a. The main sources of regulations are:

i. Accounting Standards
Accounting standards are authoritative statements on how specific types of transactions and events should be represented in financial statements. International Financial Reporting Standards (IFRS) are widely applied in Nigeria.

ii. Company Law
Company law varies by country but generally prescribes rules on profit determination, share capital issuance, and usage of reserves. In Nigeria, the principal company law is the Companies and Allied Matters Act 2020 (as amended).

iii. Listing Rules of Stock Exchanges
For listed companies, stock exchange listing rules specify information that must be provided when their shares are publicly traded, including detailed financial reporting requirements. Compliance with these rules is essential to maintain a company’s listing.

ii. Reasons for regulation of financial reporting:

i. Comparability and Consistency
Regulation ensures that entities use consistent accounting treatments for similar items and account for similar transactions in comparable ways, making it easier to assess and compare financial statements across entities and over time.

ii. Reliability and Relevance of Information for Users
Regulation ensures that financial statements provide relevant and reliable information to external users, aiding them in making informed decisions​