- 4 Marks
Question
Non-accounting professionals usually wonder why an entity‟s general purpose
financial reporting should be regulated without allowing users to be free from
choice of presentations.
In order to give clarity on this subject to the non-accounting professionals in your
workplace,
Identify and explain TWO sources of accounting regulations in Nigeria. (3 Marks)
Answer
Two Sources of Accounting Regulations in Nigeria:
- Accounting Standards (IFRS):
International Financial Reporting Standards (IFRS) serve as a primary source of regulation for financial reporting in Nigeria. The Financial Reporting Council (FRC) of Nigeria has adopted IFRS as the standard for preparing financial statements. IFRS provides a comprehensive set of principles and guidelines to ensure consistency and transparency in financial reporting across entities. - Companies and Allied Matters Act (CAMA):
The Companies and Allied Matters Act (CAMA) is a legal framework that governs corporate activities in Nigeria, including financial reporting. CAMA stipulates the legal requirements for the preparation, auditing, and publication of financial statements. It ensures that companies follow standardized procedures in presenting financial data and helps protect the interests of shareholders and other stakeholders.
- Tags: Accounting Standards, Nigeria, Regulatory Framework
- Level: Level 2
- Topic: Regulatory Framework for Financial Reporting
- Series: NOV 2020
- Uploader: Kwame Aikins