'Curb Deceptive Accounting'
The Minister of Commerce, Ambassador A.D. Idris Waziri, has advocated for stringent measures to curb deceptive accounting practices in corporations and the financial services sector of the economy.
In his welcome address at the First Annual Corporate Financial Reporting Summit organised by Nigerian Accounting Standards Board (NASB) at Sheraton Hotel and Towers Lagos, the minister revealed that the NASB has been adequately empowered now to check the excesses of top officials.
He said through the Nigerian Accounting Standard Board's Act 2003; top officials who are found guilty of serious financial reporting fraud are liable for criminal prosecution.
According to him, prior to the signing into law of the NASB Act, the board had relied on moral solution to ensure compliance.
He emphasised that the Act vested in the board the inspectorate powers, not only to enforce compliance but to also prescribe sanctions against corporate organisation that are operating below standards.
Others are preparers of financial statements, internal as well as external auditors and indeed all parties are to publish financial reports.
The minister stated that the purpose of financial reports is to assist users make informed business, economic and investment decisions, adding that there is therefore the need for financial reports to be reliable, accurate and timely.
Waziri emphasised that there is the need for closer collaboration between the Nigerian Accounting Standards Board (NASB), the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE), the Central Bank of Nigeria (CBN) and the National Deposit Insurance Corporation (NDIC) and other financial regulatory authorities in this regard.
He commended the NASB, a parastatal under his ministry for instituting the annual corporate financial reporting summit.
The theme of the summit was "Good Corporate Financial Reporting: The Bedrock of Accelerated Capital Formation."
Earlier in her keynote address, the President/Chairman of Council, Institute of Chartered Accountants of Nigeria, Mrs Ibironke Osiyemi said we must all adhere to the highest level of accountability, transparency, adherence to good corporate governance and due diligence.
She said in their bid to restore the credibility of financial reporting, there is an urgent need to review the time frame allowed for financial reports to be made such as quarterly and annual reports.
|
