CONTENTS

3 Notice of Meeting Vision Statement 4 To be a President’s Statement leading global professional 18 body. Officers and Council

19 Past Presidents

Mission 20 Statement Reports of Committees of Council « MEMBERSHIP AFFAIRS To produce « ANNUAL ACCOUNTANTS’ CONFERENCE « ASSOCIATION OF ACCOUNTING TECHNICIANS world-class « ACCOUNTING TECHNICIANS SCHEME WEST AFRICA chartered « MEMBERS’ EDUCATION AND TRAINING COMMITTEE « TECHNICAL, RESEARCH AND PUBLIC POLICY accountants, regulate « PROFESSIONAL PRACTICE MONITORING COMMITTEE and continually « REPORT OF THE FACULTIES « STUDENTS’ AFFAIRS enhance their « STUDENTS’ SPECIAL PROJECT ethical standards « PROFESSIONAL EXAMINATIONS « LEGAL MATTERS and technical « CORPORATE COMMUNICATION & MARKETING competence in the « FINANCE & GENERAL PURPOSES COMMITTEE public interest. 38 Financial Statements

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2 2013 Annual Report & Financial Statements NOTICE of Meeting

49TH ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the 49th Annual General Meeting of The Institute of Chartered Accountants of Nigeria will take place at Shell Hall, Muson Centre, Onikan, Lagos on Friday, May 30, 2014 at 10.00 a.m. to transact the following business:-

AGENDA

1. To adopt the minutes of the Annual General Meeting held on May 31, 2013.

2. To receive the Annual Report of Council, Financial Statements for the Year ended December 31, 2013 and the Auditor’s Report thereon.

3. To elect members of Council.

4.

To appoint the Auditors and authorise the Council to fix their remuneration.

By order of the Council

ROTIMI A. OMOTOSO, MBA, FCA Registrar/Chief Executive

Dated this ...... 28th ...... day of April 2014.

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 3 2013 Annual Report & Financial Statements Kabir Alkali Mohammed (Alhaji), mni, FCIS, CGMA, FCA 49th ICAN President PRESIDENT’s Statement

y Distinguished Professional Colleagues, ladies and gentlemen, I welcome you all most sincerely to the 49th Annual General Meeting (AGM) of our great While crude accountthe foreign was r eservedepleted experienced from US$11.5b a slig htin declineDec 2012 of 2.23%to less Institute during which my stewardship report for the fromthan US$2.5bUS$43.83 in in December, Dec 2012 2013. to US$42.85b This was toDec cushion 2013, the effectsexcess 2013/2014 Presidential Year and the Annual Report of oil revenue shortfall, fund FAAC Allocations and also to defend Mand Audited Financial Statements for the year ended December the value of the national currency. The implications of these 31, 2013 will be presented for your consideration and approval. macroeconomic indicators include the stability of the value With all sense of responsibility and humility, I wish to admit for me as the 49th President of our noble Institute. From my ofmonths the national imports curr of capitalency, achiegoods,vement increased of sing creditle digit worthiness inflation, of vantagethat the positionlast one asyear, primus has beeninter vpares,ery challenging I realised butnot onlyfulfilling the increasethe nation in andthe greaterability of access the nation of local to investorsfinance mor to credite than as thr theee towering goodwill of the Institute but also the in respect of consistent delivery of world class huge services expectations and unwavering of its stak defenceeholders of particular its publicly interest mandate. To the glory of God, we built on through a series of activities and initiatives which this the Councilgoodwill under by lar mygely leadership meeting these undertook expectations during the year. In the local and international comities of professional bodies, we made our mark most commendably. I would therefore like to put on record my profound appreciation for the invaluable cooperation and team spirit demonstrated by members of the Presidency, Council, the Body of revered Past Presidents, Management and Staff of achievements made during the year. While thanking theeyou Institutall most sincerely, which significantl I will continuey account to cherished for andthe service and cause of the Institute. Above all, I give the appreciateAlmighty Allah you allthe for glory your for pr givingedisposition me the t owisdom, selfless good health and strength of character to have led the Institute and made my modest contributions to the development of the Accountancy Profession in Nigeria during the period. As a key player in the economy, the Institute ICAN President, Alhaji Kabir Mohammed with President Goodluck Ebele Jonathan environment and therefore, its activities and during ICAN’s visit to Aso Rock Villa operates in a dynamic and complex business quantum of crowded out credit by public sector borrowing was those of its members are influenced largely by reduced. government’seconomy which macr impactedo-economic on the and Institute’s fiscal policies. operations It is undertherefore my The leading international rating agencies – Fitch, Standard appositeoleadership t betweenbriefly review June 2013 the happenings and May 2014. in the local and global & Poor’s, and Moody’s – validated these indicators when they upgraded the outlook for the Nigerian economy. Also, Nigeria’s domestic bonds gained international prominence during OVERVIEW OF THE NIGERIAN ECONOMY the period and were included in the JP Morgan and Barclays The Year 2013 started on a note of uncertainty caused by the Nigerian economy arising from its strong macroeconomic the emerging changes in the global natural resource map in the Emergingfundamentals, Mar ketmanifested indices. Indeed,in bullish the activities increased in confidencethe Nigerian in wake of the discovery of shale oil and gas deposits in USA as well as oil and gas in many African countries. This was further points in December 2012 to 41,332.0 points in December compounded by downward review of growth rate forecast in Stock Exchange as its All Share Index grew from 28,078.81 Incidentally, these did not manifest in the creation of more jobs was set at about 3.5% representing a moderate increase over the 2013 representing 47.2 percent growth in returns to investors. USA, 3.2% theachieved Euro Artheea previous and Asia. year. The Theseexpected developments global growth implied rate particularly in the areas of power generation and distribution. or Inevitably, marked imprlow capacityovement utilisation in the subsisting in industries infrastructural and prohibitive deficits for prudence in resource management. cost of doing business remain disincentives to investments. an Inexpected response, lower the demand government for Nigeria made’s crudecommendable oil and the efforts need Indeed, the high rate of youth unemployment accounts for the rising spate of insecurity of lives and property in the country. GDP but also set out to increase the country’s foreign reserve We therefore recommend that the government should notyo onl t reduce fiscal deficit financing to less than 3% of the initiate measures that would make the acclaimed economic fairly stable oil price, the economy suffered from oil theft and growth of the nation inclusive. Incentives should be introduced and pipelines Excess vandalism Crude A atccount various (ECA). times Ho inwever, 2013, inresulting spite ofin the that will drive growth of small and medium enterprises while loss of about 300,000 – 400,000 barrels per day. Thus, rather the curricula of institutions should embrace entrepreneurship. Finally, the government must accelerate the implementation intended, this quantity shock led to depletion in both accounts. of its infrastructural development programme such that it can than I C A incrN ease both the level of external reserves and ECA as THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 5 2013 Annual Report & Financial Statements PRESIDENT’s Statement

Qualification, Audit Quality and Regulation. The ultimate syllabus, new learning materials, new practice manual, enhanced deliverables from this initiative include a new examination tuition providers and a possible Memorandum of Understanding disciplinary(MoU) on reciprocity processes, to imprbe signedoved withskills ICAEW. of staff, examiners and I am happy to report that the Council approved the new 3-level, 16-subject syllabus at its meeting of January 16, 2014 2014 diet. I formally launched the new syllabus in May while 2014. eI xaminationsam also delighted on it willto reportcommence that thewith contract the No vemberfor the development of the new learning materials for eleven subjects and cover design was awarded to Emile Woolf International, UK in the sum of £114,000 after a very competitive international bidding processes moderated by ICAEW and the World Bank. The other four subjects are to be developed locally because of learning materials on Case Study will be separately awarded in thedue localcourse. fla vourThe supply while theof the contr learningact for materials the development will commence of the soon. I commend the Project Implementation and the joint Business mogul, Alhaji Aliko Dangote; Kebbi State Governor, Usman Saidu Nasamu Dakingari; and ICAN President, Alhaji Kabir Institute. Mohammed during ICAN President’s visit to the governor Syllabus Review Committees for their selfless services to the have profound positive impact on the current prohibitive cost Catch-Them-Young Programme of doing business in the country and capacity under utilisation As you are all aware, the future of the Institute depends in the economy. For instance, the new owners of generation, transmission and distribution companies unbundled from inextricablymembers who on will its abilitysustain tothe continue interest tofo attrandact deliver the best value and to shortest possible time. Only then, will the real sector assume its brighteststakeholders. students One ofint myo its strategies fold, first for as achieving students thisand laudablelater, as PHCN,rightful must place mandat in the developmentorily deliver process.on their mandate within the goal is the introduction of a Catch-them-Young programme which involves arranging special career, guidance and

THE INSTITUTE AND THE ACCOUNTANCY PROFESSION During the year, the Institute and the Accountancy Profession made Launching very significant of a achie Newvements Syllabus which are worth mentioning. As members are aware, the Institute received a World Bank building initiatives and reposition it as the leading professional grantaccountancy in the sumbody of in US$499,030 African region. in 2012The grant to finance was implemented its capacity through a twinning arrangement with the Institute of Chartered Accountants in England and Wales. The ICAN-ICAEW twinning Agreement was aimed at enhancing the capacity of the Institute in three areas: Governance and Capacity, Professional ICAN President flanked by Council Members of the Institute and students of one of the schools at the Catch-Them-Young program at Abakaliki counselling sessions for students in post-primary and tertiary institutions. At such sessions, role models are selected to talk to

theThis students initiative on has the received benefits the of beingendorsement chartered and accountants active support and need of Ministries for them of to Educationmake Accountancy in States their like firstLagos, choice Kano, of course.Jigawa, Ogun, Bayelsa, Abia, Katsina, etc. In January, 2014, we held a session in Ikorodu in conjunction with Ikorodu and District Society which was attended by over 200 students drawn from various secondary schools in the area. The event, which also featured the award of scholarships to some students of ATSWA, was attended by the Oba of Ikorodu and the Special Assistant Babatunde Raji Fashola, SAN. This has since been replicated in on Education to His Excellency, the Governor of Lagos State Mr. Alhaji Kabir Mohammed with students from various schools at the Quiz Competition organised by Ijebu-Ode and District Society of ICAN Port To Har reinforcecourt, Ri thevers above State; Owinitiatives,erri, Imo I Stat recentlye; Abakaliki, visited Ebon someyi I C A N State; Minna, Niger State, etc. THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 6 2013 Annual Report & Financial Statements PRESIDENT’s Statement

Tuesday, April 8, 2014. I led a delegation comprising members of the Institute’s Presidency to visit Dr. Jonathan at the Aso Rock Villa during which we held very fruitful deliberations and also submitted a memorandum on a lot of burning national issues courtesy visit and the memorandum, Dr. Jonathan urged the toInstitute him. While not to e restxpressing on its hisoars gr asatitude the conscience to the Institut of thee fnation.or the more on national and economic issues. The Council has resolved He to continue urged the to Institutdo this.e to leave its comfort zone and speak out

Election of Major General Sebastian A. Owuama (rtd.), FCA into IFAC Board The Institute has continued to build on the solid foundation laid by members of this Body in the local and international scene. I am very delighted to inform you all that a distinguished ICAN President, Alhaji Kabir Mohammed (middle); a Council member, member and a revered Past President, Major General Sebastian Mrs Shakirat Adepeju Babatunde (3rd from left); ICAN Registrar, Rotimi Achulike Owuama (rtd.), BSc, FCA was recently elected to serve Omotoso (3rd from right); Deputy Registrar, Abel Asein (1st from left); and on the Board of the International Federation of Accountants members of NUASA Executives at NUASA Summit at University of Lagos held in Seoul, South Korea on November 13 and 14, 2013. I am tertiary institutions in the country during which I had (IFAC). His election was confirmed at the IFAC Council meeting discussions with Students, Vice-Chancellors, Rectors and the Institute’s position in the boardroom of IFAC. On behalf management of the Institutions on how the Institute can veryof the confident entire membership that his election of our wnobleould Institute,significantl lety meenhance once again use this occasion to congratulate my friend and brother, donations for maintenance and purchase of consumables were Major General Owuama (rtd.) and wish him the very best as he partnerdonated withby the them. Institute Textbooks, to these deskt tertiaryop comput institutions.ers and cashThe institutions were Usmanu Dan Fodioyo distinction. To celebrate this icon of continueso t fly the flag of the Institutprofession,e on the wCouncilorld stage recently with organised a dinner in his honour. The University, Sokoto; Waziri Umaru event was graced by many captains Federal Kano Community Polytechnic, Commercial Birnin College,Kebbi; of industry, many revered past Northwest University, Kano; Aminu presidents and other dignitaries. Permit me this opportunity to Kano; Jigawa State Polytechnic; Federal also commend the pioneering roles Polytechnic, Ilaro; University of Port Harcourt; Rivers State University of the trail in professional service at Technology; Rivers State Polytechnic, of the our IFAC Past level Presidents thereby w hoinscribing blazed Bori; University, Ebon yiIlorin. Stat e DonationUniversity; of Kthreewara the name of ICAN in the sands of State University, Malete; Al-Hikma time within the global body. These include Dr. (Chief) Anthony Asuquo (3) to each lapt opsof the and Institutions. text books Itw orthis hoped One Hundredthat the successThousand of Nairthesea weventsere made and to IFAC Board followed by Amb. discussions will translate into higher Ani,,(Chief) MON A.C.I. FCA, Mbanefo, the first toMFR, be elect CON,ed candidature both for the Professional FCA, Odu III, while Chief Olusola and Accounting Technicians’ schemes. Faleye, FCA served as Treasurer and Vice President of IFAC for over three Memorandum to the years. It is gratifying that many other National Conference ICAN President, Alhaji Kabir Mohammed and the past presidents served in various Further to the convocation of a Doyen of Accountancy in Nigeria, Mr Akintola IFAC committees and in other 492-man National Conference by the Williams during a courtesy visit capacities of which we are proud. Federal Government under the able While congratulating them all, I dare leadership of Dr. Goodluck Ebele Jonathan, GCFR, the Institute say that ICAN will continue in this enviable tradition to do great prepared and submitted, through its nominated representative, Senator (Chief) F.K. Bajomo, mni, FCA, to the National Assembly, the image of the Institute. a memorandum in which a lot of thorny issues confronting the exploits in the international scene in order to further enhance Nigerian nation were addressed. I am happy to report that the Review of Five-Year Strategy Plan memorandum was well received. For the records, two of our past To properly begin my presidential year, I took another critical presidents (Dr., Mrs.) C.G. Okpareke, mni, FCA and Dr. (Chief) look at the Institute’s strategy document vis-a-vis the speech I R.U. Uche, FCA, are also participating in the National Conference. made during my investiture. This became necessary given the Visit to the Nation’s President, facing the Institute and its products in the market place. I dare Dr. Goodluck Ebele Jonathan, GCFR dynamicssay that we in are the determined business en vironmentto make the and ICAN the brand fierce thecompetition best and As part of the Institute’s strategy of impacting the nation’s preferred one by students, users of the services of chartered governance processes, the Council sought and was granted accountants and employers of labour. I wish to report that the audience by the President, Commander-In-Chief of the Armed Forces of the Federation, Dr. Goodluck Ebele Jonathan, GCFR on in order to align its content with current realities and focus. Its I C A N Council had to rejig the Institute’s five-year Strategy document THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 7 2013 Annual Report & Financial Statements PRESIDENT’s Statement

implementation is progressing as planned with positive impact on the activities of the Institute. 43rd Annual Accountants’ Conference The historic and record-setting Year 2013 Annual Accountants’ Conference of the Institute was held at the

International“Governance Coandnference Sustainable Centre Development”. and the Abuja TheSher themeaton Hot wasel and Towers between October 7-11, 2013 with the theme, between Governance and the pace of national development. The carefully4-day event, chosen which t owas underscor attendede bythe a Conferenceinextricable record relationship of 4004 delegates (out of which 3810 were fee-paying), was declared open by the President of the Senate, Senator (Dr.) David A.B. Mark, GCON, FNIM who was ably represented by Senator (Dr.) Patrick Ayo Akinyelure, FCA. (left) The following dignitaries graced the epoch-making conference Conference Chairman, Tayo Phillips ; former Botswana President, Festus Mogae; ICAN President, Kabir Mohammed; and Executive Secretary, Financial Reporting Council of Nigeria, Mr Jim Obazee at the 48th Annual Conference with their esteemed presence: the Governors of Ogun State, His Excellency, Senator Ibikunle Amosun, FCA; Adamawa State, His Excellency,representative Vice ofAdmiral the KebbiMurtal a Nyako (rtd.); former Governor all past presidents, members and Staff for their contributions of State Kwara Government State, His Exledcellency, by the Senator (Dr.) Bukola Saraki, CON; expressytowards m the pr successofound of appr theeciation conference. to the I Confam delightederence Committ to reportee, that the resultant communiqué has been circulated to major stakeholders. EmirMuhammadu of Argungu, Mera, His RCONoyal Highness, Alhaji Samaila Zonal Accountants’ Conferences G. Mogae, former President The Zonal Accountants’ Conference has become the second (Guest of Honour); Mr. Festus most important interactive forum for members of the Institute the PAFA President, Musa after the Annual Accountants’ Conference. These District of the Republic of Botswana; about professional and national issues which can impart their Assad;sister bodies ABW Afrom Pr esident,13 countries Mr. Conferencesvarious practices serve and as businesses.fora for members I am pleased to e xchangeto inform ideas you L.– BeninMombo; Republic, representatives Botswana, of Cameroon, Ghana, Guinea Bissau, Liberia, Mali, Sierra thatLondon, I declar Uniteded open Kingdom the first from ever Friday, ICAN MarchUK Zonal 14 Atoccountants’ Saturday, ConferenceMarch 15, 2014. held I warmlyat the Hiltcommendon London the UK Docklands and District Riverside, Society UK, USA and representatives for the initiative, the quality of organisation and professional Leone, from ABWA. Tanzania, The Thepresence Gambia, of presentations which accounted for the very successful event. many members of this body Also, the 8th Eastern Zonal Districts Conference with the theme added great colour to the “Benchmarking Nigerian Public Institutions for National Conference. Development” The lead paper of ICAN President, Alhaji Kabir Uyo, Akwa Ibom State from Monday, August 19 to Thursday, the Conference entitled, Mohammed and the ICAN United August 23, 2013.was The successfull Permanenty held Secretary, at Eemjm Ministry Hotel of & Finance Suites, “Governance and Sustainable Kingdom District Chairman, of Akwa Ibom State, Elder (Lion) Nse Okon Ekefre, MNIM, FCA, Development” was delivered Omusa Ohyoma at the Induction who represented the Governor declared the Conference open while I declared the event closed. and Fellowship conferment th G. Mogae, former President ceremonies of members in UK The 8 Western Zonal Districts’ Conference was hosted by by of theHis RepublicExcellency, of MrBotswana. Festus while Chief (Dr.) Anthony A. Ani, MON, FCA, (PP) chaired the paper presentation session. There were also presentations by resource persons from the World Bank and the Institute of Chartered Accountants in England and Wales (ICAEW). The Conference was declared closed by the Chairman, Body of Past Presidents – Balogun Deputy Governor of Akwa Ibom State, Barrister Past President of ICAN, Doyin Owolabi; Kwara State Governor, J.O.O. Omidiora, BSc, Valerie Ebe (2nd left) with ICAN President, Alhaji Abdulfatah Ahmed; ICAN President, Kabir Mohammed; ICAN OON, FCA (PP). Let me Kabir Mohammed and members of his entourage at Council members: Oye Akinsulire, Monica Okonkwo and Adaku use this opportunity to the 8th Eastern Zonal Conference of ICAN in Uyo Chidume-Okoro at the 9th Northern Zonal conference in Ilorin

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 8 2013 Annual Report & Financial Statements PRESIDENT’s Statement

Thursday, February 20, 2014 with the theme “Transforming the the Nigerian Ikeja and Economy: District Issues,Society Challengesfrom Monda andy, February Opportunities 17, 2014 for to the Accounting Profession”. At the ceremony was the Director, Projects’ Financial Management Unit, Ministry of Finance, Lagos

State,Fashola, Mrs. SAN, Arinola and Odulana,the Keynote FCA, Speaker, who represented distinguished the Ex Senatorecutive GovernorJubril Martins-Kuye, of Lagos Stat a formere, His ExFederalcellency, Minister Mr. Babatunde of Commerce Raji “The Role of Accountants in Transforming the Nigerian Economy”. andSimilarly, Industry . theHis k9eynoteth Northern addr essZonal was conferenceentitled with the theme, “The Imperatives of Entrepreneurship for National Development” current security challenges in that part of the country. At great inevitable cost, w theas heldconference at the K whichwara Hot wasel, earlier Ilorin inscheduled spite of the to hold in Makurdi, Benue State had to be moved to Ilorin, Kwara State. I must commend the members of the Makurdi and District Mr. S.A. Adeleke, Alhaji Kabir Mohammed, Mr. Henry Egbiki of Society which was originally given the right to host for their Ernst & Young, Mr. Rotimi Omotoso and Alhaji Ismaila Zakari understanding and for cooperating with the Council on this during the visit by the ICAN team to Ernst & Young last minute change. In my view, no conference is worth a single drop of a member’s blood. We cannot take avoidable risk with the lives of members when security reports on that location remained unfavourable. We thank God for the success recorded

I commend also the Ilorin and District for rising up to the at challenge the Conference of hosting w athich short was notice. held between April 14-17, 2014. Institute’s Image The Institute has continued to maintain very cordial relationship with members of the press. In order to sustain the established tradition, I granted a series of press interviews, paid scheduled visits to both the electronic and print media. Also, gentlemen of the press were invited to cover the Institute’s various events. During my presidential tours, I also held press conferences and press statements were issued to articulate the Institute’s positions on national, economic and professional Emir of Ilorin, Alhaji Ibrahim Sulu Gambari with Alhaji Kabir Mohammed during his courtesy visit to the Emir in his palace in Ilorin by the Institute all through the year. issues. These measures accounted for the publicity blitz enjoyed on plaques hung everywhere in the Secretariat. This is to create Council Retreat on Professional Examinations further awareness about them and to further propagate the ideal which the Institute represents. In addition, a new and more user- Institute’s core activity. Over the years, the Institute has been friendly website has been unveiled with better aesthetics while improvingAs you allits arprocessese aware, inthe lineconduct with ofglobal examinations best practices. is the the Institute is now on social media like Facebook, Linked-In Unfortunately, the quality of candidates that currently write and Twitters. This is to create further visibility for the Institute and its members. I encourage you all to visit the website and due largely to the decadence in the nation’s entire educational thesystem. ICAN The Pr ofessionalimplication Ex ofaminations this poor hasquality declined is the consider high rateably of Facebook and Twitter and join us on Linked-In. failures which the Institute records every diet. Worried by this share your experiences with us. I also invite you to follow us on unacceptable trend and determined to change the tide, the Council and some top management staff had a dedicated retreat MEMBERSHIP DEVELOPMENT Some of the strategic decisions taken at the Retreat include e-Newsletter on the Institute’s Examinations and its processes. As part of the strategies to continue to technically support developments in their subject areas, training and re-training members, a weekly e-newsletter has been introduced. The changing of examiners who are not in tune with current newsletter culls current professional and technical information from various sources, gives updates on ICAN activities and of houses remaining to build examiners, capacity, improvementengagement ofin ethexpert quality examiners, of learning full disclosurematerials, ofre-launching candidates’ and scor effectivees in examinations, monitoring assisting of articleship, tuition makesshould thembe updated available and t oincluded all financial in the members mailing list.every I thank Monda they. I Secretariat have directed for ensuring that the theemail success addr essesof this of initiative. financial members etc. (Chief) I sei zeR.U. this Uche, opportunity FCA for ttheiro thank invaluable Messrs Phillip presentations O. Omor egie,and G.M. contributions Okufi (P atast the R egistrars)retreat. and revered past president Dr. Technical Help Desk I am also delighted to report that the institute has put in Institute’s Rebranding Initiative As part of the on-going initiative to rebrand the Institute, the vision and mission statements of the Institute have been written place a Technical Helpdesk in the Research and Technical I C A N department, specifically on technical matters, as part of efforts THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIAto further enhance service delivery to members. The Helpdesk 9 2013 Annual Report & Financial Statements PRESIDENT’s Statement

provides appropriate responses to members’ technical enquiries in mergers, regulatory provisions, requirements of standards, etc), allMembers aspects can of the make profession enquires (audit by completing, tax, financial the rtechnicaleporting, helpdeskbusiness request form online via ICAN website www.ican-ngr.ng There is also a dedicated service telephone line: +234-7098123306 which will provide initial/interim response within 48 hours. The dedicated service telephone line is on during the weekends, public holidays and after the close of work each day. Review of Council’s Policy on the Endowment of Professorial Chairs Since the endowment of Professorial chairs in the Universities of Lagos, Benin and Nigeria in 2004, the Institute had not been able to deriveyvarious an universities, visible benefits the Council from revisited the initiati theve initiative in the lastbecause ten y ofears. the Althoughprohibitive eff costorts ofar emeeting still on theto fill needs two ofof thethe thrprofessorialee chairs endo chairs.wed The in new thinking was further reinforced by the fact that the professorial result. Accordingly, the Council approved the recommendation of ICAN President, Alhaji Kabir Mohammed (left) with Kano State chairits Technical, filled in ResearchUniversity and of PublicBenin didPolicy not Committee produce an toy convertmeaningful the Governor, Dr. Rabiu Musa Kwankwaso, during Mohammed’s endowed Professorial Chair to an ICAN Lecture Theatre beginning visit to Kano State with University of Lagos. A Prototype and Bills of Quantity had been submitted to the University of Lagos for further action. The success of this would determine what is to be done in the other two students universities. engaged Thisin accounting proposal researchwill be in to addition the tune tofo Nthe500,000.00 financial persupport, student which in all the its Institutaccreditede curr universities.ently grants to qualified doctoral Growth in Membership The Institute has continued to witness rapid growth in its membership. In the year under review, the Institute had two induction ceremonies where a total of 891 candidates were admitted into membership of the Institute. It is also worthy to note that induction ceremony was also conducted for some members of the ICAN USA District Society in a colourful ceremony held in August 2013 in Chicago, USA. These members had passed the Institute’s to the USA. With this induction, the Institute has produced 38,104 The 49th President of the ICAN, Alhaji Kabir Mohammed (left) qualifying comprising e xaminationsmen and women but w whoere arenot makinginducted their before marks the yboth relocated in the with the Deputy Governor of Sokoto State, Alhaji Mukhtar Shagari private and public sectors. during Mohammed’s courtesy visit to Sokoto Government House Association of Accounting Technicians foldThe in Junemembership and December of the 2013.AAT rAsose members to 17,836 would following recall, the admissionAccounting of Technicians’ 842 newly Scheme qualified now young operates men underand w theomen auspices into the of the Association of Accountancy Bodies in West Africa (ABWA). The conducted at the same time across the ECOWAS sub-region. This is implication of this is that the examinations under the ATS are now West Africa as well as facilitate reciprocity among the accountancy expectedo t enhance the acceptability of the AAT certificate across assist to raise the enrolment rate for the ATS which has been on the bodiesdecline infor the some sub-r timeegion. now. These twin advantages are expected to Publication of Nigerian Standards on Auditing (NSAs) Members will recall that the initiative to adapt and issue International Standards on Auditing (ISAs) as Nigerian Standards Presidential year. I am pleased to report that the Institute has on successfully Auditing printed(NSAs), a commencedbound volume in consisting earnest inof theall its2006/2 NSAs 007and Katsina State Governor, Alhaji Ibrahim Sheu Shema presenting Practice Statements and they conform with all ISAs and Practice a souvenir to ICAN President, Alhaji Kabir Mohammed during Statements issued by the International Auditing and Assurance Mohammed’s courtesy visit to the Governor in Katsina

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 10 2013 Annual Report & Financial Statements PRESIDENT’s Statement

Standards Board (IAASB) of the International Federation of Accountants (IFAC). These are commendable accomplishments for which the Institute is proud of and I thank the Institute’s Professional Practice Monitoring Committee (PPMC) and the Secretariat for these landmark achievements. Professional Practice Monitoring Initiative As you may be aware, since 2002, when the series of corporate collapse in USA and Europe started to raise some fundamental issues, which seemed to cast aspersions on the role of the accountancy profession in corporate governance, the International Federation of Accountants (IFAC) has sought to introduce strategic accountancy services. One of these measures is the introduction of measuresPractice Monitoring, designed t owhich sustain involves and justify the review the confidence of the professional of users of activities of members such that they can be assisted to raise the quality of services they deliver to their diverse clients. In line with global trends and as part of the support to its members, the Institute 10 and 11 are currently in progress. With the support of ICAEW hasTwinning continued programme, this initiati in-houseve at zer capacityo cost to ismembers. being built In f act,within phases the The ICAN President, Kabir Mohammed and Governor of Kogi State, Secretariat to ensure that the Secretariat fully takes on this initiative Capt. Idris Wada at the State House during ICAN’s visit to Kogi State

in orderVisit toto reinforce District members’ Societies confidence in the programme. During the year under review, I visited 19 district societies and inaugurated the Katsina and District Society as well as the Mowe and District Society thus bringing the number of district societies to 50 established by the Council. These visits have made it easier in their various callings. It has also helped to bridge the information forogap mesubsisting t ascertain, between first the hand, Institute the challenges and its members facing our and members students located in all nooks and crannies of the country. I also used the opportunity of the visits to meet with Governors and top government the profession and the nation as a whole were discussed. officials during which issues germane to the interest of the Institute, Investiture of SWAN Chairperson I chaired the investiture and swearing-in ceremony of the chairperson of the Society of Women Accountants of Nigeria (SWAN) and Council member, Mrs. Onome Olaolu, FCA, which was held at the MUSON Centre, Onikan, Lagos on Tuesday, December 2, 2013. On behalf of Council and Mrs. Onome Olaolu, I thank all the past Jigawa State Governor, Alhaji Sule Lamido (right) welcoming ICAN presidents and members who were able to grace the occasion with President, Alhaji Kabir Mohammed to his office in Dutse their presence. It was truly a day of glory for the female members

ofOrelope-Adefulire the Institute. The was pr veryesence inspiring. of the Special Guest of Honour, Her Excellency, the Deputy Governor of Lagos State, Mrs. Adejoke PUBLIC SERVICE ACTIVITIES Guest Lecturer at Delta State House of Assembly The image of the Institute further received a boost when I honoured an invitation and made a well received presentation as a guest lecturer at the second anniversary lecture of the 5th at the International Convention Centre, Asaba on Friday, June 14, Assembly2013. The oflecture the Delta was entitledState H ouse“Delta of State Assembl Beyondy which Oil: Taxationwas held as a Catalyst for Socio-Economic Development.’’ Based on the presentation, the Delta State government is revisiting its internally generated revenue potentials. The 49th President of the Institute, Alh. Kabir Mohammed; Seminar on Corruption Deputy Governor, Lagos State, Mrs Adejoke Orelope-Adefulire; and The Inter-Governmental Relations Committee (IGRC) Chairperson, SWAN, Mrs Onome Olaolu at her investiture of the Institute held a workshop entitled “Corruption and I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 11 2013 Annual Report & Financial Statements PRESIDENT’s Statement

Underdevelopment in Nigeria” at the Kafas Multi- December 12, 2013. I had the privilege to invite, as the Purpose Hall in Lokoja, Kogi State on Thursday, Governor of Kogi State, Alhaji Ibrahim Idris Wada Specialwho declared Guest ofthe Honour workshop, his open.Excellency, The workshop the Executive was Institute, members of the general public and students of well higher att Institutionsended by go invernment the state. officials, members of the IoD August Members Evening The Institute of Directors invited me to its August Secretary/CEO of Financial Reporting Council (FRC) of Members’Nigeria. The Evening Institute with was Mr well Jim represented Obazee, the at Extheecutive event Imo State Governor, Owelle Rochas Okorocha (5th from left); ICAN President, the country were discussed. Alhaji Kabir Mohammed (6th from left); flanked by members of his during which emerging issues in financial reporting in entourage during ICAN courtesy visit on Okorocha 19th Nigerian Economic Summit The 2013 annual summit of the Nigerian Economic Summit Institutions on the proposed amendment to the Asset Group (NESG) was held between September 3–5, 2014 at the Management Corporation of Nigeria Act 2010. The Institute’s memorandum was presented by the Chairman of the Abuja was declared open by the President, Commander-In-Chief of the District Society, Otunba Adewale Gbakinro, FCA, at the one-day TranscorpArmed Forces Hilt onof Hotthe el,Federation, Abuja. The Dr. theme Goodluck of the Ebele Summit Jonathan, which GCFR, was, “Growing Agriculture as a Business to Diversify Nigeria’s Economy”. The Institute was adequately represented public hearing which took place on Monday, February 17, 2014 at the event. at theInauguration National Assembly of the Complex, Nigeria Abuja. Association of Public Accounts Committees (NAPAC) BRIPAN’S International Conference, As part of its strategy to harmonise the operations of Public Victoria Island, Lagos Accounts Committee of various legislative houses in the country On my behalf, a Council member, Alhaji Ismaila Zakari as well as strengthen their network of technical information, Mohammed, mni, FCA attended the Business Recovery & the Nigeria Association of Public Accounts Committees was Insolvency Practitioners Association of Nigeria (BRIPAN) international conference on Thursday, October 3, 2013 at the Metropolitan Club, Victoria Island, Lagos. The theme of inauguratedits credence at to a colourfulthis initiative ceremony by actively held at theparticipating Transcorp inHilt theon the conference was “Transforming the Nigerian Economy: Hotel, Abuja on Thursday, November 7, 2013. The Institute lent Aligning the Nigerian Business Rescue Practice with Global the vanguard of anti-corruption crusade in the public sector Trends”. It is instructive to mention that during the year, the inaugurationthrough their proversightogramme. functions It is expected in the years that ahead.NAPAC will be in Council has approved that the Insolvency and Corporate Re- engineering Faculty be registered with Insol International which Retreat of the Office of the Accountant-General is the global body for insolvency practitioners. This will further of the Federation enrich the technical resources of the Faculty and its members. As part of its capacity building measures designed to enhance World Cyber Security Conference The Institute attended the World Cyber Security Conference its a technical operational retreat efficiency for its intop line management with its statut staffory and mandat relatede, the Office of the Accountant-General of the Federation held Republic of Nigeria, Nigerian Communication Commission Seventeen, Tafawa Balewa Way, Kaduna. The retreat afforded jointly (NCC), orNigerianganised bTechnologyy the Office ofDevelopment the First Lad Agencyy of the (NTDA)Federal professionalthe Institute bodiesthe opportunity on Friday, toF ebruarymake contributions 21, 2014 at toHot theel and New Horizons, Nigeria at the State House Banquet Hall, operationsSpecial of Control that Office. Unit Against Money PresidentialDeloitte’s Villa, Business Abuja on Tuesday, Luncheon September 17, 2013. In appreciation of the invaluable roles played by Akintola Laundering (SCUML) Meeting on Anti Money Williams Deloitte in the development of the Institute, I led a Laundering & Designated Non-Financial delegation of the Institute to the Deloitte Global Leadership and Businesses and Professions Akintola Williams Deloitte Partners Business Luncheon which Since the enactment of the Money Laundering (Prohibition) Act 2004 as amended, the Special Control Unit Against Money October 3, 2013. The Institute will continue to lend its support Laundering (SCUML) has been striving to forge alliances wasto such held organisations at the Oriental by identifying Hotel, Lekki, with theirLagos programmes. on Wednesday, with professional bodies to secure their cooperation in the implementation of the statute. As part of its measures to address One-day Public Hearing by Senate Committee the grey areas of the law, SCUML recently held a meeting with Designated Non-Financial Institutions on Tuesday, March 4, on Banking, Insurance and Other Financial Institutions on Asset Management Corporation emerging issues in the anti-money laundering crusade and the of Nigeria Amendment Bill 2014 at SCUML Headquarters, Abuja. The session discussed The Institute was invited to a public hearing by the Senate Institutions (DNFIs) envisaged by the law. The Institute was Committee on Banking, Insurance and Other Financial role adequately of professionals represented. classified as Designated Non-Financial I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 12 2013 Annual Report & Financial Statements PRESIDENT’s Statement

Invitation as Guest Speaker at the UBA ANAN recently approached the Institute with an MoU requesting Foundation’s National Essay Competition for an out of court settlement over the provision of the ANAN Act which criminalises the practice of Accountancy by ICAN Foundation’s 2013 National Essay Competition which was members. The terms of the MoU include a statement that organisedI was theto encourage Guest Speak youthser at to theimbibe grand the finaleculture of of the reading. UBA I used the opportunity to invite the students to strive to become be enforced against any ICAN member. Though the matter is chartered accountants by showing great interest in Mathematics, the still obnopendingxious in sectionthe Court of ofthe Appeal ANAN the Act MoU will isnot before in an Councily way English and commercial subjects. The event received great for consideration and approval. The entire membership will be publicity in the press. regularly apprised about developments on this matter. Meeting of Bureau of Public Procurement Proposed Amendment of the ICAN Act The Institute was represented at the meeting organised by You will recall that the Institute made a number of proposed Bureau of Public Procurement on Evidence of Registration with amendments to the ICAN Act, which were presented to the Financial Reporting Council of Nigeria (FRC) to resolve the issue of professionals who are statutorily mandated to register with the FRC. National Assembly in a Public hearing held in 2007. The Bill went Representatives through the during first and the secondlast Legislature. readings andSince w asthen, expected there to has gobeen thr noough further the development third reading on this.in the We wereFederal informed House that of DEFENCE OF THE ICAN ACT the process would need to be commenced all over again by the ICAN vs CITN ensure that the desired goals are achieved. new Legislature. However, the Council will consider options to an appeal against the judgement of the Court of Appeal which STRATEGIC BUSINESS VISITS This matter is pending before the Supreme Court. ICAN filed AND ACTIVITIES gave CITN the powers to regulate the practice of taxation in the country while CITN also filed a cross appeal requesting the Visits to Firms of Chartered Accountants apex Court to void the declaration by the Court of Appeal that As part of the Council’s efforts to secure the support of major charteredNigeria (APBN) accountants has formed can pra acticeMediation taxation Committee without to belonging look into to.the CITN matter. Ho Inwever, fact, the MediationAssociation Committee of Professional has circulated Bodies ina draft terms of settlement which the Councils of both Institutes practising firms for its strategic initiatives designed to raise the are considering. If an agreement is reached on the terms of qualityWilliams of Deloitte,public pr acticePricewaterhouseCoopers and financial reporting (PwC), in the Ernst countr andy, I Young reached and out KPMG to the Professional big four accounting Services as fir wellms, asnamel somey: medium-Akintola informed on further developments on this matter. We commend settlement,the APBN for it isw ouldits efforts. be filed in court. Members will be regularly & Co, BBC Professionals, PKF Professionals & Co, Ahmed Zakari sized firms like Ijewere & Co, Horwath Dafinone & Co, BakerTilly ICAN vs ANAN were held during the business visits on how to improve the falling As members are aware, the Institute has been mentoring & Co, and SIAO (chartered accountants). Extensive discussions the Association of National Accountants of Nigeria (ANAN) in an effort to raise its standards. This initiative has led to the standardon completion of perf oformance the ongoing of new twinningly qualified programme chartered with accountants ICAEW, admission of ANAN into ABWA, PAFA and lately, IFAC as an andANthere the would IC be certification noticeable acrimprovementsoss boundaries. in the I assur standardsed them of thatour associate member. In appreciation of this cordial relationship, products. They have pledged their support to the Institute and its capacity building programmes. Courtesy Visits to State Executive Governors and Top Government Officials of States During the period under review, I paid courtesy visits to the Kogi, Kwara, Oyo and Sokoto States not only to canvass support Executivefor the employment Governors of Akwchartereda Ibom, accountants Jigawa, Kebbi, in theKano, State Katsina, Civil Services, but also to partner with the state governments in capacity building by bringing to fruition the objectives of the Students’ Special Project (SSP) and encourage the governors to sponsor our members to national and international conferences organised directly and indirectly by the Institute.

Services,Some otherDirector-General top Government of Nigerian Officials Television visited include Authority, the Acting the Registrar-General, Executive Chairman Corporate of the Commission, Federal Inland Jigawa Revenue State Commissioner of Finance & Economic Planning, Alhaji Umar Roni Nasiru, who was represented by the Permanent Secretary, Land & Physical Planning of Kano State, Alh. Mohammed Nabi Hajia Yahaya, H mni,abiba who Isa wasDutse; represented the Honour by theable Permanent Commissioner Secretary, for 49th President of the Institute, Alhaji Kabir Mohammed flanked Alhaji Garba Musa. I am pleased to inform you all that the by winners of the UBA Essay Competition and the Bank’s responses received from these government functionaries (both Executives at the Grand Finale of the Essay Competition by UBA I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIAthe governors and officials) were positive. Specifically, the 13 2013 Annual Report & Financial Statements PRESIDENT’s Statement

ICAN President, Alhaji Kabir Mohammed and members of his Alhaji Kabir Mohammed and his team with the managing partners of entourage during an official visit to the partners of PKF firm BBC Professional Services during ICAN’s official visit to the firm

Alhaji Kabir Mohammed and his entourage in group photograph with ICAN President (sitting 3rd from left) and his team in group photograph the Managing Partner and staff of Ahmed Zakari & Co. with the partners of Howarth Dafinone during his visit to the firm

Dan’Atto (Turakin Dakingari) donated a piece of land to the acquisition of Land for the building of the Special Students’ Accountant-GeneralInstitute for the building of K ebbiof the Stat proposede, Alhaji students’ Muhammadu centre. Arzika to Centre. embr Theyace the all accountancyappreciated theprofession visit and, as particularly, well as influence the Attah the Following the information the Institute received that some of Igala commended the Institute for standing out, especially in states were yet to separate Administration from Finance, I understand what ICAN represents and clear misconceptions. Aminu Dutse, mni, the Wamban Dutse, where I discussed and professionalism. He applauded the visit as it would make people visited the Head of Civil Service, Jigawa state, Alhaji Mustapha Visit to Aminu Kano Teaching Finance, as they are quite different professions and their non- Hospital, Kano enjoinedseparation the will Head not ofpromote Service professionalism. to separate Administration I also encouraged from Following the information received that this organisation the engagement of chartered accountants and enhanced has in its payroll the highest number of our members in Kano State, I paid “a thank you” visit to the Chief Medical Director the process of separating administration from Finance had capacity building for staff. The Head of Service assured me that that the State Government was dedicated to the training of staff, offor the sponsoring Aminu Kano our Tmemberseaching Hospital, to the Institute’sKano, Professor programmes Aminu alreadyhence the begun establishment and would of soon its Manpower be concluded. Training He further Development stated Zakariand diverse Muhammed. trainings. The Let Tmeeaching note thatHospital the General is also Managing reputed procurement of a piece of land for the construction of an ICAN service for their hard work and commitment, adding that every Institute.study centre He in pr theomised state. that he will give full support to the Directorinvestment (GMD) in its staffcommended had been our fruitful. members in the Hospital’s It is worth mentioning that I also paid homage to the traditional rulers of the states visited. These were the Emir Courtesy Call on Mallam Aminu Dantata A courtesy call was made on Mallam Aminu Dantata at his the 33rd residence in the city of Kano. I acknowledged Mallam Dantata of Kano, His Royal Highness Alhaji (Dr.) Ado Bayero, CFR, for his role in employing chartered accountants in his various Emir of Argungu; His Royal Highness, Alhaji Samaila businesses and enjoined him to help talk to those in power Muhammadu Mera, CON; the Emir of Hadejia, Alhaji Adamu Abubakar Abdulkadir Maje, CON; the Emir of Dutse, Alhaji Nuhu profession of accountancy. In his response, Mallam Dantata Muhammadu Sanusi, CON; the Attah of Igala, and President, Kogi to encourage the youth of northern extraction to go into the StateThe thrust Council of ofmy Chief discussionss, HRM withIdakw theo Michael tradition Ameh rulers, Oboni during II; accountants to emulate previous leaders, do their jobs with open andthe visit,the Emir was offor Katsina, them to HRH encourage Alh. Dr .the Abdulmumuni youths in their Kabir domains Isaaa. expressedminds, adopt his honest gratitude living f orand the eschew visit corruption.and charged chartered I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 14 2013 Annual Report & Financial Statements PRESIDENT’s Statement

July 19, 2013. The meeting offered an opportunity to introduce the Registrar/

Chief Executive of the Institute to the ABWAVisit executives, to UK and among District others. Society I visited the UK and District Society occasion, I supervised the election and ono tw different occasions. On the first Committee of the United Kingdom District conductedSociety in July the 2013.investiture This wasof the particularly Executive very important because of the series of crises that had engulfed the District for some time now. The second occasion was the Annual Dinner and Dance held on Alhaji Kabir Mohammed presenting some ICAN President (right) presenting a publications of the Institute to Mr. Yomi Sanni gift to Mr. Omonuteromen Pedro, meeting was held on Friday, December 6, of KPMG during his official visit to the firm Partner operations, PwC December2013 with 7,the 2013. shortlisted Prior to developers the Dinner ,of a the ICAN new learning materials during which they made presentations on their

technicalVisit toand USA financial District bids. Societies I was also at the 5th Induction and Conferment of Fellowship Awards ceremonies of the USA & District Society as well as the 4th Annual General Meeting held in Chicago, USA from Wednesday, August 28 to Saturday, August 31, 2013. As part of the efforts by the district to improve on its standards, the occasion

and the theme was “Membership wasDevelopment tagged “A andCelebr Benefits”.ation of Excellence” Alhaji Kabir Mohammed in a handshake with President of the Institute, Alhaji Kabir the Managing Partner, Ernst and Young, Mr. Mohammed with Council member and Partner of CIMA Presidents’ Henry Egbiki during ICAN visit to the firm Baker Tilly Nigeria, Deacon Solomon Adeleke Annual Dinner I was a guest at the CIMA Presidents’ Visit to the NNDC/ICAN Study Centre My visit to the students and staff of the NNDC/ICAN Study I used the opportunity to discuss possible areas of technical co- Centre in the city of Kano afforded me an opportunity to update Annualoperation Dinner between which both was institutes. held in London on October 17, 2013. myself of the developments and challenges of the centre. During a very fruitful interactive session with them, I also charged Invitation by UNCTAD the District Society to endeavour to look for a more conducive I led a delegation of the Institute and we fully participated at the UNCTAD-ISAR 30th Anniversary Session & IFRS Foundation facility as examination centre and forward the centre’s name to that ANAN also sent a delegation to attend this session during the examinationsINTERNATIONAL committee for appropriate ACTIVITIES action. Workshop in Geneva, Switzerland. It is instructive to mention whichsuccessfully our ocompletedwn Mr. Jim his Obazee, tenure FasCA, chairman Executive of Secr theetary/ 29th IFAC/SMP Forum in Kampala, Uganda Chief session. Executive Officer, Financial Reporting Council of Nigeria I led a delegation to attend IFAC’s Small & Medium Practices Forum which was held in Kampala, Uganda, on June 5, 2013. Invitation by GIABA As part of its contributions to the on-going campaign against Accountants of Uganda (ICPAU) and the Pan African Federation The of Accountants forum was (PAFA).jointly host ed by the Institute of Certified Public an active part in the Regional Workshop organised by the Inter- moneyGovernmental laundering Action and Group terrorism against financing, Money Launderingthe Institute in pla Westyed IFAC Board & Council Meetings Africa (GIABA)’s and held in Banjul, Gambia in September 11 – I attended IFAC Board meeting that took place in New York, 14, 2013. USA on September 5 & 6, 2013 and its Council meeting held in Seoul, South Korea from Tuesday, November 12 to Thursday, PAFA Consultative Conference & November 14, 2013. Board Meeting I led a delegation of the Institute to attend PAFA Consultative ABWA Executive Committee Meeting Conference in Casablanca, Morocco on September 14, 2013 and also graced the 9th Pan African Federation of Accountants (PAFA) Committee meeting hosted by ONECCA, Lome, Togo on Friday, Board meeting held in Johannesburg, South Africa on Friday, I CThe A N Institute was ably represented at ABWA Executive THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 15 2013 Annual Report & Financial Statements PRESIDENT’s Statement

October 25, 2013. Invitation to Malaysian Institute of Accountants’ Conference The Institute was ably represented at the International Accountants’ Conference of Malaysian Institute of Accountants (MIA) which was held in Kuala Lumpur, Malaysia. The theme of the conference was “Managing Value, Accelerating Growth”. I used the opportunity to hold a follow-up meeting on a proposal to establish a collaborative relationship with the School of Accountancy, College of Business, University Utara, Malaysia (UUM). The resultant MoU would enable Associate Chartered Accountants (ACA) and Fellow Chartered Accountants (FCA) enroll in the UUM MSc and PhD Programme respectively in Accounting, Finance Economics or Management (either by Research or by Coursework) It is pertinent to note that UUM is one of the top 8 out of about 50 universities in Malaysia and it also enjoys very top world ranking. Emir of Argungu, Alhaji Samaila Muhammadu Mera (right) welcoming with UUM would include: the 49th ICAN President, Alhaji Kabir Mohammed to his palace Morei) importantly, the benefits of the proposed collaboration students and PhD holders in accounting and other disciplines Exemptions for UUM Undergraduate/Postgraduate ii) wishing to take ICAN Professional Examinations (PE); UniversityIt could has leada Professional to the establishment Programme of an ICANCoordinator Examination with Centre and an ICAN Office in UUM over time (because the iii) ICAN accreditation of the UUM programmes and the whomadaptation ICAN of can a softwliaise);are that ensures all areas of the syllabus iv) Collaboration on Research and Library development are covered during the setting of questions for examinations; Associate Professors and Doctors on sabbatical can come to throughNigeria and sabbatical give technical exchanges support w herebyand add UUM’sknowledge Professors/ that the v) They were also informed that an arrangement is being proposedInstitute can with leverage the Universite upon, etc; Utara, and Malaysia for ICAN members desirous of obtaining PhD and Master degrees to be able to do so either by course work or research work with their ACA Alhaji Kabir Mohammed (left) with the Emir of Dutse, Jigawa The process that will lead to the signing of an MoU is currently State, Alhaji Nuhu M. Sanusi, during ICAN President’s courtesy qualification.ongoing. visit to the royal father Institute’s Property in Amuwo Odofin and Abuja patronage and it is also used for many of the Institute’s functions The ICAN centre in Amuwo Odofin has continued to attract lot of renovation works need to be carried out on the property if therebythe stream incr ofeasing income the is income to be sustained. base and saTheving Akintola cost. Ho Williamswever, a businesses in the Nation’s seat of government. House in Abuja is functional and it is being used for the Institute’s SECRETARIAT Re-Structuring of the Institute’s Organogram

In o order t increase the efficiency of the Secretariat, the Council directorates revisited were andcreated restructured while the the reporting existing lines organogram. or span Althoughof control the of esomexisting of thrthemee di werevisions changed. were r etained,We now additional have the following directorates: Internal Audit, Legal, General Services

The 49th President of the Institute, Alhaji Kabir Mohammed and Communication & Marketing in the Office of Registrar/Chief and Eze Emmanuel Njemanze, Ozuruigbo V, during ICAN’s visit Executive’s Division; Information Technology, Financial Services to Owerri, Imo State and I C A A Ndministration & Human Resources in the Corporate Services THE Division; INSTITUTE and MembershipOF CHARTERED Aff airs,ACCOUNTANTS Faculties, Student OF NIGERIA 16 2013 Annual Report & Financial Statements PRESIDENT’s Statement

Technical Services Division. The Council has given approval for Affairs, Examinations, Research and Technical Services in the restructuring, manpower recruitment and the capacity building the filling of the resultant manning gaps. It is hoped that this initiatives will lead to greater efficiency, enhanced productivity of theAppointment Secretariat through of Directors efficient service delivery. As members are aware, there was a staff audit and

reorganisationtransparent process exercise handled in the secrby PwC:etariat Director, which resulted Internal in Auditsome vacancies. The following positions have been filled through a Technical and Education would assume duty. Let me also add and that anDir Associateector Abuja Professor liaison atoffice. the Department Very shortl ofy, Accountancy,the Director, University of Lagos and a fellow of the Institute, Dr. Semiu Babatunde Adeyemi, FCA is currently spending his one year Sabbatical leave at the Secretariat as Research Fellow. This would further help to strengthen the capacity of the Research ICAN Vice President, Chidi Ajaegbu (left); ICAN President, Kabir and Technical Department. Mohammed; and Representative of Emir of Kano, Senior Councillor Wamban Kano, Alhaji Abbas Sanusi during ICAN’s visit to Emir’s palace Capacity Building of Staff As part of efforts to sharpen the managerial skills and enhance the quality of services provided by the Secretariat staff, many of them to global best practices. The trend will continue in the years them ahead. w Inere return, sent for I chargedtraining thein pr staffominent to ensure institutions professionalism to expose the Institute and its ideals. and integrity in their work; give their utmost best and be loyal to Peaceful Labour/Management Relations Since the beginning of the presidential year, there has been a peaceful industrial atmosphere at the Secretariat. It is interesting to note, that the in-house Union, Non-Academic Staff Union (NASU), ICAN Chapter celebrated its 20th Anniversary in November 2013. The Council was actively involved in the Anniversary celebration which was held at the Ebute Metta Secretariat, Lagos on Thursday, October 24, 2013. The theme of the event was “Moving on Enduring Path”.

APPRECIATION Mr. Emmanuel Onoja, Chairman, Lokoja & District Society (left); gratitude to members of the Presidency, Council, revered Body of Ata Igala, HRM Idakwu Oboni; and Alhaji Kabir Mohammed, ICAN PastLet Presidents, me end this generality address b yof e xpressing,members, once Management again, my prandofound Staff President during the President’s visit to Lokoja for your support, encouragement and words of wisdom. I feel greatly honoured to have been given the opportunity to carry the Institute’s mantle of leadership for the 2013/2014 Presidential abiding grace, wisdom and strength of character and for making Year. it possible Above for all, me I gi tove haveglory made to Alm myighty modest Allah contributions for His beneficence, to the progress of the Institute. I assure you all that I will continue to defend and uphold the cherished values of our great Institute and the disciplined Accountancy Profession. Thank you all most sincerely. Long live the Institute of Chartered Accountants of Nigeria. Long live the Federal Republic of Nigeria.

Alhaji Kabir Alkali Mohammed, mni, FCIS, CGMA, FCA President Alhaji Kabir Mohammed (left), presenting ICAN souvenir to the Emir of Hadejia, Jigawa State, Alhaji Adamu A. Maje during ICAN President’s courtesy visit to the Emir I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 17 2013 Annual Report & Financial Statements OFFICERS and Council

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA (Established by Act of Parliament No.15 of 1965) Officers & Council 2013-2014 President Kabir Alkali Mohammed (Alhaji), mni, FCIS, CGMA, FCA

Vice President Chidi Onyeukwu Ajaegbu, MBF, ACS, FCA (2001) (1997)

1st Deputy Vice President Samuel Olufemi Deru (Otunba), FCA (2002)

2nd Deputy Vice President Titus Alao Soetan (Deacon), FCA (2004)

Immediate Past President Adedoyin Idowu Owolabi, BSc, MILR, FNIM, FCA (1998)

Honorary Treasurer Onome Joy Olaolu (Mrs.), BSc, MSc, ACPIN, FCIB, FCA

(2007) Members Solomon Oluwole Adeleke (Deacon), FCA (2008) Afolabi Abiodun Ajomale (Chief), FCA (2001, 2011) Oye Clement Akinsulire (Chief), MSc, MBA, FNIM, FCA (2013) Alaribe (Chief), MA, CFA, MIMC, MNIM, FCA (2011) Shakirat Adepeju Babatunde (2006, 2011) Davidson ChizuokeSunday Abayomi Bammeke, BSc, FCA (2004) Adaku Chilaka Chidume-Okoro(Alhaja), BSc (Hons), MBA, MSc, FCA (2009) Uchenna Ifesinachi Erobu (Mrs.), MBA, FCA Comfort Olujumoke Eyitayo (Mrs.), (HRH), mni, BSc, CFA, MSc, FCA FCA Mustapha Bulu Ibrahim (Alhaji), BSc, MBA, FCA(2007) (2012) Tijjani Musa Isa (Alhaji), BSc, FCA (2009) (2007) Jaiyeola (Alhaji), BSc, CRISC, FCA (2005) Okonkwo, MSc, ACIB, CFA, CFE, FCA (2011) NnamdiRazak Anthony Okwuadigbo Monica InnocentNgozi Okwuosa, MSc, ACIB, FCA (2011) Adedoyin Idowu OWOLABI, BSc, (Mazi),MILR, FNIM, BSc, FCA FCA(2007) (1998) OZOYA (Rev.), MBA, ACIS, ACS, FCA (2013) Tayo Phillips, MBA, CFA, FCA (2005) Hart WahabJosephine Odafen Oluseyi Williams (Mrs.), BSc, FCA (2008) Yahaya (Alhaji), BSc, MBA, ANIM, FCA (2012) Isma’ila Muhammadu Zakari (Alhaji), mni, BSc, FCA (2004) Haruna Nma Registrar/Chief Executive Rotimi A. Omotoso, MBA, FCIB, FCA

Auditor PricewaterhouseCoopers (Chartered Accountants)

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 18 2013 Annual Report & Financial Statements PAST Presidents

THE ASSOCIATION OF ACCOUNTANTS IN NIGERIA

(The Forerunner of the Institute) 1960 – 61 Akintola WILLIAMS, CBE, CFR, B.Com., FCA 1961 – 62 Akintola WILLIAMS, CBE, CFR, B.Com., FCA 1962 – 63 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased) 1963 – 64 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased) 1964 – 65 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased)

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 1965 – 66 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased) OSINDERO (Otunba), MON, FCA (Deceased) BOND, FCA (Deceased) 19661968 – 67 69 EphraimZacchaeus Adekunle Oludayo OSOSANYA, FCA (Deceased) 1967 – 68 HerbertEHREN William, FCA CARDOSO, FCA (Deceased) 1969 – 70 Alfred ODUKOYA (Archdeacon), FCA 1970 – 71 Felix Bankole ANIBABA (Chief), FCA 1971 – 72 Emmanuel Ayodele OGUNBA, FCA (Deceased) 1972 – 73 Musliu Olaiya OWOSENI (Chief), FCA (Deceased) 1973 – 74 Vincent Obajimi AdebisiADEYEMO (Prof.), MSc (Econs.), FCA (Deceased) 1974 – 75 Julius Akinyokun OYEDIRAN, BSc (Econs.), MFR, FCA 1975 – 76 Michael Adepoju ANI (Chief), MON, FCA 1976 – 77 Cecil Oyeniyi Olurotimi MBANEFO (Amb., Chief), (Odu III), MFR, CON, FCA 1977 – 78 Anthony Asuquo ADEBAYO (Prince), FCA 19781980 – 79 81 ArthurJohn Adepoju Christopher BALOGUN Izuegbunam (Sir), FCA (Deceased) 19791981 – 80 82 JosephIdris Onaolapo Akintunde SULAIMON Alaba (Alhaji), FCA 1982 – 83 Olusola FALEYE (Chief), FCA 1983 – 84 Dolanimi Babafemi Olabamidele OGUTUGA, FCA 1984 – 85 Johnson Kayode Osiyemi OSINAIKE, FCA 1985 – 86 Adedoyin Olayide OGUNDE (Otunba), FCA (Deceased) WILLIAMS, FCA (Deceased) OMIDIORA (Balogun), BSc, OON, FCA 1986 – 87 Samie Aremu OKE (Chief), BSc, FCA (Deceased) 19871989 – 88 90 JohnsonBola KUFORIJI-OLUBI Olaobaju Olabisi 19881990 – 89 91 EbenezerMichael A yodejiFolorunsho ONI, BSc, FCA 1991 – 92 Cornelius Oladipupo Sunda (HH,y Otunba OSENI, Ayora,BSc, FCA Dr.), OON, BSc, FCA 1992 – 93 Oluwole Alani ADEOSUN (Chief), BSc, OON, FCA (Deceased) 1993 – 94 Ismaila USMAN (Mallam), FCA 1994 – 95 Olutoyin Olusola OLAKUNRI (Chief, Mrs.), OFR, FCA 1995 – 96 Simeon Olusola OGUNTIMEHIN (Sir), OON, FCA IJEWERE, FCA ADENIRAN (Princess), FCA 19961998 – 97 99 EmmanuelIke NWOKOLO Itoya (Sir), OFR, KSC, FCA 19971999 – 98 2000 AgnesAdeboye Adenike Olugboyega BADEJO (Chief), FCA AGBEBIYI, FCA 2001 – 2002 Ugochukwu Stephen NWANKWO (Chief), FCA 2000 – 2001 Herbert AdewoleBAJOMO (Senator, Chief), mni, FCA 2003 – 2004 Jaiye Kofolaran RANDLE (Bashorun), FCA 20022004 – 2003 2005 FelixIbironke Kolawole Mojisola OSIYEMI (Mrs.), FCA 2005 – 2006 Abdul Lateef Adebayo OWOYEMI (Alhaji, Otunba), FCA OKPAREKE (Chief, Dr., Mrs.), B.A, MBA, D (Lit), MNIM, mni, FCA BABINGTON-ASHAYE (Prince), FCA (Deceased) 20062008 – 20072009 Richar Catherined Uchechukwu Ginikanwa UCHE (Chief), PhD, FCA 2007 – 2008 Adebajo Abiodun ADEGITE (Chief, Mrs.), BSc, MBA, FCA 2010 – 2011 Sebastian Achulike OWUAMA (Major General rtd.), BSc, FCA 20092011 – 20102012 Francis Elizabeth OJAIDE Omeresan (Professor) MSc, PhD, OON, FCA 2012 – 2013 Adedoyin Idowu OWOLABI, BSc, MILR, FNIM, FCA (IPP)*

* IPP denotes Immediate Past President I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 19 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

OBITUARIES FOR 2013/2014 MEMBERSHIP AFFAIRS PRESIDENTIAL YEAR Names Membership No. 63 applications for Attachment were successfully processed and ● Olaniran Oyebanji 1,606 approvedDuring bythe Council. period under review, 67 Licences to Practice and ● ● Okulate Adeolu Abimbola 9,815 ● Prince Ademola Adewale Ibrahim 8,397 INDUCTION CEREMONIES ● The May and November 2013 induction ceremonies produced Olaniyan Titilola Omolara 2,047 a total of 1,163 ● Ibe Vivian Mma 33,498 who were admitted as against 2,482 Inductees admitted in 2012. ● OkpekiAluko James James Olurotimi Minna 1,099 7,460 Inductees (491 in May and 672 in November) ● Okundia Sunday Nosakhare 6,580 Lagos. ● Thomas Ephraim Asuquo 5,629 Theo tw ceremonies were held at ICAN Centre, Amuwo-Odofin, ● scholars during the induction ceremonies under reference: Agala Obubelebara 31,206 “Post Qualification Challenges and Expectation: The Journey ● Highly informative papers were delivered by erudite Ndiukwu Nnadozie Eric 24,262 Ahead” and “Using EI to Manage Workplace Relationship”. ● At the November induction ceremony, two papers were also ● Kamenebali (Nkporbu) Letula Ledisi 35,129 delivered on “Developing Leadership Skill” and “Upholding ● OlenemeAbdulsalam David Hadiza Nnamdi 10,4014,358 Integrity and High Ethical Standards in a Modern Day ● Babajide Oluremi Olufemi 5,030 Business Practice: Issues & Challenges”. As at December 2013, the membership of the Institute was ● 38,102 made up of 38,081 Chartered Accountants and 21 ● Johnson Oluseye Olufunmilayo 369 Registered Accountants. ● GbodimowoPrince Abidoye Alfred Michael Sunday Akintola 1,411749 The number in each class of membership is as follows: ● Odunlami Gbolahan Ayodeji 1,052 Category of Membership Fellows Associate Total ● Ogunti Olajide Johnson 35,342 a) Members with ● Ehimah Josiah Osagie 2,329

b) Members Practicing without Licence 3,579 2,341 5,920 MEMBERS’ RECORDS AND DOCUMENTATION Practicing Licence ON CHANGE OF NAMES, FIRMS & EXEMPTION FOR SUBSCRIPTION Total 8,2584,679 29,274 26,932 37,531 31,611 Description Nos. Registered Accountants under a) Section 8(2) of the ICAN Act 21 b) Other Grounds (such as Religion, TMaritalradition, Grounds Personal, etc) 2667 Total Membership as at c) 31st December 2013 37,552 d) e) Firms Commencement of New Practice 379 Exemption for Subscription 11 Members can update their records on-line at the Institute’s MORE INFORMATION ON MEMBERSHIP Website: www. ican-ngr.org RECORDS Total membership of the Institute as at 31st December, 2013 37,552 a) Recorded Death as at 31st December 2013 499 b) Members on pending list due to unresolved issues with the Institute 50 c) Members suspended as at 31st December 2013 by the Tribunal by virtue of S.12(2) of the ICAN Act – d) Members whose names were struck out as at 31st December 2013 by the Tribunal by virtue of S.12(2) of the ICAN Act – e) Reinstated 1 f) Therefore total membership number as at 31st December 2013 (i.e. Foundation/Admitted Members and Registered Accountants) 38,102

(those up to date with their ICAN President, Kabir Mohammed, investing Dr. A.E. Kighir as membership dues) as at December 31, 2013 is 15,300 the pioneer Chairman of Katsina & District Society

I C However,A N financial members THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 20 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

Guinea Bissau, Liberia, Mali, Sierra Kingdom, United States of America, Leone, and of T anzania,course, TheNigeria, Gambia, the Unit hosted country. Also in attendance were the

Executive Governor of Ogun State, His Excellency, Senator Ibikunle Amosun, FCA; the Governor of Adamawa State, His Excellency, Vice Admiral Murtala Nyako (Dr.) Bukola(rtd); and Saraki, former CON.Governor Other of Kwara dignitaries Stat includee, His Exthecellency, PAFA President, Senator

Dr.Samaila Musa Muhammadu Assad; the ABWMeraA and President, former Mr. L. Mombo; Emir of Argungu, Alhaji Festus Mogae, who presented the lead Botswanapaper. President, His Excellency, Mr. The following activities were held during the conference: Pre-Conference Cocktail, President’s Party, District ICAN President with some dignitaries and members at the conference Sports, and Tours. ANNUAL ACCOUNTANTS’ Societies’ Competition, Health Talk, CONFERENCE The 43rd Annual Accountants’ Conference was successfully held at the International Conference Centre, theme of the Conference was “Governance and Sustainable AbujaDevelopment and Sher’’. atonThe ConferenceHotel from recorded7 to 11 Oct a totalober attendance 2013. The of 4,004 delegates comprising 3,810 fee-paying delegates and 194 non-fee paying delegates. The non-fee paying delegates included members of the Presidency, Council members, invited dignitaries, President’s guests, Past representatives, Resource Persons, Discussants, Chairmen Presidents,of Sessions, CommitteePast Registrar/Chief Members and Staff.Executives, ABWA The Conference was declared open by Senator (Dr) David Mark, GCON, who was represented by the Chairman, Senate Committee on Ethics and Privileges – Senator Ayo ICAN President, Alhaji Kabir Mohammed and guests cutting the Patrick Akinyelure, FCA. The Conference commenced with Conference cake religious activities. Thirteen (13) countries were represented at this conference as follows: Benin Republic, Botswana, Cameroon, Ghana, organised at the International Conference Centre Abuja. These includeA total private of 40 organisations Exhibitors participatand Stateed governments in the exhibition which sponsored and made donations towards the Conference. The attendance at Gala-Nite was impressive as members and invited guests had King Sunny Ade (KSA), MON and his band on Committee had a D.J. on ground that thrilled delegates at the Gala stageo t entertain them. In addition to this, for the first time, the including the invited guests therefore had the choice of which Nitemusic in to the dance Executive to. hall of the Conference Centre. Participants

A raffle draw was held and two members, Mr Onoja Emmanuel EnecheKia Cerato (16461) and Kia and Rio Mr were. Hilary donated Onyenkwere by DESOPADEC Nwosu and (17589) North won the star prizes of Kia Cerato and Kia Rio respectively. The WestTelevision. Oil. Other consolation prizes won by members included splitThe unit conference Air Conditioners, was declared HP Lapt closedops, and by LPastCD (32 President, inches) Balogun Johnson Olabisi Omidiora, BSc, FCA, OON, who is also Cross-section of participants at the Annual Conference the Chairman of Body of Past Presidents of ICAN. I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 21 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

an election process in line with rule 10 of the Association`s ASSOCIATION OF ACCOUNTING Constitution and Bye Laws. Details of the results are contained in the minutes of the 2013 Annual General Meeting of the TECHNICIANS Association.

INDUCTION CEREMONY ACCOUNTING TECHNICIANS SCHEME During the year under review, two induction ceremonies WEST AFRICA (ATSWA) and 842 ATSWA graduates were admitted into the Association`s 2013 under the aegis of the Association of Accountancy Bodies membership fold of the Institute. The total membership strength were held in June and December respectively. A total of 397 in WestThe Ex Africaaminations (ABWA) took without place as any usual hitch. in Mar Fourch ABWA and Sept memberember of the Association as at December 2013 was 17836. The papers delivered during the June induction ceremony i.e. the institutes in Ghana, Liberia, Nigeria and Sierra-Leone. were “Ethics and Standards: Professional Conduct for institutes participated in the two diets of the ATSWA examination, Accounting Technicians” and “Creating & Charting a Path to place in thirty-two centres: Aba, Abakaliki, Abeokuta, Abuja, Ado- . At the December induction ceremony, two Business Success” Ekiti,In Akure,Nigeria, Awka, for the Benin Mar City,ch 2013 Calabar, diet Enugu,, the e xaminationIbadan, Ikorodu, took papers were also delivered on “Ethics and Standards Required Ilesha, Ilisan, Ilorin, Jos, Kaduna, Kano, Lagos, Lokoja, Makurdi, of an Accounting Technicians” and “Personal Development, Business Opportunities and Causes of Business Failure in Umuhia, Uyo, Warri and Yenagoa.

Small and Medium Enterprises”. Ogbomosho, Okija, Oko, Onitsha, Owerri, Port Harcourt, Sokoto,

Ado-Ekiti,In the SeptAkure,ember Awka, 2013 Benin diet, theCity, e xaminationCalabar, Enugu, took placeIbadan, in AAT ANNUAL CONFERENCE twenty-sixIkorodu, Ilesha, centr Ilisan,es in Nigeria:Ilorin, Kaduna, Aba, Abakaliki, Lagos, Ogbomosho, Abeokuta, A Okija,buja, The 18th Annual AAT Conference of the Association was held on The breakdown of candidates’ enrolment for March and Lagos. A paper on “Growing Small and Medium Enterprises: Oko, Onitsha, Owerri, Port Harcourt, Uyo, Warri and Yenagoa. ThursdayOpportunity 19 Dec forember, Accounting 2013 at Technicians”the ICAN Centr wase, Amu deliveredwo Odofin, by Albert O. Folorunsho, BSc, MSc, FCA, ADIT, Managing Consultant, SeptemberLevel examinationsMarch are 2013 as follows: September 2013 PART I 1695 Pedabo Associates Limited (Tax Audit and Advisory). PART II 1166 1244 AAT ANNUAL GENERAL MEETING 1751 The 18th Annual General Meeting of the Association was PART III 913 held on Thursday 19 December 2013 at the ICAN Centre. The meeting was held before the commencement of the AAT Annual TOTAL 3774 3747752 Conference which over 850 members attended. accordance with rule 12 of the Constitution and Bye Laws of the with outstanding performance in the March and September Five members of the Executive Committee retired in Merit, Subject and Special prizes were awarded to candidates

Association. All the five vacancies created were filled through 2013 examinations as stated below: MARCH 2013 DIET a) MERIT PRIZES

NAME EXAMINATION NUMBER REGISTRATION POSITION PART NUMBER AKINSULIRE YEWANDE OYEBUSOLA ATS/20131/10910/A 1ST PART I

OGUNDIPE MULIKAT OLUWATOYIN AT/097682 2ND PART I

ANIMASHAUN MOTUNRAYO OYINKANSOLA ATS/20131/10527/AATS/20131/10946/A AT/098714AT/098434 3RD PART I ADEDEJI OLUWASEYI SAMSON ATS/20131/20544/A AT/095439 1ST PART II

OLAWUYI TEMITOPE ARIKE ATS/20131/20589/A 2ND PART II

OYESOLA FIYINFOLUWA OYEBISI ATS/20131/20065/A AT/094859 3RD PART II AT/096927 RAZAQ-OYETOLA LATEEF TEMITOPE AT/094862 1ST PART III

AYARA OLIVES TITILAYO ATS/20131/30774/A AT/094381 2ND PART III

OLUWOLE ESTHER OLUTOKE ATS/20131/30527/A AT/095084 3RD PART III

I C A N ATS/20131/30337/A THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 22 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

b) SUBJECT PRIZES

LEVEL SUBJECT PRIZE WINNER Basic Accounting ATS/20131/10442/A AT/098950 Processes & Systems LATEEF SURAJU SAMSON Economics Chief (Dr.) R.U. Uche’s Prize UZOMA OBINNA AUSTIN ATS/20131/11452/A AT/096971 Part I Part Business Law Mrs.Otunba I.M. Abdul Osiyemi’s Lateef Prize Owoyemi’s ATS/20131/10946/A AT/098434 ANIMASHAUN MOTUNRAYO OYINKANSOLA Communication Skills Chief C.F.G. Akinwolemiwa’s Prize AKINSULIRE YEWANDE OYEBUSOLA Principles and Practice of Major-General. S.A. Owuama’s ATS/20131/10910/A AT/097682 Financial Accounting Prize N/A ATS/20131/20562/A AT/093203 Public Sector Accounting Prize AUDU SANDRA ELEOJO

Part II Part Quantitative Analysis F. B. Cardoso’s Prize EZE AUGUSTINA UGOCHI ATS/20131/20279/A AT/097505 Information Technology AyoOtunba Oni’s Ayora Prize (Dr.) Bola-Olubi’s AROWOLO AYODEJI MICHAEL ATS/20131/20437/A AT/097265 Principles of Auditing Prize OLUWOLE ESTHER OLUTOKE ATS/20131/30366/AATS/20131/30337/A AT/095084AT/092311 Cost Accounting Alhaji I.O. Sulaimon’s Prize ADEGEYE ADEOLA ADEBOWALE

Part III Part Chief U.S. Nwankwo’s Prize & Returns AYANSIJI AYANGBEMI SUNDAY Preparing Tax Computation ATS/20131/30534/AATS/20131/30207/A AT/096657AT/093209 Management D.B.O. Ogutuga’s Prize AZUBUIKE ONYEKA GIFT Chief F.K. Bajomo’s Prize Practice of Financial Accounting. It should be noted that no candidate satisfied the requirements for winning Major-General S.A. Owuama’s Prize in Principles and c) SPECIAL PRIZES ►

Level F. I. Ogunjuboun’sName Prize for best qualifying femaleExamination candidate in NumberMarch 2013 diet examination:Registration Number Part III OLUWOLE ESTHER OLUTOKE AT/095084

SEPTEMBERATS/20131/30337/A 2013 DIET a) MERIT PRIZES

NAME EXAMINATION NUMBER REGISTRATION POSITION PART NUMBER ASHADE OMOWUNMI BUSAYO ATS/20132/10683/A 1ST PART I AT/100663 2ND PART I OGUNNAIKE OYINDAMOLA MARIAM AT/099976 OLUYEMI OPEYEMI EBENEZER ATS/20132/11419/A AT/099921 3RD PART I ATS/20132/10714/A AKINSULIRE YEWANDE OYEBUSOLA 1ST PART II ATS/20132/21093/A AT/098526 2ND PART II AFOLABI ADETOUN SARAH ATS/20132/20697/A AT/097682 RD LATEEF SURAJU SAMSON ATS/20132/20325/A AT/098950 3 PART II OLAWUYI TEMITOPE ARIKE 1ST PART III ANAGHA PERPETUAL IKHIUMHEN ATS/20132/30429/A AT/099659 2ND PART III ATS/20132/30587/A AT/096927 AKINSOLA IREMIDE GABRIEL 3RD PART III

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTSATS/20132/30167/A OF NIGERIA AT/092837 23 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

b) SUBJECT PRIZES

LEVEL SUBJECT PRIZE WINNER Basic Accounting Processes & Systems ASHADE OMOWUNMI BUSAYO ATS/20132/10683/A AT/099976 Chief (Dr.) R.U. Uche’s Prize Economics ASHADE OMOWUNMI BUSAYO ATS/20132/10683/A AT/099976

Part I Part Mrs.Otunba I.M. Abdul Osiyemi’s Lateef Prize Owoyemi’s Business Law OGUNNAIKE OYINDAMOLA MARIAM ATS/20132/10714/A AT/100663 Chief C.F.G. Akinwolemiwa’s Communication Skills Prize N/A

Principles and Practice of Major-General. S.A. Owuama’s ATS/20132/20499/A AT/098991 Prize Financial Accounting OWOLABI PAUL ABAYOMI Public Sector Accounting N/A Prize ATS/20132/20325/A AT/098950

Part II Part Quantitative Analysis F. B. Cardoso’s Prize LATEEF SURAJU SAMSON AyoOtunba Oni’s Ayora Prize (Dr.) Bola-Olubi’s ATS/20132/20325/A AT/098950 Information Technology LATEEF SURAJU SAMSON

Principles of Auditing Prize NWAKA GRACE ATS/20132/30270/A AT/097425 Alhaji I.O. Sulaimon’s Prize ATS/20132/30645/A AT/096964 Cost Accounting TAIWO SEMIU OLALEKAN Chief U.S. Nwankwo’s Prize Part III Part & Returns ARCHIBONG IMOH CYRIL Preparing Tax Computation ATS/20132/30129/A AT/088473 D.B.O. Ogutuga’s Prize ATS/20132/30316/A AT/095439 Management ADEDEJI OLUWASEYI SAMSON Chief F.K. Bajomo’s Prize

It should be noted that no candidates satisfied the requirements for winning Chief C.F.G. Akinwolemiwa’s Prize in Communication Skills and F.B. Cardoso’s Prize in Public Sector Accounting. c) SPECIAL PRIZES ► F. I. Ogunjuboun’s prize for the “Best Qualifying Female Candidate” in September 2013 diet Examination: Name Examination Number Registration Number

OLAWUYI TEMITOPE ARIKE

ATS/20132/30587/A AT/096927 ►

Name Princess A.A. Adeniran’s Prize for the ‘‘Best QualifyingExamination Female Number Candidate” for the year: Registration Number

OLAWUYI TEMITOPE ARIKE

ATS/20132/30587/A AT/096927 ► ‘‘Best Qualifying Male Candidate” for the year:

Name Alhaja (Mrs.) Shakirat Adepeju Babatunde’s PrizeExamination for the Number Registration Number

AKINSOLA IREMIDE GABRIEL

I C A N ATS/20132/30167/A AT/092837 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 24 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

are delivered with modern training equipments. A faculty of MEMBERS’ EDUCATION distinguished and erudite professionals drawn from industry, AND TRAINING COMMITTEE practice and academia facilitates at all seminars. REPORT REVIEW OF 2013 ACTIVITIES The Members’ Education and Training Committee is responsible for implementing the Institute’s policy on Mandatory INSTITUTE’S ORGANISED SEMINARS Continuing Professional Education (MCPE) and other training AND WORKSHOPS services to meet the professional development need of members, workshops during the period under review in the following The MCPE provides major spring boards for economic (16)The locations Committ acrossee conduct the country:ed fifty Abuja,-five Asaba,(55) seminarsAkure, Benin- and aempowerment requirement ofof IFAC members and other of theaffiliated Institute. Institutions. It is a veritable City, Calabar, Enugu, Ibadan, Ilorin, Kano, Kaduna, Lagos, Owerri, source of information and education for updating, improving and These seminars recorded Port-Harcourt, Uyo, Jos and Warri. high attendance. In addition to the regular MCPE, workshops were held under

respectively, while in-house the seminars Executive were MCPE conducted and CPE in several organisations during this period.

OFFSHORE TRAINING PROGRAMME The committee held

Professional Education Cross-section of participants at the 2013 Executive CPE programme held at Sheraton Hotel, Banjul, Gambia an (ECPE) Ex Programmeecutive Continuous in Banjul, Gambia from May 5-10, enhancing the knowledge and professional skills of members. As 2013. The theme of the programme was “From Nationalism a professional body dedicated to best practices in management to Globalisation: Repositioning the Accountant for Strategic and value creation, the Institute has continuously improved Advantage”. on skills development, while innovations are on-going to give members the leading edge in the various sectors of the global economy where they function. ACCREDITATION OF SEMINARS/WORKSHOPS ● MCPE helps members identify areas of development In the period, the Committee accredited (60) workshops The principalwhich are benefits relevant of to the and MCPE support are theiras follows: careers. organised by District Societies, and other organisations. A total of ● Provide effective skill renewal through continuous formal training. Provide the avenue for continuous update of technical ● thirteenin-house thousand, MCPE and one conferences, hundred and while seven thirteen participants thousand, (13,107) four skills of Chartered Accountants. were in attendance at the MCPE, CPE, EMCPE, Topic specific, ● under unstructured programmes. responsiveness of members. hundred and twenty-six (13,426) members were accredited ● EnhanceRe-assure the employers productivity, and theefficiency public andthat socialmembers keep (26,533) members actively participated in the Institute’s themselves abreast of current developments and trainingIn all, programmes twenty-six withinthousand the fiperiodve hundr undered review.and thirty-three employ an ethical approach to their duties. ● Offer a measurable and transparent approach to Members development. MCPE COMPLIANCE AND SANCTIONS ● Provide members with an accessible range of services The Institute commenced the implementation of sanctions

● Provide members with veritable networking Council. Such sanctions include: opportunities. that will help them maintain and develop their expertise. for ●members deficient in MCPE requirements as approved by and graduate members for induction into membership generate in-depth, highly interactive and practical sessions to Sponsorshipof the Institut ofe. students for registration, exemptions caterTo forsustain members’ these professionalbenefits, each needs. course has been designed to ● Elevation to Fellowship status. The scope and depth of coverage of seminars in all the ● Obtaining and renewal of practicing license, and sectors have been enhanced to add value to them. Members Membership of Committees. are encouraged through syndicate sessions to effectively ● Contesting or nominating members for Council District Society. contributeI C A N and exchange ideas, express opinions and share real elections and occupying any executive position in a life experiencesTHE INSTITUTE in all seminars OF CHARTERED and workshops. ACCOUNTANTS All programmes OF NIGERIA 25 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

TECHNICAL, RESEARCH current Presidential Year towards the production of 6th Edition AND PUBLIC POLICY ofacross IJAF arethe atcountry various. Treviewwenty-five stages. (25) articles received in the The Committee pursued with great vigour its responsibility of encouraging research into Accounting, Finance and related COMMENTARIES ON EXPOSURE DRAFTS as positively impact the quality of services that chartered IESBA AND IAASB. These are: accountants render to their numerous stakeholders. The committee made technical comments on some exposure issues in order to expand the frontiers of knowledge as well drafts.1) TheMeasur exposureement dr ofafts Assets are andfrom Liabilities IPSASB, IA inSB, Financial FRC, IAESB, Statements submitted on 20/3/2013. 2) Elements and Recognition in Financial Statements TECHNICAL HELP DESK submitted on 20/3/2013. As part of efforts to further enhance service delivery to its 3) IAS 16 and 38 on Acceptable Methods of Depreciation and Amortisation of Intangible Assets and Depreciation of Assets from IASB submitted on 19/3/2013. members,Directorate. specifically on technical matters, the Institute has put 4) Recoverable Amount Disclosures for Non-Financial in placeTerms a TECHNof Reference:ICAL HELP DESK in the Research and Technical Assets (Proposed amendments to IAS 36) from IASB ● submitted on 19/3/2013. on technical matters. 5) Equity Method: Share of Other Net Asset Changes Enhance service delivery to its members, specifically (Proposed amendments to IAS 28) from IASB submitted ● Provide appropriate responses to members’ technical on 19/3/2013.

Amendments to IFRS 9 submitted on 28/3/2013. pr enquiriesovisions, in requirements all aspects of ofthe standards, profession etc) (audit, tax, 6) Proposed Classification and Measurement: Limited financial reporting, business mergers, regulatory and its Associate or Joint Venture: Proposed ● Respond to all enquiries within 48 hours. 7) Saleamendments or Contribution to IFRS of10 Assets and IAS between 28 submitted an Investor on 23/4/2013. ● Availability of the technical hotline during the 8) Acquisition of an Interest in a Joint Operation: weekends, public holidays and after the close of work Proposed amendments to IFRS 11 submitted on each day. 23/4/2013. The Committee established a framework for responding 9) Good Governance in the Public Sector – Consultation to technical enquiries including generating sets of frequently Draft for an International Framework submitted asked questions (FAQs) to further sensitise members on this initiative. 10) IAESB’s 2014 – 2016 Strategy and Work Plan was on 17/9/2013. 11) Reporting on Audited Financial Statements: Proposed RESEARCH GRANTS submittedNew and R onevised 17/9/2013. International Standards on Auditing During the year, the Committee considered and recommended (ISAs) submitted on 21/11/2013. to the Council for approval, requests for research grants received 12) Reporting on Audited Financial Statements: Proposed from researchers drawn from both academia and industry. New and Revised 13) International Standards on Thirteen (13) applications were received for PhD grants during Auditing (ISAs) submitted on 21/11/2013. the current Presidential Year. Three (3) of the proposals were 13) First-Time Adoption of Accrual Basis International successful and payment of the 1st (6) of the proposals were rejected after due scrutiny while four Draft 53 submitted on 14/02/2014. (4) proposals are undergoing review. instalment has been made. Six Public Sector Accounting Standards (IPSASs): Exposure Financial Statements submitted on 28/02/2014. 14) Commentaries’ on Exposure Draft 48 on Separate ENDOWMENT OF PROFESSORIAL CHAIRS Investments in Associates and Joint Ventures The Committee revisited this initiative, which was designed 15) Commentariessubmitted on 28/02/2014. on the Exposure Draft 50 on to increase capacity building in tertiary institutions particularly Disclosure of Interests in Other Entities submitted three chairs endowed in various Universities, the Committee 16) Commentarieson 28/02/2014. on the Exposure Draft 52 on in has the urged area ofthe A ccountancy.Council to revisitAlthoug theh eff initiativeorts are stillbecause on to fillof the prohibitive cost of meeting the needs of the professorial chairs. In addition to the above, the Committee actively participated The Council had resolved that Professorial Chair in the University of Lagos (UNILAG) be converted to an ICAN Lecture Theatre. A Assembly: Prototype and Bills of Quantity were submitted to UNILAG for in 1) the fPollowingetroleum Public Industry Hearings Bill (PIB). conduct ed by the National further action. 2) Benchmark price for Petroleum Products. 3) National Code of Corporate Governance. 4) Memorandum on Nigeria construction industry for RESEARCH JOURNAL local content plan bill 2012. The Institute continues to produce its ICAN Journal of 5) Memorandum on bill to amend the Nigeria Oil and Accounting and Finance (IJAF). While the 5th edition was Gas Industry Content Development Act, 2010. successfully produced and sold at the last Annual Accountants’ Conference, some were distributed to all tertiary institutions

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 26 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

PROFESSIONAL PRACTICE a handbook known as Guidelines for Merger of Small- and handy document is to encourage sole practitioners and members MONITORING COMMITTEE Medium-Sizedgenerally who wishAudit to Firms.merge theirThe practices,objective toof dopublishing so because this of the obvious advantages. The handbook is still on sale at both the The Professional Practice Monitoring Committee (PPMC) carried out its responsibilities as contained in its terms of reference. Below is the summary of the Committee’s activities Victoria6. UPDATEIsland and EbuteOF STATEMENTS Metta offices. OF during the period under review: MEMBERSHIP OBLIGATIONS (SMOs) The Committee submitted its 2013 SMOs action plan to the 1. PROFESSIONAL PRACTICE International Federation of Accountants (IFAC) in the second MONITORING quarter of 2013 and this was hosted on IFAC’s website. In its efforts to continue to raise the quality of services members render to their diverse clientele in line with globally 7. INSTITUTE’S ELIGIBILITY FOR BIENNIAL accepted standards, the Committee carried out the eighth, UPDATE OF ITS SMOs ACTION PLAN AND IFAC’S COMMENDATION inception of this initiative to February, 2014, a total of 229 (Two After approving the 2013 SMOs action plan of the Institute, ninth and tenth phases of practice monitoring exercise. From IFAC (having noted the Institute’s continuous commitment and the country) have been reviewed. The report on each Firm is participation in the IFAC Member Body Compliance programme) Hundred and Twenty-Nine) firms (located in different parts of decided to include our Institute, among the few that are eligible for biennial update of their action plans. The implication is that usuallyThe sentInstitute to the is firmnot rrelentingequesting in for its its efforts action toplans checkmate on how the Institute will henceforth update its SMOs once every two the weaknessesactivities of observedquacks and by theto ensure reviewers that would those be that rectified. have its years instead of every year. practice licences are actually in practice. Thus, the Committee To educate and inform members on the Statements of Membership Obligations (SMOs), the Committee ensured that who have practice licences but are either not practising or are the Institute’s eligibility for biennial update of its SMOs action through no longer pr inactice practice. monit Consequently,oring exercise, they identified were directed some members to return plan and the IFAC’s commendation of the Institute thereof was their practising licences to the Institute for safekeeping pending published in The Nigerian Accountant Journal of April/June 2013 the time they would commence/resume practice. edition.

2. PUBLICATION OF NIGERIAN STANDARDS 8. PROVISION OF PRIVATE COMPANY ON AUDITING (NSAs) AUDIT SOFTWARE (PCAS) The updated NSAs which contain NSAs 1-36 in one volume As part of its efforts to raise the standard of practice of its was published in the second quarter of 2013. Many copies were members, the Institute through Professional Practice Monitoring sold during the last Annual General Meeting of the Institute and rd Committee (PPMC) is liaising with the Institute of Chartered 43 Annual Accountants’ Conference. The book is still on sale Accountants in England and Wales (ICAEW) to provide PCAS to practitioners. This software will be made available to interested It is also usually on display/sale at many of the functions of the practitioners to test run at no cost for a period of one year. The atInstitute. both Victoria Island and Ebute Metta offices of the Institute. details of members who had indicated interest have been sent to the Consultants to provide their login details. 3. PUBLICATION OF NIGERIAN STANDARD ON QUALITY CONTROL 1 (NSQC 1) 9. The updated NSQC 1 was published in the second quarter of DISTRIBUTION OF STANDARDS TO 2013. Many copies were sold during the Annual General Meeting TERTIARY INSTITUTIONS of the Institute and the 43rd Annual Accountants’ Conference. In a bid to ensure that prospective Chartered Accountants The NSQC 1 is still on sale at both Victoria Island and Ebute are adequately equipped with current materials for learning and to also encourage research in higher institutions, the Institute many functions of the Institute. through the Professional Practice Monitoring Committee (PPMC), distributed to its Accredited Tertiary Institutions, Metta of fices of the Institute. It is also usually on display/sale at recent publications of the Department. The materials 4. GUIDE TO PRACTICE MANAGEMENT FOR distributed include: Nigeria Standards on Auditing (NSAs) and SMALL- AND MEDIUM-SIZED PRACTICES Nigeria Standard on Quality Control (NSQC1). In response to The Institute, through the PPMC, published Guide to Practice for the donation and pledged to use the books for their intended second quarter of 2013. The objective is to assist our members in this purpose. gesture, the schools expressed appreciation to the Institute Management for Small- and Medium-Sized Practices in the Many copies were sold during the Annual General Meeting of the 10. AUDIT QUALITY MONITORING practiceoInstitute tand run the viable 43rd Annual and financiall Accountants’y rewarding Conference. audit prTheactices. book TRAINING In its resolve to empower the Professional Practice Monitoring of the Institute. It is also usually on display/sale at most of the Department (PPMD) to carry out its function of Practice Review, isfunctions still on ofsale the at Institute. both Victoria Island and Ebute Metta offices the Committee liaised with ICAEW’s Consultants to organise training on Audit Quality Monitoring (AQM). The training is one 5. GUIDELINES FOR MERGER OF SMALL of the deliverables of the Twinning Project between the Institute AND MEDIUM-SIZED AUDIT FIRMS and ICAEW which is being sponsored by the World Bank. Among The Committee wishes to remind members that it published the objectives of this project is to assist the Institute build I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 27 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

capacity of its Practice Monitoring Department to effectively implementation and proffered solutions to them. The forum identified various challenges facing IFRS carry11. out AUDIT the practice PRACTICE monitoring MANUAL exercise. TRAINING 2. CONSULTING AND INFORMATION In order to ensure that Practitioners render quality services TECHNOLOGY FACULTY to their clients, the Committee organised train the trainers’ workshop on Audit Practice Manual (APM) for staff and CERTIFICATION PROGRAMME: The Consulting and Committee members. The training Consultants from ICAEW Information Technology Faculty held the Modules I & II of its took the participants through audit practice manual documents. The Committee is currently making arrangements to organise workshops in different parts of the country to sensitise certificationthe practical prsessionsogramme are fr awaitingom Mar chVIVA. 18-20, The 2014.programme Twenty- is practitioners on the importance of Audit Practice Manuals and fourdesigned members to equip who participantshave complet withed the current first f ourdevelopments modules and in Consulting practices and information technology as well as improve on the quality of services they render to their clients. upskill chartered accountants desirous of becoming specialist alsoo t assist firms to build capacity that will enable them to or retiring into consulting, the programme covers every 12. TCI AND ACCREDITATION OF CENTRES aspect of the consulting jobs and relevant areas of information The Technology Competence Initiative (TCI) designed by the technology. Institute to enable members become Information Technology MEMBERS’ FORUM: A non-fee paying members’ forum will previous years, the number of members who registered for the (IT)programme – complian has tcontinued has continued to increase to wax as str hasonger. the Liknumbere in the of on “How to Introduce Innovation Through IT Applications” members who have successfully completed various levels of the byhold Mr. in DoyinJune, 2014.Talabi, T CEOwo papers of Datalink are e xpectedAssociates to beLimited delivered and programme. Additional centres have been accredited during the “Managing your Health and Business – Medical Tips” by Mrs period bringing the total number of accredited centres across Medical Research, Yaba, Lagos. Members will also be given free tirelessly to ensure that the accredited centres are well spread Odunukwe,medical check-up a Consultant by the H medicalermatologist team. at Other Nigerian sessions Institut of ethe of theacross country the country to forty-seven for easy (47). access The to Committ prospectiveee is alsomembers working or students. year. forum will take place in Abuja and Port Harcourt later in the 3. CORPORATE FINANCE MANAGEMENT FACULTY The Faculty in response to the adoption of International REPORT OF THE FACULTIES Financial Reporting Standards and the need for capacity building

1. AUDIT, INVESTIGATIONS AND FORENSIC ACCOUNTING FACULTY continued the IFRS certification training for members in Lagos, Owerri, Port Harcourt, and Abuja. A colourful ceremony for (a) FORENSIC CERTIFICATION TRAINING the award of certificate of proficiency in IFRS was held for 52 PROGRAMME membersCFO’S on FORUM April 2, – 2014 A at Lagos airport Hotel, Ikeja. on challenges they encounter in the discharge of their duties will hold in June 2014. forum for Chief Financial Officers (CFOs) (123)The members Forensic activelyAccounting participated Certification in the Pr programme.ogramme took place in LagosThe fourth and A editionbuja. A oftotal the of Moot One CourtHundr sessioned and twwhichenty isthr theee CERTIFICATION PROGRAMME – Corporate organisations practical aspect of the programme was held at ICAN Council SEC were to be contacted for their inputs into the proposed participants to simulated court scenarios and groomed them to such as Nigeria Stock Exchange (NSE), NAICOM, CBN, PENCOM, Chamber on Monday, December 2, 2013. The session exposed robust curriculum that would meet the needs and yearnings certificationof a large spectrum programme of professionals of the faculty, in in the or dercorporate to produce world. a become Expert Witnesses. Faculty Board members and management staff of the Institute Qualifying examinations were held in June and December had already visited NSE and NAICOM has shown interest in 2013 for candidates that completed the six-module programme. collaborating with the Institute. Successfulinduction ceremony candidat gracedes w ereby the a warded49th President Certified of the InstituteForensic Accountant of Nigeria (CFAN) qualifications at a colourful 4. PUBLIC FINANCE MANAGEMENT at Lagos Airport Hotel, Ikeja on April 2, 2014. To date, the FACULTY Institute(b) FORUMhas produced OF FIRMS 365 Certified Forensic Accountants. The Faculty has been sensitising members and key players in The 2014 edition of the Forum of Firms was held on January the public sector on the adoption of International Public Sector Accounting Standards (IPSASs). The Faculty is also partnering “IFRS IMPLEMENTATION – THE JOURNEY SO FAR”. Two papers 28, 2014 at Lagos Airport Hotel, Ikeja. The theme of the forum is on capacity building for members and other stakeholders on withIPSASs. offices In line of Awithccountants-General its capacity building at stat mandate,es and f ederalthe Faculty level were delivered reflecting the perspectives of the Regulators and Auditors.the viewpoint The Exofecutive the regulators Secretary/CEO while Mr.of FinancialUwadiae ROduware,eporting organised a free IPSAS seminar for members on the topics: CouncilFCA a Partner of Nigeri witha, Mr .Akintola Jim Obazee, Williams FCA made Deloitte a presentation spoke for fr theom onFinal Thursda Accountsy, Mar (Chartsch 27, of 2014Accounts) at Lagos under Airport IPSAS Handotel, Budget Ikeja operators. A total of 951 members and other stakeholders were preparation under IPSAS. in attendance at the programme. Other sessions of the seminar will come up in Abuja, Calabar I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 28 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE and Kaduna later in the year. STUDENTS’ AFFAIRS 5. TAXATION AND FISCAL POLICY MANAGEMENT FACULTY REGISTRATION/EXEMPTION 8,140) students were registered during the year under review. This Taxation and Fiscal Policy Management in line with“Tax its A total of Eight Thousand, One Hundred and Forty ( Implicationscapacity building of IFRSmandat Adoption”.e organised The a seminarpaper was on Junepresented 27, 2013 by Mr.in P Taiwoort Har Oyedele,court for FCA members (Partner, and PWC) other and stakdiscussedeholders by Mr.on Tunji (brings 193,251) the tasotal at numberDecember of 2013.registered students to One Hundred Olabode, FCA (Assistant Director, FIRS) and Mr. Sabitu Ibikunle, and Ninety-Three Thousand, Two Hundred and Fifty(6,324)-One FCA (former Senior Manager, Akintola Williams Deloitte). students Also, on Monday December 9, 2013, a three-in-one seminar Six Thousand, Three Hundred and Twenty-Four “Tax were exempted3,036) students from various were le alsovels ofregistered the Professional for the Implications of IFRS Adoption for SMEs” by Mr. Yomi AccountingExaminations Technicians from January Scheme to December West Africa 2013. (ATSWA)Three Thousand in the Olugbenro,was held at FCA Lagos (Partner, Airport Akintola Hotel, Williams Ikeja on Deloitte) the topics: and “Post sameand Thirty year -Sixbringing ( the total number of registered ATSWA Implementation Challenges of IFRS” by Mr. Taiwo Oyedele, FCA (Partner, PWC) and “Deferred Taxation” by Mr. Sunday (102,365). Bammeke, FCA (Council member and Faculty’s Vice-Chairman). studentso t One Hundr ed and T wo Thousand, Thr ee Hundr ed A total of Seventy-Eight members and other stakeholders were and Sixty-Five in attendance. ACCREDITATION Thirteen (13) Universities, Eight (8) Polytechnics which met later in the year. Transfer pricing and social service seminars the required educational standard of the Institute were accorded in collaborationThe seminar withwill beLagos repeated State Internalin Abuja Revenue and Port Service Harcourt and Federal Inland Revenue Service will come up in third and fourth Centres were granted recognition as approved training centres quarter of the year. full accreditation status during the year while Seven (7) Tuition The Faculty also released the third quarter edition of its bulletin in November 2013. The bulletin focused on two recently for UNIVERSITIESthe Institute’s Examination. The Institutions are: 1. Ajayi Crowther University, Oyo, Oyo State. 2. Bingham University, Karu, Nasarawa State. decided6. taxINSOLVENCY cases for members’ AND education CORPORATE and information. 3. Ekiti State University, Ado-Ekiti, Ekiti State. RE-ENGINEERING FACULTY 4. Godffrey Okoye University, Enugu, Enugu State. 5. Kaduna State University, Kaduna, Kaduna State. CERTIFICATION PROGRAMME: 6. Kwara State University, Malete, Ilorin, Kwara State. Lagos State University, Ojo, Lagos State. The Faculty’s certification 8. Redeemer’s University, Mowe, Ogun State. programme Modules I & II took place on September 17 & 18, 7. 9. University of Jos, Jos, Plateau State. 2013MEMBERS’ at ICAN Annex FORUM: Office, AsEbute-Metta, part of its Lagos. activities to increase 10. University of Mkar, Gboko, Benue State. membership of the Faculty, a non-fee paying seminar for 11. Veritas University, Obigho, Abia State. members of the faculty and other stakeholders on the topic 12. Wesley University of Science & Technology, Ondo, Ondo State. “Business Recovery Versus Business Liquidation in Economic 13. Afe Babalola University, Ado-Ekiti, Ekiti State. Development of an Emerging Market” by MD/CEO of Standard Chartered Bank, Mrs Bola Adesola, LLB, BL was held on Tuesday, POLYTECHNICS A total of 398 members and other stakeholders were in 1. Allover Polytechnic, Ota, Ogun State. Novemberattendance 5, at 2013 the seminar. at Lagos Airport Hotel, Ikeja. 2. Benue State Polytechnic, Ugbokolo, Benue State. 3. Federal Polytechnic, Bauchi, Bauchi State. 4. Grace Polytechnic, Surulere, Lagos, Lagos State. 5. Institute of Management and Technology, Enugu, Enugu State. 6. Jigawa State Polytechnic, Dutse, Jigawa State. Osun State Polytechnic, Iree, Osun State. 8. Delta State Polytechnic, Ogwashi-Uku, Delta State. 7. TUITION CENTRES 1. Federal Capital Territory. 2. GalaxySafe Associates Professional Limited, Tutor Surulere, and Consultant, Lagos State. Abuja, 3. Plum Academic Limited, Abule-Egba, Lagos State. 4. Squad Associates, Ogba, Ikeja, Lagos State. 5. Posse Associates, Enugu, Enugu State. 6.

Excel Professional Tutors, Lagos State. Alhaji Kabir Mohammed with Mr. Emmanuel Ijewere during ICAN SCHOLARSHIP SCHEME his official visit to Ijewere & Co. The Institute has put in place a strategy which will make I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 29 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

Accountancy Profession more attractive to the brightest youths from all Universities and Polytechnics. The Council of the Institute has observed with great pleasure that many brilliant students and graduates of tertiary institutions are desirous of becoming Chartered Accountants even when they did not offer Accounting/Accountancy as their main course of study. The Scheme covers

A total of Twenty-Seven (27 Examinationfrom the scholarship fees, Tuition programme fees and Study by Packs.sitting for ) students benefitted May and November 2013. various Detailed levels information of the Pr ofessionalon the SchemeExamination for allin from the Institute’s website. interested and qualified students can be obtained CATCH THEM YOUNG PROGRAMME The “Catch Them Young” Programme is an Alhaji Kabir Mohammed with some members of the Governing Council and initiative designed to attract young students of students at the Catch-Them-Young program at Owerri Secondary Schools to boost the candidature of Accounting course of the year, approved a free training programme on IPSAS Technicians’ Scheme West Africa (ATSWA) and eventually, the and IFRS for them under the aegis of the Institute’s Members’ Education and Training department. focuses on building continuous, relevant and purposeful Professionalrelationship inEx Secondaryaminations Schools. of the It isInstitut also ane. avenue The Pr toogramme increase REVIEW OF AGREEMENTS WITH sensitisation activities. It is a programme that has the strategy STAKEHOLDERS The Institute is on the verge of concluding the review of the theof “catching studentship them of theyoung” ATSWA and thr endearingough extensive them a warenesstowards andthe accountancy as their choice profession. agreement with one of its major stakeholders on the project - The Institute in collaboration with ICAN Ikorodu District New Nigeria Development Company (NNDC) Ltd. The earlier

agreement expired in November 2011. SocietyEight ( 558)in January students 2014 inflagged attendance. off the maidenSimilar editionprogrammes of the NEW CENTRES programme, with a total number of Five Hundred and Fifty- The Institute is planning to bring Accounting Technicians 233) number of students Scheme (West Africa) aboard the SSP programme and to establish were organised in Port Harcourt and271) Owerri in the month of more study centres. In the course of the year, Council approved Februaryin attendance 2014 respectively. and had Two This Hundr programmeed and Thirty has also-Three been ( held in Abakaliki, Kano and Lagos in the month of March, 2014. the establishment of centres in Gombe State, Sokoto State, Kebbi and Two Hundred and Seventy-One ( State and Jigawa State. The Institute is also collaborating with NNDC to seek partnership with other interested Stakeholders, State Governments, Parastatals, Corporate Organisations and STUDENTS’ SPECIAL PROJECT well-meaning individuals on the Project. OBJECTIVES CHARTERED ACCOUNTANTS PRODUCED ON The objectives of the Students’ Special Project include: A CENTRE-BY-CENTRE BASIS TO DATE « To identify areas and indigenous students of following number of Chartered Accountants were produced on « a centre-by-centreAs at the end of basis: the November 2013 Diet Examinations, the educationally less developed parts of the country; ­« « To facilitateexpand studentship establishment in educationally of standard tuition less developed centres from inception in 2008. parts of the country; « Kano Centre has produced 176 Chartered Accountants « To create awareness in these areas about the availability in these areas; « Kaduna Centre has produced 179 Chartered Accountants « To encourage States, Local Governments, Private- and fromfrom inception in 2008.2007. ofPublic such Sect a scheme;or-Institutions to provide facilities for « Ilorin Centre has produced 127 Chartered Accountants standard tuition centres, grant scholarships, bursary from inception in 2008. awards and other assistance to deserving indigenous « Calabar Centre has produced 78 Chartered Accountants students in educationally less developed areas of the

Bayelsa Centre has produced 72 Chartered Accountants « To encourage and assist indigenous students in from inception in 2007. country;educationall andy less developed parts of the country to CAPACITY BUILDING As a way of building capacity among resident lecturers in producing a desirable number of Chartered Accountants the different centres of the SSP and ensuring they are abreast takethere the from. Institute’s Examinations with a view to rapidly of current developments in the profession, the Council, in the In the last twelve years, the SSP Committee anchoring the

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 30 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

project, which comprises members from all parts of the country, TUITION HOUSES has worked assiduously towards attaining the foregoing Four tuition houses listed below were initially engaged to objectives. provide tuition for students who registered for the programme alongside the resident lecturers through a sit-in arrangement: CURRENT PARTNERS ON THE PROJECT « Safe Associates Ltd. – Bayelsa Centre « New Nigeria Development Company Ltd.: Three centres « Wyse Associates Ltd. – Kaduna Centre in the NNDC owned states are NNDC/ICAN Study Centre, « Students’ PYE Nig. Ltd. – Kano and Calabar Centres. « Achievers Professional Training Group – Ilorin Centre. NNDC/ICAN Study Centre, Ilorin. « The Kaduna; Bayelsa NNDC/ICAN State Government Study Centre, – BYSG/ICAN Kano; and Study Centre, Bayelsa. 2011 and resident Lectures have since been anchoring all the « The Cross River State Government – CRSG/ICAN Study CentresHowever, as a waytheir of contr developingacts expired the local at lecturersthe end ofand No reducingvember the cost of running the programme. The centres are being the Cross River State Government in February 2013 by monitored by members of the District Societies in the states Centre,the 48th CalabarPresident (which of ICAN, was Mr. officially Adedoyin handed Owolabi, over to where they are established in conjunction with the Centre MBA, FCA). Coordinators.

PROFESSIONAL EXAMINATIONS

The Professional Examinations took place in May and November 2013 with 15,368 and 15,179 candidates, respectively. They were conducted in thirty-three centres in various parts of Nigeria; one centre each in Cameroon and London. The information technology deployment to the examination process was enhanced. The effect was tremendous. TheLevel breakdown of Examinations of the candidates for both examinations is stated below: - May 2013 November 2013 FOUNDATION 1,194 1,106 INTERMEDIATE 2,004 2,181 PROFESSIONAL EXAMINATION LEVEL I 8,802 8,361 PROFESSIONAL EXAMINATION LEVEL II 3,368 3,531 TOTAL 15,368 15,179

MARCH 2013 DIET a) MERIT PRIZES

FOUNDATION

Name Examination No. Registration No. Award OLUKOYA AYODEJI JOHN 20131/001050/F/A 188492 1st ONAFESO OLATUNDE SEUN 20131/001064/F/A 2nd 20131/000885/F/A 188288 3rd ELETA VALENTINE OSHOTSE 187988 AMANZE PAUL IHEANACHO 20131/000838/F/A 185536

INTERMEDIATE

Name Examination No. Registration No. Award ONYIA KENECHI MADUKHE 1st 20131/101681/P/A 2nd OLADELE OLUKEMI OMOWUMI 20131/101757/P/A 176804 ORIZU DABELUCHUKWU IFEOMA 176777 20131/100196/P/A 3rd IBILOYE AYOOLUWA ELIZABETH 20131/101770/P/A 176805 I C A N 183037 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 31 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

PROFESSIONAL LEVEL I

Name Examination No. Registration No. Award ADEDOKUN TOSIN AUGUSTINA 20131/200198/Q/A 1st NIL NIL NIL 2nd 182726 NIL NIL NIL 3rd

PROFESSIONAL LEVEL II

Name Examination No. Registration No. Award SANNI MATINI AYOTUNDE 20131/300252/V/A 1st USIDAMEN ISRAEL IRIAOWUHAN 20131/301956/V/A 2nd 170561 ALADE-YUSUFF ABDUL-FAHD ADEBAYO 20131/301021/V/A 3rd 179823 176612 b) SUBJECT PRIZES

Level Subject Prize Winner FOUNDATION Fundamentals of Financial Sir John A. Balogun NIL Accounting Corporate & Business Law I.O. Sulaimon 20131/001050/F/A 188492 Princess A.A. Adeniran OLUKOYA AYODEJI JOHN Economics & Business M.B. Taiwo NIL Environment J.A. Owoseni INTERMEDIATE Costing & Quantitative Prof. M.A. Adeyemo NIL Techniques Mr. M. Ayo Oni Z.O. Ososanya BALOGUN TOZAYE CHRISTINE AuditingTaxation and Assurance N.L. Westgarth NIL20131/101390/P/A 177737 Business Comm. and Sir Ike Nwokolo NIL Research Methodology PE I Information Technology Chief E.F. Oke AIGBUGUI CELLA ATSOSIME Management Accounting G.J. Burk NIL20131/206579/Q/A 186322 Financial Accounting S.B. Baylis-Smith NIL Advanced Audit and Assurance J.M.T. Morris & KPMG NIL PE II Public Sector Accounting Balogun J.O. Omidiora 20131/302063/V/A 181863 & Finance IDIENUMAH JOY UTANA Financial Reporting and Arthur Young, NIL Ethics Osindero & Moret Strategic Financial Management Bola Kuforiji-Olubi NIL Elder M.E. Daniels Akintola Williams & Co. 20131/301520/V/A 163303 Olushola Adekanola OGBU ANTHONIA NNEDINSO Advanced Taxation I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 32 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

c) SPECIAL PRIZES ►

Level SWAN Prize forName the best qualifying female candidate for the diet:Examination Number Registration Number

PE II ISIMEKHAI OSHOKHAMELU ZEENAT 20131/302068/V/A 148648

► for the best qualifying candidate in a diet:

Level Akintola WilliamsName Deloitte and Touche Prize Examination Number Registration Number

PE II SANNI MATINI AYOTUNDE 20131/300252/V/A

170561

NOVEMBER 2013 DIET a) MERIT PRIZES FOUNDATION

Name Examination No. Registration No. Award AWE FUNMILAYO OPEMIPO 1st 192861 2nd AGBOOLA ABISOLA OLAYEMI 20132/000789/F/A 191774 20132/001024/F/A 192698 3rd UMORU ANNA ILUOBE 20132/000748/F/A

INTERMEDIATE

Name Examination No. Registration No. Award AYADI WURAOLA FEYISARA 20132/101501/P/A 181146 1st NIL NIL NIL 2nd NIL NIL NIL 3rd

PROFESSIONAL LEVEL I

Name Examination No. Registration No. Award ADEGBOLA TITILOPE OLASUNBO 20132/205043/Q/A 188523 1st ADESEYE MUQEET ADEDOLAPO 188395 2nd 188535 3rd ADISA OLUGBENGA MICHAEL 20132/203720/Q/A AYINDE IDRIS ADEWOLE 188560 20132/203751/Q/A 20132/208157/Q/A PROFESSIONAL LEVEL II

Name Examination No. Registration No. Award ALIMI KAZEEM ADEKUNLE 1st 20132/300066/V/A 2nd ADEDOKUN TOSIN AUGUSTINA 20132/302703/V/A 173314 20132/301459/V/A 3rd OKENESI TOCHI-NZE PRINCE 182726 I C A N 184317 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 33 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

b) SUBJECT PRIZES

Level Subject Prize Winner FOUNDATION Fundamentals of Financial Sir John A. Balogun 20132/001024/F/A 192698 Accounting UMORU ANNA ILUOBE Corporate & Business Law I.O. Sulaimon Princess A.A. Adeniran AWE FUNMILAYO OPEMIPO Economics & Business M.B. Taiwo NIL20132/000789/F/A 191774 Environment J.A. Owoseni INTERMEDIATE Costing & Quantitative Prof. M.A. Adeyemo 20132/101501/P/A 181146 Techniques Mr. M. Ayo Oni AYADI WURAOLA FEYISARA Z.O. Ososanya NIL Auditing and Assurance N.L. Westgarth NIL Taxation Business Comm. and Sir Ike Nwokolo NIL Research Methodology PE I Information Technology Chief E.F. Oke 20132/205043/Q/A 188523 ADEGBOLA TITILOPE OLASUNBO

OLOGUN OLUWASEUN ENITAN Management Accounting G.J. Burk 20132/205043/Q/A20132/204711/Q/A 188523186929 ADEGBOLA TITILOPE OLASUNBO Financial Accounting S.B. Baylis-Smith 20132/205043/Q/A 188523 ADEGBOLA TITILOPE OLASUNBO Advanced Audit and Assurance J.M.T. Morris & KPMG NIL PE II Public Sector Accounting Balogun J.O. Omidiora & Finance ALIMI KAZEEM ADEKUNLE Financial Reporting and Arthur Young, NIL20132/302703/V/A 173314 Ethics Osindero & Moret Strategic Financial Management Bola Kuforiji-Olubi Elder M.E. Daniels OKENESI TOCHI-NZE PRINCE Akintola Williams & Co. 20132/301459/V/ANIL 184317 Olushola Adekanola Advanced Taxation c) SPECIAL PRIZES ►

Level SWAN Prize forName the best qualifying female candidate for the diet:Examination Number Registration Number PE II ADEDOKUN TOSIN AUGUSTINA 20132/300066/V/A

182726 ► for the best qualifying candidate in a diet:

Level Akintola WilliamsName Deloitte and Touche Prize Examination Number Registration Number PE II ALIMI KAZEEM ADEKUNLE

20132/302703/V/A 173314 ► for the best qualifying candidate in a year:

Level Akintola WilliamsName Prize Examination Number Registration Number PE II ALIMI KAZEEM ADEKUNLE

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 20132/302703/V/A 173314 34 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

against the Tribunal’s judgement, 13 years after the Tribunal LEGAL MATTERS judgement, was informed that his application was incompetent as he did not follow the proper procedure to seek for leave. 1. INVESTIGATING PANEL « Between July 2013 and February 2014, the Investigating earlier struck off from the Register of members of the Institute Panel considered a total of forty-nine (49) cases. A member and ex-staff of the Institute, whose name was compassionate grounds. in 20« 07,A memberwas relisted who upon was referred her application to the Tribunal for re-enlistment for disrespect on a) PENDING CASES to the Investigating Panel applied that the matter be referred The Investigating Panel is currently considering thirty-three back to the Panel for want of fair hearing. The application was (33) cases of alleged Professional Misconduct. granted as there was no objection from the Tribunal Prosecutor.

● Misappropriation of Funds — 11 The● Appointment nature of the ofcases new are auditor briefly classified as— follows: 5 ● Financial Dispute — 4 3. STUDENTS’ INVESTIGATING COMMITTEE ● Defective report — 2 Between July 2013 and February 2014, the Students’ ● Unethical Conduct as an employee — 11 Investigating Committee considered a total of ten (10) cases.

Total = 33 a) PENDING CASES The Students’ Investigating Committee is currently considering ten (10) cases.

b) CASES REFERRED FROM THE ● Alleged unethical conduct as an employee — 3 The● Petition nature of for the review cases of are the briefly accreditation classified as follows: INVESTIGATING PANEL TO THE granted an institution — 1 DISCIPLINARY TRIBUNAL ● Alleged misappropriation of funds — 5 The Investigating Panel referred two (2) cases of alleged ● — 1 Professional Misconduct to the Disciplinary Tribunal for adjudication. AllegationTotal of examination malpractice = 10

c) CONCLUDED CASES The Panel concluded fourteen (14) cases as follows: 4. AAT INVESTIGATING COMMITTEE ● — 5 Between July 2013 and February 2014, the AAT Investigating ● Change of Auditors without clearance — 2 Committee considered one (1) case pending before it. ● AllegedFinancial financial dispute impropriety — 2 Unethical conduct 4 ● — a) CONCLUDED CASE ● Defective report — 1 The AAT Investigating Committee concluded one case of alleged misappropriation of fund. There is therefore no case Total = 14 currently pending before the AAT Investigating Committee.

2. DISCIPLINARY TRIBUNAL The Accountants’ Disciplinary Tribunal considered a total of Twenty (20) cases of alleged professional misconduct between July 2013 and February 2014. The cases are as follows:

a) PENDING CASES stages of hearing, which have not been concluded. Theree ar seventeen (17) cases presently pending at various ● Unethical conduct — 4 The● Defective cases are Reportclassified as follows: — 2 ● Change of Auditor without clearance — 1 ● Misappropriation of Funds — 9 ● Financial Dispute — 1

Total = 17

b) CONCLUDED CASES The Tribunal concluded three (3) cases as follows: ICAN President, Alhaji Kabir Mohammed and his entourage with « A member who was suspended from membership of the HRM, Oba Kehinde Olugbenle, Olu of Ilaro during ICAN’s visit to Institute about 14 years ago, applied to the Tribunal for leave Ilaro and District Society

I C A N from theTHE Tribunal INSTITUTE to enable OF himCHARTERED file appeal ACCOUNTANTS at the Court of Appeal,OF NIGERIA 35 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

CORPORATE COMMUNICATION to date with their subscription payments as from January 2014. AND MARKETING ANNUAL DINNER AND MERIT AWARDS The Annual Dinner and Awards was held at Intercontinental THE INSTITUTE’S IMAGE The Institute pursued enhanced presence in the media by brought together members of the accountancy profession and ensuring publicity of all major events and activities. It also Hotel, other invitedVictoria guests Island both on fromFriday, private April and 25, public 2014. sectors The Dinner of the enhanced communication with its various publics by creating economy, to socialise and unwind. Awards were given to some active social media presence on Facebook, twitter and LinkedIn. Information to members who have paid their dues up to date was enhanced with the creation of the ICAN e-newsletter which is delivered weekly to e-mail addresses of such members and is available online. The website of the Institute was also enhanced and updated regularly with news items and other relevant information. The Publications and Image Committee (PIC) of the Institute was mandated to maintain a formidable platform for providing information to the public, members and the users of accounting services. The Committee during the year pursued this goal with passion and ensured that the Institute’s image continued to soar positively. Contributions of the ICAN President with all award recipients at the Annual Dinner & Awards Night committee are as follows:

THE INSTITUTE’S PUBLICATIONS The quarterly journals of the Institute, The Nigerian Accountant for members and the ICAN Students’ Journal as well as the Annual Report & Financial Statements and the 2014 Diary were timely produced. The soft copy of each; edition of The Nigerian Accountant, the ICAN Students’ Journal and Annual Report and Financial Statements are also available on the Institute’s website. In addition to the website, the hard copies of the journals are distributed to members who are up

ICAN President with the Special Guest of Honour, Dr. William Babatunde Fowler at the Annual Dinner outstanding individuals and corporate bodies for the impact they made on the Institute and the society in general. The recipients in the different categories were:

MEMBERS CATEGORY: 1. Chief Sir Nwosu, Ikechuckwu Justin, FCA 2. Mr. Rebo, Usman Ehwan, FCA 3. Mr. Sunmoni, David Olabanji Adewale, MBA, FCA 4. Mr. Adeleke, Isaac A., FCA

Registrar of ICAN, Rotimi Omotoso (left); Immediate Past NON-MEMBERS CATEGORY: President, Doyin Owolabi; and ICAN President, Kabir Mohammed 1. Prof. Omolehinwa, Eddy Olajide at the 2014 Annual Dinner & Awards Night 2. Eng. Ibrahim Jani, mni, FNSE, OON

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 36 2013 Annual Report & Financial Statements REPORTS of Committees of Council TO MEMBERS OF THE INSTITUTE

CORPORATE BODY: Nigerian Security Printing & Minting Plc. The awards were presented by the President of the Institute.

ELECTION INTO COUNCIL The Institute continued to harp on its call for using information technology channels to enhance communication with members. As a result, the 2014 Election to Council was conducted strictly via e-voting on the Institute’s website. Members were required to upload their e-mail addresses and GSM numbers. A profilesdedicated on pin the code ICAN was w ebsite,later sentgiving to theireach member’s e-mail/GSM through which they gained access to the voting portal. Nine vacancies were declared in Council – Four (4) Members In-Practice and Five (5) Members Not-in-Practice. Nominations were received from members and the following people were nominated for election in the ICAN President with some Past Presidents of ICAN at the Annual Dinner & Awards Night two categories:

MEMBERS IN-PRACTICE CATEGORY 1. Deacon Adeleke Solomon Oluwole FINANCE AND GENERAL 2. Mr. Ade-Odiachi Robert 3. Chief Ajomale Afolabi PURPOSES (F&GPC) 4. Mr. Akande Oluwafunminiyi 5. Mrs. Akinmoladun Bukunola Morayo ● Formulation of Investment Policy for the Institute. ● Conversion of Institute’s Financial Statements to IFRS. 6. Alhaji Jaiyeola Razak 7. 9. Mr.Mr. NwachukuOlayinka Tajudeen O. Ogwezi A. ● 8. 10. LadyMr. Onoja Okonkwo Emmanuel Ngozi EnecheMonica 11. Elder Onyenmuru Martin ● EffectiveSubstantial and growth Efficient in shortworking term Capital investments. Management. 12. Mr. Sola Oyetayo 13. Mr. Smith Oladipo Aboaba ● Strict adherence to budgetary provision. ● Increase in the sum assured on Members’ Group Life Assurance Policy to N1 million from N 14. Mallam Yahaya Haruna Nma MEMBERS NOT-IN-PRACTICE CATEGORY More Pro-active way of subscription recovery. 1. Mr. Ajileye Johnson Ojo ● 750,000.00. 2. Mr. Awobotu Adedeji Abiodun ● 3. Mrs. Babatunde Shakirat Adepeju Institute responsive to the needs of Members. 4. Mr. Coker Olugbenga Aladejobi 5. Captain Edochie Elsie Ebele (Rtd) The F&GPC is exploring other ways to making the 6. Alhaji Lasisi Saheed

8. Mr. Oderinde Joshua Okeowo 7. 9. Mr.Mr. NwannaOkwuosa Sylvester Innocent Chukwudi 11. Mr. Phillips Olutayo Ayodeji 10. Mr. Osuji Etofolam Felix

12. 14. Mr.Mrs. Raji Williams Oyebowale Josephine Rafiu Oluseyi 13. Hajia Seghosime Queensley Sofuratu The results of the Election will be announced at this AGM.

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 37 2013 Annual Report & Financial Statements FINANCIAL Statements FOR THE YEAR ENDED 31 DECEMBER 2013

39 Report of the Independent Auditor

40 Honorary Treasurer’s Report

41 Statement of Financial Position

42 Statement of Comprehensive Income

43 Statement of Cash Flows

44 Statement of Changes in Members’ Funds

46 Notes to the Financial Statements

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 38 2013 Annual Report & Financial Statements REPORT of the Independent Auditor TO THE MEMBERS OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA

Report on the Financial Statements The Institute of Chartered Accountants of Nigeria (“the Institute”). 31 December 2013 and the statements of comprehensive We have audited the accompanying financial statements of These financial statements comprise the statement of financial position as at income, changes in members’ funds and cash flows for the year then ended, and a summary of significant accounting policies and otherCouncil’s explanatory Responsibility notes. for the Financial Statements

Financial Reporting Standards and with the requirements of The Institute of Chartered Accountants of Nigeria Act and for such The Council are responsible for the preparation and fair presentation of these financial statements in accordance with International misstatement, whether due to fraud or error. internal control, as the council determine is necessary to enable the preparation of financial statements that are free from material

Auditor’s Responsibility with Nigeria Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform our Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance audit to obtain reasonable assurance that the financial statements are free from material misstatement. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant toalso the includes entity’s evaluating preparation the and appropriateness fair presentation of accounting of the financial policies stat usedements and in the or reasonablenessder to design audit of accounting procedures estimates that are madeappropriate by the in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Opinion

ReportingIn our opinion, Standards the and accompan the requirementsying financial of Thestat ementsInstitute gi ofve Chartered a true and Accountants fair view of the of Nigeria state of Act. the Institut e’s financial affairs at 31 December 2013 and of its financial performance and its cash flows for the year then ended in accordance with International Financial

Engagement Partner: Edafe Erhie (FCA) 23 April 2014 FRC/2013/ICAN/0000001143 For: PricewaterhouseCoopers Chartered Accountants

Lagos, Nigeria.

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 39 2013 Annual Report & Financial Statements HONORARY TREASURER’s Report TO MEMBERS OF THE INSTITUTE

I am pleased to welcome you to the 49th Annual General Meeting of the Institute of Chartered Accountants of Nigeria and to present th, 2014 for your consideration and approval. the Below year 2013 are the Financial highlights Stat ementsof the 2013 which Financial were consider Statements:ed and recommended by the Council at its meeting of April 7

Year 2013 Year 2012 Increase/ Increase/ N’000 N’000 (Decrease) (Decrease) N’000 % Total Assets 4,162,539 3,959,957 202,582 0.05 Total Liabilities 790,377 933,807 143,430 0.15 Total funds and reserves 3,372,162 3,026,150 346,012 0.11 Accumulated funds 1,045,454 772,606 272,848 0. 35 Total Income 2,214,874 2,219,450 (4,576) 0.00 Total Expenditure 1,911,808 1,557,772 354,036 (0.23) Surplus for the year 303,066 661,678 (358,612) (0.54) Total Comprehensive Income 364,037 507,336 (143,299) (0.28)

COMMENTS ON THE OPERATING RESULTS AND MAJOR BALANCE SHEET ITEMS

In the year under review, Deloitte was appointed to convert the Institute’s financial statements to the International Financial Reporting(PWC). In Standyear ards2013, (IFR theSs) Institute in line with delivered global trslightlyend. Thus, improved this is theperformance, Institute’s firstin spite financial of dwindling statements revenues prepared from in accor subscriptions.dance with IFRSs and IFRS 1 First-time Adoption applied. This year also witnessed our change of External Auditors to PricewaterhouseCoopers

Our total assets grew by 5% from N3,959,957 in 2012 to N4,162,539. Accumulated Funds grew by 35% from N772,600 in 2012 to N1,045,454in subscriptions. in 2013. Our short term investments also recorded a 12% growth from N1,532,083 to N1,710,766. However, there was a significantCost control drop measures of 54% in were the surplus also strengthened during the yduringear as athe result year of without the required compromising impairment on service allowances delivery in line to allwith our IFR stakeholders.Ss and drop budget. There was also strict adherence to the budget provisions, while committee Chairmen took full responsibilities for their Expenses

As part of Councils desire that members get value for their financial commitment to the Institute, the sum assured on the Group Personal Assurance Policy for financial members was increased from N750,000.00 to N1,000,000.00 in the year under review. Some familiestaken to ofreverse our deceased this trend members as machineries have benefited have been from put this in newplace rate. to collect subscriptions from members. Concerted efforts are also beingCouncil made not byed Council with concernto improve the Student drop in registrationFees and Subscriptions and enrolment from through N975,166 the “Catchin 2012 them to N940,107 Young” programme in 2013. St whicheps ha isve taking been place was introduced. through collabor This isation available with inDistrict all Commercial Societies. BanksIt is expected in Nigeria that which these enables policies members’ will impr recordove subscriptions to be updated in thewithin New 48 Y ear.hours In furtheranceof payment. of our efforts to deliver innovative and value adding service to our stakeholders, the ‘PAYDIRECT’ mode of fees collection The Council is very conscious of the Institute’s pivotal role in the formation of the International Accountancy Bodies of IFAC, PAFA bodies on behalf of all of us. The Institute played a major role that enhanced our brand at the 2013 PAFA Conference that was held in &A.oGhana ABW in theT this year. end, the Institute continues to play prominent roles in all their activities and meet her financial obligations to these I must specially thank the Management and Staff of the Institute under the new world-class leadership for all the support given in ensuring we achieved the set target to present our 2013 Accounts in accordance with IFRSs. Finally, we return thanks and praises to Almighty God for making us end the year successfully as we have always done in the past years.

ONOME JOY OLAOLU BSc, MSc, FCIB, (JP) FCA HONORARY TREASURER FRC NO: FRC/2014/ICAN/00000006958

APRIL 11th, 2014

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 40 2013 Annual Report & Financial Statements STATEMENT of Financial Position AS AT 31 DECEMBER 2013

31-Dec 31-Dec 1-Jan Notes 2013 2012 2012 N’000 N’000 N’000 ASSETS Non-current assets

Property, plant and equipment 13 671,533 715,743 689,464 Intangible assets 14 5 237 2,195 Investment property 15 1,370,000 1,201,000 1,053,000 Available-for-sale investments 16 83,592 73,725 46,890 LoansTotal non-currentand receivables assets 17(b) 2,131,8566,726 1,999,9629,257 1,798 6,539,088

CURRENT ASSETS Inventories 18 110,953 41,038 41,204 Loans and receivables 17(b) 30,122 25,630 15,461 Subscription and other receivables 19 63,914 180,779 177,135 Prepayment 7,702 22,830 13,933 Deferred expense 20 1,334 1,921 1,317 CashTotal and current cash equivalents assets 21 2,030,6831,816,658 1,959,995 1,687,797 1,430 1,181,743,793

Total assets 4,162,539 3,959,957 3,228,881

FUNDS AND RESERVES

Accumulated fund 26 1,045,454 772,606 566,915 Other charitable and trust funds 26 2,295,211 2,231,915 1,875,203 Available-for-saleTotal funds and reserves reserve 16 3,372,16231,497 3,026,15021,629 2,442,118 –

Non-current liabilities

Retirement benefit obligation 22(b) 606,620 570,359 423,280 DeferredTotal non-current revenue liabilities 25 611,5374,917 574,7094,350 429, 5,870150

Current liabilities

TradeTotal currentand other liabilities payables 24 178,840178,840 359,098 359,098 357,613 357,613

Total liabilities 790,377 933,807 786,763

Total reserves and liabilities 4,162,539 3,959,957 3,228,881

The financial statements were approved and authorised for issue by Council on ...... …….....……..7 April 2014 and signed on its behalf by:

President Honorary Treasurer FR ………………………………….C/2013/ICAN/00000002021 ………………………………….FRC/2014/ICAN/00000006958

Registrar/Chief Executive FRC/2013/ICAN/00000004466………………………………….

I C A N The notesTHE on INSTITUTE pages 46 to OF 79 CHARTERED are an integral ACCOUNTANTS part of these financialOF NIGERIA statements. 41 2013 Annual Report & Financial Statements STATEMENT of Comprehensive Income FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec Notes 2013 2012 N’000 N’000

Income Operating activities 5(a) 2,082,025 2,240,883 Fees and subscriptions 4 940,107 975,166 Total income 3,022,132 3,216,049

Operational expenditure 5(b) 1,218,153 1,292,704 Surplus of income over expenditure 1,803,979 1,923,345 Gain on fair valuation of investment property 169,000 148,000 Investment income 6(a) 210,705 112,326

OtherTotal incomeincome 6(b) 2,214,87431,190 2,219 35,779,450

Expenditure

International affiliation cost 7 109,714 116,793 Depreciation and amortisation 8 128,917 123,135 General and administrative expenses 9 583,542 460,128 PersonnelImpairment cost charge 11(b)10 105,509783,856 734,607 – Other expenditure 11(a) 200,270 123,109 Total expenditure 1,911,808 1,557,772

Surplus for the year 303,066 661,678

Other comprehensive income Change in fair value of available-for-sale investments 9,868 21,629

Re-measurementTotal comprehensive of post-employment income for the benefit year obligation 22 364,03751,103 (175,971) 507,336

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 42 2013 Annual Report & Financial Statements STATEMENT of Cash Flows FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 1-Jan Notes 2013 2012 2012 N’000 N’000 N’000

Cash flows from operating activities

Cash generated from activities 30(a) 45,791 493,296 874,301 CashNet cash from from operating operating activities activities 30(b) (18,025) 27,766 566,44873,152 911,529 37,228

Cash flows from investing activities

Acquisition of property,available-for-sale plant and investments equipment (84,475) – (153,251) – (469,508) (14,300) Acquisition of intangible assets – – (17,158) Disposal of property, plant and equipment 3,646 5,795 2,188 InterestNet cash received used in investing activities 6(a) 101,095181,924 (60,394)87,062 (466,853) 31,925

Financing activities – – –

Cashflow absorbed by financing activities – – –

Net increase in cash and cash equivalents 128,861 506,054 444,676 Cash andand cash cash equivalents equivalents at atthe the beginning end of the of the year year 21 1,816,658 1,687,797 1,687,797 1,181,743 1,181,743 737,067

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 43 2013 Annual Report & Financial Statements STATEMENT of Changes in Members’ Funds FOR THE YEAR ENDED 31 DECEMBER 2013

<------Other Charitable and Trust Funds------>

Avaliable-for-Sale Accumulated Development Prizes Benevolent Library Professorial Accountancy Total Investments Fund Fund Fund Fund Fund Chair Reseach Fund N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

Balance at 1 January 2012 – 566,915 1,301,861 9,929 63,065 271,101 116,543 112,704 2,442,118

Comprehensive income

Surplus for the year – 661,678 – – – – – – 661,678

Transfer to funds – (283,560) 185,000 – 15,245 53,315 – 30,000 –

Other comprehensive income for the year –

Available-for-sale investments 21,629 – – – – – – – 21,629

30,907

Receipt during the year from members – – 26,578 – 4,329 – – – 42,245

Ordinary surplus/(deficit) on funds – – 33,734 (753) 2,970 669 2,860 2,765 (175,971)

RecognitionPrior year adjustment of actuarial loss – – (175,971) 3,544 – – – – – – – – – 3,544

Total other comprehensive income 584,032

Balance at 31 December 2012 21,62921,629 772,606 205,691 1,547,173 245,312 9,176(753) 85,60922,544 325,085 53,984 119,403 2,860 145,469 32,765 3,026,150

Comprehensive income

Surplus for the year – 303,066 – – – – – – 303,066

–

TransferOther comprehensive to funds income for the year – (81,321) – – 14,161 67,160 – – –

Available-for-sale investments 9,868 – – – – – – – 9,868

(18,025)

Receipt/paymentRecognition of actuarial to members/students gain – 51,103 6,050 – (673) – (17,352) – (6,050) – – – – 51,103

Total comprehensive income for year 9,868 272,848 6,050 (673) (3,191) 61,110 – – 346,012

Balance at 31 December 2013 31,497 1,045,454 1,553,223 8,503 82,418 386,195 119,403 145,469 3,372,162

The analysis of reserves is presented in note 26

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 44 2013 Annual Report & Financial Statements STATEMENT of Changes in Members’ Funds FOR THE YEAR ENDED 31 DECEMBER 2013

<------Other Charitable and Trust Funds------>

Avaliable-for-Sale Accumulated Development Prizes Benevolent Library Professorial Accountancy Total Investments Fund Fund Fund Fund Fund Chair Reseach Fund N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

Balance at 1 January 2012 – 566,915 1,301,861 9,929 63,065 271,101 116,543 112,704 2,442,118

Comprehensive income

Surplus for the year – 661,678 – – – – – – 661,678

Transfer to funds – (283,560) 185,000 – 15,245 53,315 – 30,000 –

Other comprehensive income for the year –

Available-for-sale investments 21,629 – – – – – – – 21,629

30,907

Receipt during the year from members – – 26,578 – 4,329 – – – 42,245

Ordinary surplus/(deficit) on funds – – 33,734 (753) 2,970 669 2,860 2,765 (175,971)

RecognitionPrior year adjustment of actuarial loss –– (175,971) 3,544 –– –– – – –– – 3,544

Total other comprehensive income 584,032

Balance at 31 December 2012 21,62921,629 772,606 205,691 1,547,173 245,312 9,176(753) 85,60922,544 325,085 53,984 119,403 2,860 145,469 32,765 3,026,150

Comprehensive income

Surplus for the year – 303,066 – – – – – – 303,066

–

TransferOther comprehensive to funds income for the year – (81,321) – – 14,161 67,160 – – –

Available-for-sale investments 9,868 – – – – – – – 9,868

(18,025)

Receipt/paymentRecognition of actuarial to members/students gain – 51,103 6,050 – (673) – (17,352) – (6,050) – – – – 51,103

Total comprehensive income for year 9,868 272,848 6,050 (673) (3,191) 61,110 – – 346,012

Balance at 31 December 2013 31,497 1,045,454 1,553,223 8,503 82,418 386,195 119,403 145,469 3,372,162

The analysis of reserves is presented in note 26

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 45 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

1. GENERAL INFORMATION

The Institute of Chartered Accountants of Nigeria (The Institute) is a body established by Act of Parliament No.15 of 1965 to:

i) Determine what standards of knowledge and skill are to be attained by persons seeking to become members of

ii) theSecur accountancye in accordance profession with the and provisions to raise those of the standards Act, the establishment from time to time and as maintenance circumstances of the may registers permit; of fellows, associates and registered Accountants entitled to practice as Accountants and Auditors and to publish

iii) fromPerform, time through a list of thethose Council persons; of the Institute, all other functions conferred on it by the Act.

The Institute is an accountancy body in Nigeria recognised by the International Federation of Accountants (IFAC) as the foremost professional Accountancy body in the West African sub-region, the Institute, in 1982, initiated and contributed

Thesignificantly Institute to is thealso formation a pioneer of member the Association of Pan-African of Accountancy Federation bodies of Accountants in West Africa (PAFA) (ABWA). and indeed produced it’s pioneer president.

HEAD OFFICE Plot 16, Idowu Taylor Street, Victoria Island, Lagos, Nigeria

e-mail: [email protected] P.O.website: Box 1580, www.ican-ngr.org Lagos.

VISION To be a leading global professional body.

MISSION STATEMENT To produce world-class Chartered Accountants, regulate and continually enhance their ethical standards and technical competence in the public interest.

MOTTO Accuracy and Integrity

FINANCIAL REPORTING REGISTRATION NO:

FRC/2013/NFPO/00000000017 AUDITORS PricewaterhouseCoopers 252E, Muri Okunola Street, Victoria Island, Lagos

1.2 Statement regarding status of compliance with IFRSs

The Institute’s financial statements for the period ended 31 December, 2013 are its first full financial statements prepared in Reporting accordance Standards with IFR (IFRS)S. These and accompan Internationalying comparReportingative Interpretations financial statement Committee relate t(IFRIC)o the full interpretations year ended 31 issued December and 2012.effective The for Institut the periodse’s financial presented. stat ements are presented in accordance with, and comply with, International Financial

Instatements. the preparation of the financial statements, the provisions of IFRS 1 – First-time Adoption of International Financial Reporting Standards have been applied, and the impacts of adopting IFRS are disclosed in the note 31 to the financial

1.3 Going concern

The Institute has consistently been generating funds through the members’ subscriptions and students’ examination fees. The Council members believe that there is no intention or threat from any source to curtail significantly its membership and students enrolment in the foreseeable future. Thus, these financial statements are prepared on going concern basis. I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 46 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

1.4 Changes in accounting policies and disclosures

(a) Standards, amendments and interpretations effective on or after 1 January 2013

A number of new standards and amendments to standards came into effect for annual periods beginning after 1 January 2013.

Disclosures on asset and liability offsetting, IAS 1 Presentation of Financial Statements, IAS 19 (Revised 2011) Employee These include IAS 32 Financial Instruments: Presentation on asset and liability offsetting, IFRS 7R Financial Instruments: Disclosures on Asset and Liability Offsetting, IAS 32 Financial Instruments: Presentation on asset and liability offsetting, Benefits, IFRS 11 Joint Arrangements, IFRS 12 Disclosures of interests in Other Entities, IFRS 7R Financial Instruments:

IFRS 13 F air Value Measur ement and amendments. None of this is expected to have a significant effect on the financial statements of the Institute except: IAS 19R, Employee benefits

IAS 19R, ‘Employee benefits’ was revised in June 2011 and changes the accounting for defined benefit plans and termination benefits. The most significant change relates to the accounting for changes in defined benefit obligations and plan assets. Therecognition amendments of past r equireservice the costs. recognition of changes in defined benefit obligations and in the fair value of plan assets when they, occur and hence eliminate the ‘corridor approach’ permitted under the previous version of IAS 19 and accelerate the The amendments require all actuarial gains and losses to be recognised immediately through other comprehensive income

in or der f or the net pension asset or liability recognised in the statement of financial position to reflect the full value of the plan deficit or surplus (see note 22).

(b) Accounting standards and amendments issued but not yet adopted

The Institute did not adopt earlier any new or amended standards in 2013. There are no IFRSs or IFRIC interpretations

thate ar effective for the first time for the financial year beginning on or after 1 January 2014 that would be expected to have a material impact on the Institute’s financial statements. IFRS 9, ‘Financial instruments’, issued in November 2009 (effective 1 January 2015)

IFRS 9, ‘Financial instruments’, addresses the classification, measurement and recognition of financial assets and financial liabilities.those measured IFRS 9 watas fair issued value in and November those measured 2009 and Octat amortisedober 2010 .cost. It replaces The determination the parts of IA isS 39 made that at relate initial to therecognition. classification The and measurement of financial instruments. IFRS 9 requires financial assets to be classified into two measurement categories:

classification depends on the entity’s business model for managing its financial instruments and the contractual cash flow to an char entity’sacteristics own credit of the risk instrument is recorded. For in financial other comprehensive liabilities, the standarincomed rather retains than most the of incomethe IAS statement,39 requirements. unless Thethis maincreates change an accounting is that, in mismatch.cases where The the Institute fair value is optionyet to assessis taken IFRS for financial9’s full impact liabilities, and theintends part ofto aadopt fair v alueIFRS change9 not later due than the accounting period beginning on or after 1 January 2015.

None of the other new standards, interpretations and amendments are expected to have any effect on the institute’s future financial statements.

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 47 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

SIGNIFICANT ACCOUNTING POLICIES

2. Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires the Institute to make certain accounting estimates and judgements that have an impact on the policies and the amounts reported in the financial statements. Estimates and judgements are continuallythese estimates. evaluated and based on historical experiences and other factors including expectations of future events that are believedo t be reasonable at the time such estimates and judgements are made, although actual experience may vary from The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements and estimates that the Council members have made in the process of applying

statements. the Institute’s accounting policies and that have the most significant effect on the amounts recognised in the financial amounts of assets and liabilities are highlighted below. The estimates and assumptions which have the most significant risk of causing a material adjustment to the carrying

2.1 Employee benefit obligations

The present value of the long term and post employment – Long Service Awards and Gratuity Schemes, under the Institute’s

benefit obligations depend on a number of factors that are determined on an actuarial basis using a number of assumptions. Thethe appropriate assumptions discount used in ratedetermining at the end the of eachnet cost year. (income) This is the for interest these benefits rate that include should the be useddiscount to determine rate. Any thechanges present in these assumptions will impact the carrying amount of employee benefit obligations. The Institute’s actuaries determines

value of estimated future cash outflows expected to be required to settle the employee benefit obligations.

In determining the appropriate discount rate, the actuary considers the present value of the unfunded benefit that are denominatedcurrent market in conditions. the currency Additional in which information the benefits is will disclosed be paid in and note that 22. ha ve terms to maturity appr oximating the terms of the related employee benefit obligation. Other key assumptions for employee benefit obligations are based in part on

2.2 Income recognition

Members’ and students’ fees and subscriptions are accounted for as income in the period to which they relate. Income from

and are accounted for in the period to which they relate. Income generated from publications relates to advertising services. qualificationsConferences and and courses examinations income relate is accounted to examination for as theand servicesexemption are income performed. from theIncome professional from regulation and AAT and qualifications discipline to which they relate. Other revenues are recorded as earned or as the services are performed. relateso t annual licence fees, monitoring visit fees and fines recoverable and all are accounted for as income in the period

2.2.1 Investment Income

Investment income is recognised in the statement of comprehensive income as it accrues by using the effective interest rate

method. Fees and commission that are integral part of the effective yield of the financial asset or liabilities are recognised as adjustment to the effective interest rate of the financial instrument.

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 48 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

SIGNIFICANT ACCOUNTING POLICIES (continued)

2.2.2 Dividend income

Dividend income from investment is recognised when the shareholders right to receive payment is established.

2.2.3 Rental income

Rental income relates to income from the use of Amuwo Odofin for social activities and rent collected from Akintola Williams House, Abuja. Both property are classified as investment property.Rental income is recognised on accrual basis.

2.3 Inventories

Inventories are stated at the lower of cost and net realisable value after making adequate provision for obsolescence and damaged items.Cost comprises suppliers’ invoice, prices and other costs incured to bring the stocks to its present location

and condition. Cost is determined using the first-in, first-out (FIFO) method.

2.4 Investments property

Investment property are property held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment property are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment property are measured at fair value. Gains or losses arising from changes in the fair value of investment property are included in statement of comprehensive income in the period in which they arise.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from

(calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the usestatement and no offutur comprehensivee economic benefits income ar ine the expected period fr inom which the dispo the propertysal. Any g isain derecognised. or loss arising on derecognition of the pr operty

2.5 Available-for-Sale investments

any other category. Available for sale financial assets are non-derivative financial assets that designated in this category or not classified in needs for liquidity or changes in interest rates or equity prices. They are included in non-curent assets unless the investment Available-for-salematures or management financial intends assets to ar disposee intended of it t owithin be held 12 f ormonths an indefinit of the eend period of the of reportingtime, which period. may be sold in response to

transaction cost, and measured subsequently at fair value with gains or losses being recognise in the statement of Available-for-sale financial assets are initially recognised at fair value, which is the cash consideration including any

comprehensive income and calculated in a separate reserve called available for sale reserve until the financial asset is derecognised. However, interest is calculated using the effective interest method, and currency gain and losses on monetary assets classified as available- for-sale are recognised in statement of comprehensive income.

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 49 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

SIGNIFICANT ACCOUNTING POLICIES (continued)

2.6 Property, plant and equipment

estimates and assumptions made to determine their carrying value and related depreciation are critical to the Institute’s Property plant and equipment represent the most significant proportion of the asset base of the Institute. Therefore the

financialit’s residual position value andwould performance. result in reduced The char depreciationge in respect charge of periodic in the deprstatementeciation of iscomprehensive derived after detincome.ermining The anuseful estimate lives of an asset’s expected useful life and the expected residual value at the end of its life. Increasing an asset’s expected life or as well as anticipation of future events and circumstances which may impact their useful lives. The Institute’s occupied and residual values of the of property, plant and equipment are determined by management based on historical experience impairment losses. properties ar e stat ed in the stat ement of financial position at cost less accummulate depreciation and accummulated For revalued assets, any revaluation increase arising on the revaluation of such land and building is recognised in the other

asset previously recognised in other comprehensive income in which case the increase is credited to other comprehensive comprehensive income and accummulated fund, except to the extent that it reverses a revaluation decrease for the same

incomeothe property t the revaluation extent of the reserve decrease relating previously to a previous expensed. revaluation A decrease of insuch the asset. carrying amount arising from the revaluation of such land and building is recognised in other comprehensive income to the extent that it exceeds the balance if any, held in

2.7 Depreciation

Depreciation of property, plant and equipment commence when they are ready for their intended use. Depreciation is provided on all property, plant and equipment, other than leasehold land which is not depreciated, at rates calculated to

write-off Freehold the property cost or valuation,— Not depreciated. of each asset on a straight-line basis over its expected useful life, as follows:

• Buildings — 50 years.

• Motor vehicles — 3 years.

•

• ComputerOffice furniture hardware and fittingsequipment — 4 —years. 3 years.

• Plant and equipment — 4 years.

• Library Books — 4 years.

•

2.8 Impairment of financial assets

At each balance sheet date, the Institute reviews the carrying amounts of its financial assets to determine whether there is anythe recoverableindication that amount those of assets an individual have suff asset,ered Thean impairment Institute estimates loss. If anthey recoverablesuch indication amount exists, of thethe cash-generatingrecoverable amount unit toof thewhich asset the is asset estimat belongs.ed in orAnder impairment to determine loss the is charged extent of to the the impairment statement of loss comprehensive (if any). Wher incomee it is not immediately possible t ounless estimat thee asset is carried at its revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease to the

extent of a previously recognised revaluation surplus for the same asset.

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 50 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

SIGNIFICANT ACCOUNTING POLICIES (continued)

2.9 Impairment of financial assets (cont’d) In respect of property, plant and equipment and when there is a change in the estimates used to determine the recoverable amount, a subsequent increase in the recoverable amount of an asset is treated as a reversal of the previous impairment loss

and depreciation) had no impairment loss been recognised. The reversal is recognised in the statement of comprehensive and income is r ecognisedimmediately, to theunless extent the assetof the is carrying carried atamount its revalued of the amount. asset that A reversal would ha ofve an been impairment determined loss on(net a revalued of amortisation asset is

credited income in dir theectly statement to the revaluation of comprehensive surplus income.Thereto the extent that have an been impairment no revision loss to on estimates the same during revalued the asset year. w as previously recognised as an expense in the statement of comprehensive income, a reversal of that impairment loss is recognised as

Inor rprolongedespect of adeclinevailable-for-sale in the fair financial value of assets,the security at the below balance its sheetcost is dat ane evidence the Institut thate assessesthe assets w arehether impaired. there isIf objectiany suchve evidence that the financial assets are impaired. In the case of equity investments classified as available-for-sale, a significant

evidence removed fromexists fair for value available-for-sale reserves and recognisedassets, the incumulati the separateve loss statement – measur ofed comprehensive as the acquisition income. cost and the current fair value, less any impairment loss on that financial asset previously recognised in the statement of comprehensive income – is Impairment losses recognised in the separate statement of comprehensive income on equity investments are not reversed through the separate statement of comprehensive income. If, in a subsequent period, the fair value of a debt instrument

impairment loss was recognised in the statement of comprehensive income, the impairment loss is reversed through the classifiedseparate statement as available-for-sale of comprehensive increases income. and the increase can be objectively related to an event occurring after the

Financial assets are grouped on the basis of similar credit risk characteristics that are indicative of the debtors’ ability to pay all amounts due according to the contractual terms and the collective impairment provision is estimated for any such

group into consideration where credit and risk the char amountacteristics of the of provisionthe group is of based financial on theassets historical has det losseriorated. pattern Factors within such each as group. any det erioration in country risk, technological obsolescence as well as identified structural weaknesses or deterioration in cash flows are taken

2.10 Intangible assets and impairment

annually, and whenever there is an indication that the asset may be impaired. Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least Intangible assets which are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognised for the amount by which the

costs to sell and value in use. asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less

2.11 Foreign currency translation

For the purpose of these financial statements, the results and financial position of the Institute are expressed in Naira, which is the functional currency of the Institute, and the presentation currency for the financial statements.

Inperiod, preparing monetary the financialassets and stat liabilitiesements, that transactions are denominated in currencies in foreign other currencies than the are entity retranslated’s functional at the curr ratesency prevailing (foreign currencies)at that date. arNon-monetarye recognised atitems the rcarriedates of atexchange fair value pr thatevailing are denominatedon the dates of in the foreign transactions. currencies At arethe translatedend of each at r theeporting rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 51 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

SIGNIFICANT ACCOUNTING POLICIES (continued)

2.12 Defined contribution plan

Reform Act of 2004, each employee contributes 10% while the employer contributes 15% each of the employee’s relevant The Institute operates a defined contribution based retirement benefit scheme for its staff, in accordance with the Pension rendered service entitling them to the contributions. emoluments. Payments to defined contribution retirement benefit plans are recognised as an expense when employees have In addition, full provision is made in the accounts for liabilities at the balance sheet date in respect of employees’ terminal gratuities based on the current relevant emoluments in line with IAS 19R.

2.13 Defined benefits plan

Thevaluations Institut beinge also carriedoperates out a gr atatuity the end scheme of each for itsreporting qualified period. staff. Benefits Actuarial ar egains related or tlosseso the emplo (if any)yees’ are length recognised of service fully and in remuneration.other comprehensive The cost income. of providing Also, past gratuity service benefits cost is is recognised determined immediately using the pr inojected the statement unit credit of comprehensive method, with actuarial income.

In addition, full provision is made in the accounts for liabilities at the balance sheet date in respect of employees’ terminal gratuities based on the current relevant emoluments in line with IAS 19R.

3. Provisions Provisions are recognised when the Institute has a present obligation (legal or constructive) as a result of a past event, it is probable that the Institute will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision

is measured using the cash flows estimate to settle present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the Whenreceivable some can or be all measured of the economic reliably. benefits required to settle a provision are expected to be recovered from a third party,

3.1 Financial instruments

Financial assets are classified into the following specified categories:financial assets at ‘fair value through profit or loss’ (FVTPL), ‘held-to-maturity’ investments, ‘available-for-sale investment’ (AFS) financial assets and ‘loan and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of intial recognition. All by regulationregular way or purconventionchases or in sales the marketplace. of financial assets are recognised or derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established

3.1.1 Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instument and of allocating interest

income of the debt over instrument, the relevant or period. where appropriate,The effective aint shortererest r period,ate is the to rtheate netthat carrying exactly discountsamount on estimat initial edrecognition. future cash receipts (including all fees paid or received that form an integral part of the effective rate and transaction) through the expected life

Income is recognised on an effective interest rate basis for debt instruments other than those financial assets classified as fair value through profit or loss (FVTPL).

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 52 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

SIGNIFICANT ACCOUNTING POLICIES (continued)

3.1.2 Financial assets at fair value through profit or loss (FVTPL)

or it is designated as (FVTPL). Financial assets ar e classified as fair value thr ough profit or loss’ (FVTPL) when the financial asset is either held for trading

A financial asset is classified as held for trading if: • It has been acquired principally for the purpose of selling it in the near term; or

• On initial recognition it is part of a portfolio of identified financial instruments that the Institute manages togetherIt is a derivative and has that a recent is not actual designated pattern and of effectiveshort-term as profit-taking;a hedging instrument. or

• on initial recognition if: A financial asset other than a financial asset held for trading may be designated at fair value through profit or loss (FVTPL)

• Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or its performance is evaluated on a fair value basis, in accordance with the Institute’s documented risk management • The financial asset form part of the Institute’s financial assets or financial liabilities or both, which is managed and

Itor forms investment part of strategy, a contract and containing information one about or more the embeded grouping derivatives,is provided andinternally IAS 39 on Financial that basis; instruments: or Recognition and Measurment permit the entire combined contract (asset or liability) to be designated at fair value •

through profit or loss (FVTPL). remeasurement recognised in the the statement of comprehensive income. The net gains or losses recognised in the Financial assets at fair value through profit or loss (FVTPL) are stated at fair value, with any gains or losses arising on

statement of comprehensive income incorporates any dividend or interest earned on the financial asset and is included in the ‘other gains and losses’ line item in the Institute’s (statement of comprehensive income).

3.1.3 Loans and receivables

Loansposition and which receivables are measured are non-deri at amortisedvative financialcost using assets the effective with fix interested or det method,erminable less paanyyments impairment that ar ande not other quot employeeed in an active market. Loans and receivables include ‘staff loans’ and other ‘advance to district societies’ in the statement of financial

benefit embedded in the loans. of interest would be immaterial. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition

3.1.4 Subscription and other receivables

Subscription and other receivables are stated at amortised cost based on the original invoice amount less an allowance for any irrecoverable amounts. Provision is made when there is objective evidence that the Institute will not be able to collect

certain debts. Bad debts are written off when identified. Terms on receivables balances range from 30 to 90 days.

3.1.5 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand and short-term deposits with banks and similar institutions,

whiche ar readily convertible to known amounts of cash and are subject to insignificant risk of changes in their fair value andy used b the Intitute in the management of its short-term commitments. Short-term is defined as being three months or less. This definition is also used for the cash flow statement.

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 53 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

SIGNIFICANT ACCOUNTING POLICIES (continued)

3.1.6 Available-for-sale financial assets (AFS financial assets)

AFS financial assets are non-derivatives that are either designated as AFS or are not classified as (a) loans and receivables, (b) held-to-maturity investments or (c) financial assets at fair value through profit or loss.

Listed to changes redeemable in interest not incomees held calculatedby the Insitut usinge that the areffectivee traded interest in an actimethodve mar andket dividends are classified on AFS as equityAFS and investment are stated are at fair recognised value at in the the end statement of each of r eportingcomprehensive period. income. Changes in the carrying amount of AFS monetary financial assets r elating

and accumulated under the heading of investment revaluation reserve. When the investment is disposed of or is determined Other changes in the carrying amounts of available-for-sale financial assets are recognised in other comprehensive income of comprehensive income. to be impaired, the cumulative gain or loss previously accumulated in the investments revaluation is reclassified to statement Dividends on AFS equity instruments are recognised in the statement of comprehensive income when the Institute’s right to to receive the dividend is established.

and translated at the spot rate prevailing at the end of the reporting period. The foreign currency gains or losses that The are recognisedfair value of in AFS the monetarystatement financial of comprehensive assets denominat incomeed are in determined a foreign curr basedency on is dettheermined amortised in thatcost foforeign the monetary currency

asset. Other foreign exchange gains or losses are recognised in other comprehensive income.

3.1.7 Derecognition of financial assets

TheInstitute Institut neithere derecognises transfers nora financial retains asset substantially when the all contr the actualrisks andrights rewards to the cashfloof ownershipws from and the continues asset expire, to control or when the it transferstransferred the asset, financial the Institute asset and recognises substantiall its retainedy all the interestrisks and in rtheewards asset of and ownership an associated of the liabilty asset forto anotheramounts entity it may. If have the to pay.

If the Institute retains substantially all the risk and rewards of ownership of a transferred financial asset, the Institute continues to recognise the financial asset and also recognise a collaterised borrowing for the proceeds received. consideration received and recievable and the cummulative gains or losses that had been recognised in other comprehensive On income derecognition and accumulated of a financial in the assetfund isin recognisedits entirety, in the the diff statementerence betw of comprehensiveeen the assets’s income. carrying amount and the sum of the

On to recognise derecognition under of continuinga financial assetinvolvement, other than and in theits entir partety it no (e.g. longer when recognises the Institut one r etainsthe basis an optionof the trelativeo repurchase fair value part of a those transferred parts on asset), the date the ofInstitut the transfer.e allocat Thees the difference previous between carrying the amount carrying of the amount financial allocated asset betw to theeen part the thatpart isit continuesno longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gains or losses allocated to it that had been recognised in other comprehensive income is recognised in the statement of comprehensive income. A cumulative gains or losses that had been recognised in other comprehensive income is allocated between the part that continues to be recognised and the part that is no longer recognised on the basis of the realtive fair value of those parts.

3.1.8 Derecognition of financial liabilities

Theand Institutpayablee is der recognisedecognises in financial statement liabilities of comprehensive when, and onl income.y when, the Institute’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognised and the consideration paid

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 54 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

SIGNIFICANT ACCOUNTING POLICIES (continued)

3.1.9 Trade payables

amortised cost, using the effective interest rate method. Other payables that are within the scope of IAS 39 are subsequently Trademeasured payables at amortised classified cost. as Othersfinancial are liabilities measured ar ine respectinitially to measur their applicableed at fair standards.value, and are subsequentl y measur ed at

3.2 Change in accounting policies

Retirement benefit obligation — actuarial gains and losses

Councilchanges has in actuarialchanged itsassumptions policy for accounting were recognised for actuarial over thegains average and losses remaining arising workingfrom the livesdefined of Schemebenefit pension members sche tomes the operating for it employee. Previously, cumulative actuarial gains and losses arising from experience-based adjustments and the effect of smoothing actuarial gains and losses over long periods. extent that the y exceed 10% of the greater of the defined benefit obligation. This was known as the corridor method and had Changes to IAS 19 have been published which propose to remove the corridor method for accounting periods starting after 1 January 2013. Thereafter, all actuarial gains and losses must be accounted for as incurred through other comprehensive income. Council supports this change which it believes greatly improves the relevance of the information in the statement of

financial position by ensuring that all liabilities are realised.

3.2.1 Financial risk management

These are monitored by management on a regular basis. The main financial risks arising from the Institute’s activities are credit risk, liquidity risk, investment risk and market risk.

3.2.2 Credit risk management

Credit risk arises principally from cash and cash equivalents, deposits with banks and financial Institutions, equity held as available-for-sale investments, trade receivables and other financial instruments. The Institute regularly monitors and members’ reviews and its students’ exposure fees with and k eysubscriptions. banking and investment manager, and for deposits, only independently rated banks and financial institutions with a minimum rating of ‘A’ are used. The Institute’s trade receivables relate substantially to

The credit risk is that one party to a financial instrument fails to discharge its obligation in respect of the instrument. The Institute has no significant concentration of credit risk, with exposure spread over a large number of customers and membersto remove thr studentsoughout and the members country. Thefrom Institut the receivablese believes ledgerthat the register maximum for enon-paymentxposure equat ofes annual to the feescarrying and vsubscriptionsalue of trade and through other impairment receivables. process. Management The level reviews of removals the tr adeis shown receivables in note balance 19. on a regular basis and undertakes an exercise

At the balance sheet date nil% of the Institute’s trade and other receivables were held in subscriptions and faculties (2012: 90%)

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 55 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

SIGNIFICANT ACCOUNTING POLICIES (continued)

3.3.1 Liquidity risk

Liquidity risk arises from the Institute’s management of working capital. It is the risk that the Institute will encounter

difficulty in meeting its financial obligations as they fall due. The Institute manages its liquidity risk by ensuring that it has adequate fund. The Institute receives the majority of its income as subscriptions in the first quarter of the year, or as specialist examination investment fees, e advisersxemption to f investees, relating cash surpluses to two e xamwith sessions major banks each of year. suitable Cash creditnot required standing for to short-t spreaderm the operrisk. atingCash purposes is invested to maximise return with an acceptable level of risk. In addition to its own bankers, The Institute uses

surplusesTreasury Billsare inandvested N106m in int (2012:erest bearingN156m) fix ined call and and call current financial accounts. instruments Liquidity and isFederal managed Government to ensure T investmentsreasury bills. are At theliquidated balance in sheet a timely date manner the Institut to meete held operating N714 million requirements. (2012: N932 The million)Institute in does term not deposits, place more N997m than (2012: 20% N600m)of its total in

deposits in one financial institution.

3.3.2 Market risk

Market risk arises from the Institute’s use of interest bearing, tradeable and financial instruments. It is the risk that the fair value of futur e cash flo ws of a financial instrument will fluctuate because of changes in the interest rates (interest rate risk), foreign exchange rates (currency risk) or other market factors (other price risk).

Interest rate risk relates to the risk of loss due to fluctuations in both cash flows and the fair value of financial assets and liabilities due to change in market interest rates. The Institute invests surplus cash in the short-term and in doing so exposes itself to the fluctuation in interest rates that are inherent in such a market.

Currency risk relates to the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange risk. The Institute operates nationally and internationally in affiliation with foreign professional bodiesregards such to income as IFAC, because ABWA and all PfeesAFA. and It also subscriptions has foreign Districtcharged Societies: by it are (US in A,Naira. Camer Inoun addition, and UK) the and Institute is exposed uses t oforward foreign currency exchange risk arising from the transfer of foreign currency to these bodies. The Institute mitigates the risk with cash equivalents were held in various Nigeria banks (2012: 100%). currency contracts to mitigate the risk of currency fluctuations. At the balance sheet date 100% of the Institute’s cash and Other price risk relates to the risk of changes in market prices of the available-for-sale investments. The Institute invests

inherent in such a market. The Institute’s Finance and General Purposes Committee has given Fund Managers discretionary surplusmanagement cash in of a the managed funds. fund oper ated by fund managers and in doing so exposes itself to the fluctuations in price that are

3.3.3 Investment risk

Investmentbase rate, which income continued increased to bremainy N98m low. (87.5%) Budgets in t otalare preparedin 2013. Thison a w prudentas the r ealisationbasis and ofincome part of from the incrinvestmentsease in mar is notket value; relied onthe for remaining the Institute’s was dri ongoingven by activities.the Institut Investmentse’s investments are reviewed realising on hig aher regular returns basis. than the Centr al Bank of Nigeria ’s

3.4 Capital

to generate a targeted operating position, to build and maintain reserves at a sustainable level, taking into account the Thevarious Institut competitivee considers risks. its The capital Institute to be alsoits accumulat aims to achieveed fund additional and its fair long-term value reserves. growth Council’sin reserves financial through objecti the activeve is

management of the investment portfolio. A five-year financial plan has been developed which, over the period of the plan, targetsrequirements. an agreed level of accumulated fund. The Institute’s Finance and General Purposes Committee reviews the financial position of the Institute at each committee meeting. The Institute is not subject to any material externally imposed capital

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 56 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 2013 2012 N’000 N’000

4. FEES AND SUBSCRIPTIONS

4.1 Members:

Admission fees 10,380 25,218 Annual subscriptions 404,643 296,121

Fellowship/practicing licence, fees, etc. 32,258 37,023 Faculty registration/subscription 62,146 55,079 Graduate membership subscriptions 1,478 1,076 510,905 414,517

4.2 Professional students:

Subscriptions 69,975 83,417 Registrations 60,434 176,107 Exemption fees 382,031251,622 535, 276,432956

ATS students:

Subscriptions 12,864 8,745 Registrations 19,737 10,835 Exemption fees 47,17114,570 24, 5,113693

Total fees and subscriptions 940,107 975,166

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 57 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 2013 2012 N’000 N’000

5(a) OPERATING ACTIVITIES

Qualifications and fellowship

Professional examinations 961,505 898,190 ATS examinations 145,477 147,927 Fellowship award conferment 56,720 45,151 New members’ induction 1,223,45959,757 1,218,071 126,804

Regulation, education and discipline

MCPE 252,508 241,484 Faculties 72,477 125,743 324,985 367,227

Conferences and courses

Annual dinner/Institute merit award 16,043 9,080 AnnualInstitut eAccountants’ revision course Conference 472,042– 508,171 3,044 Special candidates’ course – 33,950

488,085 554,245

Publications and stamps

Students’ study packs 308 64,562 Institute members’ seal and stamps 45,188 36,778 45,496 101,339

Total operating activities 2,082,025 2,240,883

5(b) OPERATIONAL EXPENDITURE

Qualifications and fellowship

ProfessionalFellowship award examinations conferment 460,87019,080 479,47513,638 ATSNew examinations members’ induction 110,67720,085 127,13548,309

610,712 668,557

Regulation, education and discipline

Faculties 66,579 83,441 MCPE 234,342167,763 253,311169,870

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 58 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 2013 2012 N’000 N’000 5(b) OPERATIONAL EXPENDITURE (continued) Conferences and courses

Annual Accountants’ Conference 331,461 310,956 Annual dinner/Institute merit award 12,162 9,568 Institute revision course – 3,912

Special candidates’ course 366,34222,719 355,550 31,115

Publications and stamps

Students’ study packs – 10,143 Institute members’ seal and stamps 6,757 5,142 6,757 15,285

Total operational expenditure 1,218,153 1,292,704

GROSS GROSS NET INCOME EXPENDITURE N’000 N’000 N’000

5(c) ANALYSIS OF OPERATIONAL ACTIVITIES Year ended December 31, 2013

Qualifications and fellowship

Professional examinations 961,505 460,870 500,635 ATS examinations 145,477 110,677 34,800 Fellowship award conferment 56,720 19,080 37,640 New members’ induction 1,223,45959,757 610,71220,085 612,747 39,672

Regulation, education and discipline

Faculties 72,477 66,579 5,898 MCPE 324,985 252,508 234,342167,763 90,64384,745

Conferences and courses

Annual Dinner/Institute merit award 16,043 12,162 3,881 Annual Accountants’ Conference 472,042 331,461 140,581

Special candidates’ course 488,085– 366,34222,719 121,743(22,719)

Publications and stamps

Students’ study packs 308 – 308 Institute members’ seal and stamps 45,188 6,757 38,431 45,496 6,757 38,739

Total net surplus from operational activities 2,082,025 1,218,153 863,872

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 59 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

GROSS GROSS NET INCOME EXPENDITURE N’000 N’000 N’000

5(c) ANALYSIS OF OPERATIONAL ACTIVITIES (continued) Year ended December 31, 2012

Qualifications and fellowship

ProfessionalFellowship award examinations conferment 898,190 45,151 479,47513,638 418,715 31,513 ATS examinations 147,927 127,135 20,792

New members’ induction 1,218,071 126,804 668,55748,309 549,515 78,495

Regulation, education and discipline

Faculties 125,743 83,441 42,302 MCPE 367,227 241,484 253,311169,870 113,917 71,614

Conferences and courses

Annual Dinner/Institute merit award 9,080 9,568 (488) AnnualInstitut eAccountants’ revision course Conference 508,171 3,044 310,9563,912 197,215 (868) Special candidates’ course 33,950 31,115 2,835

554,245 355,550 198,695

Publications and stamps

Students’ study packs 64,562 10,143 54,419 Institute members’ seal and stamps 36,778 5,142 31,635 101,339 15,285 86,054

Total net surplus from operational activities 2,240,883 1,292,704 948,181

31-Dec 31-Dec 2013 2012 N’000 N’000 6(a) INVESTMENT INCOME

Investment income 2,503 1,309 Bank deposit interest 181,924 87,062

Rental income 210,705 26,278 112,326 23,955

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 60 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 2013 2012 N’000 N’000 6(b) OTHER INCOME

Income from sale of store items 4,748 4,051 TCI – Remittance 2,467 8,918 Contractors’ registration fees 1,674 881 (Loss)/gainAdvertisement on incomecurrency translation (2,319) 969 2,303970 Insurance commission 1,814 1,702 Others (6c) 20,482 15,913 Profit on disposal of motor vehicles 1,355 1,041 31,190 35,779

6(c) OTHERS

TCI-accreditation 1,820 1,806 Insurance claims 1,618 –

Profit on sales of Motor vehicle 3,643 6,039 ProfitTranscripts on sales fees of minor assets 3,9533 2,5852,395 FedE-Payment Treasury setup School fees examinations 1,206250 1,1941,000

SSPCMiscellaneous -Management fees 5,4681,847 186 – Re-issue of certificates 674 708 20,482 15,913

7. INTERNATIONAL AFFILIATION COSTS

IFAC:

Subscription 9,501 5,796 Travelling and other meeting expenses 35,73726,236 23,717,939 35

ABWA: Subscription 23,550 30,000

Travelling and other meeting expenses 30,2656,715 43,213,212 13

PAFA: Subscription 24,000 30,000

Travelling and other meeting expenses 43,71219,712 49,819,84545

Total International affiliation costs 109,714 116,793

8. DEPRECIATION AND AMORTISATION

Amortisation on intangible assets 232 1,958 Depreciation on property, plant and equipment 128,685 121,177 128,917 123,135

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 61 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 2013 2012 N’000 N’000 9. GENERAL & ADMINISTRATIVE EXPENSES

General repairs and maintenance 53,730 47,320 CouncilInsurance and committee meeting expenses 85,99021,113 74,19419,905 Annual General Meeting expenses 18,032 21,965 Co-ordination of district societies 93,630 23,241 Local, overseas tours & other activities 79,476 49,917 Advertisements and publicity 10,332 9,109 SubscriptionPrinting, phot andocopy donations and stationery 29,08834,135 27,24535,933 Telephone and postages 40,389 35,259

Vehicle running costs 28,292 27,715 Travelling expenses 36,645 35,314 RefreshmentAudit fees at meetings 10,9458,000 14,7925,688 ComputerBank char gesexpenses 8,9899,700 18,9708,380 Others 15,056 5,182

583,542 460,128

10. PERSONNEL COST

BasicPost-employment salary benefit obligations: 246,097 256,549

Defined contribution costs 51,596 60,104 Other allowances 783,856 486,163 734,607 417,954

11(a) OTHER EXPENDITURE

Contribution to students special project 10,959 6,342

Institute members’ welfare scheme 8,707 10,944 Joint symposia/conference 4,634 14,579 Professional charges 25,786 24,821 Accreditation/Visitation expenses 15,477 17,789 Education and training expenses 34,981 14,771 PracticeThe Nigerian monitoring Accountant activities Journal 30,2394,452 17,570 3,668 World Congress of Accountants expenses 5,000 5,000 IFRS Training/seminar costs – 2,486 Research grants and expenses 10,170 2,547 Subscription to professional bodies (APBN) 851 870 Research journal 2,176 775 ICAN Students’ Journal 1,455 674 PAFA Conference – Ghana 43,976 – Syllabus review 200,2701,407 123,109 274

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 62 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 2013 2012 N’000 N’000 11(b) IMPAIRMENT CHARGE

Impairment allowance for doubtful subscription 49,735 – Impairment allowance for doubtful student special project 105,50955,774 –

12. ACTIVITIES RESULT

The activities result includes the following:

a) Salaries and related costs

The costs of employing staff during the year were as follows:

Staff costs 246,097 256,549

Post- employment benefit obligations: Defined benefit 51,596 60,104 Other allowances 783,856486,163 734, 417,954607

The average number of employees was 179 (31 December, 2012: 181)

The average annual salary was NGN1.370m (31 December, 2012: NGN1.416m).

b) Depreciation and amortisation

Amortisation of intangible assets 232 1,958 Depreciation of property, plant and equipment 128,685 121,177

c) Auditors’ remuneration

Audit fees 8,000 5,688

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 63 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

13. PROPERTY, PLANT AND EQUIPMENT

Land Buildings Motor Plant & Furniture & Library Total Vehicles Machinery Equipment Books N’000 N’000 N’000 N’000 N’000 N’000 N’000

Cost or Valuation

1,123,719 153,251 DisposalsBalance at 1 January 2012 – 632,445– (53,250) 178,818 37,496– (26,548) 258,356 16,604 – (79,798) Additions – 37,368 39,607 30,910 42,804 2,562 Balance at 31 December 2012 – 669,813 165,175 68,406 274,612 19,166 1,197,172 84,475 Disposals – – (18,630) – – – (18,630) Additions – – 56,574 7,150 20,614 137 –

BalanceReclassifications at 31 December 2013 26,203 26,203 643,610(26,203) 203,119– 75,556 – 295,226 – 19,303 – 1,263,017

Accumulated depreciation and impairment

434,255 121,177 Balance at 1 January 2012 – 69,317 123,410 35,894 192,909 12,725 (74,003) Charge for the year – 19,457 44,815 8,574 45,910 2,421 BalanceDisposals at 31 December 2012 – 88,774 – 120,770 (47,455) 44,468 – 212,271 (26,548) 15,146 – 481,429 Charge for the year – 23,558 50,055 10,261 42,601 2,210 128,685 Disposals – – (18,630) – – – (18,630)

Balance at 31 December 2013 – 112,332 152,195 54,729 254,872 17,356 591,484

Net book values:

At 1 January 2012 – 603,283 55,408 2,292 80,080 6,050 689,464

At 31 December 2012 – 581,039 44,405 23,938 62,341 4,020 715,743

At 31 December 2013 26,203 531,278 50,924 20,827 40,354 1,947 671,533

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 64 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 1-Jan 2013 2012 2012 N’000 N’000 N’000

14. INTANGIBLE ASSETS

Cost At January 16,818 16,818 16,818

At 31 December 2013 16,818 16,818 16,818

Accumulated amortisation and impairment At January 16,581 14,623 – Charge for the year 232 1,958 14,623

At 31 December 2013 16,813 16,581 14,623

Net book values: At 31 December 2013 5 237 2,195

for the software were going to be fully realised. The main intangible assets carried at the balance sheet date relate to the Followingsoftware only. an impair ment review by management, it was recognised that the benefits which were originally identified

15. INVESTMENT PROPERTY

Akintola Williams building, Abuja 720,000 648,000 583,000 Awuwo-Odofin building, Lagos 650,000 553,000 470,000

1,370,000 1,201,000 1,053,000

Investmentrespectively. pr Incomeoperty generated were valued from as both at December property in31 2013, 2012 was and N26.3m 2013 b(2012:y Ubosi N23.9m). Eleh, an independent firm of Chartered Surveyors and property consultants. The Amuwo Odofin and Abuja property are managed by Eiezer and Jide Taiwo Co.

16. AVAILABLE-FOR-SALE INVESTMENTS

Quoted investments: At 1 January 52,095 50,532 46,890 Addition – 1,564 –

NetAt 31 gains December transferred to fair value reserve 83,59231,497 73,72521,629 46,890 –

Historical cost 52,096 52,096 73,374

Available-for-sale investments are fair valued annually at the close of business on the balance sheet date. Wherever possible,

fair value is determined by reference to stock exchange quoted bid prices. Available-for-sale investments are classified as non-current assets unless they are expected to be realised within twelve months of the balance sheet date.

All impaired. available-for-sale investments are denominated in Naira. The Institute monit ors its exposures by way of regular reports from the fund managers who have discretionary management of the investment portfolio. None of these financial assets ar e

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 65 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 1-Jan 2013 2012 2012 N’000 N’000 N’000

17(a) LOANS AND RECEIVABLES

Staff loans 30,133 119,403 9,929

Advance to Enugu district society 4,969 325,085 – Staff advances 1,746 9,176 271,101 36,848 453,664 281,030

17(b) LOANS AND RECEIVABLES

Current 30,122 25,630 15,461

Non Current (car loan) 36,8486,726 34,8879,257 22,000 6,539

18. INVENTORIES

Stationery 12,496 13,464 21,203 Electrical parts 90 341 203 Diesel 2,138 2,520 1,255

Students’Annual Accountants study packs Conference bags 58,32023,342 13,552– 8,874 – Others sellable items 14,567 11,161 9,669 110,953 41,038 41,204

Inventories comprise the Institute students’ study packs, stationery and other saleable materials carried at cost.

19. SUBSCRIPTION AND OTHER RECEIVABLES

Other receivables 63,914 131,044 129,281 Subscription receivables 675,773 675,773 673,892

Impairments allowance (675,773) 63,914 (626,038) 180,779 (626,038) 177,135

19.1 MOVEMENT IN IMPAIRMENT ALLOWANCE:

At 1 January (626,038) (626,038) (626,038)

ChargeAt 31 December for the year 2013 (675,773) (49,735) (626,038)– (626,038) –

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 66 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 1-Jan 2013 2012 2012 N’000 N’000 N’000 19.2 OTHER RECEIVABLES

Bayelsa ICAN Students’ Special Project (SSP) 46,522 42,844 39,106 NNDC/ICAN Students’ Special Project (SSP) 30,005 25,991 32,524

Cross River/ICAN Students’ Special Project 8,783 31,800 29,084 Accountants’ Conference receivables 12,049 13,302 19,973 OtherDeposit sundry with A debtors ero and Arik airlines 1,0353,000 6,3153,000 7,572 – InstituteMCPE recievables USA district 10,095– 7,792– – WCOA activities 8,199 – – Bank charges recoverable – – 1,022

Impairment allowance for doubtful SSP (55,774) 63,914 131,044– 129,281–

20. DEFERRED EXPENSE

AtChar 1 January ge for the year (2,305)1,921 (1,503)1,317 1,317 – Additions 1,718 2,107 – At 31 December 2013 1,334 1,921 1,317

balance sheet date. Deferred expense represent deferred interest expense on loans and receivable to staff measured at effective interest rate on

21. CASH AND CASH EQUIVALENTS

Treasury bills 997,108 600,000 1,089,675 Short term bank deposit 713,658 932,083 – Cash at bank and in hand 1,816,658105,892 1,687,797 155,714 1,181 92,068,743

The effective interest rate on short term bank deposits was 11.63% (2012:12.75.%) 22. RETIREMENT BENEFIT OBLIGATIONS

22.1 DEFINED CONTRIBUTION PLAN

Reform Act of 2004. The employee contributes 10% while the employer contributes 15% each of the employee’s relevant The Institute operates a defined contribution based retirement benefit scheme for its staff, in accordance with the Pension rendered the service entitling them to the contributions. emoluments. Payments to defined contribution retirement benefit plans are recognised as an expense when employees ha ve

Pension costs The amounts recognised in the statement of comprehensive income for the schemes are as follows:

CurrentPension service costs under cost (excluding the schemes employee contributions) 51,59651,596 60,10460,104 –

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 67 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

22.2 DEFINED BENEFITS PLAN

Theevaluations Institut being also carriedoperates out a gr atatuity the end scheme of each for itsreporting qualified period. staff, benefits Actuarial ar egains related or tlosseso the emplo (if any)yees’ are length recognised of service fully and in remuneration.other comprehensive The cost income. of providing Also, past gratuity service benefits cost is isrecognised determined immediately using the Pr inojected statement Unit of Cr comprehensiveedit Method, with income. actuarial

The most recent actuarial valuation of the ICAN staff scheme was at 31 December 2013. This has been updated by the scheme actuary for IAS 19R purposes as at 31 December 2013. The actuarial valuation was based on the following principal

financialRate of investment assumptions: return: Average pay increase 12% Discount factor 14% Average inflation rate 9%

31-Dec 31-Dec 1-Jan 2013 2012 2012 N’000 N’000 N’000 a) The total pension charge is made up as follows:

Pension costs under the schemes 51,596 60,104 –

51,596 60,104 –

b) Pension benefits

AmountsNet liability recognised in the balance in the balance sheet atsheet 31 Decemberto reflect funded status 606,620 606,620 570,359 570,359 423,280 423,280

c) Pension costs

Discount rate 14% 13% 14% TheFuture principal salary increasesfinancial assumptions used were as follows: 12% 13% 13%

Future pension increases subject to Limited Inflation rate 9% 10% 10% Institute and Faculty of Actuaries in the UK. The same mortality assumptions were used at the previous year end. Assuming The rate of mortality assumed for employees are rates published in the A67/70 Ultimate Tables, published jointly by the

retirement at 60,Sample the life age expectancy Number in years ofare deaths as follows: in year out of 10,000 lives

25 35 7 9 30 40 14 7 45 26

Withdrawal from service

Age Band Rate Less than or equal to 30 3.0% 31 – 39 2.0% 40 – 44 2.0% 45 – 50 0.0%

Actuarial calculation for the defined benefits scheme were performed by HR Nigeria limited, a firm of certified actuaries and consultants with FRC registration number FRC/NAS/00000000738. The actuarial valuation method used to value the defined benefit schemes is the projected unit method described by IAS 19R. I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 68 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 1-Jan 2013 2012 2012 N’000 N’000 N’000 Change in benefit obligation

Present value of benefit obligation at 1 January 570,359 423,280 423,280 Current service cost (excluding employee contributions) 50,529 35,643 – Interest on obligation 73,638 58,829 – – Benefits paid (36,803) (123,564) – ActuarialPresent value (gain)/loss of benefit obligation at 31 December 606,620(51,103) 570,1591 7 5 , 9 7 1 423,280

non-current liability. Amounts recognised in the statement of financial position for pensions are predominantly non-current and are reported as Movement in the net liability recognised in the statement of financial position:

At 1 January 570,359 423,280 423,280 Pension costs 124,167 94,472 – Benefits paid (36,803) (123,364) – ActuarialAt 31 December (gain)/loss 606,620(51,103) 570,359175,971 423,280 –

23. THE ANALYSIS OF FUNDS AND OTHER RESERVES

(a) Library Fund The contribution to Library fund is to obtain all the resouces needed for the use of the Institute’s members. This is in line

with the Council belief of the need to provide a befitting library facility to help students and members turn information into knowledge. This fund helps fill the g ap by providing high quality library facility, necessary materials and equipment. 3% of the year’s gross income is made available to meet capital expenditure on library development. (b) Benevolent Fund The Institute’s Benevolent and Educational Trust was established by Council of the Institute to assist persons in need who are or have been the Institute’s members and/or their families and dependants. It is also aimed at promoting and supporting man Board of trustees. The major activities of the Board are fund raising and management of investments. 3% of the Annual educational/researchAccountants’ Conference in accountancy gross income, financial is credited management to the fund, tax annually.ation and The related funds subjects. realised Theare invested,fund is managed income bfromy a fitheve investments are disbursed to members and/or their families that are in need. Since inception, this fund has been used to assist members and families of dead members. This include members who had renal (kidney) failure, blindness, stroke,

spinald(N500,000) cor only.injuries, disast er (fire/flood/accident) victims, childre’s education, etc. The minimum amount of benefit to applicants is Fifty thousand Naira (N50,000) only; while the maximum shall be a sum of Five Hundred Thousand Naira

(c) Available-for-sale reserve

investments over their historic costs. The available-for-sale investments fair value reserve represents the excess of unrealised gains on available-for-sale (d) Actuarial reserve The actuarial reserve represents the actual amount the Institute paid on it’s pension compared to previous estimates. A gain result in a change to the Institute’s assumptions. occurs if the Institute pays less than expected, while a loss happens if it pays more than expected. Actual gain and losses may

(e) Accumulated Fund

I C A N The accumulated fund represent the excess of income over expenditure which have been accumulated over the years. THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 69 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 1-Jan 2013 2012 2012 N’000 N’000 N’000

24. TRADE AND OTHER PAYABLES

Trade payables 64,362 217,986 202,283 Other payables 35,070 36,393 31,092 Accrued expenses 178,84079,408 359,098 104,719 357,613 124,238

24(a) TRADE PAYABLES

Deferred interest income 133 12,366 –

ICAN staff pension fund 109 8,405 374 WithholdingCentral Bank Taxof Nigeria 26,168– 29,795 – 16,00011,766 NASBRent received Fund in advance 4,031 – 3,074– 4,494 902

EbuteInsurance Metta claim Building contractors 6,000– 9,000– 97,388 – WCOALaw suit expenses 10,00015,000 10,000 10,000 – Advance conference fees by Shell 340 – – ICAN-ICAEW World Bank – 6,399 – Accrued Interest on staff loan – 419 242 Accountant conference refund – – 3,685 Boards of Internal Revenue – 2,066 – Sundry – 5,000 – NASU – 295 – Federal treasury – 1,194 –

TradeMembers creditors GPA Insurance – 119,973 – 6,182 – DiariesOthers and others 672– – 10,00012,568 Insurance premium – – 6,182 Staff/Committee Productivity Bonus – – 22,500

62,453 217,986 202,283

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 70 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 1-Jan 2013 2012 2012 N’000 N’000 N’000

24(b) ACCRUED EXPENSES

AAT outstanding bills 3,492 3,668 6,405

Audit fees 8,000 3,982 4,638 ExaminationAkintola Williams processes Deloitte accrued expenses 36,468 2,000 44,192 – 43,212 –

Accountants’ Conference Expenses 3,099 49,833 56,304 MCPEPAFA Subscription expenses 19,635656 3,044 – 13,536 – Insurance 1,877 – – Presidential local travels 955 – – ABWA Postage 714 29 – – Electricity 168 – – Printing Advertisement 672 353 – –

InvigilationATSWA September of Fed Treasury 2013 insight exams 208 452 – – ‘CatchICAN Journal Them Young’ awareness 630 – – 143 –

79,408 104,719 124,238

25. DEFERRED REVENUE

Deferred subscription income 3,583 2,429 4,553

Deferred interest income 4,9171,334 4,3501,921 5,81,31770

26. FUNDS

Accumulated Fund 1,045,454 772,606 566,915

Other charitable and trust funds:

DevelopmentBenevolent fund fund 1,553,22382,418 1,547,173 85,609 1,301,861 63,065 AccountancyProfessorial fund research funds 119,403145,469 119,403 145,469 116,112,704543

Prizes fund 8,503 9,176 9,929 Library fund 386,195 325,085 271,101

2,295,211 2,231,915 1,875,203

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 71 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

27. RELATED PARTY TRANSACTIONS Relationships

Kabir Alkali Mohammed (President)

Council members as office bearers: Chidi Onyeukwu Ajaegbu (Vice President)

Samuel Olufemi Deru (1st Deputy Vice President)

Titus Alao Soetan (2nd Deputy Vice President)

Adedoyin Idowu Owolabi (Immediate Past President)

Onome Joy Olaolu

(Honorary Treasurer) Other Council members: Solomon Oluwole Adeleke, Afolabi Abiodun Ajomale, Oye Clement Akinsulire, Davideson Chizuoke Alaribe, Shakirat Adepeju Babatunde, Sunday Abayomi Bammeke, Adaku Chilaka Chidume-Okoro, Uchenna Ifesinachi Erobu, Comfort Olajumoke Eyitayo, Hart Wahab Odafen Ozoya, Tijani Musa Isa, Razak Jaiyeola, Monica Ngozi Okonkwo, Nnamdi Anthony Okwadigbo, Innocent Okwuosa, Tayo Philips, Haruna Mma Yahaya, Mustapha Bulu Ibrahim, Josephine Oluseyi Williams, Isma’ila Muhammadu Zakari

Norole member as a Council of the member. Council No receives loans ispa grantedyment into rrelatedespect ofparties. services to the Institut e. In line with Council travel and expense policy, Council members are reimbursed for any expenses which they directly incur on behalf of the Institute as part of their

Remuneration of key management personnel (KMP)

Council’s policies and drives the Secretariat in promoting the Institute’s brand. The KMP has no business relationship with Thethe Institute.TheRegistrar/Chief remuneration Executive is of the the k keyey management management personnelpersonnel ofof thethe InstitutInstitutee. isHe set has out responsibility below in aggregate for implementing for each of

the categories specified in IAS 24 Related Party Disclosures. 31 Dec 31 Dec 2013 2012 Registrar/Chief Executive: N’000 N’000

Short-term employee benefits 22,340 22,340 17,642 17,642

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 72 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

31-Dec 31-Dec 2013 2012 N’000 N’000 28. CASH FLOW STATEMENT

a) Cash generated from activities:

SurplusAdjustments for the for: year 303,066 661,678

InterestAmortisation received of intangible assets (181,924) 232 (87,062) 1,958 Depreciation on property, plant and equipment 128,685 121,177

GainPrior on year sale adjustment of property, plant and equipment (3,646) – (5,794) 3,544 ActuarialGain on v aluationvaluation of gain/loss investment property (169,000)51,103 (175,971) (148,000)

Changes in working capital (excluding the effects of exchange differences):

(Increase)/decrease in inventories (69,915) 166

IncreaseDecrease/(increase) in loans and in receivable subscription and other receivables 116,865(1,961) (12,887) (3,644) Decrease/(increase)(Decrease)/increase in prepayments trade and other payables (180,258)15,128 (8,897) 1,484 Increase/(decrease) in deferred income 568 (1,520) Decrease in available-for-sale reserves – 589

Increase/(decrease)in deferred charges 587 (604) IncreaseCash generated in retirement from activitiesbenefit obligations 45,79136,261 493, 147,079296

b) Cash from operating activities

Development fund 6,050 60,312

PrizesLibrary fund fund (6,050)(673) (753) 669 BenevolentSpecial funds fund (17,352) – 7,2995,625

(18,025) 73,152

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 73 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

29. TRANSITION TO IFRS

Explanation of transition to IFRS

were prepared in accordance with IFRS 1, First Time Adoption of International Financial Reporting Standards (“IFRS 1”). As these financial statements represent the initial presentation of Institute’s results and financial position under IFRS, they which are described further in this Note. The accounting policies described in Note 3 have been applied consistently to all IFRS 1 requires retrospective application of all IFRS standards, with certain optional exemptions and mandatory exceptions,

periods under IFRS. presented in the financial statements with the exception of the optional exemptions elected and the mandatory exceptions required. At 1 January 2012 (“the Transition Date”), an opening statement of financial position was prepared

The 2011 and 2012 financial statements were previously prepared in accordance with Nigerian SAS. In this Note, our transition(i) to IFRS is explained through the following: This section describes the standards for which IFRS was not applied retrospectively as available in IFRS. First time adoption optional exemptions and mandatory exceptions to retrospective application of IFRS. (ii) Reconciliation of total funds and comprehensive income from Nigerian SAS to IFRS. and IFRS in total funds and comprehensive income. Quantitative and qualitative explanations are included in this section to explain the differences between Nigerian SAS (iii)

Reconciliation of statement of financial position from Nigerian SAS to IFRS. This section explains quantitatively and qualitatively the impact and differences between Nigerian SAS and IFRS.

First time adoption optional: Exemption from retrospective application of IFRS

As previously noted, IFRS 1 requires retrospective application of all IFRS standard with certain optional exemptions and mandatory exceptions. The optional exemptions elected are described below.

Optional exemptions

a) Employee benefits

IAS 19 provides the option of recognising all cumulative unamortised actuarial gains and losses in equity at the date of transition.

IAS 19, Employee Benefits, requires retrospective application for the recognition of actuarial gains and losses on employee

benefits.disclosures IFR onS 1a prprospectiveovides the basis. option We to haverecognise taken all this def option,erred cumulati resultingve in unamortised the cumulative actuarial amount gains of actuarial and losses losses on defined on our benefit pension plans and other benefits plans under Nigerian SAS in opening equity at the Transition Date and provide

defined benefit pension plans and other benefits plans being recognised in retained earnings at the Transition Date.

Reconciliation of Nigeria GAAP to IFRS

following tables represent the reconciliations from Nigerian GAAP to IFRS for the respective periods noted for equity, Theearnings Institut ande’s comprehensive first-time adoption income. did not have an impact on the total operating, investing or financing cash flows. The

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 74 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

(i) RECONCILIATION OF FUND 31 December 2012 1 January 2012

Note NGAAP Adjustments IFRS NGAAP Adjustments S IFR N’000 N’000 N’000 N’000 N’000 N’000 ASSETS

Non Current assets

Property, Investment plant property and equipment b 1,708,068– (992,325) 1,201,000 1,201,000 715,743 1,698,287 – (1,008,823) 1,053,000 1,053,000 689,464 Intangible assets a – 237 237 – 2,195 2,195

Available-for-sale investment c 52,096 21,629 73,725 46,890 – 46,890 Loans and receivables d 28,768 (19,511) 9,257 21,817 (15,278) 6,539

Total non current assets 1,788,932 211,030 1,999,962 1,766,994 31,094 1,798,088

Current assets Inventories 41,038 – 41,038 41,204 – 41,204 Loans and receivables d 28,768 (3,138) 25,630 21,817 (6,356) 15,461 Prepayment f 22,830 – 22,830 13,933 – 13,933 Subscription and other receivables e 158,130 22,649 180,779 155,501 21,634 177,135

Deferred expense – 1,921 1,921 – 1,317 1,317 Cash and cash equivalent 1,687,797 – 1,687,797 1,181,743 – 1,181,743

Total current assets 1,938,563 21,432 1,959,995 1,414,198 16,595 1,430,793 Total assets 3,727,495 232,462 3,959,957 3,181,192 47,689 3,228,881

Funds and reserves

AccumulatedAvailable-for-sale fund investment cj 604,827 – 167,779 21,629 772,606 21,629 545,694– 21,221 – 566,915 – Other charitable and trust funds 2,231,915 – 2,231,915 1,875,203 – 1,875,203 Total funds and reserves 2,836,742 189,408 3,026,150 2,420,897 21,221 2,442,118

Non current liabilities

Retirement Income received benfit in obligation advance h 2,429 – 570,359 (2,429) 570,359– – 423,280 – 423,280– Deferred charges i 529,227 (529,227) – 398,129 (398,129) –

Deferred revenue – 4,350 4,350 4,553 1,317 5,870

Non-current liabilities 531,656 43,053 574,709 402,682 26,468 429,150

Current liabilities

Trade and other payables g – 359,098 359,098 – 357,613 357,613 Accrued charges 104,719 (104,719) – 124,238 (124,238) – Sundry creditors 254,378 (254,378) – 233,375 (233,375) –

Total non current liabilities 359,097 1 359,098 357,613 – 357,613

Total reserves and liabilities 3,727,495 232,462 3,959,957 3,181,192 47,689 3,228,881

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 75 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

(ii) RECONCILIATION OF COMPREHENSIVE INCOME

12 months ending 31 December 2012

Note N-GAAP Adjustments IFRS N’000 N’000 N’000

StudentsFees and subscriptions l 560,649– (560,649)975,166 975,166 – Members 414,517 (414,517) –

Operating income:

QualificationsConferences and and courses fellowship – 1,218,071554,245 1,218,071554,245 Regulation,Publications education and stamps and discipline – 367,227101,339 367,227101,339

Self-financing projects 654,077654,077 1,586,806 (654,077) 2,240,883 –

Operating expenses:

Regulation, education and discipline – (253,311) (253,311) ConfQualificationserences and and courses fellowship – (355,550) (668,557) (355,550) (668,557) Publications and stamps – (15,285) (15,285)

– (1,292,704) (1,292,704)

Net operating profit Investments income – 112,326 112,326 Gain on fair valuation of investment property 654,077– 148,000 294,103 148,000 948,180

Sundry income 58,846 (23,067) 35,779 Bank deposit interest 87,062 (87,062) – Gain on currency exchange 970 (970) – ProfitTotal incomeon disposal of motor vehicle 1,777,1621,041 442,289 (1,041) 2,219,451–

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 76 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

(ii) RECONCILIATION OF COMPREHENSIVE INCOME (continued)

12 months ending 31 December 2012

Note N-GAAP Adjustments IFRS N’000 N’000 N’000

Expenditure Depreciation and amortisation – (123,135) (123,135) International affiliation cost (116,793) – (116,793)

General and administrative expenses – (460,128) (460,128) Personnel cost – (734,607) (734,607) Other expenditure – (123,109) (123,109) Establishment (81,317) 81,317 – StaffProfessional cost charges (659,971) (24,821) 659,97124,821 – AdministrativeContribution to expenses Students’ Special Projects (427,940) (6,342) 427,9406,342 –

JointICAN Symposia/Conferences Journal (14,579) (3,668) 14,5793,668 – Education and training expenses (14,771) 14,771 –

ICANIFRS Trainning/Seminar News costs (2,486)(674) 2,486674 – Accreditation/VisitationAdvertisements and publicity expenses (17,789) (9,109) 17,7899,109 – Bank charges and commission (8,380) 8,380 –

General expenses (5,707) 5,707 – Provision for WCOA expenses (5,000) 5,000 – Audit fees and expenses (5,688) 5,688 – Subscription to professional bodies (870) 870 – Research grants and expenses (2,547) 2,547 – ResearchICAN Members’ Journal Welfare scheme (10,943)(775) 10,943775 – Practice Monitoring Activities (17,570) 17,570 –

SyllabusRetained review earnings 339,149(273) 322,529273 661,678 –

Other comprehensive income Surplus transferred to Accumulated fund (55,589) 55,589 – Change in fair value of available-for-sale investments – 21,629 21,629

Re-measurementsTotal comprehensive of post-employment income for the yearbenefit obligation 283,560– (175,971) 223,776 (175,971) 507,336

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 77 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

30. NOTES TO THE RECONCILIATIONS OF IFRS FINANCIAL STATEMENTS WITH NGAAP

a) Reclassification of intangible assets

Under NGAAP, cost of software was included in property, plant and equipment. IFRS requires that identifiable non- monetary asset without physical substance be classified as intangible assets and separated from physical assets.

b) Reclassification Investment property

Under NGAAP, cost of investment property was included in property, plant and equipment. IFRS requires that investment properties should identifed and accounted for separately using either cost or fair value model. The Institute adopted fair value model and gain/loss arising from fair value of the investment property was reported in statement of comprehensive income in the period which they relate.

c) Reclassification Avaliable-for-sale investment

Under NGAAP, long term investments were presented as investments at cost. Under IFRS, IAS 39 requires fair value of the Avaliable-for-sale investment with the fair value gains/loss taken to OCI and recycled back to income statement when the Avaliable-for-sale investment is sold.

d) Reclassification of loans and receivables

to enhance presentation of information. It is measured at amortised cost using effective interest rate at balance sheet date. Trade and other debtors presented in the financial statements under NGAAP have been reclassified as Loans and Receivables

e) Reclassification of subscription and other receivables

Subscription and other debtors and dues from subscription, faculty, staff loans and advances and other prepayment

presentedstatements. in the financial statements under NGAAP have been reclassified as trade and other receivables, other assets and loans and receivables to enhance presentation of information. It has no financial implication on the financial

f) Reclassification of prepayment

Otherassets. debt ors and prepayment was reclassified to prepayment as a separate line item to enhance presentation of information. Prepayments are not receivables as they will be settled by rendering of services and not by receipt of cash or other financial

g) Reclassification of trade and other payables

Creditors and accruals due to Authors, Accountants conference expenses, examination process expenses and other are separately presented in the financial statements under NGAAP. They have been reclassified as Trade and other payables to enhance presentation of information. It has no financial implication on the financial statements.

h) Retirement Benefit Obligation

of staff gratuity. The adjustment relates to the difference between the amount provided for and the staff gratuity after Retirementactuarial valuation. Benefit Obligation relates to the recognition of actuarial valuation of staff gratuity. IAS 19 requires the valuation

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 78 2013 Annual Report & Financial Statements NOTES to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2013

i) Reclassification of deferred charges

Under NG AAP, Provision for liabilities in respect of retirement benefit obligation was presented as deferred charges under liability. This has been reclassified as Retirement Benefit Obligation in line with IAS 19 Employee benefit.

j) Reclassification of Library fund, Developmental fund, Special fund and Prizes fund

Under NGAAP, the funds was recognised separately based on the council’s resolution to transfers some funds to

designatedstatements. accounts for specific purposes. Under IFRS, this is accumulated together and called Other funds to enhance the understanding of the users of the financial statements. And this reclassification does not have any impact on financial

k) Regrouping of members’ and students income

Under NGAAP, the income from members and students were recognised separately in the statement of comprehensive income. Under IFRS, this was regrouped and called fees and subcriptions to enhance the understanding of members and

other users of the financial statements. This does not have any financial impact on the financial statements.

l) Regrouping of Self-financing project – Professional examination, ATS exams, Fellowship award and Conferment and Induction of new members to Qualification and Fellowship

Under NGAAP, the income from Professional exams, ATS, Fellowship award and conferment was recognised as part of self- financing projects in the statement of comprehensive income. Under IFRS, this was regrouped and called Qualifications and Fellowship to enhance the understanding of members and other users of the financial statements. And this regrouping does not have any impact on financial statements.

31. POST BALANCE SHEET EVENTS

The Council of the Institute is already discussing with stakeholders on the termination of the Gratuity Scheme and the would have been resolved. reduction of the Institute’s pension contribution from 15% to 7.5%. It is hoped that in no distant time, all issues relating to gratuity

I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 79 2013 Annual Report & Financial Statements I C A N

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA (Established by Act of Parliament No.15 of 1965)

Plot 16, Professional Centre Layout, Idowu Taylor Street, Victoria Island. P.O. Box 1580, Lagos. Tel: 7642294, 7642295 Fax: 4627048 E-mail: [email protected] ICAN Website: www.ican-ngr.org

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