Accounting Professional Bodies in Nigeria PDF

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Accounting Professional Bodies in Nigeria...

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ACCOUNTING PROFESSIONAL BODIES IN NIGERIA Professional organizations lobby governments on behalf of its members and provide a legal foundation for self-regulation in professions that are allowed to do so. A professional organization's other responsibilities include providing students and members with education and preparation for exams. Affiliation with the International Federation of Accountants is required by each country's principal accounting bodies. Included among them are:: Association of National Accountants of Nigeria There are two professional accountancy associations with regulatory power in Nigeria: the Association of National Accountants of Nigeria (ANAN) and the Institute of Chartered Accountants of Nigeria (ICAN). In Nigeria, a financial services consultant must be a member of one of two organizations: ANAN or ICAN. Organization ANAN was established on 1 January 1979 and incorporated on 28 September 1983. It is a non-profit organization. Decree 76 of 1993, which established the Association, was signed into law on August 25, 1993. The members of ANAN elect the organization's executive board. Representatives of the Federal, State, and Local Auditors, as well as universities and polytechnics, are all part of the group. Before joining ANAN, students must complete a two-year academic program, which includes a year at the Nigerian College of Accountancy run by ANAN and a two-year practical training program that leads to certification as a Certified National Accountant. Members of ANAN are expected to adhere to the International Federation of Accountants' Professional Code of Conduct. The overall number of ANAN members was 10,260 as of December 2007. The membership had grown to 16,207 at the end of 2010 Affiliations The Association of Professional Bodies of Nigeria accepted ANAN as a member on 7 December 2010. ANAN is also a member of the Financial Reporting Council of Nigeria (FRCN), which is in charge of developing the country's accounting standards. [6] One representative from each organization is nominated to the NASB board. ANAN is a member of the International Association for Accounting Education and Research (IAAER). ANAN is a member of XBRL International, which is working to create a standard for presenting accounting data electronically. In order to promote the profession's best practices, the Chartered Institute of Public Finance and Accountancy (CIPFA) in the United Kingdom collaborates with ANAN and ICAN. ANAN applied to

join the Association of Accountancy Bodies in West Africa in March 2011 and was accepted (ABWA). Activities that are intended to educate Both ANAN and its rival ICAN, as well as the CITN (Chartered Institute of Taxation of Nigeria), have been criticized for not offering enough training to their members at reduced rates. [9] However, in Jos, Plateau State, ANAN has an accounting school. [10] Professor E. R. Iwok, President of ANAN, laid the foundation stone for the Nigerian College of Accountancy's ultra-modern auditorium during a ceremony in March 2006. He claimed that ANAN had plans to turn Jos into the accounting profession's Mecca by constructing Africa's premier accountancy campus there. In March 2011, the college was still using temporary facilities despite the fact that it was attracting more and more students from other African countries. Two 3,000-seat examination halls were the only structures completed on the permanent site. IAAER counts the college as a member institution. The presence of rival businesses The government gave ANAN the authority it needed to compete with ICAN in its charter. In 1994, the two major accounting bodies were engaged in a power struggle for control of the Chartered Accountants profession. In 2002, ICAN applied to the courts to disqualify and/or bar Mr Clement Akpamgbo from representing ANAN, and the case was referred to a lower court. The decision was appealed by ANAN, but the appeal was dismissed for lack of merit. [15] An ICAN lawsuit asking the court to declare that the decree creating ANAN was null and void was dismissed by the Federal High Court in Lagos in November 2007. ICAN attempted to set auditing standards for its members in March 2009, but ANAN President Dr Samuel Nzekwe rejected the idea. There is only one body authorized to set accounting standards in Nigeria: The Nigerian Accounting Standards Board Act 2003 (NASB Act 2003). In June of 2010, Mr. Godson Nnadi, Executive Secretary of the Nigerian Accounting Standards Board, spoke in favor of a new body to set standards for Nigeria and other African countries in accounting and auditing. Both ANAN and ICAN would no longer have any influence over the new body. It would be autonomous. An attempt to create an alternative to the ANAN and ICAN by the Chartered Institute of Management Accountants of Nigeria (CIMA) failed in the Nigerian House of Representatives in May of 2008. The House of Representatives was alarmed by the rapid growth of accounting firms. A number of bills related to the Institute of Chartered Public Accountants (CPA) and the Chartered Institute of Management and Cost Accountants were delayed in the Senate in December 2009. (CIMCA). During President Olusegun

Obasanjo's administration, the bills had been approved by both houses, but they had not been signed into law before the end of his term. As a result, when President Umaru Yar'Adua took office in 2007, he had to re-submit the bills. ANAN had no objections to the new organizations, but ICAN had reservations about their proliferation. Institute of Chartered Accountants of Nigeria The Institute of Chartered Accountants of Nigeria (ICAN) is Nigeria's professional accountancy body. It is one of Nigeria's two professional accounting associations with regulatory authority, the other being the Association of National Accountants of Nigeria (ANAN). There has been tension in the relationship between the two organizations. ICAN made an attempt in 2007 to have the legislation establishing ANAN declared null and void. the groundwork and development For this reason, the AAN was established in 1960 with the aim of training accountants in Nigeria. To establish the organization, Chief Akintola Williams played a key role. An Act of Parliament No. 15 of 1 September 1965 established ICAN from pre-existing accounting and auditing organizations, including the American Institute of Certified Public Accountants (AAN). Approximately 250 people were involved in ICAN at the time of its inception. With this mission in mind, ICAN was founded with the vision of producing world-class chartered accountants, while also regulating and continuously improving their ethical standards and technical competence. The company's headquarters are in Lagos, the city in western Nigeria. ICAN had over 12,000 members by that time. [4] In August of 2004, the ICAN began educating its members about IT. ICAN added 1,494 new members on May 11th, bringing the total number of members to 32,722. After serving as ICAN's 46th president and the Association of Accountancy Bodies in West Africa's 16th president, Major General Sebastian Achulike Owuama was elected president of the newly formed Pan-African Federation of Accountants (PAFA) (FEPEC). He was chosen at PAFA's inaugural meeting in Dakar, Senegal. The International Federation of Accountants called the establishment of PAFA, which includes professional accountancy organizations from 35 countries, a "historic event for the accountancy profession and the African continent." a set of rules and guidelines Chartered accountancy institutes in the United Kingdom have served as a model for ICAN's business practices. There was little change in Nigeria's adoption of the IFRS. ICAN is a member of the International Accounting Standards Committee (IASC) and

adopts IASC standards from time to time. There must be an explanation in the financial statements for any deviation from these standards. Members of the London-based Association of Chartered Certified Accountants predominated in ICAN in the 1990s (ACCA). Despite the ICAN's claim to complete independence from the ACCA, the organization came under fire for defending the status quo in accounting practices and suppressing changes to meet local needs. International Financial Reporting Standards (IFRS) adoption by the federal government was approved in August of that year. Adoption of the IFRS, according to Joshua Okeowo, chairman of ICAN's Ikeja District, will boost foreign investment in Nigeria. A reduction in the incidence of armed robbery is another benefit of IFRS, according to him. According to the Companies Act of 1968, all limited liability companies must have their financial statements audited by a duly recognized auditor. Only ICAN members were allowed to practice auditing as of 1993. Before they could practice, they needed to earn a certificate from ICAN by passing exams. In practice, the ICAN had complete authority over who could join the profession. In spite of the fact that an increasing number of Nigerian financial analysts have been recognized Certified Financial Analysts, the country has no agency that certifies analysts to generate research reports. ICAN or the Chartered Institute of Stockbrokers prepares the majority of these reports. Either ANAN or ICAN membership is required for financial services consultants in Nigeria. Professor Oladapo Afolabi, Head of the Civil Service, stated in March 2011 that professional certificates from organizations such as ICAN and ACCA could be used in recruitment and advancement in the public service, but could not be required. ANAN and I have a relationship. The Association of Nigerian Accountants (ANAN) was established on August 25, 1993. By 1994, the government had mandated ANAN to compete with ICAN for control of the Nigerian Chartered Accountants profession. Mr Clement Akpamgbo was barred from representing ANAN after ICAN sought to the courts in 2002 to disqualify and/or bar him from doing so. The verdict was challenged by ANAN, however the appeal was rejected for lack of merit. the court dismissed an action brought by ICAN, asking the court to declare the ANAN decree unconstitutional, in November 2007. ICAN attempted to create auditing requirements for its members in March 2009, but ANAN President Dr Samuel Nzekwe rejected the idea. According to him, only the Nigerian Accounting Standards Board (NASB) Act 2003 has the authority to set standards for the accounting profession. [21] In June 2010, Mr. Godson Nnadi, Executive Secretary of the Nigerian Accounting Standards Board, advocated in favor of a new body to develop standards for Nigeria and other African countries in accounting and auditing. Both ANAN and ICAN would have no influence over the new organization. ANAN ICAN is now preparing to resolve the conflict amicably instead of taking it to court.

Chartered Institute of Management Accountants Professional accountancy in Nigeria is overseen by the Institute of Chartered Accountants of Nigeria (ICAN). It is one of Nigeria's two professional accountancy organizations with regulatory authority, the other being the Association of Nigerian Accountants (ANAN). There has been tension in the partnership between the two organizations. ICAN made an attempt in 2007 to have the legislation creating ANAN declared null and void. Setting the stage for future development In 1960, the Association of Accountants in Nigeria (AAN) was established with the goal of training accountants. Chief Akintola Williams has played a key role in the establishment of the organization. An Act of Parliament No. 15 of 1 September 1965 established ICAN from the AAN and other existing accounting and auditing firms. ICAN had 250 members at the time of its inception. "To Produce World-Class Chartered Accountants, Regulate and Continuously Enhance Their Ethical Standards and Technical Competence in the Public Interest" is the mission statement of ICAN The company's main office is in Lagos, Nigeria. ICAN had over 12,000 members by 2003. In August of 2004, the ICAN began offering its members training in the area of information technology. There are now 32,722 ICAN members, thanks to the admission of 1,494 new members who completed their qualifying exams on May 11th. It was announced in May 2011 that Major General Sebastian Achulike Owuama (retired), ICAN's 46th President and ACA's 16th president, had been chosen as the new organization's first president, the Pan-African Federation of Accountants (PAFA) or Fédération panafricaine des experts comptables (FPEC) (FEPEC). He was elected at PAFA's first meeting in Dakar, Senegal. The International Federation of Accountants called the establishment of PAFA, which includes professional accountancy organizations from 35 nations, a "historical event for the accountancy profession and the African continent." Authority and standards ICAN has used the practices of British chartered accountancy institutes as a model for its own operations and procedures. Nigeria accepted the International Financial Reporting Standards (IFRS) with just minor changes. [4] ICAN participates in the International Accounting Standards Committee (IASC) and adopts IASC standards on a regular basis. There must be an explanation in the financial accounts for any deviation from these criteria. In the 1990s, the Association of Chartered Certified Accountants in London controlled ICAN's membership (ACCA). Aside from claiming independence from the

ACCA, ICAN came under fire for upholding accounting standards and refusing to make changes to meet local needs. In August of 2010, the Federal Government approved the migration to International Financial Reporting Standards (IFRS) by 2012. Adoption of the IFRS, according to Joshua Okeowo, chairman of ICAN's Ikeja District, will boost international investment in Nigeria. According to him, IFRS will also "decrease the economy's cash transactions, hence reducing the incidence of armed robbery." According to the Firms Act of 1968, all limited liability companies must have their financial statements audited by a professionally certified public accountant. Auditor certification was restricted to ICAN members exclusively until 1993. To become certified to practice, they had to complete ICAN exams. The ICAN effectively controlled all aspects of professional admission. In spite of the fact that an increasing number of Nigerian financial analysts have been recognized Certified Financial Analysts, the country has no agency that certifies analysts to generate research reports. ICAN or the Chartered Institute of Stockbrokers members produce the vast majority of these documents. In Nigeria, a financial services consultant must be a member of one of two organizations: ANAN or ICAN. Afolabi, Professor Oladapo, the Head of the Civil Service at the time, stated that professional qualifications from organizations like ICAN or ACCA might be used for recruitment and development in the public sector, but they weren't obligated to do so. Institute of Certified Public Accountants of Nigeria. In May of that year, Nigeria's Institute of Certified Public Accountants was created. Institute of Certified Public Accountants of Nigeria (ICPAN) became a company on May 6, 1996, following the registration of ICPAN with the corporate affairs commission under the Federal Republic of Nigeria's Act 1, 1990. The Institute of Certified Public Accountants of Nigeria (ICPN) is a well-known accounting organization in Nigeria. It is also a professional body for accountants in Nigeria's municipal, state, and federal government service to professionalize public accounts by Accountants. CPA Mrs Oge Okeke is the Institute's President....