30th September, 2010
President of the Association of National Accountants of Nigeria, ANAN, Mrs. IyamideÂ Gafar, has called on members of the association to always make standard setting inÂ accounting profession their watchword so as to contribute meaningfully to the developmentÂ of the country.
Gafar made the statement at the Gala Dinner and Award Night of the Mandatory ContinuingÂ Professional Development (MCPD) programme of the association that took place in Lagos,Â Nigeria.She explained that the aim of the annual programme would among other thingsÂ assist members in identifying areas that needed improvement as well expose them toÂ research on new ideas and encourage them to inculcate best practices recognised globally.
Gafar also said that all efforts to stimulate direct foreign investment in Nigeria mightÂ not yield any fruit until the country adopted international standard for financialÂ reporting. The theme for the programme was Standardisation and Accounting Ethics.
In his speech, the Chairman of ANAN, Ikeja branch, Lagos, Mr. Solomon Oladimeji, calledÂ on members to contribute their quotas in the quest to make Lagos a mega city. DeliveringÂ a lecture on Financial Reporting Standards, the guest speaker, Paul Adejona beratedÂ current standards for reporting financial statements in Nigeria, describing it asÂ fictional.
He said financial statements, as reported in Nigeria currently, were not capable ofÂ revealing the precise financial health of organisations because issues like inflation andÂ risks, which mattered a lot to business operations, were not reported.â€œOther countries,Â like Brazil and Netherlands, have a way of reporting effect of inflation in theirÂ financial statements but in Nigeria, there is yet to be a provision for reportingÂ inflation,â€ he said, attributing this backwardness to low influx of foreign investmentsÂ in Nigeria.
â€œNo wonder these foreign investors that are coming with their hard currencies are stillÂ finding it difficult to invest in Nigeria because they have concluded that our financialÂ statement is not effective enough and it is porous,â€ he said.He advocated the adoption ofÂ international financial reporting standards since the standard of reporting financialÂ statements in Nigeria allowed external auditors to post a clean bill of health on aÂ companyâ€™s financial statement while in reality, calamity and failure were knocking.
â€œThere is no proper time that we need to adopt this international reporting standard thanÂ this period we are now,â€ he said.
Mr. Benjamin Jenfa, the chairman of the event, said the role played by ANAN in theÂ country exemplified why Nigeria needed a radical leader, saying that the late GeneralÂ Sanni Abacha labelled the association executives as radicals at a meeting with him.
â€œHe told us we write too much and that as we write, he keeps dumping our reports underÂ the table,â€ he said, adding that the late Abacha advised them to keep writing because â€œaÂ day is coming when Nigeria will have a radical president that will implement yourÂ reports.â€