Why Government Created Financial Reporting Council- Aganga
The Minister of Trade and Investment, Dr Olusegun Aganga, has identified the need to bridge the gaps that currently exist in financial reporting statements, create more employment and reshape national risk management to make the investment environment safer as some of the reasons for the creation of the Financial Reporting Council (FRC) by the Federal Government.
Addressing a two-day workshop on enlightenment programme on the 2011 World Bank report on observance of standards and codes- accounting and (ROSC-A&A) – in Nigeria and enlightenment on the provisions of the FRC in Abuja, Aganga said the present financial reporting system is not equipped to reflect a lot of issues that are central to the assessment of the health of the reporting companies.
“The Financial Reporting Council Act is a welcome development as it is meant to reshape the national risk management system that is capable of aligning government and private sector responsibilities, sanction misbehaviour of the management of public interest entities and increase Board competences and responsibilities”, he declared.
He also expressed optimism that the Directorate of Corporate Governance established by the FRC Act would bring about good corporate governance in the country by addressing issues such as board and management structure, ownership process, exercise of control rights, corporate responsibility and compliance.
He therefore charged the Chief Executive Officer of the FRC, Mr Jim Obazee, to liaise with the Nigeria Accounting Association and accounting bodies with a view to reviewing the accounting curriculum to reflect the study of International Financial Reporting Standards (IFRS) in accounting syllabus of higher institutions and accounting bodies in the country.
He also directed the FRC to take active part in activities of Financial Services Regulation Coordinating Committee of the Central Bank of Nigeria as well as reconcile codes of corporate governance in order to enhance collaboration among regulatory bodies and harmonise positions.
In his own contribution, Obazee said the establishment o f the FRC and the government’s position on adoption of International Financial Reporting Standards (IFRS) are measures that will aid attraction of investment into the country.
“We used to be net exporter of capitals. We are now net importers of capitals. The implication of this is that we have to comply with a lot of regulations in order to satisfy those who are bringing the money to our economy. Those bringing the money would like to know what the rules are. Questions are now being asked. The international community wants to know what we are doing”, he added.
