By Yinka Kolawole
The process of upgrading the National Accounting Standards Board (NASB) to a Financial Reporting Council (FRC) has commenced with the passage of the bill by the House of Representatives, now awaiting passage by the Senate.
Chief Executive Officer, NASB, Mr. Godson Nnadi, disclosed this Tuesday, in Lagos, at a media briefing, noting that with the upgrade â€œFRC will be able to set accounting standards and still retain the current position of the NASB in terms of setting accounting standards for the private sector and having a Monitoring and Enforcement Unit.â€
Nnadi appealed for a speedy passage of the bill so that President Goodluck Jonathan can assent to it before the end of the current legislative term, in order to avoid the impasse that occurred during the Obasanjo administration when the bill was passed by the National Assembly but could not be assented to by former President Obasanjo before he left office.
â€œYou will recall that the bill had earlier been passed by both houses during the regime of President Olusegun Obasanjo but the President could not assent to it before he left office. We hope that this time, the bill will be speedily passed by the senate so that President Goodluck Jonathan can assent to it,â€ he stated.
He recalled that the governing council of NASB inaugurated a Roadmap Committee for adoption of International Financial Reporting Standards (IFRS) in October 2009 in order to enhance Nigeriaâ€™s quest for economic growth and development through active participation in the global capital market.
â€œThe committee was composed of representatives from all stakeholder institutions including but not limited to NASB, the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Nigerian Universities Commission (NUC), Nigerian Accounting Association, Federal Ministry of Commerce and Industry, Federal Ministry of Finance and accounting firms.
â€œThe committee was charged with the responsibility of developing an action plan and to recommend the time frame for transition to IFRS in Nigeria. The report of the committee has been submitted, reviewed and approved by the council of the Board and is waiting for the Honourable Minister of Commerce and Industry to announce the date for convergence,â€ he said.
Nnadi also briefed the press on the Boardâ€™s recommended Practice on Employeesâ€™ Retirement and Termination Benefits for Public Sector Entities. He noted that the objective is to prescribe the accounting and disclosure requirements for post employment and termination benefits in public sector entities.
He added that the aim is to narrow the differences in the methods or manner used to recognise: a liability when an employee has provided service in exchange for employee benefits to be paid in the future; and an expense when the entity consumes the economic benefits or service potential arising from service provided by an employee in exchange for employee benefits.