Tag: NIGERIA ADOPTION OF IPSAS
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Budget is one of the most important elements of public sector accounting, as it expresses government intentions and plans in financial terms. We can easily gauge the priorities of any government, policy direction and goals by the contents of its budget. People can use the budget as a barometer to measure the sincerity and performance…
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n theory and practice, Cash-based IPSAS accounting may not present a serious bookkeeping challenge because it is based on recognising all inflows as Receipts (Revenue) and outflows as Payments (Expenditure). However, under Accrual IPSAS, where Cash must be accounted for as an asset while Revenue and Expenditures are accounted for separately, there are transition challenges…
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Preparing the consolidated accounts based on input from various government ministries, agencies, and departments (MDAs) is one of the high points of IPSAS accounting. The process involves disbursing monies to MDAs and getting prompt and accurate returns from them on how the money was spent. This article explores the accounting issues and challenges involved and…
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Successful implementation of the transition from cash-based accounting to an accrual-based accounting system requires a change in methods and procedures. The accounting manual and procedures must be redesigned based on the bookkeeping workflow of accrual accounting.
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Nigeria’s public sector accounting system has known nothing other than Cash-based accounting since its inception more than sixty years ago. The Nigerian Generally Accepted Accounting Principles (NGAAP) for public sector financial reporting, derived from UK accounting standards and International Accounting Standards (IAS), were largely based on Cash Accounting. Transactions were recorded only when cash was…
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First-time adoption is a standard procedure required for all entities adopting IPSAS or IFRS for the first time as the mandatory first step towards full IPSAS or IFRS adoption and compliance. The First-Time Adoption process constitutes an important part of IPSAS Transition Management. Even if a public sector entity is newly created, some rudimentary financial…
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The FAAC Sub-Committee on IPSAS did an excellent job in their overall performance, preparing Nigeria for the takeoff of IPSAS. The present coding and structural errors in the National Chart of Accounts are some of the inevitable consequences of relying solely on the manual method in the practical implementation of such a massive data-driven project.…
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The International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSAS) were adopted as the official accounting standards for Nigeria in 2010, under Goodluck Jonathan’s administration, based on the recommendations of the IMF and the World Bank. The exercise took off with earnest determination across the country. When Buhari’s administration came in on…
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President Tinubu’s policy of Nigeria First in the procurement of goods is a welcome development. But what are its implications for the implementation of IPSAS in Nigeria?