By Emmanuel Elebeke

The ministry of finance has announced that it would issue a new chart of financial reporting that would guide the operations of both the public and private sectors from January 2013.

The new financial reporting model is to enhance transparency and accountability in public finance management at the three tiers of Government in Nigeria aimed at checking waste.

Known as the International Public Sector Accounting Standard (IPSAS) the new accounting and reporting model are a set of high quality, independently developed accounting standards aimed at meeting the financial reporting needs of the public sector.

The standards are developed by the International Public Sector Accounting Standards Board which is an arm of the International Federation of Accountants ( IFAC)  that uses a standardized uniform chart of accounts for budgeting and general purpose financial statements.

It will be recalled that the Nigerian Government had in July 2010 approved the adoption of the IPSAS  for the public sector and the International Financial Reporting Standards (IFRS) for the private sector which would pave way for the adoption of a uniform chart of reporting system throughout the country by the public sector and private sector respectively.

Speaking recently in Abuja at a stakeholders’ workshop attended by key Accounting personnel drawn from the three tiers of Government to appraise on: The Step to Step Adoption of the IPSAS in the public sector from next January, the Minister of State Finance, Dr. Yerima Lawal Ngama said that the adoption of the global accounting model in Nigeria was part of the reforms being carried out by the present Administration aimed at accountability and transparency in public finance management.

He gave insight into the journey so far and what Nigerians should expect: “The present Administration is carrying out reforms in critical areas of the economy geared towards speedy economic growth and development of the country.

The implementation of IPSAS which is a component of public finances Management he said is one of the reform processes of the Government.

According to him, it was for this reason that the Federal Executive Council (FEC) at its meeting on 28th July 2010 approved that Nigeria should adopt the provisions of the international Financial Reporting Standards (IFRS) for private sector and the IPSAS for the public sector. Consequently, the Federation Accounts Allocation Committee (FAAC) at it’s meeting of 13th June 2011 set up a committee to provide a roadmap for the adoption of the IPSAS in the three tiers of Government in Nigeria.

“We  are going to come up with new charts of accounts ; we are going to come up with new ways that budgets are presented so that everything is done in a fashion that is uniform and comparable. It’s when you record something that it tells you what it is, so if you have a very transparent way of accounting for expenditure, it makes sure that noting is understated or nothing is overlooked.

The Accountant General of the Federation (AGF), Mr. Jonah Otunla , the Chairman of the  Roadmap Committee assured that the mechanism for the take-off of the IPSAS in the country in January 2013 aimed at  enthroning credible financial reporting regime in the public sector for effective resource Management. Otunla also spoke of the benefits of the IPSAS implementation in the country.