Oluyole Bus Stop, Oregun, Ikeja, Lagos. (Opposite Intercontinental Bank Plc)	01-8937264, 08034093675	info@babatundeajala.com, babatundeajalaandco@gmail.com	Lagos
	Tips Computer Institute	I & II	489, Ikorodu Road, Ketu Lagos	08053337046, 07028424363	tipsinstitute@mail.com, tipsinstitute@hotmail.co.uk	Lagos
	Signal House Learning Centre	I, II & III	61, Kudirat Abiola Way, By Oregun Bus Stop, Oregun Ikeja (Near Intercontinental Bank Plc)	01-8509123, 08033008104, 08058517415.	sclgfk@signalhouse-ng.com	Lagos
	BSSL Technologies Ltd	I & II	6, Johnson Street, Off Coker Road, Ilupeju Lagos	08027338455, 07031653432	info@bsslnig.com , jemadoye@bsslnig.com, emadoyej@yahoo.com	Lagos
	Potec Training Centre	I & II	1 Chinda Street, Off Stadium Road, Behind Laurche Opp.Vicon House, Port Harcourt, Rivers State	08033403848 08037140801,	potectrainingcentre@yahoo.com	Port Harcourt
	Vienna College of Computer and Business Studies	I & II	7, Akpakpava Road Benin City Benin, Edo State	07031509416, 052-250958	vienna_college@yahoo.co.uk	Benin City
	ITSS Academy	I, II & III	St. Francis Nursery & Primary School. Schools Complex, Maryland, Lagos	01-8704965, 08023169887	correspondence@itss-ng.net	Lagos
	MCL Compaigne Limited	I & II	51, Opebi Road, Ikeja Lagos	07025755432, 08062942684	mclcompaigne@yahoo.com	Lagos
	Nest Trust Institute	I & II	17A, Abdullahi Bayero Road, Off Audu Bako way, By School of Management, Kano, Nigeria	64-977719 07034131333	contact@nestrust.org kano@niitng.com fatima@nestrust.org	Kano
	Appsolutions Limited	I & II	1b, Ebun Street, Gbagada Phase 1, P. O. Box 6133, Shomolu, Lagos.	01-7737224 01-7926945 08023061414	info@appsnigeria.com	Lagos
	Sogrem Associates Limited	I, II & III	300, Herbert Macaulay Street, Sabo Yaba, Lagos.	08023448191, 08023986547, 08039268504	sogremassociates@gmail.com	Lagos
	Accounting Solutions	I, II	17, Simbiat Abiola Road (Landover Building), Ikeja, Lagos	234 (01) 2707969, 234 (01) 2707681	info@accountingsolutionslimited.com	Lagos
	Treasure Hall Consulting	I, II	Suite B3, Waterfront Plaza, 1^st Avenue, (Opp. Mr. Biggs), Festac Town, Lagos.	01-794-3321; 07089676799, 08035237320, 08182005099	info@treasurehall.com, treasurehallconsulting@yahoo.com	Lagos
	New Nigeria Development Company Ltd	I, II	Ahmed Talib House 18/19, Ahmed Bello Way, P.M.B 2120, Kaduna	08037217320 062/246251-5, 246200-5	adanejin@yahoo.com nndc@skannet.com, nnde@nndcgroup.com	Kaduna
	Aba and District Society of ICAN in collaboration with Abia State Polytechnic	I, II	114/116, Aba-Owerri Road, P.M.B 1669, Aba.	082/225031, 08036735683	fijojaykay@yahoo.com	Aba
	Sirben Limited	I, II	33 Imgbi Road, Amarata, Yenagoa, Bayelsa State	08034620961	experttech@yahoo.com	Yenagoa
	Ensurance Academy	I, II	Bamboo Plaza (First Floor) 6/8, Ogunusi Road (Formerly Isheri Rd), Omole Ojudu Ikeja , Lagos State	08020954412, 08033659222, 08023193813	info@ensuranceacademy.com	Lagos
	JK Consulting Co. Ltd	I, II	City Plaza, Wing B, 4^th Floor 596, Ahmadu Bello Way, Area II P.O. Box 9739, Garki Abuja.	09/3145530, 09/4805743, 08036758714	eagle@jkconsulting-ng.com	Abuja
	Dentony Konsult Associates	I,II	Suite 3 Standard Plaza (4th floor), Plot 1248 Aminu Kano Crescent, Near GLO Office, Wuse II, Abuja	08023180772, 08057311968 08051192022 07036336191	dentonykonsult2@yahoo.com	Abuja
	MHOA Consulting Ltd	I,II	Suite IF 108 (5^th Floor) Turaki House 8/9, Ahmadu Bello Way, Kaduna.	08035926194 08023088176 08069749874	mhoaconsulting@yahoo.com	Kaduna
	Swintec Computer Institute	I,II	Plot 124 Ikenegbu Layout, Destiny Supermrket Plaza Owerri, Imo State	08033315602, 08029754376	swinteccomputer@yahoo.com	Owerri
	Financials.com Nig. Ltd	I, II	2, Oladosu Street, Off Toyin Street, Ikeja Lagos.	01/7737915 08033297372	financialsnigeria@yahoo.com	Lagos
	Business Solutions International	I, II	58/67, Gunning Road, P.O. Box 804, Abakaliki	043/221496 08035818588	info@bsi.com	Abakaliki
	Gestalt Limited	I, II	4th Floor, Tisco Plaza, Plot 6, Central Business District, Alausa, Ikeja	08023181843, 01-8115886, 07036869481.	Info@gestaltit.net, bbomakor@yahoo.com	Lagos
	AGL Consulting Ltd	I, II	18 Ayodele Ojo Street, off Coker Road, Ilupeju, Lagos State.	01-7415714, 07025516755, 07025516750, 07025516758	sales@aglconsulting.net	Lagos
	AGL Consulting Ltd	I, II	5 Ogoloma Street, Off Emekuku Street, D-Line, Port Harcourt, Rivers State.	084-763447, 07025516754, 08082189178, 07026857453, 07025774172	sales@aglconsulting.net	Lagos
	Mikon Institute of Information Technology	I, II	34A Boundary Road, Off Airport Road, GRA, Benin City, Edo State.	08094303245, 08073920844, 07085453554, 08037441430, 08078312787.	mikontech@yahoo.com, mikontech@hotmail.com	Benin
	Marlydia Institute of Accountancy and Technology	I, II	57-70, Airport Road, Opposite Nelmic Petrol Station/GT Bank Plc, Effurun, P.O.Box 225, Effurun, Warri, Delta State.	+2347098754636, +2347098754644, +2347067568979	miatechnology@yahoo.com info@iqffe.com	Warri
	Integrated Corporate Services Limited	I, II & III	41 Gbolade Adebanjo Street Off Olusoji Idowu, Ilupeju, Lagos	01-7742211, 01-2801547 08028518790	info@integratedcorporateservices.com	Lagos
	Zincere Concept	I, II	Oomor House (2^nd floor) Beside High Court, Oni & Sons Bus Stop Ring Road, Ibadan, Oyo State.	07038569679, 08038483998, 08037141034	zincerekoncept@yahoo.comrose7643@yahoo.com	Ibadan
	Nhames Limited	I, II	76A Adeniyi Jones, Ground Floor (Twin 4 storey bldg.) Ikeja, Lagos	+2348183900236, +2348037357225, +23418049262	info@nhames.net	Ibadan

HISTORY OF AN ICON AND LEGEND IN THE ACCOUNTING PROFESSION IN NIGERIA-- MR AKINTOLA WILLIAMS

2012-09-12T11:41:00.001-07:00

MR. AKINTOLA WILLIAMS

Mr. Akintola Williams is Nigeria’s first chartered Accountant if not first black African Chartered Accountant. Especially noted for integrity, he is a distinguished and experienced professional accountant, who has made outstanding contributions and pioneered the accountancy profession in Nigeria.

Born in lagos on the 9^thAugust 1919, Mr. Akintola Williams started his formal education in 1928 at the Baptist Academy, Lagos. His successful completion of his secondary education at the CMS Grammer School in 1938 paved way for his entry, the following year,1939, into the only tertiary institution that existed then in the country, Yaba Higher College.

He choose to study commerce at the college. Originally, he had thought of studying surveying, since his best subjects were English, physics and Mathematics, but later changed his mind when he found that the course was not yet available at the college. Akintola carried to Higher College, Yaba, the diligence and academic brilliance that had characterized his CMS grammer school days. This yielded a handsome reward in the form of a scholarship by the United African Companies, UAC.

He left the shores of Nigeria in 1944 to pursue the study of Accountancy in London. It probably did not occur to him that he might be the first black African to embark on such venture. But for his courage and determination, he would probably have given up the pursuit completely, not because of lack of ability, but because of his colour, and Nigeria (indeed black Africa) would have been the worse for it. It was a herculean task for him to find a firm willing to accept him for articleship because he was black, and without serving articleship with a firm of chartered accountants for a certain period, he could not qualify as a chartered accountant. However, with the help of one Mr. Bankes, he was offered the opportunity of serving his articleship In Mr. Hamlyn’s firm.

In 1946, he obtained his degree in B.Com. from the University Of London where he was a part time student, Three years later, in 1949, he again sat for and passed the finals of the professional accounting examinations of the Institute Of Chartered Accountants in England and Wales and thus distinguished himself as the first Nigerian, if not the first black African to qualify as a Chartered accountant in the United Kingdom.

Following the difficulty he experienced in London in getting a firm to accept him as an articled clerk, he had resolved, even before he qualified, to set up a practice of his own on returning to Nigeria, in his own words “to get our own people trained locally and to have our own institutions’ accounting qualification”. This resolve made him to prefer contract employment on his return to Nigeria in 1950 as an Assessment officer in the Inland Revenue Department in order to have the option of renew or terminate at th end of each contract’

Therefore in March 1952, he resigned his appointment with the civil service in preparation for the establishment of Akintola Williams & Co. as the first indigenous firm of Chartered Accountants in Nigeria. The firm later opened office in Ivory Coast and Cameroon.

The other ambition was to form a local professional accounting body. His efforts, in collaboration with other professional accountant in the country, led to the founding of Association Of Accountants in Nigeria. This body, the immediate predecessor of the present Institute of Chartered Accountants of Nigeria (ICAN), was incorporated in 1960. Mr. Akintola Williams became the founding president of the Association.

He was one of the founders of the Nigerian Stock Exchange (formerly Lagos Stock Exchange). He had also served at various times on the Boards of Director of a number of quoted public limited liability companies which among others included BEWAC Limited, Nigerian Tobacco company plc, John Holt Investment Limited etc. His public sector contributions included the following national assignments: Chairman of the Federal Income Tax Appeal Commissioners,1958-1968; Member, Coker commissions of Inquiry into the Statutory Corporations of the former western Region of Nigeria,1962; Nigerian Trustees on the board of trustees of the commonwealth foundation, 1966-1975; Chairman, Lagos State Government Revenue Collection Panel,1973

Some other contributions include community service. He has for instance, been: Chairman of William Street Trustees; Chairman of Investment committee of UBA Trustees Limited; Founder and council member of Nigerian Conservation foundation; and Chairman and Founder of the Board of Trustees of the Musical Society of Nigeria (MUSON).

Akintola Williams’ retirement in 1983 from the firm he founded over three decades earlier was historic in many respects. First, he retired before the age stipulated in the partnership agreement. Secondly, he also became the first Nigerian Chartered Accountant to retire from the firm he founded, with the original name of the firm remaining intact. Finally, by the time he retired, he did not only make a name for himself nationally and internationally, but had also guided the firm, with the cooperation of committed and dedicated partners and staffs, to expand the area of operations beyond the shores of Nigeria. His retirement thus became both a national and international event.

Akintola Williams has been honoured a good number of times by various bodies and organizations. Most notably is the honour by the Federal Government of Nigeria who conferred on him, the honour of Officer of the Federal Republic of Nigeria (OFR). He was also awarded the Honorary Commander of the most Excellent order of the British Empire (CBE), 1997 for service to the accounting profession, the promotion of art and music through the Musical Society of Nigeria (MUSON) and encouraging friendly relationship between Nigeria and Britain. Not only that, he out his wifeis also a Knight of the order of Rio Branco of the Federal Republic of Brazil; First Gold Medalist, Institute of Chartered Accountants of Nigeria 1988; and was honoured by the Harvard Business School Association of Nigeria as the Business Statesman for 1992.

One cannot talk about Mr. Akintola Williams without talking about his late wife Mrs. Oye Williams, who knew how to build her home like the wise woman of the bible. Late Oye Williams was the first secretary of his firm, Akintola Williams & Co. She worked late into the night to ensure that reports and accounts were typed and bound up in the way that became the firm’s house style. She would always be remembered for her great contribution to the growth of the firm.

She was the strong support he had from the day he decided not to renew his contract with the civil service and established the firm Akintola Williams & Co. and MUSON up to the time of her death in 2009. Mr. Akintola Williams retired in March 1983 as Managing Partner of Akintola Williams & Co., a member of Deloitte Touche Tohmatsu International..

THANK YOU SIR….

PROFESSIONAL INSTITUTIONS/ ASSOCIATIONS IN NIGERIA

2012-09-09T01:59:00.001-07:00

List of Professional Institutions/Associations in Nigeria

September 22, 2007
There are many professional institutions in Nigeria that regulate different professions ranging from accounting to engineering. Some of these institutions also administer certification examinations to members depending on their charter. Passing these exams are seen as symbol of professional accomplishments and lend credence to the competence of the individuals who have passed the examinations. The institutions also set ethical standards and standard of professional conducts for members including benchmarks and best practices. They are quasi regulatory agencies and can administer disciplinary actions for members’ misconducts. The list below represent some but not all such bodies in Nigeria. The PDF version of this file is available in the attached link - Professional Institutions in Nigeria . You can sort the list by institutions or website by clicking on the header row.

#	Institutions	Website
1	Institute of Chartered Accountants of Nigeria	www.ican-ngr.org
2	Chartered Institute of Bankers of Nigeria	www.cibnonline.org
3	Chartered Institute of Taxation of Nigeria	www.citn.org
4	Nigeria Institute of Estate Surveyors & Valuers	www.niesv.org
5	Association of General & Private Medical Practitioners of Nigeria	www.agmpn.org
6	Association of National Accountants of Nigeria	http://www.anan.org.ng/
7	Business Education Exams Council	www.beectraining.com
8	Centre for Law & Development	www.clds.org
9	Certified Pension Institute of Nigeria	www.pensioninstitute.com
10	Chartered Institute of Marketing of Nigeria	www.thenimn.org
11	Chartered Insurance Institute of Nigeria	www.ciinigeria.com
12	Chartered Institute of Personnel Management of Nigeria	www.cipmnigeria.org
13	Chartered Institute of Stockbrokers	www.cisnigeria.com
14	Certified Institute of Cost Management	www.icmn.org
15	Medical & Dental Consultants Association of Nigeria	www.mdcan-ng.org
16	Nigeria Bar Association	www.nigeriabar.com
17	Nigerian Institute of Management	www.managementnigeria.org
18	Nigeria Institute of Quantity Surveyors	www.niqs.org
19	Nigerian Institute of Social and Economic Research	www.niser.org
20	Nigerian Institute of Town Planners	www.nitp-ng.org
21	Nigerian Medical Association	www.nigerianma.org
22	Nigerian Society of Engineers	www.nse.org.ng
23	Science Teachers Association of Nigeria	www.stan.org.ng
24	Strategic Management Centre	www.smgnigeria.org
25	West African College of Physicians	www.wac-phycisians.org
26	Institute of Directors	www.iodnigeria.com
27	Advertising Practioners Council of Nigeria	www.apcon.gov.ng
28	Outdoor Advertising Association of Nigeria	www.oaan.org
29	Manufacturers Association of Nigeria	www.manufacturersnigeria.com
30	The Nigerian Institute of Safety Professionals	http://www.nispnigeria.com/
31	Nigerian Institute of Public Relations (NIPR)	http://nipreko.org/
32	Pharmacist Council of Nigeria	www.pcnng.org
33	West African Institute for Financial & Economic Management	www.waifem.org
34	Financial Institutions Training Centre (FITC)	www.fitc-ng.com
35	Money Market Association of Nigeria	www.moneymarketng.com
36	African Institute for Applied Economics	www.aiae-nigeria.org
37	Nigeria Computer Society	http://www.ncs.org.ng/
38	Institute of Credit & Risk Managment	http://icrmng.org/index.html
39	Portfolio & Debt Management Institute	http://www.pdmin.org
40	Institute of Chartered Economists of Nigeria	www.icennig.org
41	Association of National Accountants of Nigeria	www.anan.org.ng
42	Institute of Registered Administrative Managers of Nigeria	http://www.regdmanager.org/
43	The Institute of Certified Geographers of Nigeria	www.icgnig.org
44	The Institute of Business Development	www.ibd-ng.org
45	The Institute of Benefits and Trusts Management	www.institute-benefits.org
46	The Institute of Pensions Management	www.penmgt.org
47	Chartered Institute of Administration	http://www.cia-ng.org/
48	Nigerian Institute of Professional Secretaries	http://www.nipsecretaries.org/
49	Pipeline Professionals’ Association of Nigeria (PLAN)	http://plan-ng.com/index.php
50	National Teachers' Institute	http://www.ntinigeria.org/about.html
51	Nigeria Institute of Public Relations	http://www.nipr-ng.org/
52	Pharmaceutical Society of Nigeria	http://www.ps-nigeria.org/
53	The Institute of Chartered Secretaries of Nigeria	http://www.icsan.org/about.html
54	Council for the Regulation of Engineering in Nigeria (COREN)	http://www.corenng.org/index.html
55	Nigerian Institute of Architects	http://www.niarchitects.org/
56	Nigeria Insurers Association	http://www.nigeriainsurers.com/
57	Nigerian Institute of Building	http://www.niobuilding.org/
58	Nigeria Computer Society	http://www.ncs.org.ng/aboutus.html
59	Information Technology Association of Nigeria	http://www.itan.org.ng/aboutus.htm
60	Certified Institute of Warehousing & Materials Management	http://www.cism-ng.org/
61	Institute of Certified Public Accountants of Nigeria	http://cpanigeria.org/education_prog.html
62	Certified Pension Institute of Nigeria	http://www.pensioninstituteng.com/about.html
63	Money Market Association of Nigeria	http://www.moneymarketng.com/
64	Institute of Chartered Economists of Nigeria	http://www.icennig.org/index.php
65	Institute of Forensic Accountants of Nigeria	http://www.ifa-ng.org/
66	Chartered Institute of Cost & Management Accountants of Nigeria	http://www.cicma-ng.org/
67	The Institute of Credit Administration of Nigeria	http://www.icanigeria.com/
68	The Institute of Company & Commercial Accountants of Nigeria	http://iccaofnigeria.org/about.htm
69	The Institute of Registered Administrative Managers of Nigeria	http://regdmanager.org/
70	The Chartered Institute of Purchasing & Supply	http://www.cips.org/
71	Institute of Industrial Security & Safety of Nigeria	http://iissn.org/about_us.html
72	Institute of Public Analysts of Nigeria	http://www.ipanng.org/
73	Institute of Investment Management & Research	http://www.investment-fa.com
74	Nigerian Institute of Safety Professionals (NISP)	http://www.nispnigeria.com/
75	Institute of Public Management (Unique)	www.ipm-unique.org
76	Institute of Fraud Examiners	http://acfeng.org/membership.php
77	Nigerian Institute of Industrial Management	http://www.niim.org/index.htm
78	Medical & Dental Council of Nigeria	http://www.mdcnigeria.org/
79	Association of West African Professional Economists Bodies	www.awapeb.org
80	Institute of Strategic Management of Nigeria	http://ismng.org/default.aspx
81	Institute of Professional Recruitment Consultants, IPRC Nigeria	www.iprcng.net
82	Institute of Finance & Control of Nigeria	www.ifcnnig.org
83	The Chartered Institute of Logistics & Transport	http://ciltnigeria.org/index.php
84	Institute of Treasury Management	www.instituteoftreasurymanagement.com
85	The Chartered institute of Purchasing and supply management of Nigeria	http://cipsmn.com/
86	Chartered Institute of Commerce of Nigeria	http://www.cicng.org/
87	Nigeria Institute of Civil Engineers	http://icenigeria.org/
88	Institute of Data Processing Management of Nigeria	www.idpmnigeria.org
89	Society of Construction Industry Arbitrators of Nigeria	http://www.sciarb.com/index.html
90	Nigerian Institution of Surveyors	http://www.nis.org.ng/

ICAN PROFESSIONAL EXEMPTION GUIDELINES FOR EXAMINATION STAGE

2012-09-08T20:48:00.000-07:00

The exemption guidelines below are in accordance with the syllabus which was reviewed & effective MAY 2010
ACADEMIC QUALIFICATION AND   EXEMPTIONS:

A) B.SC/HND(Accounting) from an Accredited Institution in Nigeria   ( All subjects in foundation and intermediate)

B) B.SC/HND (Accounting) obtained from recognised institutions in Nigeria but not yet accredited by ICAN    ( All subjects in Foundation )

C) B.SC/B.A/HND (Accounting) obtained from foreign recognised institutions   ( All subjects in Foundation and Intermediate).

D) M.SC (Accounting) obtained from recognised institutions in addition to B.SC in any other related discipline   ( All subjects in Ioundation intermediate)

E) Ph.D (Accounting)   ( All subjects in Foundation and Intermediate, and  Management Accounting and Financial Accounting in P E 1 )

F) B.SC Economics, B.SC Actuarial science, B.SC/HND Insurance, B.SC/HND/B.A Business Admin/Management, B.SC/HND Marketing, B.SC/HND Banking & Finance, MBA in addition to B.SC/HND in Non-Accounting discipline     ( Economics and Business Environment in Foundation )

G) B.SC. (Education) Accounting or B.Ed. Business Education (Accounting Option)     ( All subjects in Foundation  )

H) B.Ed Education Management     ( Economics and Business Environment in Foundation )

I)   ATS 2 ( old syllabus )      ( Economics and Business Environment in foundation )

J) ATS3 ( New Syllabus)         ( All subjects in Foundation, costing & Quantitative Techniques, Taxation and Audit & Assurance in Intermidiate  )

K) B.Tech Project Management, B.SC Engineering Management, B.SC/HND Cooperative and Rural Development,   B.SC/B.A. Commerce,   B.SC/HND Statistics/Economics,   B.A Library Science/Economics,   HND Agric/Economics       ( Economics and Business Environment in Foundation )

L) LL.B    ( Corporate and Business Law in Foundation )

M) B.SC/HND Estate Management,   B.SC/HND Biology, B.SC/HND Chemistry, B.SC/HND Bio-Chemistry, B.SC Archaeology/Geology,   B.SC/HND Statistics,   B.SC/HND Engineering, B.SC/HND Chemistry Engineering, B.SC/HND Town & Regional planning,   B.SC/HND/B.Ed Chemistry,   B.SC/HND Tech. Computer,   B.SC/HND Mathematics,   B.SC/HND Industrial Mathematics,   B.SC/HND Industrial chemistry,   B.SC/HND Agriculture, B.SC/HND Building Technology,    B.SC/HND Petroleum Engineering,    B.SC/HND Elect. (Elect),    B.SC/HND/B.Ed Chemistry,    B.SC/HND Applied Mathematics,    B.SC/HND Applied Chemistry,   B.SC/HND Applied Physics,    Public Admin-Subject to transcript,    B.SC Business Education-Subject to transcript        ( NIL i.e NO EXEMPTION(S) GRANTED )

          PROFESSIONAL QUALIFICATIONS & EXEMPTIONS

A) ACIB (Nigeria)    (All subjects in Foundation except Economics and Business Environment; and all subjects in intermidiate except Taxation, and Audit and Assurance )

B) ACIB ( London)   ( All subjects in Foundation except Economics and Business Environment ; and all subjects in intermediate except Taxation, and Audit and Assurance )

C) ACIS ( All subjects in Foundation except Economic and Business Environment; and all subjects in intermediate except Taxation, and Audit and Assurance )

D)   ACS   ( All subjects in Foundation )

E) ACII   ( Economics and Business Environment in Foundation )

F)   ACIT (All subjects in Foundation and Taxation in Intermediate )

G)   AIA ( Final ) 1994 to date and AAT (UK )       ( Costing and Quantitative Techniques, Audit and Assurance in Intermediate )

H)   AIA (pre-1994)    ( All subjects in Foundation and Intermediate except Audit and Assurance )

I) ANAN         ( All subjects in Foundation and Intermediate, Management Accounting in PE 1 and Strategic Financial Management in PE 2 )

J) Executive Management Accountancy ( Federal Treasury Training School starting from 1987 )        ( All subjects in Foundation and Intermediate )

K) ICAEW, ACCA (UK), CPA (USA), CIMA (UK), CIPFA (UK), ICAS (UK), ICAI (UK)     ( All subjects in Foundation, intermediate, PE1,and PE2 --subject to undergoing intensive course for special candidates )

THE JOY OF ACCOUNTANCY AS A PROFESSION

2012-09-08T17:27:00.000-07:00

With the rising innovation of individuals who are so desperate to set up their own coy in order to Maximise profit,graduates and professionals of accounting are being seeked to provide or render services...A businessman who owns a coy cannot post transactions or prepare financial reports himself.So,he employs someone with the knowlegde and who does he employ? An Accountant.....The role of an accountant is just too diverse and skilled that organisations/firms cannot do without them...Some of the services provided by accountants include:
          Auditing
       Taxation
        Advisory
        Financial Accounting etc
Having mentioned the joy of studying accounting which is the "Job Opportunities", there are still certain factors that limits one's success as a Nigerian Accountant.These factors includes:
        1) Incompetency
         2) Lack of adequate knowlege for the job at hand
         3)  Excessive theoretical work with little or no pratical etc...
                          HOW DOES ONE REDUCE OR ELIMINATE THESE FACTORS
  1)  Adequate information on the contemprorary issues surrounding Accountants
   2) Relating with other Accountants
   3)   Creating an avenue to increase your skills through professional courses etc

NigerianAccountants.com

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N5000 NOTE: JONATHAN PUSHES FOR A SHOW DOWN WITH NIGERIANS

N5,000 NOTE: Jonathan pushes for a show down with Nigerians

SANUSI LAMIDO SANUSI (BRIEF HISTORY)---CBN GOVERNOR

Sanusi Lamido Sanusi

Birth and education

Banking career

Governor of the Central Bank

Sharia authority

TOP 10 ACCOUNTING PROBLEMS IN ORGANIZATIONS

The top ten accounting problems are:

1. Playing with numbers

2. Not so clear

3. Accounting methods

4. Dealing with outside agencies

5. Lack of communication

6. Reporting at gross

7. Revenue issues

8. Human errors

9. Lazy bones

10. Keeping an eye

CURRENT ISSUES FACING THE ACCOUNTING PROFESSION ( world Accountants)

MAJOR BREAKTHROUGH FOR ANAN

COOPERATION BETWEEN ICAN & ANAN

HOS EXPRESSES DELIGHT OVER CO

GUIDELINES TO THE APPOINTMENT OF AUDITORS TO AUDIT GOVT. PARASTATALS, AGENCY ETC

Office of the Auditor General for the Federation

Guidelines on the Appointment of Auditors to Audit the Accounts of Federal Government Parastatals, Agencies and Commissions

OVERVIEW OF CISA

2. Submit an Application for CISA Certification

3. Adherence to the Code of Professional Ethics

4. Adherence to the Continuing Professional Education (CPE) Program

AN OVERVIEW OF BECOMING A CHARTERED FINANCIAL ANALYST ( CFA)

Definition of 'Chartered Financial Analyst - CFA'

Investopedia explains 'Chartered Financial Analyst - CFA'

Nigeria: Banks Are Undermining EFCC, Lamorde Says

Nigeria: Bankers Back CBN On N5,000, Say It Will Reduce Interest Rates

CHALLENGES OF MIGRATING FROM NASB TO IFRS

IFRS ISSUES

How adoption of IFRS will impact IT systems in Nigeria

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