CONTENTS 2

Vision 3 Statement Notice of Meeting

To be a 4 leading global Officers and Council professional body. 5 Past Presidents

6 President’s Statement Mission Statement 26 Reports of Committees of Council «MEMBERSHIP AFFAIRS To produce «ICAN MEMBERS’ BENEVOLENT & EDUCATIONAL world-class TRUST FUND «ANNUAL ACCOUNTANTS’ CONFERENCE chartered «ASSOCIATION OF ACCOUNTING TECHNICIANS accountants, WEST AFRICA «MEMBERS’ EDUCATION AND TRAINING regulate and COMMITTEE «PROFESSIONAL PRACTICE MONITORING continually COMMITTEE enhance their «RESEARCH, TECHNICAL AND PUBLIC POLICY «INFORMATION TECHNOLOGY COMMITTEE ethical standards «FACULTIES and technical «STUDENTS’ AFFAIRS COMMITTEE «STUDENTS’ SPECIAL PROJECT competence «PROFESSIONAL EXAMINATIONS «LEGAL SERVICES in the public «PUBLICATIONS AND IMAGE interest. «INTER-GOVERNMENTAL RELATIONS COMMITTEE

52 Financial Statements

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF 2016 Annual Report & Financial Statements NOTICE of Meeting 3

52ND ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the 52nd Annual General Meeting of The Institute of Chartered Accountants of Nigeria will take place at Shell Hall, Muson Centre, Onikan, on Friday, May 26, 2017 at 10.00 a.m. to transact the following business:-

AGENDA

1. To adopt the minutes of the Annual General Meeting held on May 27, 2016.

2. To receive the Annual Report of Council, Financial Statements for the Year ended December 31, 2016 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 ...... 5th ...... day of May 2017.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements OFFICERS and Council 4

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA (Established by Act of Parliament No.15 of 1965) OFFICERS & COUNCIL 2016 – 2017 President Titus Alao SOETAN (Deacon), FCA (2004) Vice President Isma’ila Muhammadu ZAKARI (Mallam), mni, BSc, FCA (2004) 1st Deputy Vice President Razak JAIYEOLA (Alhaji), BSc, ACFE, CRISC, FCA (2005) 2nd Deputy Vice President Nnamdi Anthony OKWUADIGBO (Mazi), BSc, FCA (2007) Immediate Past President Samuel Olufemi DERU (Otunba), FNIM, JP, FCA (2002) Honorary Treasurer Tayo PHILLIPS, MBA, FCA (2005, 2014)

Members Solomon Oluwole ADELEKE (Deacon), FCA (2008, 2016) Titilayo Ariyike Nurat AKIBAYO (Alhaja), MBA, FCIT, FCA (2016) Oyemolu Olugbenga AKINSULIRE (Chief), MSc, MBA, FNIM, FCA (2013) Davidson Chizuoke Stephen ALARIBE (Chief), MA, CFA, MNIM, FCA (2012) Chibuzor Noel ANYANECHI, BSc, MBA, FCA (2016) Deji AWOBOTU (Dr.), M.IoD, FCA (2015) Ibrahim Madugu Abdullahi BABAYO, FCA (2014) Adaku Chilaka CHIDUME-OKORO (HRM), BSc, MSc, FCA (2009) Comfort Olujumoke EYITAYO, mni, CFA, FCA (2007) Tijjani Musa ISA (Mallam), BSc, M.IoD, FCA (2009) Nasiru MUHAMMAD (Hon.), BSc, MSc, FCIT, FCA (2014) Sylvester Chukwudi NWANNA, MSc, MBA, FCA (2015) Ngozi Monica OKONKWO, MSc, ACIB, CFA, FCA (2011) Innocent OKWUOSA, MSc, ACIB, FCA (2011) Onome Joy ADEWUYI, BSc, MSc, FCIB, FCA (2007) Tajudeen Olawale OLAYINKA, BSc, MBF, FCA (2014) Sam Onyebuchi ONUKWUE, MBA, MSc, FCS, FCA (2014) Etofolam Felix OSUJI (Dr.), mni, MSc, FCTI, FCA (2014) Hilda Ofure OZOH, MBA, FCA (2014) Oyebowale RafiuRAJI , BSc, FCA (2014) Queensley Sofuratu SEGHOSIME, mni, MBA, FCA (2014) Samuel UKURA, FCA (2014) Haruna Nma YAHAYA (Alhaji), BSc, MBA, ANIM, FCA (2011, 2014)

Registrar/Chief Executive Rotimi Akanni OMOTOSO, MBA, FCIB, FCA

Joint Auditors PricewaterhouseCoopers (Chartered Accountants) UHY Maaji & Co. (Chartered Accountants)

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Past PRESIDENTS 5

THE ASSOCIATION OF ACCOUNTANTS IN NIGERIA

(The Forerunner of the Institute) 1960 – 1961 Akintola WILLIAMS, CBE, CFR, B.Com., FCA 1961 – 1962 Akintola WILLIAMS, CBE, CFR, B.Com., FCA 1962 – 1963 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased) 1963 – 1964 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased) 1964 – 1965 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased)

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 1965 – 1966 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased) 1966 – 1967 Ephraim Adekunle OSINDERO (Otunba), MON, FCA (Deceased) 1967 – 1968 Herbert William BOND, FCA (Deceased) 1968 – 1969 Zacchaeus Oludayo OSOSANYA, FCA (Deceased) 1969 – 1970 Alfred EHREN, FCA 1970 – 1971 Felix Bankole CARDOSO, FCA (Deceased) 1971 – 1972 Emmanuel Ayodele ODUKOYA (Archdeacon), FCA (Deceased) 1972 – 1973 Musliu Olaiya ANIBABA (Chief), FCA 1973 – 1974 Vincent Obajimi Adebisi OGUNBA, FCA (Deceased) 1974 – 1975 Julius Akinyokun OWOSENI (Chief), FCA (Deceased) 1975 – 1976 Michael Adepoju ADEYEMO (Prof.), MSc (Econs.), FCA (Deceased) 1976 – 1977 Cecil Oyeniyi Olurotimi OYEDIRAN, BSc (Econs.), MFR, FCA 1977 – 1978 Anthony Asuquo ANI (Chief), MON, FCA 1978 – 1979 Arthur Christopher Izuegbunam MBANEFO (Chief, Amb.), (Odu III), MFR, CON, FCA 1979 – 1980 Joseph Akintunde Alaba ADEBAYO (Prince), FCA 1980 – 1981 John Adepoju BALOGUN (Sir), FCA (Deceased) 1981 – 1982 Idris Onaolapo SULAIMON (Alhaji), FCA 1982 – 1983 Olusola FALEYE (Chief), FCA 1983 – 1984 Dolanimi Babafemi Olabamidele OGUTUGA, FCA 1984 – 1985 Johnson Kayode Osiyemi OSINAIKE, FCA (Deceased) 1985 – 1986 Adedoyin Olayide OGUNDE (Otunba), FCA (Deceased) 1986 – 1987 Samie Aremu WILLIAMS, FCA (Deceased) 1987 – 1988 Johnson Olaobaju Olabisi OMIDIORA (Balogun), BSc, OON, FCA 1988 – 1989 Ebenezer Folorunsho OKE (Chief), BSc, FCA (Deceased) 1989 – 1990 Bola KUFORIJI-OLUBI (HH, Otunba Ayora, Dr.) BSc, OON, FCA (Deceased) 1990 – 1991 Michael Ayodeji ONI, BSc, FCA 1991 – 1992 Cornelius Oladipupo Sunday OSENI, BSc, FCA (Deceased) 1992 – 1993 Oluwole Alani ADEOSUN (Chief), BSc, OON, FCA (Deceased) 1993 – 1994 Ismaila USMAN (Mallam), FCA 1994 – 1995 Olutoyin Olusola OLAKUNRI (Chief, Mrs.), OFR, FCA 1995 – 1996 Simeon Olusola OGUNTIMEHIN (High Chief, Sir), OON, FCA 1996 – 1997 Emmanuel Itoya IJEWERE, FCA 1997 – 1998 Agnes Adenike ADENIRAN (Princess), FCA 1998 – 1999 Ike NWOKOLO (Sir), OFR, KSC, FCA 1999 – 2000 Adeboye Olugboyega BADEJO (Chief), FCA 2000 – 2001 Herbert Adewole AGBEBIYI, FCA 2001 – 2002 Ugochukwu Stephen NWANKWO (Chief), MON, FCA 2002 – 2003 Felix Kolawole BAJOMO (Senator, Chief), mni, FCA 2003 – 2004 Jaiye Kofolaran RANDLE (Bashorun), CFR, FCA 2004 – 2005 Ibironke Mojisola OSIYEMI (Mrs.), FCA 2005 – 2006 Abdul Lateef Adebayo OWOYEMI (Alhaji, Otunba), FCA 2006 – 2007 Catherine Ginikanwa OKPAREKE (Chief, Dr., Mrs.), mni, B.A, MBA, D(Lit.), MNIM, FCA 2007 – 2008 Adebajo Abiodun BABINGTON-ASHAYE (Prince), FCA (Deceased) 2008 – 2009 Richard Uchechukwu UCHE (Chief), PhD, FCA 2009 – 2010 Elizabeth Omeresan ADEGITE (Chief, Mrs.), BSc, MBA, FCA 2010 – 2011 Sebastian Achulike OWUAMA (Major-General retd.), BSc, FCA 2011 – 2012 Francis OJAIDE (Professor), MSc, PhD, OON, FCA 2012 – 2013 Adedoyin Idowu OWOLABI, BSc, MILR, FNIM, FCA 2013 – 2014 Kabir Alkali MOHAMMED (Alhaji), mni, FCIS, CGMA, MFR, FCA 2014 – 2015 Chidi Onyeukwu AJAEGBU, FCS, MBF, FCA 2015 – 2016 Samuel Olufemi DERU (Otunba), FNIM, JP, FCA (IPP)

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements 6

Titus A. SOETAN (Deacon), FCA 52nd ICAN President

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements PRESIDENT’s Statement 7

n behalf of the governing Council, I welcome you in February 2016 to 16.48% in June 2016. The increase in all to the 52nd Annual General Meeting of our headline inflation in June reflected increases in both food and Institute. It is with great pleasure I present the core components of inflation. The rising inflationary pressure stewardship Report for 2016/2017 presidential was largely a reflection of structural factors, including high year as well as the Institute’s audited financial cost of electricity, high transport cost, high cost of inputs, low statements for the year ended December 31, 2016 for your industrial activities as well as higher prices of both domestic and Oconsideration and approval. imported food products. The Institute, as a major corporate entity, operates in a On the side of the Money market, interest rate fluctuated dynamic and complex environment, and its activities are in tandem with the level of liquidity in the banking system and influenced largely by government’s macro-economic and fiscal the scarcity of foreign currencies. The latter, to a great extent policies. It is therefore apt to commence this stewardship report has inhibited economic activities. The Institute reiterates the with a review of the economic environment in which the Institute need for government to be more inward looking and hasten operated during the presidential year which spanned the period efforts towards economic diversification to support the domestic June 2016 to May 2017.

AN OVERVIEW OF THE ECONOMY The global financial market was characterised by uncertainties predicated by the outcomes of the UK referendum decisions to leave the European Union, ‘Brexit’ and perhaps the US election. Prior to this period, our nation’s economy has been struggling with the consequential effect on the Gross Domestic Product (GDP) occasioned by the steady drop in the price of its major export commodity, crude oil. The economy finally slipped into recession in 2016. It was a period that witnessed the inabilities of some corporate entities including government departments to pay their workers’ wages and salaries. There was generally a national decline in economic activities aggravating the level of unemployment. The President and his entourage with the CEO of Nigerian Stock Exchange Mr. Oscar Onyema The government on its part made during a courtesy call efforts to retool the economy by proposing the 2016 revenue and expenditure plan as a budget economy and improve life for the Nigerian people. The current of ‘recovery and growth.’ The sum of N6.08 trillion for the 2016 situation was not amenable to simplistic analyses and quick fiscal year was meant to stimulate the economy and bring a faster fixes such as have found expression and increased attention at end to the recession. In spite of this move by the government, different fora and the media. the economy was still saddled with the effects of the shocks of The domestic economic challenges which included a the first quarter of 2016, which led to a contraction in output chronically import dependent consumption culture, lack of arising from energy shortages, high electricity tariffs, price competitiveness of many sectors of the economy and yawning hikes, scarcity of foreign exchange and depressed consumer infrastructural gap have combined with an unfavourable demand, among others. external environment to complicate the macroeconomic policy Whereas the influence and persistence of some of the environment. The Institute lends its voice to efforts for an factors waned in the second quarter, it was unlikely that the early finalisation of the 2017 Federal Budget by the authorities economy rebounded strongly in the quarter as setbacks in concerned, and the resolve to pursue a non-oil driven economy, the energy sector continued owing mainly to vandalism of oil as these would go a long way in stimulating aggregate demand installations. In addition, the implementation of the 2016 budget and restore confidence in the economy. The Institute further in the second quarter remained slower than expected. Further, notes that inflationary pressures would begin to subside, as the deregulation in the downstream petroleum sector and the non-oil output recovers and the naira exchange rate stabilises. liberalisation of the foreign exchange market did not help bring Finally, restoring Nigeria’s economic growth and laying about the much needed relief to the economy. a solid foundation for the long term development requires During the period under review, inflation rate took its turn strategic economic models. For Nigeria to compete in the 21st on the economy as there was a further rate rise from 11.38% century global economy, its industrial policy must be linked to a

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements PRESIDENT’s Statement 8

digital led strategy for growth. We urge the government to focus on industrialisation most especially the micro, small and medium scale enterprises (MSMEs). This will create job opportunities for the youths, increase production in manufacturing, agriculture and also diversify the economy. The government should encourage and patronise made in Nigeria Products.

MEDIA AND IMAGE MATTERS

Press Interview with Select Print Media As part of the Institute’s advocacy programme for the 2016/17 presidential year. Interview sessions were held with a few print media houses on various topical issues affecting the nation’s socio-economic and political terrain.

Media Luncheon On Wednesday, July 13, 2016, I hosted members of the fourth estate of the realm to a media luncheon/ parley at the Zen Restaurant, GRA, Ikeja, Lagos. At the media parley, I intimated the media on current activities within the profession as well as attending to questions on various socio-economic and political challenges confronting the growth and progress of the nation. Managing Partner of PKF, Mr. Tajudeen Akande presenting souvenir to ICAN President, Deacon Titus Soetan Courtesy Visit to Federal Radio Corporation of the Institute. During this visit, I expressed the concern of the Nigeria (FRCN) Enugu National Station Institute over the delay in the passage of the Audit Bill 2014 by As part of programmes outlined for the 11th Eastern Zonal the National Assembly. I also spoke on the current recession in Accountants’ Conference, I was at the Enugu National Station the country and called on all citizens to make the rebuilding of of the Federal Radio Corporation of Nigeria (FRCN), where I the nation’s economy the responsibility of everyone. I urged all paid courtesy call on the Zonal Director, Mr. Ike Okere. He was, to join hands with the government and corporate bodies towards however, represented by the Deputy Director (Marketing), Sir making the revival of the economy a possibility. I also responded Ken Eneh. to questions from some financial correspondents.

Courtesy Visit to Dream FM 92.5 Courtesy Visit to the Guardian Newspapers In continuation of my visit to select media houses in Enugu On Tuesday, September 20, 2016, I paid a courtesy visit to and as prelude to the commencement of the 11th Eastern Zonal the Editor of Guardian Newspapers, Mr. Abraham Ogbodo at Districts’ Conference, I also paid courtesy visit to the Managing theAM RUT House office, Isolo, Lagos. In my brief remarks, I Director of Dream FM 92.5 in Enugu, Mr. Anthonio Cruise. commended the steadfastness of the newspaper’s editorial policy which, in my opinion, has been very consistent and Courtesy Visit to Impact Business Radio (IBR 92.5 FM) balanced. Ibadan, As a routine, I was engaged by the editorial team in questions I visited the studio of Impact Business Radio (IBR 92.5 and answers session on the current economic downturn FM) in Ibadan, Oyo State as part of my official trip to Ibadan & challenging the country and the way out of the recession as well District Society. In his welcome address, the Managing Director, as other socio- economic issues confronting Nigeria. Deacon Owolabi Oladejo, FCA was appreciative of our visit and commended the efforts of the Institute on its socio-economic Courtesy Visit to African Newspapers of Nigeria mandates. (AAN Plc), Ibadan In continuation of my visit to Ibadan & District Society, I paid Visit to the Punch Newspaper a courtesy visit to the Managing Editor of African Newspapers As part of media publicity programme for the presidential of Nigeria (AAN) publishers of Nigerian Tribune Newspapers, year, I led an entourage comprising some Council members and Mr. Edward Dickson. In his welcome address to the visiting Secretariat staff on a courtesy visit to the Punch Newspapers at its team, the Managing Editor glowingly expressed his pleasure headquarters at Magboro along the Lagos-Ibadan Expressway, and delight at the very professional disposition of members of on September 15, 2016. Issues concerning the two the Institute in the employ of his organisation. He said that their organisations, the nation’s economy and media coverage for the services were of tremendous value to the day to day survival of 46th Annual Accountants’ Conference were discussed. the organisation. I had another opportunity to visit Punch Newspaper as part He also mentioned that the Tribune Newspaper is a national of the programme for my visit to Mowe & District Society of monument considering the philosophy behind its formation as

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements PRESIDENT’s Statement 9

well as the ideals of its founding fathers. on Economic Recovery & Growth Plan and the 2017 Federal In my remark, I spoke on the reason for my visit, the desirability Government of Nigeria budget. The workshop had a panel format of the Institute’s team to share in the secret of its entrepreneurial comprising: Dr. Obadiah Mailafia; Mr. Muda Yusuf; Mr. Taiwo successes in spite of the various economic policies by various Oyedele and Dr. Ayo Teriba as members, while Mr. Bismarck governments in the country. Rewane as guest speaker and Professor Charles Soludo as the I highlighted the various responsibilities of the Institute as chairman of the workshop. enshrined in its Acts of Parliament of 1965 as well as the various disciplinary procedures of the Institute and the critical position of responsibility members of the Institute occupy in the nation’s VISIT TO EXECUTIVE GOVERNORS economic front. Courtesy Visit to the Executive Governor of Retreat of the Senate Committee on the Review of the 1999 Constitution On Monday, January 30, 2017, I paid a courtesy visit to the On Friday, June 17, 2016, at the instance of the Senate Executive Governor of Anambra State, His Excellency, Chief Committee on the review of the 1999 constitution, I presented William Obiano, FCA at the Government House, Awka during a paper on the “The Need to Separate the Offices of the the State Executive Meeting. Accountant and Auditor General of the Government from I thanked the Governor and members of the State Executives that of the Federation.” In the paper, I opined, on behalf of for the honour accorded me to address them in the middle of the Institute, that there was no need to have a separation of the their executive meeting. offices. In my address I spoke on: ● The roles and responsibilities of the Institute as provided in its enabling Acts of Parliament No. 15 of 1965. WORKSHOP AND SEMINARS ● The importance of the Institute’s disciplinary tribunal in checking refractory members in the discharge of their 2016 Presidential Policy Dialogue Session professional duties. The 2016 Presidential Policy Dialogue Session was held on ● The need for Anambra State government to adopt IPSAS Thursday, August 11, 2016 at Eko Hotel & Suites. The keynote in its financial operations. speaker was the Vice-President of the Federal Republic of ● The need for the State government to continue to partner Nigeria, His Excellency, Professor Yemi Osinbajo, GCON. I was, with the Institute in capacity building on technical issues on the however, represented at the session by Alhaji Razak Jaiyeola, adoption of IPSAS. FCA, 1st Deputy Vice-President. ● Plea to Chief Obiano, FCA on behalf of Onitsha & District

Treasury Single Account Workshop On Thursday, November 10, 2016, I delivered the welcome remarks at a one-day seminar on Treasury Single Account (TSA) organised by the Institute and held at the Annexe Office, Ebute Metta, Lagos. Seasoned paper presenters delivered papers in respect of their assigned topics.

ICAN Economic Discourse – 2017 This year, we introduced an Economic Discourse Series with the main objectives being the assessment of economic and national policies and their implications to national development. The 2017 edition was held on April 24, 2017 at Director-General, Lagos Chamber of Commerce and Industry, Mr. Muda Yusuf (left); Partner PWC, Mr Taiwo Oyedele, MUSON Centre, Onikan, FCA; former CBN Governor, Prof. Charles Soludo; ICAN President, Deacon Titus Soetan, FCA; former Deputy Lagos. The focus was Governor, CBN, Dr. Obadiah Malafia; and Dr. Ayo Teriba at the Economic Summit organised by ICAN recently

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements PRESIDENT’s Statement 10

Society for the acquisition of four plots of land at the cost of encountered with the programme and how both states overcame Sixteen Million Naira (N16,000,000) and 50% counterpart them with determination and focus for success. funding of the ICAN building at Onitsha. The governor on behalf of the executive council and people ● Request for two 14-seater buses for ease of mobility for of the state thanked the Institute for the donation of the lecture the over 100 members in Onitsha & Nnewi. theatre to Federal University, Birnin Kebbi, this donation, he During the late evening meeting, the Executive Governor said would be cherished by the students and the university directed the State Accountant-General, who is also a Council management. member, Ms. Ngozi Monica Okonkwo, FCA and the Chairman of the State Internal Revenue Service to develop a blueprint in Courtesy Visit to Executive Governor of Ogun State connection to the Institute’s Special Students’ Project as well as I commenced the official visit to Abeokuta & District Society its cost implications on Friday, March 17, 2017 with a courtesy visit to the Executive Governor of Ogun State, His Excellency, Senator Ibikunle Courtesy Visit to Executive Governor of Amosun, CON, FCA at his Oke Mosan office, Abeokuta, Ogun I, in company of the Vice-President, Alhaji Isma’ila M. Zakari, State. mni, was at the government house at Birnin Kebbi for a courtesy In my address, I conveyed the appreciation of the governing call on the Executive Governor of Kebbi State, His Excellency, council of the Institute to Governor Amosun, FCA for his loyalty Abubakar Atiku Bagudu. and unflinching support to the various programmes of the While informing the governor of the purpose of our visit, Institute. which was to commission the newly constructed lecture I also thanked him for his attendance at the 2016 Annual theatre built by the Institute for the accountancy students of the Accountants’ Conference held in Abuja and also extended an Federal University, Birnin Kebbi as part of our corporate social invitation to the 2017 Annual Dinner and Awards Ceremony responsibility, I praised the strides of the state government in scheduled for Friday, April 28, 2017 in Lagos. its drive towards self sufficiency in the areas of agricultural In his response, Governor Amosun, FCA was full of praises programmes. for the profession that has prepared him for the task of prudential I made reference to the rice farming project in partnership with governance in the gateway state of Ogun. the Government. I commended and recommended He appreciated the efforts of the Council of the Institute for the project to all the States and Local Government Councils initiating world class professional inclined courses for members across the federation as a way of getting the best out of the as part of its mandate in upskilling their knowledge as stipulated economic stance of comparative advantage. by the International Federation of Accountants (IFAC). The Governor thanked us for the visit and acknowledged the important role of our Institute in the nation and emphasised that Meeting with the Executive Governor of our Institute has projected the country in positive ways to the world. I paid a courtesy visit to the Executive Governor of Akwa While speaking on the state rice project in partnership with Ibom State, His Excellency, Governor Emmanuel Gabriel Udom, the Lagos State Government, he stated the initial challenges FCA who alongside his deputy and large members of the State cabinet hosted me and my entourage to a state banquet in his official residence. In my address, I thanked the executive governor and members of his cabinet for their presence and show of affection at the state banquet. I commended the strides of the governor regarding his developmental programmes in the State as it has been acknowledged that majority of the developmental programmes have been having greater impact on the progress of the State and its citizens. I spoke on the various milestones attained by the Institute in its efforts to maintain the ICAN Brand as the only preferred accountancy brand in the nation and within the African Continent. I also highlighted the Institute’s membership contributions to some Select Committees of the International Federation of Accountants (IFAC). I spoke on the need to continue to maintain and sustain the ICAN Brand as I called on the Governor as one of the ambassadors of the Institute to continue to remember its motto of Accuracy and Integrity in its dealings with all publics of government. Kebbi State Governor, Alh. Abubakar Atiku Bagudu (right) welcoming ICAN President, I also called on his Excellency on the urgent Deacon Titus Soetan to Kebbi Government House need for the state to embrace the Institute’s

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements PRESIDENT’s Statement 11

Special Students’ Project (SSP) designed for some educationally disadvantaged states in the country, as a route to producing more chartered accountants for the state. I explained the operational modalities of the scheme and the benefits to the citizens, state and the nation. In his address, Governor Udom, FCA assured me and my entourage and members of Uyo & District Society of his readiness to consider the requests made.

VISIT TO STAKEHOLDERS AND GOVERNMENT PARASTATALS Courtesy Visit to the Honourable Minister of Education On Monday, August 23, 2016, I, in company of some Council members visited the Honourable Minister of Education, Mallam Adamu Adamu. Issues relating to the consolidation of the relationship between the Institute and its supervising ministry were passionately discussed. FCT Minister, Mallam Muhammad Musa welcoming ICAN President, Deacon Titus Courtesy Visit to the Nigerian Soetan to his office in Abuja when ICAN team paid him courtesy call Stock Exchange As one of the visits to few key stakeholders in the financial some members of the Institute’s Council on a courtesy visit sector of the economy, and in company of some Council to the Chairman, Independent Corrupt Practices and Other Members, I paid a courtesy visit to the Director-General of Related Offences Commission (ICPC) in Abuja. Our delegation the Nigerian Stock Exchange, Mr. Oscar Onyema and his was received by a representative of the Chairman, Alhaji Baki management team in Lagos on Tuesday, August 23, 2016. Abdullahi, (member of the Commission Board). Financial and economic matters were discussed during the In my address, I acknowledged the efforts of the Commission meeting. I also had the honour of ringing the bell signaling the towards the eradication of corrupt practices in our national facet close of the market for that day. and assured members of the Commission of the Institute’s support in this area. I also informed him of ICAN’s Whistle Invitation from the Ministry of Budget and Blowers Protection Fund, Training of Forensic Accountants; National Planning possible partnership with the commission’s Anti-corruption I was represented by Mallam Haruna Yahaya, FCA, Council Academy, among other discussions. Member at the 15th Meeting of the 2016 Joint Planning Board (JPB) and National Council on Development Planning (NCDP) Courtesy Visit to the Head of Service of the Federation held at Tahir Guest House, Kano, State from Tuesday 23 and As part of the Institute’s support for the ongoing institutional Thursday 25 August, 2016. The theme of the meeting was: reforms by the Federal Government, I, in company of some ‘‘National Strategic Panning as a Vehicle for Attainment of Council members paid a courtesy visit to the Head of Service of the Sustainable Development Goals (SDGs) in Nigeria.’’ The Federation (HOS) Mrs. Winifred Oyo-Ita, FCA at the Federal Secretariat office, Abuja on Monday, September 26, 2016. Courtesy Visit to the Honourable Minister of Finance Issues of strengthening our relationship; movement from cash As a show of support for the current administration’s ongoing to accrual accounting; low number of Chartered Accountants in economic reform policies, I, in company of some Council members the service; the 46th Annual Accountants Conference; in-house paid a courtesy visit on the Honourable Minister of Finance, Mrs. training for their staff and welfare packages were also discussed. Kemi Adeosun, ACA, in Abuja on Friday, September 30, 2016. I commended the Honourable Minister and her team for their Courtesy Visit to the Honourable Minister of the efforts at ridding the civil service of ‘ghost workers’ and other Federal Capital Territory fraudulent activities in the nation’s civil service. On Friday, December 08, 2016, I led a delegation of some Other issues discussed include staff training, risk-based Council members of the Institute on a courtesy visit to the internal audit in the civil service system; plans to block leakages Honourable Minister of The Federal Capital Territory, Mallam in the economy and joint audit by big and small and medium- Muhammad Musa Bello in his Abuja office. sized firms. I thanked him for receiving the ICAN team and made request for allocation of land at the Federal Capital Territory Courtesy Visit to the Executive Chairman, Independent for the construction of ICAN Multi-purpose Resource Centre Corrupt Practices Commission (ICPC) with the capacity to host world class conferences such as the On Monday, September 26, 2016, I led a delegation of World Congress of Accountants and the Annual Accountants

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements PRESIDENT’s Statement 12

whereby the contributions from tax to the GDP could be higher than presently obtainable.

Courtesy Visit to the Registrar-General of the Corporate Affairs Commission As part of activities for the 46th Annual Accountants Conference, on Monday, October 10, 2016, I led a delegation of seven officials on a courtesy call to the Registrar-General of the Corporate Affairs Commission, Alhaji Bello Mahmud in Abuja. I acknowledged the Commission’s immense contributions to the promotion of best practices in corporate governance; the enthronement of “The Ease of Doing Business in Nigeria”; and its bold initiative at recommending the draft bill to repeal the CAMA Act. I also thanked him for giving the Institute the opportunity to have its suggestions Chairman, Federal Inland Revenue Service (FIRS), Mr. Tunde Fowler; ICAN President, Deacon Titus included in some sections of the Bill Soetan and ICAN Council Member, Haruna Yahaya during ICAN's visit to FIRS office in Abuja under reference.

Conferences. Courtesy Visit to the Executive Secretary/Chief Documents pertaining to our application for 100 hectares of Executive Officer of the Financial Reporting land for a Mass Housing Scheme were presented. It is pertinent Council of Nigeria (FRCN) at Alausa, Ikeja, Lagos to mention that the Institute had earlier submitted the documents As part of measures of ensuring that the Institute’s cordial to the Abuja Geographic Information Systems (AGIS) with the relationship with other financial regulatory agencies in the required payments without any communication from the AGIS. country is maintained I, in company of some council members As a way of speeding up this request, Mallam Bello requested paid a courtesy visit to the recently appointed Executive for the Institute’s representatives who would work with the FCT Secretary of the Financial Reporting Council of Nigeria (FRCN) technical team on the subject matter. The team has already at the Ikeja, Lagos office on Thursday, January 26, 2017. started working in this direction. I congratulated the Executive Secretary/Chief Executive, Mr. Daniel Asapokhai, FCA on his appointment and wished Courtesy Visit to the Executive Chairman, Federal that his tenure ushers in good and quality standards in view Inland Revenue Service of the critical role of the FRCN in the scheme of the nation’s In continuation of my visit to Abuja on Friday, December economic policies. In his response, the Executive Secretary/ 08, 2016, I paid a courtesy call on the Executive Chairman of Chief Executive of FRCN thanked my team and assured us the Federal Inland Revenue Service, (FIRS) Abuja, Mr. Tunde that his mandate to serve the interest of Nigeria will never be in Fowler. doubt especially in the course of discharging his responsibilities. The FIRS Chairman thanked our team for the visit and He was grateful to the Institute for bringing professionalism gladly informed us that the FIRS has in its employ over three and robust ideas to bear on the board of FRCN through our hundred and fifty members (350) of the Institute, who are representatives. delivering qualitative professional services to the upliftment of Other matters brought to my attention were: the organisation. ● Collaboration in the area of dual registration by members He decried the low rate of compliance with payment of taxes of the Institute with FRCN and ICAN. in the country, hence the organisation’s decision to employ the ● Collation of comments on published accounts by services of professional accounting firms to assist in this regard. corporate organisations to be jointly done by both FRCN Mr. Fowler informed us of the organisation’s achievement of and ICAN. meeting 80% of its set target for the year under reference. ● Leveraging on ICAN Auditing Standards for the purpose He said that the organisation holds, in very high esteem, of synopsis. comments and professional advice from the Institute on issues ● Request on collation of comments on exposure drafts concerning the economic growth and wellbeing of the nation. sent to concerned organisations by the Institute to be In my response, I spoke on the current recession in the shared with the FRCN. country and how taxation could be deployed to balance the ● Co-ordinating the collation of comments on IFAC country’s annual budget deficit. I commented on the positive exposure drafts. reforms in the tax sector of the economy, but implored the I responded to some of these requests and where necessary revenue service to look at the possibility of creating avenues others have been referred to the relevant committee for review.

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● Listening to suggestion(s) or comment(s) from our various stakeholders such as accounting firms on how to improve on our operations. ● Seeking employment opportunities for newly qualified members and prize winners in the final examination levels of the Institute’s examinations.

Ijewere & Co In continuation of my visit to audit firms, I paid an official visit to the firm of Ijewere & Co on Thursday, July 21, 2016. Mr. Tunde Odunowo, FCA, a partner of the host firm spoke on the need to observe and preserve the ethics of the profession. He also enjoined Members of the Institute’s Council with the Registrar-General of the Corporate Affairs Commission, the Institute to advise members Mr. Mahmud Bello on the need for them to observe and adhere to scale One-On-One Visit to Some Past Presidents and of professional fees when quoting/bidding for professional the First ICAN Secretary accounting services. As part of my programme of maintaining an all inclusive style During the interactive session with the partners the following of governance, I paid one-on-one courtesy visit to some past issues were raised among others: presidents of the Institute mostly resident in Lagos. The visit ● Ensuring that members in the SMPs bracket must was principally in appreciation of their past contributions to the continuously up skill themselves in order to fit into the accountancy profession in particular, the nation at large as well ever dynamic roles of the profession. as to enquire of their well-being. Many of them further gave ● The need for members to up-skill their competences in advices on how to move the profession and the nation forward. the areas of information technology that are applicable to The past presidents I visited were: Prince Joseph A.A. Adebayo, their specialties. FCA, 1979/1980; Mr. Dolamini Babafemi O. Ogutuga, FCA, ● Issues of members looking at the option of diversifying 1983/1984; Chief Adeboye O. Badejo, FCA, 1999/2000; Chief into other professional areas other than accountancy. Olusola Faleye, FCA, 1982/1983; Ambassador (Chief) Arthur Christopher I. Mbanefo (Odu III), CON, CFR, FCA, 1978/79; Mr. In my brief remark, I spoke on the following programmes Oyediran, FCA, 1976/77; Alhaji Idris Sulaimon, FCA, 1981/1982 among others: and the Lisa of Ondo Kingdom (Sir) Simeon O. Oguntimehin, ● Encouraging the SMPs to consider partnership for the OON, FCA. I also paid courtesy visits to the first Secretary of the purpose of growth and professional advancement. Institute, Reverend Oluyomi A. Ladeinde, FCA. ● To conduct workshops and seminars for SMPs where quality enhancing topics will be discussed on life based scenario. VISIT TO FIRMS Ernst & Young Akintola Williams Deloitte A courtesy visit was made to Ernst & Young, one of the Big-4 As part of the Institute’s strategy to reach out to its various accounting firms on Friday, July 22, 2016 at its Marina Office, stakeholders, I, in company of some Council members, the Lagos. Our team was received by the Regional Managing Registrar/Chief Executive and some Secretariat staff paid a Partner, West Africa, Mr. Henry Egbiki, FCA, and other partners. courtesy visit to Akintola Williams Deloitte at its Victoria Island Issues discussed with Mr. Egbiki, FCA during the visit, among office on Thursday, July 21, 2016. others were: During the interactive session with partners and other senior ● How the Institute is responding to globalisation and staff of the firm, the following issues among others came up: technology which is changing the landscape of the ● Rationale behind the creation of AWD’s Audit Academy. accountancy profession. ● The development of its K2 software known as the ICAN ● Efficiency and restructuring of the Institute as an on-going Combo@$80 per licence. issue in order to keep up with what obtains internationally. In my address, I spoke on the following among others: ● Support for the 46th Annual Accountants Conference. ● Seeking suggestions from stakeholders on how to enhance the ICAN certificate and find other ways of UHY Maaji & Co improving the Institute’s processes. In continuation of my visit to some Accounting firms, I led a

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team to the office of UHY Maaji & Co Ilupeju, Lagos on Friday, July 22, 2016. We were received by the Managing Partner of the firm,. Mr Gabriel Idahosa, FCA. In my remarks, I informed the Managing Partner that the visits to some firms, of which their firm was one of such, was to discuss pertinent issues confronting the growth of SMPs in Nigeria as well as seeking solutions to some of the identified problems hampering their growth. Other discussions included: Issue of unprofessional display by ICAN President with the Executive Secretary of Financial Reporting Council of Nigeria Mr. Daniel Asapokhai members when filing tax returns on behalf of their respective clients. on the need for members to up-skill their professional service delivery capabilities considering the dynamics of professional PricewaterhouseCoopers service delivery by professionals in advanced countries across On Friday, August 12, 2016, I, in company of some Council the globe. members paid a courtesy visit to PricewaterhouseCoopers at its Among other discussions, I spoke on the need for members to Victoria Island office, Lagos. improve on the legacies of the founding fathers of the profession In my brief remarks, I spoke on ways by which the firm will in Nigeria in order to handover to upcoming generations a world be of additional value to the activities of the Institute through class institution. the establishment of knowledge partnership between the two organisations. I requested for the services of PwC’s partners as members of the various committees of the Institute. VISIT TO OTHER CORPORATE The meeting also afforded me the opportunity to share BODIES knowledge on some recent professional issues in the world of accountancy; e.g. the ISA (701) and its effects on the quality of Dangote Group reporting by the SMPs. As part of my visits to the Lagos District Society, My team and I were at the corporate head office of the Dangote Group in Grant Thornton Nigeria Falomo, Ikoyi, Lagos. We were received by the Chief Operating In continuation of my visit to some Accounting firms, I was Officer,. Mr Oladele Alake, FCA. Mr. Alake represented the at the office of Grant Thornton, Yaba, Lagos on Friday, July Group Chairman, Alhaji Aliko Dangote, GCFR who was outside 12, 2016, where I, in company of some council members was the shores of the country on business appointments. received by the Executive Chairman of the firm. Principally, the To my delight, Mr. Alake, FCA informed me of the large challenges facing SMPs were discussed, among others. number of our members in the organisation who are positively contributing to its growth of the group. He was grateful to the SIAO Institute for granting Dangote Group approval to host an in-plant On Friday, August 18, 2016, I paid a courtesy visit to SIAO MCPE programmes for the members of the Institute. at its office in Ikoyi, Lagos. Our team was received by the I used the opportunity of the visit to call on the Dangote partners of the firm. In my remarks, I congratulated the partners Group, through its Chief Operating Officer, to donate generously of the firm for moving ahead in spite of the various challenges towards the 46th Annual Accountants Conference held in October associated with partnership in Africa. During our conversations, 2016. I emphasised the advantages of firms engaging in joint audit and advised that it was not a matter of competition between the Transcorp Plc big firms and the SMPs, but a way of knowledge sharing. In my visit to Transcorp Plc on August 12, 2016, our team was received by its Chief Executive Officer, Mr. Emmanuel PKF Professional Services Nnorum, FCA. During the visual presentation of the operations On Wednesday, September 07, 2016, I led an entourage of the organisation, the CEO emphasised the contributions of of six officials on a courtesy visit to the Managing Partner of our members to the overall role of the organisation and to the PKF Professional Services, Mr. Tajudeen Akande, FCA, who economic development of the country. He also mentioned their received us alongside his partners. In my address, I spoke efforts in discovering entrepreneurial talent for Africa. In my

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remarks, I stated my delight concerning the performances of I equally gave insight into our disciplinary procedures and our members in the corporation as well as my appreciation for how effective the judgments from our disciplinary tribunals the good works being embarked upon by the organisation. are on members that are found culpable of any professional misconduct. Courtesy Visits to Industrial Organisations in While thanking us for the visit, Mr. Elanjuma, mni, traced the Anambra State relationship between the two institutions spanning over fifteen In the course of my official visit to Onitsha & District Society, years. He lauded ICAN for the donation of a fully fitted bungalow I and my entourage paid courtesy visits to the underlisted which serves as accommodation for course participants. industries: He called on the Institute to assist in formulating economic ● Intafact Beverages Ltd., Bridgehead, Onitsha, Anambra policies that will lift the country out of recession and urged State. members to always walk and talk of the motto of the Institute ● Krisoral Group of Companies, Onitsha, Anambra irrespective of the situation they may face. He also called for State. our support and stated the readiness of NIPPS to receive ICAN ● Chikason Group, Nnewi, Anambra State. nomination for the 2018 Senior Executive Course 40. ● Innoson Motors Limited, Nnewi, Anambra State. Visit to Jos & District Society Courtesy Visit to the Acting Director-General, National The District’s visit commenced with a courtesy call on the Institute for Policy & Strategic Studies (NIPSS), Kuru Director General of the Industrial Training Fund (ITF), Jos, Sir, During my visit to Jos & District Society, I paid a courtesy call Joseph N. Ari (KSM). I gave a brief history of our Institute and on the Acting Director-General of the National Institute for Policy the international association with professional accountancy & Strategic Studies, Jonathan Elanjuma, mni, at Kuru, Jos. bodies across the globe. I praised NIPPS for living up to its objectives which could be I spoke on the non-leakage of the Institute’s examinations observed from the research works by its alumni and has been from the date of its inception till now and also gave an insight a reference point for most establishments in Nigeria and within into the ICAN disciplinary procedures for erring members. I the Western region of the continent. I called on the alumni and mentioned the Institute’s training for members through the present crop of participants at the Institute to engage in time- MCPE programme, where members are required to attend tested policy formulations that will take the country from its the programme based on their specific need areas. However, present economic background to the forefront. where an organisation has a sizeable number of members in I also spoke on the Institute’s objectives, mission and its employ, request could be made to the Institute for in-plant vision; how we have been carrying along our corporate social training tailored at the specific needs of these members. responsibility to the nation; our association with relevant The Director-General of ITF thanked us for the visit and spoke professional bodies within the region, continent and on the glowingly about the excellent services being rendered by our international stage. members in the employ of ITF. He ascribed the quality service delivery to the high standard infused in the qualifying stages of the Institute’s professional examinations. He also said the skilled human capacity in the ITF accounting systems places members of the Institute at very result oriented end, which has assisted the organisation in attaining its mandate at ensuring that youths in the country are offered the best of technical and vocational education in Nigeria. Lastly, Sir Ari commended the Institute’s peaceful succession process and recommended it to the political system of the country.

Courtesy Visit to the Managing Director, Grand Cereals Limited I paid a courtesy call on the Managing Director of Grand Cereals Limited. The Acting Managing Director, Mr. P. Sanjiv received us and spoke on the contributions of the company to the economic wellbeing of the Nation and how the company encourages its employees at various stages of the Institute’s professional examinations with financial and administrative assistance. He praised our members in the employ of the company for their professional contributions to the financial welfare of the company. I acknowledged the contributions of the company to the socio- economic welfare of the country and Deacon Titus Soetan (right) with the CEO of Deloitte, Mr Fatai Folarin thanked the management for sponsoring and

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supporting ICAN students in the employ of the company to write 2016. A member of Council Mr. Sam Onukwe, FCA, however, the various stages of the Institute’s professional examinations. represented me at the event. The conference theme was: The staff of the company made requests on the following: “Global Oil Crises and Energy Risk In Nigeria,’’ and it x-rayed establishment of a tuition house by the Institute in Jos and the pertinent issues in the country’s energy sector. allocation of additional MCPE slots for Jos & District Society. Invitation from Association of Reporting Courtesy Visit to the Chief Medical Director, Bowen Accountants in the Capital Market (ARACAM) – 2016 University Teaching Hospital, Ogbomoso Annual Conference In continuation of my official visit to Oyo State, on Tuesday, The Association of Reporting Accountants in the Capital March 14, 2017, I paid a courtesy visit to the Chief Medical Market (ARACAM) invited me as a Special Guest at its 2016 Director of Bowen University Teaching Hospital, Ogbomoso, Dr. Annual conference held at Sheraton Hotel, Victoria Island, Lagos S.U. Eyesan. on July 20, 2016. A member of Council, Mr. Sam Onukwe, FCA During my remarks, I acknowledged the positive contributions also represented me at the event. The theme was “The Future of the hospital to the wellness of people of Nigeria in general of Corporate Financial Reporting.” and the locality where it is located, in spite of its being a faith based organisation under the Nigeria Baptist Convention. 6th Annual Public Lecture by the ICAN Lagos State I spoke on the mandate of the Institute upon its formation in Public Service Chapter 1965 and its contributions to the nation’s socio and economic The Honourary Treasurer of the Institute, Mr. Tayo Phillips, development as well as its affiliation to regional, continental and FCA represented me at the 6th Annual Public Lecture of the ICAN international accountancy organisations. Chapter of the Lagos State Public Service titled: “Public Private In his response to my remarks, Dr. Eyesan thanked the ICAN Partnership: Tool for Economic Growth and Development team for its thoughtfulness in paying a courtesy visit to him and in Nigeria.” The event was held at the Regency Hall, Alausa, members of his management team. Ikeja, Lagos on July 28, 2016.

Courtesy Visit to the Group Managing Director of Launching of the Akintola Williams Foundation O’Odua Group As part of our mandate to expand the frontiers of accounting As part of the my programme for Ibadan & District Society education in Nigeria and Africa, the Institute launched the visits, I and my entourage paid a courtesy visit to the Group Akintola Williams Foundation at the Metropolitan Club, Victoria Managing Director of the O’Odua Group, Mr. Adewale Raji. Island on Monday, August 08, 2016. In my address, I remarked that the visit to the O’Odua Group I used the opportunity to once again thank the Council of was a home coming one for me, considering my professional the Institute for honouring the Doyen of Accountancy profession relationship with the conglomerate spanning over thirty-five in Africa and Diaspora with the endowment of the foundation, years of business relationship. I also spoke of the roles and which I strongly believe will further drive and deepen knowledge contributions of professional accountants to the socio-economic in all spheres of human endeavours. order in all nations of the world among other matters discussed. Inaugural Lecture of the Akintola Williams Courtesy Visit to the Nigerian Brewery Plc, Foundation Ibadan Plant The inaugural lecture of the Akintola Williams foundation took In continuation of my visit to Ibadan & District Society, I place on Wednesday, November 23, 2016 at the MUSON Centre, visited the Nigerian Brewery PLC, Ibadan Plant. Mr. Tayo Onikan, Lagos under the Chairmanship of the Obi of Onitsha, Adelaja received me and my entourage on behalf of the Plant His Royal Majesty, Igwe Nnaemeka Achebe, OFR. A paper titled Manager and took us on a tour of the plant. Prior to the factory “Nigeria Yesterday, Today and Tomorrow: Governance and tour, I spoke on the various corporate social responsibility of the Accountability’’ was delivered by His Excellency, President Institute as well as its advocacy position in the nation’s socio- Olusegun Obasanjo, GCFR, former president of Nigeria. economic sphere. Book Launch Invitation to Lagos Centurions’ Luncheon On Wednesday, August 10, 2016, I was the special guest of As part of the Institute’s corporate social responsibility honour at a book launch on “Strategy, Risk Governance & initiative, I attended the Lagos Centurions Luncheon at the Ethics at a Glance’’ authored by Mr. Olaoye Rafiu Abiola, ACA. Banquet Hall, Lagos House, Alausa, Ikeja, Lagos on Tuesday The event was held at the Nigerian Institute of International June 14, 2016. It was at the instance of the Executive Governor Affairs (NIIA), Victoria Island, Lagos and had Mr. Fola Adeola, of Lagos State, His Excellency, Mr. Akinwunmi Ambode, FCA. FCA as the chief launcher. The ceremony was dedicated to fighting the widespread of Mr. Fola Adeola, FCA magnanimously donated fifty (50) cancer disease and bringing succor to its victims. This noble copies of the book to me as a mark of support for my tenure and cause was supported by the Institute with a donation of the sum requested me to donate forty-nine (49) copies of the book to of Two Hundred and Fifty Thousand Naira only (N250,000). institutions of my choice.

Invitation from Risk Managers Association of Nigeria Invitation to Breakfast Discourse by SIAO I was invited as a Special Guest of Honour at the Risk At the instance of the Partners at SIAO, Lagos, I attended a Managers Association of Nigeria’s (RIMAN) conference held breakfast Discourse as Special Guest of Honour on Tuesday, at the Eko Hotel & Suites, Victoria Island, Lagos on July 14, August 16, 2016 at the Wheatbaker Hotel, Ikoyi, Lagos.

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member of Council, Mr. Wale Raji, FCA.

APBN Programme at Abuja On Wednesday, June 15, 2016, I attended the Council meeting of the Association of Professional Bodies of Nigeria (APBN) held at the Ultimate Sharon Hotel, Abuja

Workshop for Association of Vice-Chancellors of Nigerian Universities The joint national workshop between the Institute and the Association of Vice-Chancellors of Nigerian Universities (AVCNU) with the theme: “Conflict Free Financial Administration in the University” was organised for Vice-Chancellors, Registrars and Bursars of Universities in Nigeria ICAN President, Deacon Titus Soetan with some members of SWAN at Abuja on Tuesday, November 29, 2016. A member of Council, Commissioning and Dedication of BBC Professionals Chief Davidson Alaribe, FCA, represented me at the programme. Office Complex On Tuesday, November 29, 2016, I honoured an invitation VISIT TO VICE CHANCELLORS/RECTORS at the instance of BBC Professionals to the commissioning of their new office complex christened “The Charter House” and OF TERTIARY INSTITUTIONS located at Sabo, Yaba, Lagos. As part of the programme to the Eastern State of Anambra, I paid courtesy visits to the Vice-Chancellors of the following SWAN Workshop on Anti-Corruption universities – Paul University, Awka; Nnamdi Azikiwe University, The Society of Women Accountants of Nigeria (SWAN) held Awka; Chukwuemeka Odumegwu Ojukwu University, Igbariam, a workshop on Anti-Corruption on Saturday, September 10, Anambra State; Madonna Universty, Okija, Anambra State. 2016 at the Institute’s Annexe Office at Ebute Metta, Lagos. I My discussions centered on: The leadership roles of ICAN was duly represented by a member of Council, Hon. (Dr.) Deji in Nigeria and beyond; ICAN as a founding member of ABWA, Awobotu, FCA. PAFA and IFAC; Disciplinary process for any erring member; The advantages enjoyed by universities that are accredited by Special Invitation to SWAN Seminar the Institute as well as the additional benefits available upon Another invitation extended to me by the Society of Women signing to the Institute’s MCATI programme; benefits of the Accountants of Nigeria (Abuja Chapter) was a two-day seminar engagement of the services of Chartered Accountants both in titled, “The Role of Women in National Development.” I academic and non-academic positions. I attended to questions acknowledged the invitation through representation by a council from the Accounting students of the institutions. member, Mr. Sylvester Nwanna, FCA. At Paul University, requests were made for the following: ● Construction of an accounting lecture theatre for the Forum of Firms University; and I held a meeting with Small and Medium Sized Practitioners ● Donation of relevant and current accounting text books (SMPs) on Tuesday, August 16 at the Institute’s Annexe Office and softwares for the accounting department. Ebute Metta, Lagos. The meeting was the first of a series of engagements with stakeholders organised as part of the I, with the support of the Council members on my entourage, presidential year’s programme committed to the development of announced a donation of two laptop computers and accounting SMPs and also, as a way of building a closer relationship with softwares relevant to the accounting department. In addition, other members of the Institute who are sole practitioners. books worth One Hundred Thousand Naira (N100,000) were donated. Institute of Chartered Secretaries and Administrators The Vice-Chancellor of Nnamdi Azikiwe University, Awka of Nigeria (ICSAN) 50th Anniversary Grand Ball promised that the University community will maintain the I honoured an invitation from the Institute of Chartered professional relationship between both institutions. He also Secretaries & Administrators of Nigeria (ICSAN) to its 50th acknowledged that the visit will solidify the bond between the anniversary grand ball held at the Eko Hotel and Suites, Lagos students and the Institute on Friday, November 18, 2016, through representation by a I held a members’ forum with our members in Awka & District

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Society where issues germane to the uplift of the profession and not only to congratulate him on his elevation and appointment the District Society were discussed. as the Vice-Chancellor of the University of Jos, but also to commiserate with him on the fire incidence that destroyed the Mountain Top University (MTU), Mowe, Ogun State University’s library building in December 2016. I assured him of I commenced my visit to Mowe & District Society with the Institute’s token support towards the reconstruction of the a courtesy visit on the Vice-Chancellor of Mountain Top library. University, Prayer City, Ibadan-Lagos Expressway, Professor I also implored the Vice-Chancellor to call upon the services E.A. Akinlabi. While acknowledging the contributions of the of our members in Jos & District Society whenever the need Institute to the growth of the profession in the country, especially might arise as a way of boosting his reservoir of professional to the academia, the Vice-Chancellor informed us that all their accountants. I also appealed to Professor Maimako, FCA students who sat for the Institute’s ATS I examinations passed. to endeavour to nominate our members in the employ of the He mentioned that the university was ready to receive the university to attend the various courses under the Institute’s Institute’s team for accreditation. MCPE programme. The VC equally informed me of the university’s readiness to In response, the Vice-Chancellor expressed delight for partner with the Institute and Mowe & District Society in order the visit and acknowledged that the invaluable training he to give its accounting student the benefit of tapping from the received as a chartered accountant assisted him in no small available educational resources at the disposal of the Institute. way to navigate the administrative terrain of the university In my remarks, I thanked the Vice-Chancellor and the environment. He brought to my attention that his elevation to Deans for granting us audience. I commended the courage and the exalted position of a Vice-Chancellor of a Federal university resilience of the Visitor to the university – Dr Daniel K. Olukoya, was the second time in the annals of this nation that a chartered for his visionary leadership and an epitome of good character. accountant would be so appointed. I gave a brief history of the Institute and the various He confirmed that the institution’s department of accounting programmes laid out for institutions accredited by the Institute. is professionally staffed with experienced chartered accountants In his vote of thanks, Professor J.A.T. Ojo used the opportunity and acknowledged the tremendous support from the Council, to appeal to the Council for the donation of fifty (50) computer management and staff of the Institute in sustaining the units and relevant softwares to its department’s computer University’s accreditation status. laboratory as a way of showing the students the availability of The VC sought the Institute’s assistance in terms of various accounting packages and to prepare them for the labour educational publications, materials and computers towards the market. restoration of the University’s library that was engulfed by fire in December 2016. The Institute had since sent its donation as Meeting with Accounting Students of Mountain promised. Top University As part of the programme for my visit, I also addressed the Visit to the Vice-Chancellor, accounting students of the institution, where I admonished them University, Kaduna to allow the core values that are applicable to lifelong situations During my visits to Kaduna & District Society in March 2017, be their guiding principles. I also advised them to make the best I paid a courtesy visit to the Vice-Chancellor of the university, use of their time in life by applying some of the attributes of the Professor Mohammed Tanko, FCA. The purpose of the visit Visitor to the university – Dr. D.K. Olukoya. was to enquire how our members are faring at the university In his contribution during the interactive session with the and to congratulate him on his appointment. Professor Tanko students, Chief Oye Akinsulire, FCA, the Council co-ordinator expressed delight on our visit and the honour of being a Lead for Mowe & District Society spoke on the modalities and Paper presenter at the 3rd Edition of ICAN Academic Conference other procedures that are open to the students on ways and held in Lagos. means of preparing for and writing the Institute’s professional examinations. Courtesy Visit to the Vice-Chancellor, Ajayi During the questions and answers session, the issue of Crowther University, Oyo ACCA examination procedures as well as its arrangement with I visited Ajayi Crowther University, Oyo where a courtesy visit Oxford Brookes University were mentioned. The student wanted was made on the Vice-Chancellor, Professor Dapo Asaju, who to know if the Institute was thinking along this line. The following was represented by a member of the academic board and some requests were also placed before me for consideration by the academic and management staff of the Institution. Head of Department of Accounting of the University: In my brief remark, I spoke on the various benefits that are ● Donation of fifty computer units plus relevant accounting accruable to registered students of the Institute with first class softwares. degrees and who are desirous of sitting and writing the various ● Training of select lecturers of the department on the use levels of the professional examinations of the Institute within a of the accounting softwares. record time. ● Connection of the University’s accounting department to the Institute’s website to enable its accounting students Courtesy Visit to the Vice-Chancellor, Ladoke tap into the E–Resources of the Institute. Akintola Universty of Technology In continuation of my visit to the ancient town of Ogbomoso, Courtesy Visit to the Vice-Chancellor, University of Jos I paid a courtesy visit to the Vice-Chancellor of Ladoke Akintola I paid a courtesy visit to the Vice-Chancellor, University of University, where I was received personally by Professor Jos, Professor Seddi Sebastine Maimako, FCA. The visit was Adeniyi Sulaimon Gbadegesin. The Vice-Chancellor expressed

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are usually crafted with details on areas that needed adequate attention by the institution. He commended the ‘Catch them Young Programme’ introduced by the Institute as a means by which its membership base will always be enriched. While responding to some of my requests, Professor Udo assured me that the University Senate would look into the requests and would liaise with the relevant department of the Institute for the programmes. On the issue of recognising the ATSWA Final Three certificate for the purpose of admission into the University, the Deputy Vice Chancellor (Administration) called on the Institute to make the request formal.

Meeting with Accountancy Students of University of Uyo During the visit under reference, I met with students of Accounting Department of the university. The students were afforded the opportunity of having very robust interactive session with the ICAN Team. The earlier donation of two laptops and some accounting software including the training of staff on the use of the software were acknowledged.

Courtesy Visit to the University of Calabar ICAN President, Deacon Titus Soetan with former CIPFA President, Mr. John Matheson I and my entourage commenced an official visit to Calabar & District Society with a courtesy call on the Vice- his happiness on our visit and acknowledged the professional Chancellor of the University of Calabar, who was represented by discharge of our members’ responsibilities. He attested to the the Registrar of the Institution, Mr. Moses Obong. professional training underwent by members of the Institute as My remarks centered on the relationship between the two having profound impact on their service delivery to the university institutions dating back to 1991 and to enquire from the authorities community. of the university about their preparedness for the next round of accreditation which was due. I stressed the importance of the Courtesy Visit to the Rector of the Polytechnic, Ibadan university retaining its accreditation status with the Institute. I I paid a courtesy visit to the Rector of the Polytechnic, also emphasised the advantages of signing unto the Institute’s Ibadan on Thursday, March 16, 2017. In his address, the Rector MCATI programme. I also called on the institution to consider acknowledged my visit as a home coming to my alma mater the listing of the ATSWA Part Three certificate as one of its and thanked me for the unflinching loyalty and support to the admission policy of the university. polytechnic. In the cause of the discussion, the representative of the Vice He seized the opportunity of the visit to thank the governing Chancellor made the following requests to the Institute: council of the Institute, its membership and staff for the highly ● Construction and furnishing of an accounting lecture cherished donation of accountancy lecture theatre to the theatre for the University. institution. The Rector commended the professional disposition ● Donation of computers and accounting softwares for its of members in the employ of the polytechnic to their jobs as accounting laboratory. he confessed to their trust worthiness in the discharge of ● Donation of relevant accountancy books & journals. their duties. He also spoke of the recent visit by the Institute’s accreditation team to the polytechnic for the re-accreditation of Bowen University Maiden Lecture and Visit to the its accountancy programme of which he sounded positive about Vice-Chancellor the outcome of its result. On Wednesday, November 30, 2016, I delivered the maiden lecture of the Faculty of Social and Management Sciences, Courtesy Visit to the Vice-Chancellor, University of Uyo Bowen University, Iwo, , titled: “The State of The I paid a courtesy visit on the Vice-Chancellor, University of Nigerian Economy: Survival Strategies for Government Uyo where I and my entourage were received by the Deputy and Other Stakeholders.” In the paper, I took a retrospective Vice-Chancellor (Administration), Professor Godfrey Udo. I look into the nation’s economy prior to independence, post spoke of the need for the university to sign onto the Institute’s independence, the early eighties and into the millennium MCATI programme. I also called on the senate of the institution and supported the arguments advanced in the paper with to consider the listing of the ATSWA Part Three Certificate as comparative analysis with some countries across the globe. one of its admission policy for the university. During the visit to the University, I paid a courtesy call on In his response on behalf of the Vice-Chancellor, Professor the Vice- Chancellor, Professor M.A. Ojo who thanked me Udo reiterated the University Senate’s support for the Institute’s for honouring the invitation. He acknowledged the Institute’s programme as well as its accreditation visitation report which assistance towards ensuring that its Department of Accounting

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was regularly updated with essential materials as a condition for for its District office. The District Society hosted a presidential retaining its accreditation status. dinner in my honour at the banquet hall of Premier Hotel, Ibadan as a mark of my visit to the District Society. I acknowledged the immense contributions of members of the district society to my INVESTITURE CEREMONIES professional successes including my election into the Council of the Institute. Lagos Mainland District Society Chairman The investiture ceremony of Chief (Sir) Amobi Nwakafor, Abeokuta & District Society FCA as the 22nd Chairman of Lagos Mainland & District Society As a way of showing deep sense of appreciation to me and and the inauguration of new executive members for 2016/2017 my entourage during the official visit to the District Society, was held at the Lagos Airport Hotel, Ikeja, Lagos on Saturday, members hosted us to a presidential dinner at the June 12 July 02, 2016. I was represented at the ceremony by the then Cultural Centre, Kuto, Abeokuta. During the dinner, I called on 2nd Deputy Vice-President of the Institute, Late Mrs. Ifesinachi members to rededicate themselves to the call of the profession Erobu, FCA – May her soul rest in peace. and also to brace up to confront the current economic realities with renewed professional vigour in order to bring out their Ibadan & District Society Chairman professional ingenuity. The 19th investiture ceremony of the new Chairman for In attendance at the dinner were two members of the State Ibadan & District Society was held at the banquet hall of Premier executive council, a traditional ruler and members of other Hotel, Mokola, Ibadan, Oyo State on Thursday, July 14, 2016. recognised professional bodies in the state. I was at the occasion and advised the new Chairman and the newly inaugurated executive members to enthrone laudable Jos & District Society programmes for members of the District that are in line with the I was hosted to a dinner to round off my official visit to Jos ideals of the profession. & District Society. The Vice-Chancellor of the University of Jos, Professor Seddi Maimako, FCA was the special guest of honour 2nd Investiture Ceremony of Mowe & District and supported by Mr. Alhazzan Ibrahim, FCA, the Bursar of the Society Chairman university. On Saturday, August 13, 2016, the 2nd investiture and At the dinner, members were accorded the opportunity to ask swearing-in ceremony of the new Chairman and Executive questions or seek clarifications on the operations of the Institute. committee members of Mowe & District Society of the Institute The following were mentioned: was held at the RCCG Youth Centre, KM 46, Lagos-Ibadan ● Request for the possibility of advancing the District Expressway, Mowe, Ogun State. I was represented at the event society a specified amount as loan to complete its office. by Mr. Wale Raji, FCA, Council Member and Co-ordinator for ● Reasons for the late response for the issuance of licence the District. to practice certificates. ● Criteria for membership of CIPFA. Ikeja & District Society Chairman ● Consideration of organising future Academic Conference The Honorary Treasurer of the Institute, Mr. Tayo Phillips, through teleconferencing and on basis of rotation. FCA represented me at the Investiture ceremony of 29th ● Request for the construction of ICAN lecture theatre in Chairman of the District Society Ikeja & District Society Mrs. University of Jos. Morenikeji Dayo Olaiwole, FCA held on Saturday, August 13, I responded to all the questions above but in particular, I 2016 at Eden Comfort Place, Ikeja, Lagos. The event also assured members of the District that a case would be advanced featured the inauguration of the 2016/2017 executive members for Jos & District Society on a special status basis in order to of the District Society. receive adequate attention from the Institute. The request for rotation of Academic conferences had been passed to the Port Harcourt & District Society Investiture relevant TRPPC for consideration. Ceremony I was represented by Mazi Nnamdi Okwuadigbo, FCA, then a Council member, at the investiture of the new Chairman, Mr Okey Nwogu, FCA and inauguration of the 2016/17 Executive COURTESY VISITS TO THE members of the Port Harcourt & District Society. During the SECRETARIAT event, the presentation of the District Society’s Centre of Excellence was held. The Executive Members of Lagos Mainland & District Society On Wednesday, September 05, 2016, the executive members of the Lagos Mainland & District Society led by its Chairman, PRESIDENTIAL VISIT TO DISTRICT Chief (Dr.) Amobi Nwakafor, FCA paid a courtesy call to me at SOCIETIES OF THE INSTITUTE the Institute’s Secretariat, Victoria Island, Lagos. Challenging matters were discussed and admonitions given accordingly. Ibadan & District Society On my visit to the District Society, I had a meeting with Executive Members of Ota & District Society members of the District Society who seized the opportunity to The Executive members of the Ota & District Society of the present their challenges in acquiring a befitting accommodation Institute led by its Chairman, Mr. Olufela Sokenu, FCA paid a

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courtesy visit to me at the Secretariat, Victoria Island, Lagos on International Conference Centre, Abakaliki, from September 25, 2016. A number of issues affecting the district Monday, August 01 to Thursday, August 04, 2016. The theme of were discussed. I took time to address the issues and gave the conference was “Managing the Impact of Dwindling Oil advices where necessary on the way forward. Prices: Local Solutions to Global Challenges.” Also, the 11th Western Districts’ Zonal Conference tagged Executive Members of Amuwo Odofin “Amuwo 2017” was held at Welcome Centre Hotel, Lagos from & District Society Monday February 13 to Thursday 14, 2017. The theme of the On, Friday June 17, 2016, the Executive members of conference was “Democracy and the Crisis of Accountability Amuwo Odofin & District Society led by its Chairman, Mr. in Nigeria” and it was declared open by me. Chidi Otumba, FCA paid a courtesy visit to me at the Institute’s In the same vein, I attended the 12th Northern Districts’ Secretariat, Victoria Island, Lagos. The Chairman thanked me Zonal Conference tagged “Makurdi 2017”. The theme of the for granting them audience in spite of the short notice. He also conference was “Sustaining the Nigerian Economy through discussed some challenges being faced by the District and Accountability in Public and Private Sectors: The Role of recommendations were given to the issues accordingly. the Professional Accountant” held at BIPC Guest House, Makurdi, from Monday, May 8 to Thursday, May 11, 2017. CONFERENCE MATTERS

The 46th Annual Accountants’ Conference MEMBERSHIP GROWTH The 46th edition of Annual Accountants’ Conference took AND DEVELOPMENT place at the International Conference Centre and Sheraton Abuja Hotel, Abuja from Monday, October 10 to Friday, October 14 58th Induction Ceremony 2016. The Annual conference with the theme: “Accountability. The Institute continued to witness steady growth in Now. Nigeria” was declared open by His Excellency, President membership. During the 58th Induction ceremony held at the , GCFR, Commander-in-Chief of the Armed ICAN Student Centre, Amuwo on Wednesday, November 9, Forces, Federal Republic of Nigeria, ably represented by His 2016, a total of 472 newly qualified young men and women Excellency, Professor Yemi Osinbajo, GCON, Vice-President of were admitted into membership. At the end of the ceremony, the Federal Republic of Nigeria. which included technical papers presentations, the membership A number of delegates including invited guests and resource of our Institute rose to 40,789. The Institute is still committed persons drawn from Africa, Europe and America attended the to maintaining the standards of its examinations for which it is conference. It was interesting to observe that three serving known worldwide. Therefore, we are proud of this regular and State Executive Governors graced the occasion with their steady growth in capacity building in the profession. physical presence. They were the Executive Governor of , His Excellency, Alh. Ibrahim Dankwambo, FCA, 44th AATWA Induction Ceremony the Executive Governor of Lagos State, His Excellency, Mr. The 44th AATWA Induction ceremony was held on Thursday, Akinwummi Ambode, FCA and the Executive Governor of Ogun June 19, 2016 also at the ICAN Centre, Amuwo Odofin, Lagos. State, His Excellency, Senator , CON, FCA. The keynote address was delivered by the special guest of The immediate past governor of Anambra State, His Excellency, honour, Chief (Mrs.) Elizabeth Adegite, MBA, FCA (PP). The Mr. was also in attendance. paper she presented was on “The Effect of Corruption on Goodwill messages were received from the Special Guest the Nation’s Socio-economic and Political Landscape.” of Honour, President Muhammadu Buhari, GCFR, Ms. Olivia I delivered the admission address and administered the oath Kirtley, President of the International Federation of Accountants of allegiance on 518 graduands admitted into membership of (IFAC), the Pan Africa Federation of Accountants (PAFA), the Association of Accounting Technicians West Africa (AATWA), Association of Accountancy Bodies in West Africa (ABWA) and thus bringing the number of ATSWA members to 20,570. the Executive Governors of Gombe, Lagos and Ogun States. Students who distinguished themselves at the various levels of There were three plenary and four workshop sessions during the examinations were rewarded with merit and subject prizes which carefully selected seasoned resource persons drawn based on their performance(s) at the March 2016 examinations. from government, industry, academia and the profession made presentations. In particular, the Conference lead paper titled 45TH AATWA Induction Ceremony “Accountability and Good Governance” was delivered by the The 45th Association of Accounting Technicians of West Africa IFAC President, Ms. Olivia Kirtley. (AATWA) Induction ceremony was held on Tuesday, December I sincerely appreciate not only the large presence of many 06, 2016 at the ICAN Students Centre, Amuwo-Odofin, Lagos Past Presidents at the event, but also for graciously chairing where I admitted Seven Hundred and Seventy-Nine (779) new the technical sessions and making contributions on the various members into its membership fold. The AATWA membership topics of discourse. Thank you all once again. The communiqué now stands at 21,349. The Special Guest of Honour at the event of the Conference has been widely circulated. was Pastor Ituah Ighodalo, FCA – Managing Partner SIAO, Lagos, Nigeria. 11th Eastern Districts’ Zonal Conference Prior to the induction ceremony, an address by the Registrar/ The 11th edition of Eastern Districts’ Zonal Conference Chief Executive, Mr. Rotimi Omotoso, MBA, FCA, and Papers on tagged “Abakaliki 2016” took place at the Akanu Ibiam “Entrepreneurship: Pathway to Becoming Self Employed”

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by Mr. Seyi Olanrewaju, FCA and “Business Etiquette and was at the university for the foundation stone laying ceremony. I Networking Skills” by Mrs. Ndidi Zedomi were presented. noted that the ceremony marked a milestone in the relationship The papers were chaired by Council members – Mr. Chibuzor between both institutions which started in 1986 when ICAN Anyanechi, FCA and Alhaji Ibrahim Babayo, FCA respectively. accredited the university’s B.Sc Accounting programme.

21st Annual General Meeting & Annual Conference Federal Universty, Birnin-Kebbi Lecture Theatre of the Association of Accounting Technicians I performed the formal commissioning of the newly West Africa (AATWA) constructed ICAN Lecture Theatre on Monday, March 05, 2017 The events were held on Wednesday, December 07, 2016 at the permanent site of the Federal University, Birnin-Kebbi, at the ICAN Students’ Centre, Amuwo-Odofin, Lagos. However, Kebbi State. affairs at the Annual General Meeting were directed by the In attendance at the ceremony were the Kebbi State Vice-President and Chairman of the Association, Alhaji Isma’ila Honourable Commissioner for Budget and Planning, Alhaji Zakari, FCA, mni. A. Yauri, Representative of the Vice-Chancellor, Professor The theme of the conference which was: AAT. Accountability. Abdullahi Bashir, Dean, Faculty of Arts, Social & Management Now. Nigeria and Topic: Accounting Technicians: Delivering Sciences. Value to Nigeria’s Accountability and Integrity had Past President, Senator (Chief) Kola Bajomo, FCA, mni, as the Official Commissioning of the ICAN Lecture Special Guest of honour. Theatre at the Michael Okpara University of Agriculture, Umudike, Meeting With Professional Examinations’ Assessors In continuation of our mandate to encourage the continuous I met with two groups of the Professional Examinations’ impact of accounting knowledge across the country, I performed Assessors at the Lagos Airport, Ikeja, Lagos. On both occasions, the official commissioning of the Three hundred and Fifty (350) while thanking the Assessors for their untiring service to the seater capacity ICAN Lecture Theatre at the Federal University, examination processes, I extended the gratitude of Council to Umudike, Abia State. them and assured them that their welfare remains paramount In attendance at the commissioning ceremony were the to the Council. Deputy Vice-Chancellor (Academics), Professor Madubusi Ofo I spoke on the ICAN Benevolent Funds and how members and other members of the academic community. can access the funds as well as the modalities that should be employed in order to make its accessibility easier. In same vein, 4th ICAN-FAME Secondary Schools’ Quiz I spoke on the N1.5 million members’ insurance welfare scheme Competition Organised by Ijebu-Ode & District for members and the modalities for eligibility. Society of ICAN I also called on members to update their profiles on the I was the special guest of honour at the grand finale and award Institute’s website and used the opportunity to assure them that ceremony of the Future Accountants Managers Entrepreneurs their request for increment in their allowances will be directed Secondary Schools Quiz Competition (ICAN-FAME) held on to the appropriate committee of the Institute for consideration. Tuesday, January 17, 2017 at the Adeola Odutola College (Private), Ijebu-Ode, Ogun State. During the ceremony, the following six (6) schools were the finalists; Christ the King Catholic College, Louisville Girls STUDENTS MATTERS High School, Mayflower Senior School, Our Lady of Apostles Secondary School, Remo School and Sacred Heart Catholic ICAN Lecture Theatre – Ahmadu Bello College. University, Zaria The goodwill message, by the wife of the Executive Governor In the Institute’s quest for the expansion of the frontiers of of Ogun State, Mrs. Olufunso Amosun was read at the occasion knowledge, I performed the ground breaking ceremony for by her representative, Mrs. Ajibola Ipaye, wife of the Honourable the construction of a multipurpose ICAN Lecture theatre at Commissioner for Health. the , Zaria, Kaduna State. The Vice- Also at the event, the following past presidents received Chancellor, Professor Ibrahim Garuba on behalf of members awards: Alhaji (Otunba) Abdul Lateef Owoyemi, FCA, Mr. Doyin of his College of Deans and the University community thanked Owolabi, FCA and Otunba Samuel Olufemi Deru, FCA. the Council of the Institute for the kind gesture and promised that when the building is completed it will be designated for its purpose. SECRETARIAT MATTERS Ground Breaking Ceremony of ICAN Lecture Theatre at Olabisi Onabanjo University, Ago-Iwoye, Mrs. Claudia Binitie, M.Sc, Director of Membership Directorate Ogun State retired from the services of the Institute after many years of In furtherance to the Institute’s strategy on its public interest valuable service to the Institute. On behalf of the governing mandate and to encourage the production of highly skilled Council, I thanked Mrs. Claudia Binitie for the tremendous Accounting graduates, the governing Council approved the contributions she made to the growth of the Institute and wished construction of lecture theatres in selected institutions across her success in her future endeavours. the country among which was Olabisi Onabanjo University, Mrs. Foluke Olawuyi, a Deputy Director, has been redeployed Ago-Iwoye, Ogun State. On Thursday, December 22, 2016, I to take charge of Membership directorate.

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ICAN President with the participants at the ICAN Canada District’s Conference Meeting with Staff of the Institute the Nigeria High Commission to Canada & Mayor of Calgary At the commencement of the presidential year, I held respectively. The opening remarks and Six (6) Papers were a meeting with members of staff of the Institute as a way of presented by my humble self and other resources persons ensuring a seamless working relationship with the workforce. including the Registrar/Chief Executive of the Institute, Mr Rotimi Omotoso, FCA. Staff Welfare and Capacity Building The conference also featured conferment of fellowship status There was a peaceful atmosphere, free of any form of on three (3) members as well as a Dinner/Dance session. industrial action at the Secretariat. Staff were sent on trainings where desirable during the year under review. Pan Africa Federation of Accountants Meeting in Kenya I was in Kenya with a delegation from August 24–26, 2016 for the Pan African Federation of Accountants (PAFA) Board INTERNATIONAL ACTIVITIES meeting.

ICAN-UK District Society Annual Dinner IFAC Council Meeting Held in Brazil The 2016 ICAN-UK Annual Dinner and Dance tagged “In I, in company of the Vice-President, Mallam Isma’ila Zakari, Support of ICAN UK and District Society’s Benevolent FCA,. Mr Rotimi Omotoso, FCA, the Registrar/Chief Executive Fund” was held on Saturday, November 26, 2016 at Crowne and Mr. Dayo Ajigbotosho, Assistant Director (General Services) Plaza Docklands, Royal Victoria Dock, Western Gateway, attended the International Federation of Accountants (IFAC) . Council’s Meeting held in Brazil from November 13 to 19, 2016. I used the forum to thank members of the District who attended the 46th Annual Accountants’ Conference held in Abuja Pan African Federation of Accountants (PAFA) Board in October 2016. I also thanked all members of the District Meeting in Madagascar for their resolve at ensuring that its internal squabbles did not I led a four-man delegation to Madagascar for the Pan extinguish the fraternal burning desires of members to remain African Federation of Accountants (PAFA) Board’s Meeting held loyal to the ideals of the Institute in the United Kingdom. between Sunday, October 23 and Sunday, October 30, 2016. I acknowledged efforts of the District’s Committee of Past Chairmen and the Caretaker Committee (CTC) under the 3rd ICAN-USA International Accountants Conference leadership of Mrs. Camilla Shittu, FCA that nurtured a successful The 3rd ICAN-USA International Accountants Conference and peaceful election in the UK & District Society. with the theme “Global Trends In Public Accounting” took place at The Crowne Plaza Atlanta Airport Hotel, Atlanta, 1ST ICAN-Canada International Conference & United States of America from Wednesday, August 31, 2016 to Induction Ceremony Saturday, September 3, 2016. I led a delegation to attend the maiden edition of the ICAN- Aside the keynote address I delivered, other resource Canada International conference held at the Sheraton Cavalier persons delivered four (4) papers at the event which included Hotel, Calgary, Canada from June 29 to July 2, 2016. Mr Rotimi Omotoso, MBA, FCA, the Registrar/Chief Executive The welcome and keynote addresses were delivered by the of the Institute. Chairman, Canada & District Society and the representative of Fellowship status of the Institute was conferred on some

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His Royal Majesty, Oba Oladuni Oyewumi Ajagungbade III, the Soun of Ogbomoso who welcome the ICAN team to the ancient palace. In my address, I thanked the royal father for the reception accorded us and appealed to him to encourage his subjects and their children to embrace Accounting education.

Courtesy Visit to the Alake of Egbaland In continuation of my visit to Abeokuta & District Society, I paid a courtesy visit to the Alake of Egbaland, His Royal Majesty, Oba Aremu Adedotun in his Ake palace, Abeokuta. I expressed gratitude to the paramount ruler for receiving one of his own subjects. As a son of Egbaland, I felt honoured to showcase the Institute and its milestone since its charter in 1965.

Courtesy Visit to Obong E.C.D. Abia, FCA, the Paramount Ruler Deacon Titus Soetan; former IFAC President, Ms Olivia Kirtley; Representative of Finance of Eket Minister, Mrs Kemi Adeosun and IGRC Chairman, HRM, Adaku Chidume-Okoro during As part of my official visit to Uyo & District honour for ICAN's Political Ambassadors in Abuja Society, I and my team paid a courtesy visit deserving members of the District who qualified. to Obong E.C.D. Abia, FCA, the traditional ruler of Eket in his palace on Tuesday, April 11, 2017. ICAN Disciplinary Tribunal In my remarks at the Obong’s palace, I said that the courtesy During the year under review, the Tribunal had five (5) sittings visit to him was a show of solidarity to the people of Eket that their on November 2, 2016, December 1, January 18, February, 21 choice of the monarch was not a misplaced priority considering and April 19, 2017. One (1) judgment and three (3) rulings were his professional antecedent as a fellow of our great Institute. delivered. The Tribunal handled a total of nine (9) cases in the I mentioned that Obong Abia, FCA is one of the leading lights course of the Presidential year. One (1) case was concluded, of the profession. I congratulated him on his ascension to the eight (8) cases are pending, though two (2) of the pending cases throne of his fore fathers and wished him success and good are almost completed. luck. In his response, Obong Abia, FCA equally thanked the ICAN Team. He acknowledged the grace of the Lord on him as well as OTHER NOTABLE EVENTS providence smiling on him having been chosen as a professional chartered accountant to the throne. Courtesy Visit to the Obi of Awka He called on the leadership of the Institute and other members As part of the programmes for my visit to Awka & District to avail the federal government their professional services in Society, I paid a courtesy call on the Obi of Awka and Immediate order to assist the government get out of the current economic Past Chancellor, Usman Dan Fodio University, Sokoto, His challenges facing the nation. He decried the effect of corruption Royal Highness Ozo, (Dr.) Gibson Nwosu, OON, Eze Uzu II on on the nation’s socio economic activities but called on members Tuesday, January 31, 2017. to live up to their professional calling. In my statement, I spoke on the roles of the Institute as well as the powers conferred on our members, backed by the law Courtesy Call on the Ndidem of the Quas that empowers our operational modalities. I also touched on & Paramount Ruler of Calabar Municipality our affiliations with regional, continental and world accountancy During my visit to Calabar & District Society, I paid a courtesy bodies. call on a First Class traditional ruler in in his In his response, Ozo (Dr.) Obi acknowledged the roles palace on Wednesday, April 13, 2017. At the Ndidem’s palace, I Chartered Accountants play in the nation’s economy as well as spoke on the reason for the courtesy call and on the relevance the contributions of the Institute to nation building. The Obi also of chartered accountants in the nation’s economic landscape. took the ICAN delegation through the history of Awka and its style of cabinet governance and the meaning behind the title Courtesy Visit to His Imperial Majesty Oba Lamidi Eze Uzu. Olayiwola Adeyemi, Alafin Oyo The programme for the visit to Ogbomoso/Oyo District Courtesy Visit to the Soun of Ogbomoso Society of the Institute commenced with a courtesy visit to His While in Ogbomoso on District tour, I, with members of my Imperial Majesty, Oba Lamidi Olayiwola Adeyemi, Alafin Oyo in entourage paid a courtesy visit to the traditional ruler of the town, his palace in the ancient Oyo town where I and my entourage

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were received in the traditional Oyo way of entertainment. MON,FCA (PP) at the All Saints Anglican Church, Yaba, Lagos. In my welcome remark, I thanked the Royal father for the Also present at the farewell service were some Past warm reception accorded us and spoke on the Institute’s Presidents and members of the Society of Women Accountants reason for the courtesy visit as well as its corporate social of Nigeria (SWAN). responsibilities to the nation. In his response Oba Adeyemi thanked me and my entourage Commemoration Session for Late for the visit as he affirmed his high regard for the Institute and Mrs Uchenna Ifesinachi Erobu, FCA, its members. He attested to the professional and disciplined the then 2nd Deputy Vice-President training that members went through before qualifying as A commemoration Council session was held in honour of chartered accountants. Late Mrs. Uchenna Ifesinachi Erobu on Monday, March 20, The royal father seized the opportunity of the visit by the 2017 at the Institute’s Council Chamber, Victoria Island, Lagos. ICAN delegation to call on the various government at all tiers on In attendance at the session were Council members, some the need for them to enact a law whereby the Institute will be Past Presidents of the Institute and family members of the consulted on issues concerning the economy and finance. In the deceased. same vein, our members should be given first consideration for On March 29, 2017, I led a delegation of Council members positions concerning finance. and ICAN top-management team to the burial service of Late Mrs. Erobu at her country home, Littlewood Estate, Obosi, Courtesy Visit to the Traditional Ruler of Abakaliki Anambra State. As part of the programmes outlined for the 11th Eastern Zonal Conference, I, in company of some Council members and top The Visit to Efon-Alaye, members of the zonal conference paid a courtesy visit to the I, in company of Alhaji Rasak Jaiyeola, FCA, 1st Deputy Vice traditional ruler of Izhia, Abakaliki, His Royal Highness Eze President was in Efon-Alaye, Ekiti State, at the instance of Mr. Chibueze Agbo (Agaba Idu II of Izhia), Abakaliki, Ebonyi State. Ed. Olowookere, FCA of the World Bank who performed the funeral rites of his late father on Saturday, July 16, 2016. CONDOLENCES AND TRIBUTES BIRTHDAY WISHES AND Condolence Visit to Balogun Olabisi OTHER VISITS Omidiora, FCA (PP) On Friday, June 13, 2016, I paid a condolence visit to Balogun 80TH Birthday Anniversary of Etubom (Dr.) Anthony Johnson Olabisi O. Omidiora, FCA (PP) on behalf of the Council Asuquo Ani, OFR, FCA and entire membership of the Institute to commiserate with him I attended the thanksgiving mass service at the Holy Cross on the death of his dear wife, Princess Eyinade Omidiora. Cathedral, Lagos for the 80th birthday celebration of Etubom On Saturday, August 06, 2016, I, in company of some Council (Dr.) Anthony Asuquo Ani, FCA, OFR, a Past President of the members represented the Institute at the funeral rites of late Institute. Princess Eyinade Omidiora in Ile-Ife, Osun State. Professionals’ Harvest Thanksgiving Service Condolence Visit to the Family of Late (Otunba Ayora) At the instance of the Hoare’s Memorial Methodist Cathedral, Bola Kuforiji-Olubi, OON, BSc., FCA (PP) Yaba, I honoured an invitation to the Professional’s Thanksgiving On Monday, December 05, 2016, I, in company of the Vice Service tagged “Harvest of Peace” held at its Church auditorium President, Alhaji Isma’ila Zakari, FCA, mni, the 1st Deputy on Sunday, October 02, 2016. Vice President, Alhaji Rasak Jaiyeola, FCA, the Registrar/ Chief Executive, Mr. Rotimi Omotoso, MBA, FCA, and some Conclusion Secretariat staff paid a condolence visit to the family of Late Finally, let me end this stewardship report by expressing, Otunba Ayora Bola Kuforiji-Olubi, FCA (PP) at her Apapa once again, my gratitude to all of you for your support, words of residence. wisdom and unwavering disposition to the cause of the Institute. I conveyed Council’s condolence to the family members I feel greatly honoured to have been given the opportunity to and assured them of the Institute’s participation in the burial carry the Institute’s mantle of leadership for the 2016/2017 ceremony of Late Otunba Ayora Bola Kuforiji-Olubi, FCA. presidential year. I assure you all that I will continue to defend A special valedictory Council session was held in honour the ideals of the Institute no matter the odds. of Late Otunba Ayora D.B.A. Kuforiji-Olubi, MON, FCA (PP) on Tuesday, December 20, 2016 at the Institute’s Council Thank you and God bless. Chamber, Victoria island, Lagos. In attendance at the session were Council members, some past presidents of the Institute and family members of the deceased. Deacon Titus A. Soetan, FCA 52nd ICAN President Farewell Church Service for Late HH (Otunba, Ayora) D.B.A. Kuforiji-Olubi, MON, FCA (PP) On Friday, December 23, 2016, I attended the farewell Church Service for late Otunba Ayora Dorcas Bolajoko A. Kuforiji-Olubi,

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MEMBERSHIP OBITUARIES FOR 2015/2016 AFFAIRS PRESIDENTIAL YEAR S/N Names Membership Number LICENCE TO PRACTICE & 1. ONYENWERE, Godwin Ndubuisi, ACA MB08200 ATTACHMENT During the period under review, 282 Licences to Practice and 2. ONAGA, Raymond Tagbo, ACA MB028196 57 Attachment forms were approved by Council. 3. CHUKWU, Joseph Amadi, ACA MB023921 4. SANGOSANYA, Emmanuel Abiodun, MB001764 ASSOCIATE MEMBERS OF THE FCA INSTITUTE 5. MARK-AGEMA, Shaapera Doosuur, ACA MB028378 During the presidential year under review, two induction ceremonies were held in May and November respectively. 6. EFAGENE, Julius Eseverere, ACA MB031811 A total of 649 and 472 new members were admitted into the 7. YAMUSA, Ogijo Flavius, FCA MB007523 Associate membership fold of the Institute respectively. The total membership strength of the Institute as at December 8. ANJOUS, Babatunde, FCA MB000139 2016 was 40,789 made up of 40,768 Chartered Accountants 9. Uchenna Benjamin, ACA MB021382 and 21 Registered Accountants. ANORUE, 10. OKPONOBI, Yakubu Abubakar, FCA MB008077 The numbers in each class of membership are as follows: 11. ANIMASHAUN, Ibok, FCA MB003889 Category of Fellows Associate Total 12. OGUNDIPE, Sunday Emmanuel, ACA MB015102 Membership 13. GBADAMOSI, Kamoru Odutola, ACA MB011623 a) Members with 4,232 2,301 6,533 Practicing Licence 14. ALOFOJE, Ehime Evelyn, FCA MB012905 b) Members without 5,748 28,487 34,235 15. AJAYI, Elijah Olorunsogo, FCA MB002056 Practicing Licence 16. ADEYEMI, Tinuola Beatrice, ACA MB021121 Total 9,980 30,788 40,768 17. OBUA, Josephine Efuru, FCA MB007051 18. MANCHO, Fidelis Tizeh, FCA MB012467 Registered 19. AGARA, Julius Ikpo Ume, ACA MB009122 Accountants under 21 Section 8 (2) of the 20. OFFOR, Dominic Nwaka, FCA MB000825 ICAN Act 21. OKOLIE, James Ugochukwu, FCA MB012707 Total Membership as 40,789 at 31st December 2016 22. Royal Majesty Oba OSUNBADE MB000472 Adegboyega, FCA 23. USMAN, John Mba, ACA MB021063 MORE INFORMATION ON 24. ALE, Oluwaseun Adebayo, ACA MB022527 MEMBERSHIP RECORDS 25. NJAH, Amos Bassey, ACA MB016332 Total membership of the Institute as at 40,789 26. OKOYE, Kelvin Kennedy Ikechukwu, ACA MB020764 31st December, 2016 27. FALOYE, Nelson Abiodun, FCA MB009082 a) Recorded Death as at (570) 28. Achulike Christopher, FCA MB007154 31st December 2016 ATUZIE, 29. BENEDICT, Augustine Ayodeji, FCA MB003404 b) Members on pending list due to (64) unresolved issues with the Institute 30. ADEBOYE, Moronfolu Adejumoke, FCA MB000668 c) Therefore total membership number as 31. AKINTOLA, Duyilemi Victor, FCA MB022493 at 31st December 2016 MB014510 (Fellows, Associate Members and 40,155 32. KORIEOCHA, Damian Ikechi ACA Registered Accountants) 33. EROBU, Uchenna Ifesinachi FCA MB002278

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MEMBERS’ RECORDS AND DOCUMENTATION ON CHANGE OF NAMES, FIRMS & EXEMPTION FROM SUBSCRIPTION

Description Nos.

a) Marital ground 80

b) Other grounds such as (religion, tradition, personal, etc) 39

c) Firms 26

d) Exemption from Subscription 26

Members can update their records on the Institute’s Website: www.icanig.org However, financial members (those up-to-date with their membership dues) as at December 31, 2016 was 14,506.

ICAN MEMBERS’ BENEVOLENT & EDUCATIONAL TRUST FUND

ACTIVITIES OF THE FUND’S MANAGEMENT BOARD AS AT DECEMBER 2016

ICAN Members Benevolent & Educational Trust Fund was established by the Council of the Institute of Chartered Accountants of Nigeria (ICAN) in 2003 with the following objectives:  To promote and invest in Research and Educational development.  To give financial assistance to needy members.  To support families and dependants of those needy members who have passed on.

CONDITIONS FOR ELIGIBILITY

The Management Committee evolved the eligibility conditions listed below for an Applicant to qualify for the grant. The Applicant:-  Must be a financial member of the Institute;  Must have paid his/her annual subscription to at least the preceding year before his/her incapacitation;  The mishap occasioning the request must not be from crime or negligence like arson, murder, manslaughter, use of hard drugs, etc;  There must be proof that the member cannot afford his/her immediate needs; and  The Applicant has to route his/her request through his District Society.

CURRENT BENEFITS

The minimum amount of benefit to applicant members shall be a sum of Fifty Thousand Naira (N50,000); while the maximum shall be a sum of Five Hundred Thousand Naira (N500,000).

Procedure for Disbursement of Fund to Applicants a) An application received from a prospective beneficiary must state estimate of his/her needs. Such an application must be endorsed by the Chairman of the District Society of the Applicant; b) For an application to be validly considered by the Management Board, the application will be considered and treated at any meeting where at least (2) two members of the Board are present; c) The Secretary shall be responsible for processing and issuance of cheque for the amount approved; d) All cheques shall be crossed and made payable only to the account of the payee or made payable to the beneficiary through his/her District Society unless otherwise decided by the Board; and

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e) All failed/rejected applicants will be informed of the reason for failure/rejection.

ACTIVITIES OF THE FUND’S MANAGEMENT BOARD IN YEAR 2016

The major activities of the Management Board are Fund Raising and Management of the Fund’s Investments. Funds so generated are invested and it is the income from the investments that are disbursed to members in need and families that are distraught. Since inception, the fund has assisted members and families of dead members.

1. Meetings of the Management Board of ICAN Members’ Benevolent & Educational Trust Fund The ICAN Members Benevolent & Educational Trust Fund Management Board met 8 times in year 2016.

2. Other Objectives of the Fund In pursuant of the fund’s third objective, i.e. “To Promote and Invest in Research and Educational Development”, the Management Board of the ICAN Members’ Benevolent & Educational Trust Fund approved the sum of N400,000 to sponsor the prizes awarded at the Second International Academic Conference organised by the Technical & Education Directorate of the Institute.

3. Sources of Income The main sources of funding are: i) Annual subvention from the Institute – by way of 3% of the Gross Income from the Annual Accountant’s Conference. ii) Income from investment of the Seed Funds. iii) Donations from Members and other interested individuals.

In a bid to facilitate No. (iii) above, the Minutes Secretary has been attending ICAN public functions to showcase the Benevolent Fund and its objectives in order to generate more funds. Letters of appeal for financial assistance towards the scheme are written to individuals and organisations. Responses in this regard have not been encouraging.

4. Assistance Granted to Members in 2016 Seven (7) applications were received, Six (6) were granted as tabulated below:

S/No Beneficiaries’ District/Location Purpose Amount Granted

1. Lagos Loss of job and husband N500,000.00

2. Ibadan & District Society Prostate cancer N500,000.00

3. Lagos Prostate cancer & Kidney failure N500,000.00

4. Enugu & District Society Accident with very bad injuries on his left hand N500,000.00 and elbow

5. Port Harcourt & District Society Ailment N500,000.00

6. Amuwo Odofin & District Society Loss of job and injury sustained on his left leg as N250,000.00 a result of an accident.

7. Abeokuta & District Society He was placed on Dialysis at the Federal Medical Centre Idi-Aba, Abeokuta, Ogun State. His request was granted. However, he passed on, on October 04, 2016 just before the cheque was released to him.

N2,750,000.00

We hereby wish to inform members to endeavour to continue to assist in creating awareness about the purpose and benefits of ICAN Members’ Benevolent & Educational Trust Fund among the members of their respective district societies. This is important so as to aid the Fund’s Management Board in its repeated appeal to members for donations. It will also facilitate the desire to touch more lives and make its assistance more effective. We seize this opportunity to inform indigent members in need of financial assistance not to hesitate to approach the Fund’s Management Board through the Chairmen of their respective District Societies for the purposes narrated above.

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A cross section of digitaries during the 46th Annual Accountants’ Conference in Abuja ANNUAL ACCOUNTANTS’ CONFERENCE The 46th Annual Accountants’ Conference was held at the International Conference Centre, Abuja and Abuja Sheraton Hotel from Monday, October 10 to Friday, October 14, 2016. The theme of the Conference was “Accountability. Now Nigeria”. The Conference recorded a total attendance of 3,620 delegates. The Conference was declared open by President and Commander- in-Chief of the Federal Republic of Nigeria, His Excellency, Muhammadu Buhari, GCFR, who was represented by the Vice President, Federal Republic of Nigeria, Prof. Yemi Osinbajo, SAN, GCON. In attendance were dignitaries and th resource persons from across the globe Vice President, Prof. Yemi Osinbajo cutting the tape to declare the 46 Conference open which included the IFAC President, Ms Olivia Kirtley who delivered the Lead Paper on “Accountability and Good Governance”. Other dignitaries include: Mrs Kemi Adeosun, FCCA, ACA, Honorable Minister of Finance; the Governor of Ogun State, His Excellency (Senator) Ibikunle Amosun, FCA; His Excellency Alhaji (Dr) Ibrahim Dankwambo, FCA, the Governor of Gombe State; His Excellency, Mr Peter Obi, former Governor, Anambra State; Mr John Matheson, Immediate Past President of Chartered Institute of Public Finance and Accountancy, United Kingdom; and Mr Sajeve Deora, of Integrated Capital Services Ltd, India. Other eminent personalities in attendance were Royal fathers and a host of others. A total of 27 Exhibitors participated in the exhibition organised at the International Conference Centre, Mrs. Olutoyin Olakunri (PP) (left), Alh. Razak Jaiyeola, Deacon Titus Soetan, Mrs Abuja. These included private organisations and state Soetan, Mr. Ayodeji Oni (PP), and Mrs Comfort Eyitayo cutting the Conference cake governments which sponsored and made donations

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Mrs Ibironke Osiyemi (PP) (left), Late Mrs Uche Erobu, Ms Olivia ICAN President Deacon Titus Soetan; IFAC former President, Kirtley, ICAN President Deacon Titus Soetan, Alhaji Razak Jaiyeola, Olivia Kirtley; Finance Minister, Kemi Adeosun; and former Alhaji Ismaila Zakari and Mr Rotimi Omotoso Anambra State Governor Peter Obi towards the Conference. of Nigeria.” was organised for students in all ICAN Accredited The high point of the gala nite was a raffle draw where Institutions across the country. At the end of the competition, members won a star prize of a car in addition to the following cash prizes, laptops, plaques and ICAN Professional consolation prizes: Air conditioner, free flight tickets, LED Examination Scholarship (with a value covering tuition, study television, pressing iron, electric kettle, microwave and a packs and examination fees) were presented to the best three weekend for couples in a designated hotel. students at a colourful ceremony held during the conference gala night. The winners of the first and second prizes were Essay Competition for Students in ICAN Miss Busola Ashade ( University, Ile-Ife) and Accredited Institutions Mr Chibueze Ndukwu As part of the Institute’s Corporate Social Responsibility, the (University of Calabar), second edition of ICAN essay competition on the topic “The Role while Mr Adekunle of Chartered Accountants in Maintaining the Financial Health Famosa (Obafemi Awolowo University, Ile- Ife) emerged the winner of the third prize. At a well attended closing ceremony, the conference was declared closed by the Chairman of the Institute’s Body of Past Presidents, Revered Winner of the star prize of the raffle draw Past President Ayodeji collecting car keys from Deacon Soetan Michael Oni, BSc, FCA.

ICAN President with winners at the various sporting events

Essay Competition Winners – Mr Adekunle Famosa (Obafemi Awolowo ICAN President, Deacon Titus Soetan with members of Ibadan and University) (left); Mr Chibueze Ndukwu (University of Calabar); and District Society during District Societies parade at the Conference Miss Busola Ashade (Obafemi Awolowo University)

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an election process in line with rule 10 of the Association`s ASSOCIATION OF Constitution and Bye Laws. Details of the results are contained in the minutes of the 2016 Annual General Meeting of the ACCOUNTING Association. TECHNICIANS WEST ACCOUNTING TECHNICIANS AFRICA (AATWA) SCHEME WEST AFRICA (ATSWA) The ATSWA Examinations took place in March and September AATWA INDUCTION CEREMONY 2016 under the aegis of the Association of Accountancy Bodies in West Africa (ABWA). The four-member Institutes that participated Two induction ceremonies were held in June and December, in the ATSWA examinations during the two diets in 2016 were 2016 respectively. A total of 518 and 797 ATSWA graduates were Nigeria, Ghana, Liberia and Sierra-Leone while Cameroon admitted into the Association`s membership fold. Therefore, the participated for the first time in September 2016 diet. total membership strength of the Association as at December The March 2016 diet of the examinations took place in the 2016 was 21,367. following twenty-eight (28) centres: Abakaliki, Abeokuta, Abuja, Ado-Ekiti, Akure, Awka, Benin City, Calabar, Enugu, Ibadan, AATWA ANNUAL CONFERENCE Ikorodu, Ilesha, Ilisan, Ilorin, Jos, Kaduna, Kano, Lagos, Lokoja, st Makurdi, Ogbomosho, Okija, Oko, Onitsha, Ota, Port Harcourt, The AATWA 21 Annual Conference was held on Friday, Umuahia and Uyo. December 7, 2016 at the ICAN Centre, Amuwo Odofin, Lagos. The breakdown of candidate’s enrolment for March and A paper on “AAT. Accountability. Now. Nigeria” was delivered September examinations are as follows: by Mr. Olawale Salaam Balogun, AAT, ACA. A total of 1,203 members attended the Conference. Level March 2016 September 2016 AATWA ANNUAL GENERAL MEETING Part I 1,794 1,966 The 21st Annual General Meeting of the Association was held Part II 1,429 1,231 on Wednesday, December 7, 2016 at the ICAN Centre, Plot 12, Part III 717 1,092 Kofo Kasumu Street, Amuwo Odofin, Lagos. The meeting was held before the commencement of the Annual Conference. Over Total 3,940 4,289 1,200 members were in attendance. Five (5) members of the Executive Committee retired in Merit, Subject and Special prizes were awarded to candidates accordance with rule 12 of the Constitution and Bye Laws of the with outstanding performance in the March 2016 diet examinations Association. All the five vacancies created were filled through as stated below:

MARCH 2016 DIET (a) MERIT PRIZES

Registration Name Examination Number Position Part Number Lawal Olufemi Moses ATS/20161/10541/A AT/106950 1st Part I Mabamije Temiloluwa Oluwabunmi ATS/20161/11141/A AT/108196 2nd Part I Raji Suliat Temidayo ATS/20161/11285/A AT/108040 3rd Part I Fasan Overcomer Oluwasegun ATS/20161/20463/A AT/107267 1st Part II Akanji Emmanuel Ashekono ATS/20161/20433/A AT/106897 2nd Part II Bello Samuel Oluwaseyi ATS/20161/20924/A AT/106657 3rd Part II Sunday Olayinka Olarewaju ATS/20161/30280/A AT/104524 1st Part III Oyedele Gbenga Samson ATS/20161/30575/A AT/101174 2nd Part III Olafemi Oluwatomi ATS/20161/30178/A AT/102820 3rd Part III

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(b) SUBJECT PRIZES

LEVEL SUBJECT PRIZE WINNER Basic Accounting Processes Chief (Dr) R.U. Uche’s Prize ATS/20161/10541/A AT/106950 & Systems Lawal Oluwafemi Moses Economics Mrs. I.M. Osiyemi’s Prize ATS/20161/10541/A AT/106950 Lawal Oluwafemi Moses Part I Business Law Otunba Abdul Lateef Owoyemi’s Prize ATS/20161/10541/A AT/106950 Lawal Oluwafemi Moses Communication Skills Chief C.F.G. Akinwolemiwa’s Prize Nil Principles and Practice of Major-Gen. S.A. Owuama’s Prize ATS/20161/20463/A AT/107267 Financial Accounting Fasan Overcomer Oluwasegun Public Sector Accounting Late F.B. Cardoso’s Prize Nil Quantitative Analysis Ayo Oni’s Prize ATS/20161/20018/A AT/106160 Part II Ajayi Funmilayo Adewunmi Information Technology Late Otunba Ayora (Dr.) Bola ATS/20161/20433/A AT/106897 Kuforiji-Olubi’s Prize Akanji Emmanuel Ashekono Principles of Auditing Alhaji I.O. Sulaimon’s Prize ATS/20161/30280/A AT/104524 Sunday Olayinka Olarewaju Cost Accounting U.S. Nwankwo’s Prize ATS/20161/30178/A AT/102820 Olafemi Oluwatomi

Part III Preparing Tax Computation D.B.O. Ogutuga’s Prize ATS/20161/30392/A AT/104645 & Returns Adewusi Oluwatobiloba Motunrayo Management Chief F.K. Bajomo’s Prize ATS/20161/30392/A AT/104645 Adewusi Oluwatobiloba Motunrayo

► It should be noted that no candidate satisfied the requirements for Chief C.F.G. Akinwolemiwa’s Prize in Communication Skills and Late F.B. Cardoso’s Prize in Public Sector Accounting.

(c) SPECIAL PRIZES

► F.I. Ogunjuboun’s Prize for the “Best Qualifying Female Candidate” in March 2016 diet examination:

Level Name Examination Number Registration Number Part III Olubi Victoria Oluwayemisi ATS/20161/30315/A AT/105614

► Silver Scholarship for the “Best Qualifying Candidate” in March 2016 diet examinations:

Level Name Examination Number Registration Number Part III Sunday Olayinka Olarewaju ATS/20161/30280/A AT/104524

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SEPTEMBER 2016 DIET (a) MERIT PRIZES

The September 2016 diet of the examinations took place in the following thirty-one (31) centres: Aba, Abakaliki, Abeokuta, Abuja, Ado-Ekiti, Akure, Awka, Benin City, Calabar, Enugu, Ibadan, Ikorodu, Ilesha, Ilisan, Ilorin, Jos, Kaduna, Kano, Lagos, Lokoja, Makurdi, Ogbomosho, Okija, Oko, Onitsha, Ota, Owerri, Port Harcourt, Umuahia, Uyo and Warri. Merit, Subject and Special prizes were awarded to candidates with outstanding performance in the September 2016 diet examinations as stated below:

Registration Name Examination Number Position Part Number Odiwe Esther Uweoma ATS/20162/11742/A AT/109701 1st Part I Akpan Peter Justin ATS/20162/10317/A AT/110565 2nd Part I Oluwasegun Morenike Mary ATS/20162/10533/A AT/109899 3rd Part I Lawal Oluwafemi Moses ATS/20162/20447/A AT/106950 1st Part II Ehigiegba Promise Tosin ATS/20152/20182/A AT/107525 2nd Part II Akanbi Comfort Oluwatosin ATS/20162/20814/A AT/106761 3rd Part II Obayemi Temitope Esther ATS/20162/30777/A AT/099090 1st Part III Olajide Micheal Oluwatobi ATS/20162/30271/A AT/104602 2nd Part III Oluwadare Oluwaseyi Kehinde ATS/20162/30842/A AT/106212 3rd Part III

(b) SUBJECT PRIZES

LEVEL SUBJECT PRIZE WINNER Basic Accounting Processes Chief (Dr.) R.U. Uche’s Prize ATS/20162/10558/A AT/110317 & Systems Adebayo Ayomide Daniel Economics Mrs. I.M. Osiyemi’s Prize ATS/20162/10533/A AT/109899 Olusegun Morenike Mary

Part I Business Law Otunba Abdul Lateef Owoyemi’s Prize ATS/20162/10072/A AT/109724 Salami Temitope Nofisat Communication Skills Chief C.F.G. Akinwolemiwa’s Prize ATS/20162/10823/A AT/109961 Jokotagba Oluwanifemi Oluwadara Principles and Practice of Major-Gen. S.A. Owuama’s Prize ATS/20162/20447/A AT/106950 Financial Accounting Lawal Oluwafemi Moses Public Sector Accounting Late F.B. Cardoso’s Prize ATS/20162/20814/A AT/106761 Akanbi Comfort Oluwatosin

Part II Quantitative Analysis Ayo Oni’s Prize ATS/20162/21018/A AT/108040 Raji Suliat Temidayo Information Technology Late Otunba Ayora (Dr.) Bola ATS/20162/20447/A AT/106950 Kuforiji-Olubi’s Prize Lawal Olufemi Moses Principles of Auditing Alhaji I.O. Sulaimon’s Prize ATS/20162/30777/A AT/099090 Obafemi Temitope Esther Cost Accounting U.S. Nwankwo’s Prize ATS/20162/30777/A AT/099090 Obafemi Temitope Esther Preparing Tax Computation D.B.O. Ogutuga’s Prize ATS/20162/30271/A AT/104602 Part III & Returns Olajide Micheal Oluwatobi Management Chief F.K. Bajomo’s Prize ATS/20162/30299/A AT/106897 Akanji Emmanuel Ashekono

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(c) SPECIAL PRIZES

► F.I. Ogunjuboun’s prize for the “Best Qualifying Female Candidate” in September 2016 diet Examinations:

NAME Examination Number Registration Number Obafemi Temitope Esther ATS/20162/30777/A AT/099090

► Princess A.A. Adeniran’s Prize for the “Best Qualifying Female Candidate” for the year:

NAME Examination Number Registration Number Obafemi Temitope Esther ATS/20162/30777/A AT/099090

► Alhaja (Mrs.) Shakirat Adepeju Babatunde’s Prize for the “Best Qualifying Male Candidate” for the year:

NAME Examination Number Registration Number Sunday Olayinka Olarewaju ATS/20161/30280/A AT/104524

► Silver Scholarship for the “Best Qualifying Candidate” in September 2016 diet examinations:

NAME Examination Number Registration Number Obafemi Temitope Esther ATS/20162/30777/A AT/099090

President Soetan with the best qualifying candidate in the March AATWA Exams. Ms Temitope Obayemi

Pastor Ituah Ighodalo, FCA with President Soetan ICAN President, Deacon Titus Soetan with AAT members during their at the AAT induction held in December 2016 Conference held in December 2016

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economy in the recent past climaxed in 2016 as the economy MEMBERS’ eventually slid into a recession. The Nigerian economy has been adversely affected by a fall in the global price of crude oil. EDUCATION AND Continued militant attacks on oil installations also dampened the recovery process. The non-oil sector was adversely impacted by the inadequate supply of foreign exchange, the depreciation TRAINING COMMITTEE of the naira and foreign exchange volatility. Thus, there was a International Education Standard 7 of IFAC prescribes slowdown in economic activities across all the sectors of the continuing professional development for professional economy. However, because of the commitment of our members accountants to develop and maintain their professional to the continuing development programme, we still recorded a competence so as to provide high-quality services to clients, remarkable fit in our training offering in the year under review. employers, and other stakeholders. It is in furtherance of this In addition to the regular MCPE, which was held in several global initiative that the Institute adopted the scheme to support locations across the geo-political zones of the country, five (5) its members. CPE; four (4) EMCPE; four (4) Topic Specific seminars and one The programme is a major source of information and off-shore programme in Dubai were conducted, making a total education for updating, improving and enhancing the knowledge of ninety-six (96) seminars. and professional skills of members. MCPE is a lifelong process Below are some of our In-House clientele: of learning and continuing personal development. It is the 1. Chevron Nigeria Limited means by which members enhance their knowledge, skills 2. MTN Communications Limited and competencies to complement current and future career 3. Nigerian Bottling Company Plc progression. 4. PZ Cussons Nigeria Plc 5. Shell Nigeria Exploration & Production Company Objectives Limited (SNEPCO) The Mandatory Continuing Professional Education 6. Zenith Bank Plc programme has the following objectives: 7. Nigerian Breweries Plc  To maintain adequate level of up-to-date technical 8. Nigerian Deposit Insurance Corporation (NDIC) knowledge among members of the Institute; 9. Emerging Markets Telecommunications Service  To demonstrate the Institute’s responsiveness to the (Etisalat) needs of its stakeholders and encourage members of the 10. PriceWaterhouseCoopers accounting profession to have adequate technical knowledge 11. Airtel Nigeria and skills in the drive towards maintaining professional 12. Seven-up Bottling Company Plc excellence at all times; 13. General Electric  To assist members of the profession to adapt to new 14. Asset Management Corporation of Nigeria (AMCON) techniques, changing responsibilities and economic conditions; 15. ADDAX Petroleum nationally and internationally; 16. ALCON Nig  To maintain the competence and relevance of the 17. IHS Africa Chartered Accountant in today’s global economic, political and 18. Dangote Group social environment. 19. KPMG Professional Services 20. Sterling Bank Plc REVIEW OF 2016 ACTIVITIES 21. UNIMAID The sluggish economic growth that characterised the Nigerian 22. Office of the Auditor-General for the Federation

MCPE TRAINING ATTENDANCE FOR 5 CONSECUTIVE YEARS

PROGRAMME ATTENDANCE S/N DETAILS 2012 2013 2014 2015 2016 1 MCPE 4,480 4,870 4,665 5,206 4, 760 2 EMCPE 181 143 106 41 122 3 CPE 65 148 39 184 115 4 ECPE 65 72 39 44 17 5 IN-HOUSE 1,567 1,468 1,658 1,581 1,882 6 TOPIC SPECIFIC 1,121 440 356 195 248 TOTAL 7,479 7,141 6,863 7,251 7,144

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 36 TO MEMBERS OF THE INSTITUTE

23. Federal Inland Revenue Service (FIRS) 24. Lafarge Cement PLC. PROFESSIONAL

OFFSHORE TRAINING PROGRAMME PRACTICE IN DUBAI MONITORING The annual Executive Continuous Professional Education Programme (ECPE) was held at the Le Meridien Hotel in Dubai COMMITTEE from August 1–5, 2016. The theme of the training was “Economic Diversification: Roles of the Professionals”. Delegates from The Professional Practice Monitoring Committee (PPMC) practice, private and public sectors participated in the programme. carried out its responsibilities as contained in its terms of reference. Below is the summary of the Committee’s activities MCPE COMPLIANCE AND SANCTIONS during the period: A member of the Institute is required to obtain a minimum of 1. 30 credit hours (which could be obtained solely from structured UPDATE ON THE DASHBOARD seminars or a combination of structured and unstructured seminars) REPORT (DBR) in a year. The structured programmes are Mandatory Continuing The Dashboard Report (DBR) submitted to IFAC in 2015 Professional Education (MCPE), Continuing Professional Education has been hosted on the IFAC website. Dashboard Report (CPE) and Executive Mandatory Continuing Professional Education contains general information on the Member or Associate (EMCPE), the Annual Accountants’ Conference, World Congress of and an overview of the legal and regulatory framework for the Accountants, African Congress of Accountants, Zonal Accountants’ accounting profession in the jurisdiction. Conferences and Accountancy Bodies in West Africa (ABWA) The summary of DBR could be stated as follows:  Congress. The status of adoption of International Standards and The unstructured programmes include seminars, workshops, best practices at the jurisdiction level, in this case meetings, etc. organised by either the Institute or other Nigeria;  organisations, ICAN Annual Dinner, ICAN Annual General The IFAC Member’s or Associate’s status of adoption Meeting, ICAN symposia, Council and Committee meetings, of International Standards and best practices that apply Examination exercises (Invigilation, marking, extraction and pool to Professional Accountancy Organisations (PAOs); setting), Retreats, Publications in the Institute’s journal, District and  Societies meetings, facilitation at MCPE seminars and other The level of a Member or Associate’s fulfillment of IFAC events of the Institute. membership requirements. The Council of the Institute has noted that some members are deficient in the acquisition of the minimum credit hours required by 2. UPDATE ON PROFESSIONAL PRACTICE the IFAC. The defaulting members are hereby implored to make MONITORING EXERCISE up for the deficient credit hours within the year by attending MCPE The Practice Monitoring exercise is currently being seminars. reviewed by the Committee with a view to making it more Please note that the Council of the Institute had approved robust, viable and sustainable. A lot of work had been carried sanctions since March 2003 for members deficient in the required out and very soon a new and re-packaged practice monitoring MCPE credit hours. exercise will be rolled out. As approved, deficient members would be denied the following privileges: 3. UPDATE ON THE ADOPTION OF  Sponsorship of students for registration, exemptions, AUDITING STANDARDS RELEASED BY examinations and registration for induction into IFAC SUCH AS ISAS AND ISQC 1 membership; The Committee wishes to reiterate that during the last  Sponsorship of graduate members for the Institute’s Presidential year, Council approved the Committee’s membership; recommendation that the Institute should adopt rather than  Elevation to Fellowship; adapt the Auditing Standards released by IFAC. Although the  Obtaining and Renewal of Practicing License/Compliance standards adapted by the Institute such as NSAs substantially Certificate; complies with the International Standards on Auditing (ISAs),  Membership of Committees; the Committee adduced the following reasons, among others,  Voting at Council elections; for their recommendation:  Contesting Council Elections; and  Enhanced credibility;  Occupying any executive position in a District Society.  Improved investors’ confidence; Additional sanctions, which might affect the membership  Simplification of comparison between entities; status of defaulting members, have also been approved for  Transparency; and implementation.  Cross border comparability, etc. The Council of the Institute implores all members to attend any two seminars from the various sectors each year to earn the The development of implementation guidelines and necessary thirty (30) credit hours in the process of updating their explanatory notes for the adoption of ISAs as directed by the knowledge. Council is still in progress.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 37 TO MEMBERS OF THE INSTITUTE

to the highest position in their academic career, the Council of the RESEARCH, Institute approved the sum of N1million to an eligible applicant for inaugural professorial lecture presentation. During this Presidential year, award was made to a Professor in Accounting: TECHNICAL AND Professor Enyi Patrick Enyi, FCA of Babcock University, Illishan Remo, Ogun State. PUBLIC POLICY His inaugural lecture titled: “Accounting in the Digital Age: Creating Values with Paperless Decision Support Systems” In accordance with its responsibility of conducting research was delivered on 8th September 2016. into Accounting, Taxation, Auditing, Finance, Economics and related disciplines to expand the frontier of knowledge in the COMMENTS ON EXPOSURE DRAFTS (EDs) profession and deliver results based on the terms of reference, the committee’s activities during the year were in the following AND PUBLIC HEARINGS Comments on the following Exposure Drafts and Public areas: hearing were forwarded to the relevant bodies:  Supporting Credibility and Trust in Emerging Forms of ACADEMIC CONFERENCE External Reporting: Ten Key Challenges for Assurance The third edition of ICAN Academic Conference was organised Engagements. in collaboration with the , Akoka, Lagos from  Public Sector Specific Financial Instruments. April 19 - 21, 2017. Scholars from across the country and abroad  Amendments to IPSAS 25, Employee Benefits. participated in the two-day event which was aimed at: projecting  National Code of Corporate Governance 2015 (Public the image of the Institute as an educator on the one hand, and Sector). also providing a platform for scholars both in the accountancy  Proposed International Public Sector Accounting profession as well as related fields to broaden their knowledge Standards and Recommended Practice Guideline (The and enhance their research skills. The conference provided Applicability of IPSASs). a publication outlet for well-researched manuscripts. Papers  Foreign Exchange (Monitoring and Miscellaneous presented at the conference were published as Conference Provision) Act CAP F34, LFN, 2004 (Amendments) Bill, Proceedings and a selected few published as a Special Edition of 2017 (SB.181). the Research Journal (IJAF). Public Hearings RESEARCH JOURNALS  Amendments to Financial Reporting Under the Cash Basis The department maintains the production of ICAN Journal of Accounting. Accounting and Finance (IJAF). The eighth (8th) edition of the  Legal Framework for Credit Bureau Service Bill, 2017 (SB. journal was successfully produced and copies were sold at the 205). 2016 Annual Accountants’ Conference. Two copies of the journal  National Payment System Bill, 2017 (SB. 205). were sent to each higher institution in Nigeria. The department  2017 Appropriation Bill (National Budget) February 14, has commenced the preparation for the 9th edition and efforts are 2017. being made for the journal to be internationally indexed. MUTUAL COOPERATION AGREEMENT COMMISSIONED RESEARCH WITH TERTIARY INSTITUTIONS (MCATI) The Institute established Commissioned Research to provide In pursuant of the Institute’s desire of partnering with grants to support research into Accounting and related fields. tertiary institutions to deepen accountancy education in the During the year, a commissioned research titled: ‘Integrating country, it designed the Mutual Cooperation Agreement with Sustainability and Financial Reporting in Corporate Annual Tertiary Institutions (MCATI). The programme will enable Reports in Nigeria’. The research is being conducted by accredited tertiary institutions that signs up to the agreement Professor Kenneth Amaeshi (Edinburgh University, UK) and Dr. to enjoy special and expanded exemptions from all subjects in Innocent Okwuosa (Reading University, UK). Foundation and Skills levels of the professional examinations. The arrangement allows accounting graduates under the MCATI to proceed to the final level of the professional examination AWARD OF PhD RESEARCH GRANTS TO where the candidate will only write five (5) subjects to qualify as MEMBERS IN ACADEMIA chartered accountants. In order to increase the number of annual awards of Ph.D To date, the following four (4) institutions have signed grants, the Institute has reviewed the criteria for the award agreement with the Institute to enjoy this opportunity: process. The Institute, through the Committee, considered and approved fourteen (14) applications for PhD research grants as  North-West University, Kano, . against three (3) approved last year. Eight (8) of these applicants have received first and second instalments of the grants.  Federal University, Birnin-Kebbi, Kebbi State.  Micheal Okpara University of Agriculture, Umudike, ICAN SPONSORSHIP OF INAUGURAL Abia State. PROFESSORIAL LECTURE With a view to encourage Institute members in academia aspire  Abia State Polytechnic, Aba, Abia State.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 38 TO MEMBERS OF THE INSTITUTE

4. COLLABORATION SOLUTION INFORMATION The Committee is currently having as work in progress the deployment of Teleconferencing/e-meeting solution across the TECHNOLOGY three office locations in Victoria Island, Ebute-Metta and Abuja. The facility would have provision for mobility and remote sign- COMMITTEE on. The activities of the Information Technology committee focused on the under listed: 5. ELECTRONIC LEARNING SOLUTION This solution is aimed at ensuring that virtually all members 1. DEPLOYMENT OF ENTERPRISE of the Institute are provided with easy access to participate in RESOURCE PLANNING (ERP) the Mandatory Continuing Professional Education irrespective SOFTWARE of their location. The ERP project based on Microsoft Dynamics Navision Discussions, review of various solutions, visit to sites are and CRM, which was initiated in the last two presidential years currently ongoing towards ensuring that the right solution that is currently at the go-live stage and to achieve full integrated matches the ICAN requirement is deployed. computerisation of the under listed sections of the Institute’s operations a. Financial Services (G/L, A/C Receivables, Payables, 6. MOBILE APPLICATIONS Inventory, Budget, Non-Recurrent Asset, etc.). Mobile applications have been developed on the ANDROID b. Human Resources/Payroll (Payroll, Recruitment, Leave, Platform for The Nigerian Accountant and the Student Study Training, Performance, Query and Exit Management). pack. It is currently being tested before general deployment. c. Studentship Management (Registration, Exemption and Accreditation exercise for both ATS and Professional). d. Membership Management (Induction, Fellowship, 7. MEMBERSHIP CARDS Attachment, Licence, Firms Registration, Conferences, This initiative which started in the last two presidential years etc.). was aimed at providing all members with a means of identification e. Travel Management. by the Institute and grant members access to various benefits f. Faculties Management. provided for members’ by the Institute. These benefits include: g. Procurement. Discount with select Hotels across the country, Airlines, etc. h. Maintenance. Cards are produced for new inductees and distributed during i. Members’ Education and Training Management. the induction ceremonies and also produced and distributed j. IT Case Management. through the district society’s arrangement. Total of 5,246 cards have been produced to date and distributed to members. 2. MEMBERS PAYMENT CHANNELS Re-Integration of the payment system was carried out with the switching company to resolve issues with failed transactions and user friendliness. Additional payment channels were incorporated to have Quick teller, Web pay, PAYDIRECT, Internet Banking Transfer, POS and Mobile. Other secure channels are also being explored for incorporation.

3. WEBSITE Enhancements to the Institute’s website were made within the presidential year to include: Chat Facility, Employment Portal, Look and Feel, etc. ICAN President, Deacon Titus Soetan with the Partners and Staff of SIAO during a coutesy visit by ICAN team

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 39 TO MEMBERS OF THE INSTITUTE

Reporting Standards (IFRS), which it inherited from the FACULTIES Corporate Finance Management Faculty. During the year under review, it trained 287 members on IFRS in Lagos, Kaduna, Port There are seven Faculties created by Council of the Institute Harcourt and Abuja. It also conducted examination in Lagos to serve as centres of excellence for the purpose of providing and Abuja for eligible candidates on December 15, 2016. To capacity building and technical support for Members in their date, the Faculty has produced 264 members with certificate different areas of specialisation. On a regular basis, the Faculties of proficiency in International Financial Reporting Standards. release newsletters by email to members in their different areas (IFRS). of professional interests. During the period under review, the Faculties undertook the following activities: Forum of Members The Faculty held its forum of members on various topics for 1. AUDIT, INVESTIGATIONS AND FORENSIC members in Lagos and Abuja. The events were attended by ACCOUNTING FACULTY more than 150 members.

i) Forensic Certification rainingT Programme The Faculty conducted five streams of six-modular 5. INSOLVENCY AND CORPORATE certification training programme for a total of 170 members. Two RE-ENGINEERING FACULTY moot court sessions were held in Abuja on Tuesday November The Faculty continues its sensitisation programme, capacity 1, 2016 and in Lagos on Wednesday, November 2, 2016. A total building and development. It conducted its 2-Part certification of 61 candidates attended the sessions. The session exposed training programme for the award of Certified Insolvency participants to simulated court scenarios and groomed them Practitioner (CIP) during the year. A total of 11 members were towards becoming expert witnesses. Qualifying examination trained bringing the number of Certified Insolvency Practitioners was held on November 3, 2016. To date, the Faculty has to twenty-six (26). produced 478 Certified Forensic Accountants.

ii) Forum of Members 6. PUBLIC FINANCE MANAGEMENT The Faculty jointly held a forum of members titled “Introducing FACULTY the New Auditor’s Report” to create awareness for members The Faculty continues to sensitise members and key players on the newly introduced Auditor’s report by Financial Reporting in the public sector on the implications of adoption of International Council. The event held on November 1, 2016 in Lagos was Public Sector Accounting Standards (IPSASs). It is against this attended by more than 150 members. Participants examined background that the Board of the Faculty held its Members two papers namely “Introducing the New Auditor’s Report Forum on May 19, 2019 with the Theme: Public Finance and Practical Issues on Withholding Tax. Reforms in Nigeria. Two major topics were discussed at the forum namely; (i) Reforms in the Public Sector – Zero based Budgeting, E-Collection and (ii) IPSAS Implementation in 2. CONSULTANCY AND INFORMATION Nigeria, The Journey So Far. TECHNOLOGY FACULTY The Faculty extensively reviewed its existing curriculum for the certification training of members who are desirous of going 7. TAXATION AND FISCAL POLICY into financial or information technology consultancy practice MANAGEMENT as well as capacity development for existing practitioners. The In line with its capacity building mandate, the Faculty curriculum was approved by Council during the year. To date the organised seminars on topical tax issues in Lagos, Abuja, Port Faculty has produced 18 Certified Financial and IT Consultants Harcourt and Uyo during the year under review. The Faculty (CFICs). emphasised diversification of Nigeria revenue base in its seminars for 2016 in line with federal government efforts. A total of 439 members attended the various programmes. 3. CORPORATE FINANCE MANAGEMENT FACULTY The Faculty continued its capacity building function through release of newsletters Forum of Members on topics of professional relevance. Four sessions of the forum of members were held during the period under review on “Incorporation and Filling of Returns, Processes and Procedures” and on other topical economic issues during the year. The events were attended by more than 440 members.

4. FINANCIAL REPORTING FACULTY The Faculty continued its certification training programme for members and the general public on International Financial

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 40 TO MEMBERS OF THE INSTITUTE

8. Starry Gold Academy, Oregun, Lagos State. STUDENTS’ AFFAIRS 9. Synergy Professionals, Surulere, Lagos State. COMMITTEE 10. Top Professional Solutions, Port Harcourt, . ICAN Scholarship Scheme Registration/Exemption The Institute has put in place a strategy which will make A total of seven thousand and fourteen (7,014) students were Accountancy Profession more attractive to the brightest registered during the year under review. This brings the total youths from all Universities and Polytechnics. The scholarship number of registered students to two hundred and fourteen programme is to elicit the interest of Nigerian youths as well thousand, four hundred and seventy-one (214,471) as at as attract the best brains into the Accountancy Profession. A December 2016. While five thousand, eight hundred and twenty- total of one hundred and fifty-eight (158) students benefitted two (5,822) were granted exemptions from various levels of the from the Scholarship Scheme by sitting for various levels of the Professional Examination from January to December 2016. Professional Examination in May and November 2016, bringing Three thousand, three hundred and fifty-six (3,356) students the total number of beneficiaries to two hundred and ninety-seven were registered for the Accounting Technicians Scheme West (297). Three (3) students benefited under the ATSWA (Silver) Africa (ATSWA) in the year under review bringing the total category. number of registered ATSWA students to one hundred and Detailed information on the Scheme for all interested and eleven thousand, two hundred and fifty-six (111,256) while four qualified students can be obtained from the Institute’s website. hundred and fifty students (450) were granted Exemption from various levels of ATSWA. Catch Them Young Programme The Catch Them Young Programme is an initiative designed Accreditation to: Twelve (12) Universities, four (4) Polytechnics which met the  Create awareness among students of secondary schools required educational standard of the Institute were accorded about the career opportunities available to them through full accreditation status during the year while ten (10) Tuition the Institute of Chartered Accountants of Nigeria’s Centres were granted full recognition as approved training platform. centres for the Institute’s Examination. The Institutions are:  Take ICAN to the grassroots with a view to “catching them Universities young”. 1. Adekunle Ajasin University, Akungba, Akoko, .  Promote the sense of self-employment/entrepreneurship, 2. Al-Hikmah University, Ilorin, . future prospects and personal interest among the students. 3. Bells University, Ota, Ogun State.  Create a sense of commitment to excellence among 4. Caritas University, Enugu, . students and teachers of commercial subjects in secondary 5. Igbinedion University, Okada, . schools. 6. Madonna University, Okija, Anambra State.  Enhance the quality of commercial education in our 7. Nnamdi Azikwe University, Awka, Anambra State. Secondary Schools. 8. Novena University, Ogunme, .  Promote a platform for socio-academic interaction among 9. Osun State University, Okuku, Osun State. the commercial Secondary School students. 10. Samuel Adegboyega University, Ogwa, Edo State. The programme is to boost the candidature of the Accounting 11. University of Nigeria, Nsukka, Enugu Campus, Technicians’ Scheme West Africa (ATSWA) and eventually, the Enugu State. Professional Examinations of the Institute. 12. University of Uyo, Uyo, Akwa Ibom State. The Institute had run the programme in twenty-four (24) states in the country including the six (6) Educational Districts in Polytechnics Lagos State since inception in 2014. 1. Federal Polytechnic, Bida, . 2. Federal Polytechnic, Ilaro, Ogun State. High School Residency 3. Nigerian Army School of Finance and Administration, The High School Residency is an invitational programme for Apapa, Lagos State. all accounting and non-accounting students who may desire 4. Osun State College of Technology, Esa-Oke, Osun State. to pursue Accountancy as a profession. The programme is designed to encourage the best and brightest students to Tuition Houses make a career in accountancy and also leverage its limitless 1. Accountancy Training Centre, Makurdi, Benue State. possibilities, opportunities and benefits of earning the Chartered 2. Edge Educational Services and Logistics, Awka, Accountant’s ACA qualification. Anambra State. The programme will prepare students for the many 3. Edo-Wyse School of Professionals, Awka, Anambra opportunities that lie ahead in the corporate setting. It will State. assist students in building a core set of skills and strong ethical 4. Knights Business School, Oyingbo, Lagos State. orientation. As planned, the programme will hold in the six geo- 5. Integrity Professional Academy Limited, Warri, political zones of the country. The first two were held as follows: Delta State.  Landmark University, Omu-Aran, Kwara State 6. MSL: School of Accountancy and Management Studies, — August 2016. Kaduna, Kaduna State.  Bayero University, Kano, Kano State 7. Password Professional Tutors Ltd., Akoka, Lagos State. — November 2016.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 41 TO MEMBERS OF THE INSTITUTE

STUDENTS’ SPECIAL PROJECT CHARTERED ACCOUNTANTS PRODUCED AT THE DIFFERENT CENTRES TO DATE By the last November 2016 Diet Examination the following number of Chartered Accountants had been produced:  ICAN/NNDC Study Centre, Kaduna produced 16 Chartered Accountants bringing the total from inception to date to 238;  ICAN/NNDC Study Centre, Kano produced 17 Chartered Accountants bringing the total from inception to date to 224;  ICAN/NNDC Study Centre, Ilorin produced 29 Chartered Accountant bringing the total from inception to date to 200;  ICAN/NNDC Study Centre, Gombe produced 4 Chartered Accountants. This being The ICAN President unveiling the plaque during the commissioning of the ICAN lecture their second attempt at the Examination; theatre donated to University of Agriculture, Umudike  ICAN/BYSG Study Centre, Bayelsa produced 10 Chartered Accountants bringing the total from — To facilitate establishment of standard tuition centres in inception to date to 86; these areas;  ICAN/ CRSG Study Centre, Calabar produced 24 — To create awareness in these areas about the availability Chartered Accountants bringing the total from inception to date of such a scheme; to 122. — To encourage States, Local Governments, Private- and Public Sector-Institutions to provide facilities for standard This was made possible due to the cooperation of tuition centres, grant scholarships, bursary awards and stakeholders, dedication of the staff at the centres and the other assistance to deserving indigenous students in commitment of the members of the respective District Societies educationally less developed areas of the country; and who sacrificed their time to lecture at the centres. — To encourage and assist indigenous students in educationally less developed parts of the country to take the Institute’s Examinations with a view to rapidly CURRENT PARTNERS ON THE PROJECT producing a desirable number of Chartered Accountants  New Nigeria Development Company Ltd. through there from. which four (4) centres were established as follows: — NNDC/ICAN Study Centre, Kaduna; In the last twelve years, the SSP Committee anchoring the — NNDC/ICAN Study Centre, Kano; project, which comprises members from different parts of the — NNDC/ICAN Study Centre, Ilorin; and country, has worked assiduously towards attaining the foregoing — NNDC/ICAN Study Centre, Gombe. objectives.

 The Government through which BYSG/ ICAN Study Centre, Yenagoa was established. The centre is ICAN BUILDING PROJECTS currently administered by the Yenagoa and District Society. LECTURE THEATRES  The Cross River State Government through which The ICAN lecture theatre at Michael Okpara University of CRSG/ICAN Study Centre, Calabar was established. The centre Agriculture, Umudike was commissioned by the 52nd President was officially handed over to the Cross River State Government on February 3, 2017 while that of the Federal University Birnin- in February 2013. Kebbi was also commissioned on March 6, 2017. Two out of the four (4) lecture theatres approved for construction by Council for the 2017 Presidential year were OBJECTIVES awarded by the Institute’s MTB, namely: The objectives of the Students’ Special Project are: ► Olabisi Onabanjo University (OOU), Ago-Iwoye. — To identify areas and indigenous students of educationally ► Ahmadu Bello University (ABU), Zaria. less developed parts of the country; — To expand studentship in educationally less developed The foundation laying ceremony of the ICAN lecture theatre at parts of the country; Olabisi Onabanjo University (OOU), Ago-Iwoye was performed

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 42 TO MEMBERS OF THE INSTITUTE

ICAN President unveiling the cenotaph of the Lecture Theatre at Ahmadu Bello University, Zaria, while the ICAN lecture theatre donated to Federal University, Birnin-Kebbi Vice Chancellor, Prof. Ibrahim Garuba admires by the 52nd President on December 22, 2016 while that of The construction of the two projects was commenced by the the Ahmadu Bello University (ABU), Zaria, was performed on Contractors immediately after the foundation ceremony and the December 19, 2016. They were commissioned by the President two projects are expected to be completed and commissioned in May. before the end of the 2017 Presidential year.

OVERVIEW OF THE LECTURE THEATRES CONSTRUCTED BY THE INSTITUTE SO FAR

PROJECTS CONTRACTORS CONSULTANTS COMMENCEMENT COMPLETION

1. Obafemi Awolowo University AB Design Eagle Projects November 2014 April 2015 (OAU), Ile-Ife &Company Servicers Ltd. 2. University of Benin (UNIBEN), Tegha & Associates Eagle Projects November 2014 April 2015 Benin Nig Ltd Servicers Ltd. 3. University of Nigeria (UNN), Calvarini Nigeria Ltd. Eagle Projects November 2014 April 2015 Enugu Servicers Ltd. 4. North West University (NWU), Arid Builders Nig Ltd. Design Plus November 2014 April 2015 Kano 5. Federal University (FU), Al-Amin Engr. Design Plus May 2015 November 2017 Birnin-Kebbi Services Ltd. 6. The Polytechnic Ibadan AB Design & Eagle Projects July 2, 2016 February 2016 Company Servicers Ltd. 7. Michael Okpara University of Calvarini Nigeria Ltd. Eagle Projects February 3, 2016 February 2017 Agriculture (MOUOAU), Umudike Servicers Ltd. 8. Ahmadu Bello University (ABU), Al-Amin Engr. Design Plus January 2017 April 2017 Zaria Services Ltd. 9. Olabisi Onabanjo University Calvarini Nigeria Ltd. Eagle Projects January 2017 April 2017 (OOU), Ago-Iwoye Servicers Ltd.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 43 TO MEMBERS OF THE INSTITUTE

PROFESSIONAL EXAMINATIONS The Professional Examinations took place in May and November 2016 with 15,364 and 16,671 candidates, respectively in forty- four centres across Nigeria with one centre each in Cameroon and London. The Institute continued to enhance the Information Technology deployment to the examination processes. The effect was tremendous. The breakdown of the candidates for both examinations is stated below:-

Level of Examinations May 2016 Level of Examinations November 2016 Foundation 1,450 Foundation 1,450 Skills 10,061 Skills 10,359 Professional 3,853 Professional 4,862 TOTAL 15,364 TOTAL 16,671

MAY 2016 DIET (a) MERIT PRIZES

FOUNDATION

Name Examination No. Registration No. Award

Oladeji Michael Tosin 20161/101213/F/12345 209646 1st

Babatunde Oluwatobi Abiola 20161/100683/F/12345 208192 2nd

Oshin Omoteniola Khadijat 20161/100212/F/234 208611 3rd

SKILLS

Name Examination No. Registration No. Award

Olorunfemi John Mighty 20161/204826/S/156 187984 1st

Aremu Hammed Abiodun 20161/200239/S/1456 204176 2nd

Aliu Oluwafemi Bolaji 20161/202281/S/1456 193989 3rd

PROFESSIONAL

Name Examination No. Registration No. Award

Eluehike Great Onyeka 20161/302461/P/12345 200110 1st

Adamson Modinat Folaranmi 20161/303023/P/12345 205922 2nd

Ajetunmobi Ayokunle Adelanke 20161/302718/P/12345 178036 3rd

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 44 TO MEMBERS OF THE INSTITUTE

(b) SUBJECT PRIZES

Level Subject Prize Winner

FOUNDATION

20161/101182/F/234 207670 Financial Accounting Late Sir John A. Balogun Ogunleye Oluwatosin

I.O. Sulaimon 20161/100683/F/12345 208192 Business Law Princess A.A. Adeniran Babatunde Oluwatobi Abiola

Economics & Business M.B. Taiwo 20161/101213/F/12345 209646 Environment/Business & Finance J.A. Owoseni Oladeji Michael Tosin

Quantitative Techniques in 20161/101213/F/12345 209646 M. Ayo Oni Business Oladeji Michael Tosin

Late Chief E.F. Oke 20161/100683/F/12345 208192 Management Information Late Prof. M.A. Adeyemo Babatunde Oluwatobi Abiola

SKILLS

20161/203438/S/2346 199827 Taxation Late Z.O. Ososanya Uzuh Obianuju Anthonia

20161/206053/S/123456 204099 Auditing and Assurance N.L. Westgarth Ogagaoghene Samuel Eruvwu

Business Comm. and Research Sir Ike Nwokolo Nil Methodology

20161/200600/S/1456 207584 Performance Management G.J. Burk Adeyemi Bilikisu Adeola

20161/203962/S/1456 209781 Financial Reporting S.B. Baylis-Smith Ibe Onone-Obasi Owai

Management, Governance 20161/204826/S/156 187984 PricewaterHouseCoopers & Ethics Olorunfemi John Mighty

Public Sector Accounting 20161/204826/S/156 187984 Balogun J.O. Omidiora & Finance Olorunfemi John Mighty

PROFESSIONAL

Arthur Young, Osindero 20161/303023/P/12345 205922 Corporate Reporting & Moret Adamson Modinat Olaranmi

Advanced Audit & Assurance J.M.T. Morris & KPMG Nil

Late Bola Kuforiji-Olubi Strategic Financial Management Nil Elder M.E. Daniels

Akintola Williams & Co. 20161/302461/P/12345 200110 Advanced Taxation Olushola Adekanola Eluehike Great Onyeka

20161/301829/P/135 161661 Case Study KPMG Akinwale Kehinde Bolanle

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 45 TO MEMBERS OF THE INSTITUTE

(c) SPECIAL PRIZES

► SWAN Prize for the best qualifying female candidate for the diet:

Level Name Examination No. Registration No.

PROFESSIONAL Adamson Modinat Folaranmi 20161/303023/P/12345 205922

► Akintola Williams Delloite and Touche Prize for the best qualifying candidate in a diet:

Level Name Examination No. Registration No.

PROFESSIONAL Eluehike Great Onyeka 20161/302461/P/12345 200110

NOVEMBER 2016 DIET (a) MERIT PRIZES

FOUNDATION

Name Examination No. Registration No. Award

Opoola Jamiu Abiodun 20162/101272/F/234 208457 1st

Pase Oluwasegun Johnson 20162/100320/F/12345 211271 2nd

Fadiran Oluwadamilare Peter 20162/100004/F/234 209027 3rd

SKILLS

Name Examination No. Registration No. Award

Oladeji Michael Tosin 20162/209333/S/123456 209646 1st

Lawal Olayemi Surajudeen 20162/204331/S/1456 196141 2nd

Alaya Saheed Isiaq 20162/206342/S/1456 213730 3rd

PROFESSIONAL

Name Examination No. Registration No. Award

Ogunmuko Olaoluwa Oluwatosin 20162/302424/P/12345 204375 1st

Sanya Ayuba Zamani 20162/303523/P/12345 197320 2nd

Adeleye Oluwafunmike Peace 20162/303820/P/12345 189159 3rd

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 46 TO MEMBERS OF THE INSTITUTE

(b) SUBJECT PRIZES

Level Subject Prize Winner

FOUNDATION

20162/101272/F/234 208457 Financial Accounting Late Sir John A. Balogun Opoola Jamiu Abiodun

I.O. Sulaimon 20162/100394/F/234 213625 Business Law Princess A.A. Adeniran Igwe Nnamdi Franklin

Economics & Business M.B. Taiwo 20162/100320/F/12345 211271 Environment/Business & Finance J.A. Owoseni Pase Oluwasegun Johnson

Quantitative Techniques in 20162/100689/F/12345 207270 M. Ayo Oni Business Adebowale Adeola David

Late Chief E.F. Oke 20162/101272/F/234 208457 Management Information Late Prof. M.A. Adeyemo Opoola Jamiu Abiodun

SKILLS

Taxation Late Z.O. Ososanya Nil

20162/203346/S/124 207600 Auditing and Assurance N.L. Westgarth Alohan Osayamen Bright

Business Comm. and Research Nil Sir Ike Nwokolo Methodology

20162/201513/S/123456 208611 Performance Management G.J. Burk Oshin Omoteniola Khadijat

20162/209333/S/123456 209646 Financial Reporting S.B. Baylis-Smith Oladeji Michael Tosin

Management, Governance 20162/209502/S/1456 209124 PricewaterHouseCoopers & Ethics Oyediran Emmanuel Sunday

Public Sector Accounting 20162/205829/S/1456 207115 Balogun J.O. Omidiora & Finance Ola Abraham Olushola

PROFESSIONAL

Arthur Young, Osindero 20162/302259/P/12345 193989 Corporate Reporting & Moret Aliu Oluwafemi Bolaji

20162/302424/P/12345 204375 Advanced Audit & Assurance J.M.T. Morris & KPMG Ogunmuko Olaoluwa Oluwatosin

Late Bola Kuforiji-Olubi 20162/302424/P/12345 204375 Strategic Financial Management Elder M.E. Daniels Ogunmuko Olaoluwa Oluwatosin

Akintola Williams & Co. 20162/304318/P/12345 203170 Advanced Taxation Olushola Adekanola Dimuna Tochukwu Macmillan

20162/302123/P/12345 208615 Case Study KPMG Oyinbojuni Oyedele Ayodeji

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 47 TO MEMBERS OF THE INSTITUTE

(c) SPECIAL PRIZES

► SWAN Prize for the best qualifying female candidate for the diet:

Level Name Examination No. Registration No.

PROFESSIONAL Ogunmuko Olaoluwa Oluwatosin 20162/302424/P/12345 204375

► Akintola Williams Delloite and Touche Prize for the best qualifying candidate in a diet:

Level Name Examination No. Registration No.

PROFESSIONAL Ogunmuko Olaoluwa Oluwatosin 20162/302424/P/12345 204375

► Akintola Williams Prize for the best qualifying candidate in a year:

Level Name Examination No. Registration No.

PROFESSIONAL Ogunmuko Olaoluwa Oluwatosin 20162/302424/P/12345 204375

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 48 TO MEMBERS OF THE INSTITUTE

3. STUDENTS’ INVESTIGATING LEGAL SERVICES COMMITTEE Between June 2016 and February 2017, the Students’ 1. ACCOUNTANTS’ INVESTIGATING PANEL Investigating Committee considered a total of thirty-three (33) Between June 2016 and February 2017, the Investigating cases. Panel considered a total of forty-two (42) cases. a) PENDING CASES The Students’ Investigating Committee is currently a) PENDING CASES considering thirteen (13) cases. The nature of the cases is The Investigating Panel is currently considering forty-one briefly classified as follows: (41) cases of alleged Professional Misconduct.  Alleged unethical Conduct as an employee — 9 The nature of the cases are briefly classified as follows:  Alleged misappropriation of funds/Fraud — 2  Misappropriation of Funds — 13  Examination malpractices — 2  Unethical Practice in Audit work — 5  Unethical Conduct as a staff — 8 Total = 13  Financial Dispute — 7  Manipulation of Accounts/Records — 2 b) CONCLUDED CASES  Others — 6 The Students’ Investigating Committee has concluded twenty (20) cases of examination misconduct and malpractices. Total = 41

b) CASES REFERRED FROM THE 4. AAT INVESTIGATING COMMITTEE INVESTIGATING PANEL TO THE There is no pending case currently before the AAT DISCIPLINARY TRIBUNAL Investigating Committee. In the period under review, one matter was referred to the Accountants’ Disciplinary Tribunal.

2. DISCIPLINARY TRIBUNAL The Accountants’ Disciplinary Tribunal considered a total of eleven (11) cases of alleged professional misconduct between June 2016 and February 2017. The cases are as follows:

(a) PENDING CASES There are ten (10) cases presently pending at various stages of hearing, which have not been concluded. The cases are classified as follows:  Unethical Practice in audit work — 2  Defective Report — 1  Misappropriation of Funds — 5  Financial dispute — 2

Total = 10

(b) CONCLUDED CASES The Tribunal concluded one (1) case wherein a Respondent was found liable to allegations made against an audit firm she claimed to have retired from. She was reprimanded, being a first offender.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 49 TO MEMBERS OF THE INSTITUTE

PUBLICATIONS & IMAGE

THE INSTITUTE’S IMAGE Part of the mandate of the Publications and Image Committee (PIC) of the Institute is to maintain a comprehensive plan for providing information to the public, members and the users of accounting services. The Committee during the year pursued this goal vigorously to ensure that the Institute’s Image continued to reflect its world class nature. During the year, the dissemination of information to both the Institute’s internal and external publics was very effective and timely, as all the notable activities of the Institute were ICAN President, Deacon Titus Soetan presenting award to , Mr. Akinwumi Ambode extensively and adequately covered both by the as Mrs Bolanle Ambode and ICAN Registrar, Mr. Rotimi Omotoso watch in admiration print and electronic media. 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 and Financial Statements were timely produced. The soft copy of each edition of the journals and the Annual Report and Financial Statements were also hoisted on the Institute’s website, while hard copies of the journals were sent to financial members and students. Former President, Chief Olusegun Obasanjo being presented ICAN President, Deacon Titus Soetan with his Award plaque by ICAN President, Deacon Titus decorating Professor Kabiru Dandago with Copies of the publications were Soetan while Governor Ambode watches in admiration his award medal at the Dinner used by the President as part of Public Relations items packaged for dignitaries during Presidential Hotel, Victoria Island on Friday, April 28, 2017. The Dinner tours of ICAN District Societies and other official visits to further brought together members of the accountancy profession and enlighten stakeholders and boost the image of the Institute. other invited guests both from private and public sectors of the economy to socialise. Awards were given to some outstanding ANNUAL DINNER AND MERIT AWARDS individuals and corporate bodies for the impact they made on the The Annual Dinner and Awards was held at the Oriental Institute and the society in general.

Mr. Tunde Fowler receiving award from ICAN President, Deacon Titus Soetan, Mr Uyi Akpata receiving ICAN award on behalf of PWC on behalf of Federal Inland Revenue Service

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 50 TO MEMBERS OF THE INSTITUTE

The recipients in the different award categories are: INTER-GOVERNMENTAL MEMBERS CATEGORY a) Professor Kabiru Isa Dandago, FCA RELATIONS b) Professor Ishola Rufus Akintoye, FCA c) Rev. Dr. Peter Esechie Obadan, FCA d) Mr. Akinwumi Ambode, FCA COMMITTEE (IGRC) The 25-Member Committee met six (6) times during the NON-MEMBERS CATEGORY Presidential Year and the following programmes were approved a) Chief Olusegun Obasanjo by the Council for the Committee: CORPORATE BODY CATEGORY a) Bank of Industry 1. CELEBRATION OF ICAN POLITICAL b) Federal Inland Revenue Service (FIRS) AMBASSADORS c) PriceWaterhouseCoopers (PWC) The Committee celebrated ICAN Political Ambassadors on October 10, 2017 at Sheraton Hotel and Towers, Abuja. During this event, the 52nd ICAN President, Deacon Titus Alao Soetan, FCA inaugurated ICAN Forum of Political Ambassadors 2017 ELECTION INTO COUNCIL (IFOPA) and nominated its interim Executive Members. IFOPA In line with International best practice, the 2017 Election to was created to serve as the invisible liaison arm with the Council was conducted strictly via the internet (e-voting) on the government on matters of interest to ICAN. Institute’s website. Members were required to upload their profiles The interim Exco members of IFOPA include the following: on the ICAN website, giving their e-mail addresses and GSM 1. PP Senator Felix Kolawole Bajomo, FCA – Chairman numbers. A dedicated pin code was later sent to each member 2. His Excellency, Hassan Ibrahim Dankwambo, FCA granting access to the voting portal. – Deputy Chairman Ten vacancies were declared in Council – four (4) of the 3. His Excellency, Rt. Hon. Sir Ude Oko Chukwu, FCA existing vacancies are for members-in-practice and six (6) are for – Secretary members-not-in-practice. 4. Hon. Linus Okorie, FCA – Financial Secretary Nominations were received from members and the EMC 5. Mr. Samuel T. Ukura, FCA – Treasurer cleared the following people for election in the two categories: 6. Hon. Kehinde O. Odeneye, FCA – PRO 7. Hon. Sunday Ayodele Oladimeji, FCA – Member MEMBERS-IN-PRACTICE CATEGORY 8. Hon. Mutiu Shadimu, FCA – Member a) Atu Omimi-Ejoor Osaretin Kingsley (Dr.) b) Babatunde Dayo Elliot (Mr.) Also at the event, 17 members of the Institute who were c) Bammeke Sunday Abayomi (Mr.) involved in shaping the future of Nigeria were honoured. These d) Egbo Jude Sunny (Mr.) members include Governors, Deputy Governor, Ministers, and e) Haruna Nma Yahaya (Mallam) Head of Service of the Federation and members of the National Assembly. f) Ogundipe Olutola (Mr.) g) Okonkwo Ngozi Monica (Lady) List of Honourees h) Olayinka Tajudeen Olawale (Mr.) 1. Mr. Akinwunmi Ambode, FCA — Executive Governor i) Onoja Emmanuel Eneche (Mr.) of Lagos State. 2. Senator. Ibikunle Amosun, FCA — Executive Governor of Ogun State. 3. , FCA — Executive MEMBERS-NOT-IN-PRACTICE CATEGORY Chief Willie Maduabuchi Obiano Governor of Anambra State. a) Abiola Oluwatobi Ayodele (Mr.) 4. Dr. Udom Gabriel Emmanuel, FCA — Executive b) Anyalenkeya Benedict Uzoma (Mr.) Governor of Akwa Ibom State. c) Ekhoragbon Omehe Gaddafi Peter (Mr.) 5. Alh. (Dr.) Ibrahim Hassan Dankwambo, FCA — d) Lasisi Saheed (Alhaji, Prince) Executive Governor of Gombe State. e) Oderinde Joshua Okeowo (Mr.) 6. Rt. Hon. Sir Ude Oko Chukwu, FCA — Deputy Governor f) Ozoh Hilda Ofure (Mrs.) of Abia State. g) Seghosime Queensley Sofuratu (Mrs.) 7. Senator Solomon Olamilekan Adeola, FCA — Lagos West Senatorial District. h) Phillips Olutayo Ayodeji (Mr.) 8. Senator Omotayo Alasoadura, FCA — Ondo Central i) Okwuosa Innocent Iweka (Dr.) Senatorial District. j) Olanrewaju Oluseyi Oladimeji (Mr.) 9. Senator Joshua Dariye, FCA — Plateau Central k) Osuji Etofolam Felix (Dr.) Senatorial District. 10. Hon. Mutiu Shadimu, FCA — Oshodi/Isolo Federal Members voted via the ICAN website and the results were Constituency. downloaded and collated by the Scrutineers appointed by Council. 11. Hon. Kehinde Olusegun Odeneye, FCA — Ijebu-Ode/ The results of the Election will be announced at this AGM. Odogbolu/Ijebu North Federal Constituency.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements REPORTS of Committees of Council 51 TO MEMBERS OF THE INSTITUTE

12. Hon. Pally Iriase, FCA — Owan West/East Federal Constituency. 13. Hon. Linus Okorie, FCA — Ohaozara/ Oniocha Federal Constituency. 14. Hon. Sunday Ayodele Oladimeji, FCA — Ekiti Central Federal Constituency. 15. Mrs. Folakemi Adeosun, FCCA, ACA — Minister of Finance. 16. Dr. Okechukwu Enelamah, FCA — Minister of Industry, Trade and Investment. 17. Mrs. Winifred Oyo-Ita, FCA — Head of Service of the Federation. IFOPA has since taken off as a vibrant off- shoot of IGRC, made up of Politicians and Political office holders (both current & former). The Forum is planning her Maiden General Convention by May this year, targeting over two hundred ICAN members that fall within their jurisdiction of influence.

2. MoU ON MANPOWER, TRAINING, EDUCATION & DEVELOPMENT Deacon Titus Soetan, FCA (right); Governor Willie Obiano, FCA, of Anambra State; WITH SELECTED INSTITUTIONS his Deputy, Dr. Nkem Okeke; and ICAN Vice President, Alh. Ismaila Zakari, FCA The Committee got Council’s approval in principle to relate with selected key public/private Institutions employment of a liaison officer. This approval is based on the as part of ICAN Corporate Social Responsibility (CSR). Areas following: of concern already identified by the Committee are: education,  Other professional bodies like NBA, ANAN, COREN, training and manpower development. NIPR (Nigerian Institute of Public Relations), etc, have Some of the Institutions to which IGRC has started relating cubicles at the National Assembly. with on the above are as follows:  Now more than ever before, ICAN needs to be highly 1. Nigeria Economic Summit Group (NESG). visible and responsive to her environment. 2. Centre for Management & Development (CMD).  This will enable ICAN Staff at the cubicle to collect from 3. Industrial Training Fund (ITF). the Clerks of the Assembly, summary deliberations on a 4. Administrative Staff College of Nigeria (ASCON). daily basis and issues slated for subsequent deliberations. 5. Any other relevant Institution. This will help alert ICAN of any obnoxious Bills to her interest before it gets out of hand. The committee is coming up with robust memoranda of  ICAN’s presence at NASS will help buttress linkages with understanding and will have interactive sessions with these those that matter at NASS. Institutions during which the following shall be discussed:  It will be an avenue to know about and harness job  The objectives of the mutual relationship. opportunities for ICAN members in practice, on Technical  The objectives of both Institutions, as per the enabling issues. Acts establishing them.  It will enable liaison with the Senate President and  The extant internal system and process of the Institutions Speaker, to the advantage of ICAN. and the possibility for review.  ICAN will use the opportunity of her presence at NASS to  The education requirements/status of the Institutions and enlighten Legislatures on what it can do / services it can how ICAN will be of assistance. offer on matters of the house.  The training and manpower needs of the organisation  Through having a working knowledge of the house, ICAN and the likely role ICAN is to play. can advise/sponsor Bills, especially at times like this  Determine whether training and manpower development when the Economy is witnessing a downturn in the area needs of the Institutions are optimal within the context of of revenue generation. their corporate objectives.  ICAN can also use her presence at NASS to liaise with  Where the Institution are engaged in training and the Senate Committee on Appropriation & Finance. manpower development (Capacity building) for third parties it is done pro bono or for fee. The Committee has submitted a letter to The Senate President at the National Assembly requesting for a cubicle and this is 3. ICAN CUBICLE AT NATIONAL ASSEMBLY receiving attention and follow-up is being made to secure the COMPLEX office space. Although the liaising officer is yet to be employed, The Committee also got Council’s approval in principle for a part of the proposed officer’s schedule has been assigned to cubicle at the National Assembly and directed the Committee the Senior Manager, Abuja ICAN liaison officer pending the to present full details and cost profile for consideration and the employment of the National Assembly liaison officer.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Annual Report & FINANCIAL STATEMENTS 52 FOR YEAR ENDED 31 DECEMBER 2016

53 Honorary Treasurer’s Report

54 Independent Auditors’ Report 56 Statement of Total Comprehensive Income

57 Statement of Financial Position

58 Statement of Changes in Members’ Funds

60 Statement of Cash Flows

61 Notes to the Financial Statements

Other National Disclosures:

88 Statement of Value Added

89 Five-year Financial Summary

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements HONORARY TREASURER’s Report 53 TO MEMBERS OF THE INSTITUTE

Distinguished members, I am pleased to welcome you to the 52nd Annual General Meeting of the Institute of Chartered Accountants of Nigeria and to present the year 2016 Financial Statements which were considered and recommended by the Council at its meeting of April 27, 2017 for your consideration and approval. Below are the highlights of the 2016 Financial Statements:

YEAR 2016 YEAR 2015 INCREASE/ INCREASE/ N’000 N’000 DECREASE DECREASE N’000 % TOTAL ASSETS 3,811,051 3,692,400 118,651 3.21% TOTAL LIABILITIES 320,004 251,787 68,217 (27.09%) TOTAL FUNDS AND RESERVES 3,491,047 3,440,613 50,434 1.46% ACCUMULATED FUNDS 1,382,879 1,021,910 360,969 35.32% TOTAL INCOME 2,171,722 2,050,514 121,207 5.91% TOTAL EXPENDITURE 2,112,049 1,950,389 161,660 (8.28%) TOTAL SURPLUS FOR THE YEAR 50,434 65,351 (14,920) (22.83%)

COMMENTS ON THE OPERATING RESULTS AND MAJOR BALANCE SHEET ITEMS

The Institute recorded a surplus of N50.434 million owing to internal efficiency initiatives and diligent cost management which helped to mitigate the impact of increased price levels and the weakened Naira. Income from members’ fees and subscriptions from both students and members rose by 6% to N944 million, N50 million higher than year 2015 and a reflection of the continued steady growth in members and students’ registration. The net contribution from Self financing activities was N1.052 billion as against N774 million in Year 2015. This reflects a 20% increase in professional examinations candidature and growth in contribution by N129 million (2016: N503 million; 2015: N374 million). Over 80% of the other self financing activities increased both in number of participants and contributions to the overall result for the year. During the year, there was strict adherence to budget provisions. Extra budgetary requests were not entertained while authority and responsibility were matched by insisting on Committee Chairmen authorising, direct and ascertainable cost to their various committees. Total Assets at 31 December 2016 were N3.811 billion, an increase of N119 million on the 2015 position (2015: N3.692 billion). This reflects amount expended on the ongoing computerisation of the Institute’s activities. The upgrade of the Information Technology infrastructure and the deployment of Microsoft Navision ERP were given topmost attention in order to improve the overall processes and service delivery of the Institute. Hopefully, we would go-live on the new software in the 3rd quarter of year 2017. As part of Council’s desire that members get value for their financial commitment to the Institute, a proposal to increase the sum assured on the Group Personal Assurance Policy for financial members from the present N1.5 million is before Council for its consideration and approval in line with economic realities. Council also ensures that families of all deceased members are promptly settled. Finally, we give glory to God Almighty for the success recorded in the year while appreciating members for their support and the opportunity given me to be of service to our esteemed Institute as the Honorary Treasurer.

Olutayo Phillips MBA, FCA Honorary Treasurer

May 12th, 2017

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements INDEPENDENT AUDITORS’ Report 54 TO THE MEMBERS OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Our opinion In our opinion, the Institute of Chartered Accountants of Nigeria’s financial statements give a true and fair view of the financial position of the Institute as at 31 December 2016, and of its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standards and the requirements of the Institute of Chartered Accountants of Nigeria Act.

What we have audited The Institute of Chartered Accountants of Nigeria’s financial statements comprise:  The statement of financial position as at 31 December 2016;  The statement of total comprehensive income for the year then ended;  The statement of changes in members’ funds for the year ended;  The statement of cash flows for the year then ended; and  The notes to the financial statements, which include a summary of significant accounting policies.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence We are independent of the Institute in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled our other ethical responsibilities in accordance with the IESBA Code.

Other information The Council is responsible for the other information. The other information comprises the Notice of Meeting, details of Officers and Council, details of Past Presidents, President’s Statement, Report of Committees of Council, Statement of Value Added and Five-Year Financial Summary (but does not include the financial statements and our auditor’s report thereon). Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Council and those charged with governance for the financial statements The Council is responsible for the preparation of the financial statements that give a true and fair view in accordance with the International Financial Reporting Standards and the Institute of Chartered Accountants of Nigeria Act, and for such internal control as the Council determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Council is responsible for assessing the Institute’s ability to continue as a going

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements INDEPENDENT AUDITORS’ Report 55 TO THE MEMBERS OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is a legislation that either intends to repeal the enabling Act of the Institute or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Institute’s financial reporting process.

Auditor’s responsibilities for the audit of the statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Institute’s internal control.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Council.  Conclude on the appropriateness of the Council’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Institute’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Institute to cease to continue as a going concern.  Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

For: PricewaterhouseCoopers For: UHY Maaji Chartered Accountants Chartered Accountants Lagos, Nigeria. Lagos, Nigeria. 5 May 2017 5 May 2017

Engagement Partner: Edafe Erhie, FCA Engagement Partner: Gabriel Idahosa, FCA FRC/2013/ICAN/00000001143 FRC/2014/ICAN/00000009524

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Statement of Total COMPREHENSIVE INCOME 56 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December Notes 2016 2015 N’000 N’000

INCOME Fees and subscriptions 4 943,506 893,504 Operating activities 5(a) 2,620,244 2,218,453

3,563,750 3,111,957

Operational expenditure 5(b) (1,568,365) (1,444,255)

Surplus of income over expenditure 1,995,385 1,667,702

Investment income 6(a) 99,847 98,499 Gain on fair valuation of investment property 15b – 180,000 Other income 6(b) 76,490 104,313

Total income 2,171,722 2,050,514

EXPENDITURE International affiliation cost 7 178,233 123,433 Depreciation and amortisation 8 171,933 163,653 General and administrative expenses 9 691,085 667,481 Personnel cost 10 864,293 800,279 Other expenditure 11(a) 192,324 188,556 Impairment charges 11(b) 14,181 6,985

Total expenditure 2,112,049 1,950,387

Surplus for the year 59,673 100,127

OTHER COMPREHENSIVE INCOME Loss in fair value of available-for-sale investments 16 (9,239) (34,773)

Total comprehensive income for the year 50,434 65,354

The notes on pages 61 to 87 are an integral part of these financial statements.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Statement of FINANCIAL POSITION 57 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December Notes 2016 2015 N’000 N’000 ASSETS Non-current assets Property, plant and equipment 13 985,943 863,804 Intangible assets 14 37,114 49,484 Investment property 15a 1,638,000 1,638,000 Available-for-sale investments 16 71,877 64,450 Loans and receivables 17(b) 21,957 11,435

Total non-current assets 2,754,891 2,627,173

Current assets Loans and receivables 17(b) 24,744 27,996 Inventories 18 81,095 94,828 Subscription and other receivables 19 94,072 110,155 Prepayment 20 35,093 63,952 Deferred expense 21 5,240 5,894 Cash and cash equivalents 22 815,916 762,402

Total current assets 1,056,160 1,065,227

Total assets 3,811,051 3,692,400

FUNDS AND RESERVE Accumulated fund 26(a) 1,382,879 1,021,910 Other charitable and trust funds 26(b) 2,118,961 2,420,257 Available-for-sale reserve (10,793) (1,554)

Total funds and reserve 3,491,047 3,440,613

Non-current liabilities Deferred income 25 32,504 6,386

Total non-current liabilities 32,504 6,386

Current liabilities Accounts payable 24 287,500 245,401

Total current liabilities 287,500 245,401

Total liabilities 320,004 251,787

Total reserves and liabilities 3,811,051 3,692,400

The notes on pages 61 to 87 are an integral part of these financial statements.

The financial statements were approved and authorised for issue by Council on ……….….…………..May 04, 2017 and signed on its behalf by:

…………………………………………………… ……………………………………………………… President Honorary Treasurer FRC/2013/ICAN/00000000091 FRC/2014/ICAN/00000007011

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

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Statement of CHANGES IN MEMBERS’ FUNDS 58 FOR THE YEAR ENDED 31 DECEMBER 2016

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

Available-for-Sale Accumulated Development Prizes Benevolent Library Professorial Accountancy Study Text Student Total Investments Fund Fund Fund Fund Fund Chair Research Revolving Development & Fund Fund Support Fund

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

Balance at 1 January 2015 33,219 1,030,048 1,563,316 7,405 82,448 386,195 119,403 145,469 – – 3,367,503

Surplus for the year – 100,127 – – – – – – – – 100,127 Transfer to fund – (108,265) – 10,000 30,746 – – – 52,045 29,680 14,206

MOVEMENT IN FUNDS Payment during the year from fund – – – (985) – (5,465) – – – – (6,450) Available-for-sale investments (34,773) – – – – – – – – – (34,773)

Total comprehensive income (34,773) (8,138) – 9,015 30,746 (5,465) – – 52,045 29,680 73,110

Balance at 31 December 2015 (1,554) 1,021,910 1,563,316 16,420 113,194 380,730 119,403 145,469 52,045 29,680 3,440,613

Surplus for the year – 59,673 – – – – – – – – 59,673 Reclassification in funds balance – 438,133 – – – (318,730) (119,403) – – – – Transfer to funds – (136,837) – (1,649) 37,451 (11,855) – – 114,769 (1,879) – Available-for-sale investments (9,239) – – – – – – – – – (9,239)

Total comprehensive income (9,239) 360,969 – (1,649) 37,451 (330,585) (119,403) – 114,769 (1,879) 50,434

Balance at 31 December 2016 (10,793) 1,382,879 1,563,316 14,771 150,645 50,145 – 145,469 166,814 27,801 3,491,047

The analysis of reserves is presented in note 26

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Statement of CHANGES IN MEMBERS’ FUNDS 59 FOR THE YEAR ENDED 31 DECEMBER 2016

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

Available-for-Sale Accumulated Development Prizes Benevolent Library Professorial Accountancy Study Text Student Total Investments Fund Fund Fund Fund Fund Chair Research Revolving Development & Fund Fund Support Fund

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

Balance at 1 January 2015 33,219 1,030,048 1,563,316 7,405 82,448 386,195 119,403 145,469 – – 3,367,503

Surplus for the year – 100,127 – – – – – – – – 100,127 Transfer to fund – (108,265) – 10,000 30,746 – – – 52,045 29,680 14,206

MOVEMENT IN FUNDS Payment during the year from fund – – – (985) – (5,465) – – – – (6,450) Available-for-sale investments (34,773) – – – – – – – – – (34,773)

Total comprehensive income (34,773) (8,138) – 9,015 30,746 (5,465) – – 52,045 29,680 73,110

Balance at 31 December 2015 (1,554) 1,021,910 1,563,316 16,420 113,194 380,730 119,403 145,469 52,045 29,680 3,440,613

Surplus for the year – 59,673 – – – – – – – – 59,673 Reclassification in funds balance – 438,133 – – – (318,730) (119,403) – – – – Transfer to funds – (136,837) – (1,649) 37,451 (11,855) – – 114,769 (1,879) – Available-for-sale investments (9,239) – – – – – – – – – (9,239)

Total comprehensive income (9,239) 360,969 – (1,649) 37,451 (330,585) (119,403) – 114,769 (1,879) 50,434

Balance at 31 December 2016 (10,793) 1,382,879 1,563,316 14,771 150,645 50,145 – 145,469 166,814 27,801 3,491,047

The analysis of reserves is presented in note 26

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Statement of CASH FLOWS 60 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December Notes 2016 2015 N’000 N’000

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from/(utilised in) operating and fund activities 29(a) 150,648 (3,100) Cash generated from funding activities 29(b) 136,837 116,021

Net cash generated from operating activities 287,485 112,921

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment 13 (281,703) (208,850) Acquisition of intangible asset 14 – (61,849) Proceed from disposal of property, plant and equipment 6(b) 4,902 385 Acquisition of available-for-sale investments 16 (16,666) (13,678) Interest received 6(a) 59,495 60,843

Net cash used in investing activities (233,972) (223,149)

Cash flows from financing activities – –

Net cash generated from financing activities – –

Net increase/(decrease) in cash and cash equivalents 53,514 (110,228) Cash and cash equivalents at the beginning of the year 762,402 872,630

Cash and cash equivalents at the end of the year 815,916 762,402

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 61 FOR THE YEAR ENDED 31 DECEMBER 2016

1. GENERAL INFORMATION

The Institute of Chartered Accountants of Nigeria (ICAN) 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 member of the accountancy profession and to raise those standards from time to time as circumstances may permit;

ii) Secure in accordance with the provisions of the Act, the establishment and maintenence of the registers of fellows, associates and registered Accountants entitled to practice as Accountants and Auditors and to publish from time a list of those persons;

iii) Perform, through the Council 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 significantly to the formation of the Association of Accountancy Bodies in West Africa (ABWA). The Institute is also a pioneer member of Pan-African Federation of Accountants (PAFA) and indeed produced its pioneer president.

HEAD OFFICE Plot 16, Idowu Taylor Street, Victoria Island, Lagos, Nigeria. P.O. Box 1580, Lagos. e-mail: [email protected] website: www.icanig.org

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/2013/0000000017

JOINT AUDITORS:

PricewaterhouseCoopers (PwC) Chartered Accountants Landmark Towers, 5B Water Corporation Road, Victoria Island, Lagos.

UHY Maaji & Co Chartered Accountants 22 Town Planning Way, Ilupeju, Lagos.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 62 FOR THE YEAR ENDED 31 DECEMBER 2016

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Introduction to summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.2 Basis of preparation

The financial statements of the Institute of Chartered Accountants of Nigeria have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (“IASB”). Additional information required by National regulations is included where appropriate.

The financial statements comprise the statement of profit or loss and other comprehensive income, the statement of financial position, the statement of changes in members’ funds, the statement of cash flows and the notes to the financial statements.

The financial statements have been prepared in accordance with the going concern principle under the historical cost concept. All values are rounded to the nearest thousand, except when otherwise indicated. The financial statements are presented in thousands of Naira.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Institute’s accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate and that the Institute’s financial statements, therefore, present the financial position and results fairly. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.

2.2.1 Going concern

The Institute has consistently been generating funds through its members’ subscriptions and students’ exams fee. The Management believe that there is no intention or threat from any source to curtail significantly its membership and students enrollment in the foreseeable future. Thus, these financial statements are prepared on going concern basis.

2.2.2 Changes in accounting policies and disclosures

(i) New Standards, amendments, interpretations adopted by the Institute There were no new standards adopted by the Institute for the first time for the financial year beginning on or after 1 January 2016.

(ii) Standards, amendments and interpretations effective on or after 1 January 2016 A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 January 2016, and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statements of the Institute, except the following set out below:

► Amendments to IAS 1, “Presentation of Financial Statements” gives clarification on materiality and aggregation, presentation of subtotals, the structure of financial statements and the disclosure of accounting policies. The amendments form a part of the IASB’s Disclosure Initiative, which explores how financial statement disclosures can be improved. The amendments are effective from 1 January 2016.

► IFRS 9, ‘Financial Instruments’, addresses the classification, measurement and recognition of financial assets and financial liabilities. The complete version of IFRS 9 was issued in July 2014. It replaces the guidance in IAS 39 that relates to the classification and measurement of financial instruments. IFRS 9 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortised cost, fair value through OCI and fair value through P&L. The standard is effective for accounting periods beginning on or after 1 January 2018. Early adoption is permitted. The Institute is assessing IFRS 9’s full impact.

► There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Institute in the current or future reporting period and on foreseeable future transactions.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 63 FOR THE YEAR ENDED 31 DECEMBER 2016

2.2.3 Critical accounting estimates and judgements

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 continually evaluated and based on historical experiences and other factors including expectations of future events that are believed to be reasonable at the time such estimates and judgements are made, although actual experience may vary from these estimates.

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.

Note 17 Loans and receivables

Note 19 Subscription and other receivables

Note 24 Trade and other payables

3. SIGNIFICANT ACCOUNTING POLICIES

3.1 Income recognition

Members’ and students’ fees and subscriptions are accounted for as income in the period to which they relate. Income from qualifications and examinations relate to examination and exemption income from the professional qualification and are accounted for in the period to which they relate. Income generated from publications relates to advertising services. Conferences and courses income is accounted for as the services are performed. Income from regulation and discipline relates to annual licence fees, monitoring visit fees and fines recoverable and all are accounted for as income in the period to which they relate. Other revenues are recorded as earned or as the services are performed.

3.2 Dividend income

Dividend income from investment is recognised when the Institute’s right to receive payment is established.

3.3 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.

3.4 Rental income

Rental income relates to income from the use of Amuwo Odofin building 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.

3.5a Donations to the Institute

The Institute receives donations from its members and other stakeholders, which are generally non-reciprocal transfers, involve transfers from entities other than the owners and these contributions are voluntary. These donations whether cash or asset (e.g. Property, Plant and Equipment) shall be recognised as income in the period it is received or receivable when and only when all the following conditions have been satisfied:

(a) There is irrevocable commitment from the donor to the Institute; (b) It is probable that the economic benefits arising from the donation will flow to the Institute; and (c) The amount of the donation can be measured reliably.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 64 FOR THE YEAR ENDED 31 DECEMBER 2016

SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.5b Donations by the Institute to institutions & others

The Institute from time to time as a way to increase it’s awareness among Nigerian students which in turn would increase students’ enrolment of it’s examination and as part of its corporate social responsibility (CRS) donates by way of non-reciprocal transfers in form of cash and/or assets (e.g. property, plant and equipment). In either way donation by cash or asset shall be accounted in the Institute’s financial statement as follows: (a) Donation by way of cash transfers shall be expensed during the year. (b) Donations by way of assets — On completion, this will be capitalised to the property, plant and equipment accounts and subjected to a depreciation rate of 25% (four years) before being fully handed over to the recipients.

3.6 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.

3.7 Investment properties

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 and it is the Institute’s policy is to perform this every three years as this will result in a more appropriate subsequent measurement 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 use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised.

3.8 Available-for-sale investments

Available for sale financial assets are non-derivative financial assets that designated in this category or not classified in any other category.

Available-for-sale financial assets are intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates or equity prices. They are included in non-current assets unless the investment matures or management intends to dispose of it within 12 months of the end of the reporting period.

Available-for-sale financial assets are initially recognised at fair value, which is the cash consideration including any transaction cost, and measured subsequently at fair value with gains or losses being recognise in the statement of comprehensive income and calculated in a separate reserve in equity, Available-for-sale reserve until the financial asset is derecognised.

3.9 Property, plant and equipment

All categories of property plant and equipment are stated initially at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the assets. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Institute and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 65 FOR THE YEAR ENDED 31 DECEMBER 2016

SIGNIFICANT ACCOUNTING POLICIES (cont’d)

3.10 Depreciation

Depreciation of assets commences when assets are available for use. Depreciation is provided on all property, plant and equipment, other than leasehold land which is not depreciated, at rates calculated to write-off the cost or valuation, of each asset on a straight-line basis over its expected useful life, as follows:  Freehold property — Not depreciated  Buildings — 2%  Lecture theatres — 25%  Motor vehicles — 33%  Office furniture and fittings — 25%  Computer hardware equipment — 25%  Plant and machinery — 25%  Library books — 25%

3.11 Impairment of financial assets

At each balance sheet date, the Institute reviews the carrying amounts of its financial assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset. The Institute estimates the recoverable amount of the cash-generating unit to which the asset belongs. An impairment loss is charged to the statement of comprehensive income immediately unless the 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.

In respect of available-for-sale financial assets, at the balance sheet date the Institute assesses whether there is objective evidence that the financial assets are impaired. In the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is also evidence that the assets are impaired. If any such evidence exists for available-for-sale assets, the cumulative loss – measured as the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the statement of comprehensive income is removed from fair value reserves and recognised in the separate statement of comprehensive income.

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

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 where credit risk characteristics of the group of financial assets has deteriorated. Factors such as any deterioration in country risk, technological obsolescence as well as identified structural weaknesses or deterioration in cash flows are taken into consideration and the amount of the provision is based on the historical loss pattern within each group.

3.12 Intangible assets and impairment

Expenditure on research activities is recognised as an expense in the period in which it is incurred. A separately acquired intangible assets arising from ICAN’s development projects is recognised only if all the following conditions are met: i. It is technically feasible to complete the product so that it will be available for use; ii. The intention is to complete the product for internal use or to sell it; iii. It is probable that the asset created will generate future economic benefits; and iv. The development cost of the asset can be measured reliably.

Where no separately acquired intangible asset can be recognised, development expenditure is recognised as an expense in the period in which it is incurred. Directly attributable costs that are capitalised include development project consultant costs and an appropriate portion of relevant overheads. Development expenditures previously recognised as an expense are not recognised as an asset in a subsequent period. Separately acquired intangible assets are amortised over their estimated useful lives, which are usually no more than five years. Amortisation begins when the intangible asset is available for use.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 66 FOR THE YEAR ENDED 31 DECEMBER 2016

SIGNIFICANT ACCOUNTING POLICIES (cont’d)

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

3.13 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.

In preparing the financial statements, transactions in currencies other than the Institue’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing on the dates of the transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the 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.

3.14 Defined contribution plan

The Institute operates a defined contribution based retirement benefit scheme for its staff, in accordance with the Pension Reform Act of 2014 with employee contributing 10% and employer contributing 10% each of the employee’s relevant emoluments. Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered the service entitling them to the contributions.

3.15 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).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

3.16 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’ (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 regular way purchases or sales 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 by regulation or convention in the market place.

Effective interest method The effective interest method is a method of calculating the amortized cost of a debt instument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees paid or received that form an integral part of the effective rate and transaction) through the expected life of the debt instrument, or where appropriate, a shorter period, to the net carrying amount on initial recognition.

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).

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 67 FOR THE YEAR ENDED 31 DECEMBER 2016

SIGNIFICANT ACCOUNTING POLICIES (cont’d)

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

Financial assets are classified as fair value through profit or loss (FVTPL) when the financial asset is either held for trading or it is designated as (FVTPL).

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 together and has a recent actual pattern of short-term profit-taking; or

► It is a derivative that is not designated and effective as a hedging instrument.

A financial asset other than a financial asset held for trading may be designated as fair value through profit or loss (FVTPL) initial recognition if: ► Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or

► The financial asset form part of the the Institute’s financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Institute’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

► It forms part of a contract containing one or more embeded derivatives, and IAS 39 Financial Instruments: Recognition and Measurement permit the entire combined contract (asset or liability) to be designated as fair value through profit or loss (FVTPL).

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

3.18 Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables include ‘staff loans’ and other ‘advance to district societies’ in the statement of financial position which are measured at amortised cost using the effective interest method, less any impairment and other employee benefit embedded in the loans.

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

3.19 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. Full provision is made for subscriptions receivable. Provision for other receivables 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.

3.20 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand and short-term deposits with banks and similar institutions, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in their fair value and used by the Institute 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.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 68 FOR THE YEAR ENDED 31 DECEMBER 2016

SIGNIFICANT ACCOUNTING POLICIES (cont’d)

3.21 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 redeemable notes held by the Insitute that are traded in an active market are classified as AFS and are stated at fair value at the end of each reporting period. Changes in the carrying amount of AFS monetary financial assets relating to changes in interest income calculated using the effective interest method and dividends on AFS equity investment are recognised in the statement of comprehensive income.

Other changes in the carrying amounts of available-for-sale financial assets are recognised in other comprehensive income and accumulated under the heading of investment revaluation reserve. When the investment is disposed off or is determined to be impaired, the cumulative gain or loss previously accumulated in the investments revaluation is reclassified to statement of comprehensive income.

Dividends on AFS equity instruments are recognised in the statement of comprehensive income when the Institute’s right to receive the dividend is established.

The fair value of AFS monetary financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate prevailing at the end of the reporting period. The foreign currency gains and losses that are recognised in the statement of comprehensive income are determined based on the amortised cost of the monetary asset. Other foreign exchange gains and losses in other comprehensive income.

3.22 Derecognition of financial assets

The Institute derecognises a financial asset when the contractual rights to the cashflows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Institute neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Institute recognises its retained interest in the asset and an associated liabilty for amounts it may have 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.

On derecognition of a financial asset in its entirety, the difference between the assets’s carrying amount and the sum of the consideration received and recievable and the cummulative gains or loss that had been recognised in other comprehensive income and accumulated in the equity is recognised in the statement of comprehensive income.

On derecognition of a financial asset other than in its entirety (e.g. when the Institute retains an option to repurchase part of a transferred asset), the Institute allocates the previous carrying amount of the financial asset between the part it continues to recognise under continuing involvement, and the part it no longer recognises on the basis of the relative fair value of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in other comprehensive income is recognised in the statement of comprehensive income. A cumulative gain or loss 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 relative fair value of those parts.

3.23 Derecognition of financial liabilities

The Institute derecognises financial liabilities when, and only 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 and payable is recognised in statement of comprehensive income.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 69 FOR THE YEAR ENDED 31 DECEMBER 2016

SIGNIFICANT ACCOUNTING POLICIES (cont’d)

3.24 Trade payables

Trade payables classified as financial liabilities are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Other payables that are within the scope of IAS 39 are subsequently measured at amortised cost. Others are measured in respect to their applicable standards.

3.25 Financial risk management

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

3.25.1 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 reviews its exposure with key banking and investment manager, suppliers 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 members’ and students’ fees and subscriptions.

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 students and members throughout the country. The Institute believes that the maximum exposure equates to the carrying value of trade and other receivables. Management reviews the trade receivables balance on a regular basis and undertakes an exercise to remove students and members from the receivables ledger register for non-payment of annual fees and subscriptions through impairment process. The level of removals is shown in Note 19.

3.25.2 Liquidity risk

Liquidity risk arises from 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 examination fees, exemption fees, relating to two examination sessions each year. Cash not required for short-term operating purposes is invested to maximise return with an acceptable level of risk. In addition to its own bankers, the Institute uses specialist investment advisers to invest cash surpluses with major banks of suitable credit standing to spread the risk, a maximum of 20% obligor limit is maintained per bank. Cash surpluses are invested in interest bearing fixed and call financial instrument and Federal Government Treasury Bills. At the balance sheet date the Institute held N3 million (2015: N621 million) in term deposits, N657 million (2015: Nil) in Treasury Bills and N156 million (2015: N141 million) in call accounts. Liquidity is managed to ensure investments are liquidated in a timely manner to meet operating requirements.

3.25.3 Market risk

Market risk arises from Institute’s use of interest bearing, tradable and financial instruments. It is the risk that the fair value of future cash flows 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.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 70 FOR THE YEAR ENDED 31 DECEMBER 2016

SIGNIFICANT ACCOUNTING POLICIES (cont’d)

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 bodies such as IFAC, ABWA and PAFA. It also has foreign District Societies: (USA, Cameroun, UK and Canada) and is exposed to foreign currency exchange risk arising from the transfer of foreign currency to these bodies. The Institute mitigates the risk with regards to income because all fees and subscriptions charged by it are in Naira. At the balance sheet date, 100% of the Institute’s cash and cash equivalents were held in various Nigeria banks (2015: 100%).

Other price risk relates to the risk of changes in market prices of the available-for-sale investments. The Institute invests surplus cash in a managed fund operated by fund managers and in doing so exposes itself to the fluctuations in price that are inherent in such a market. The Institute’s Finance and General Purposes Committee has given Fund Managers discretionary management of the funds.

3.25.4 Investment risk

Budgets are prepared on a prudent basis and income from investments is not relied on for ICAN’s ongoing activities. Investments are reviewed on a regular basis.

3.26 Capital

The Institute considers its capital to be its accumulated and charitable and trust funds and fair value reserve. Council’s financial objective is to generate a targeted operating position, to build and maintain reserves at a sustainable level, taking into account the various competitive risks. The Institute also aims to achieve additional long-term growth in reserves through the active management of the investment portfolio. A five-year financial plan has been developed which, over the period of the plan, targets an agreed level of accumulated fund. The 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 requirements.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 71 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December 2016 2015 N’000 N’000

4. FEES AND SUBSCRIPTIONS 4.1 Members: Admission fees 11,310 5,470 Annual subscriptions 414,011 372,615 Practicing licence and renewal 36,585 18,865 Faculty registration and subscription 53,076 90,332 Re-admission fees 2,478 3,675 Development levy 7,681 3,041 Graduate membership subscription 334 2,530

525,475 496,528

4.2 Professional students: Subscriptions 69,037 55,631 Registrations 51,370 51,235 Exemption fees 247,227 233,263

367,634 340,129

4.3 ATS students: Subscriptions 11,217 15,575 Registrations 21,800 22,669 Exemption fees 17,380 18,603

50,397 56,847

Total fees and subscriptions 943,506 893,504

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 72 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December 2016 2015 N’000 N’000 5(a) OPERATING ACTIVITIES

Qualifications and fellowship Professional examinations 1,274,516 1,022,228 ATS examinations 165,840 171,560 Fellowship award conferment 75,758 37,429 New members’ induction 70,486 35,866

1,586,600 1,267,083

Regulation, education and discipline Faculties 103,895 32,631 MCPE 239,282 248,234

343,177 280,865

Conferences and courses Annual Accountants’ conference 557,824 551,342 Annual dinner and Institute merit award 15,045 21,064 UK-USA-CANADA conference 12,448 22,931

585,317 595,337

Publications and stamps Institute members’ seal and stamps 104,538 74,124 Students’ study text 612 1,044

105,150 75,168

Total operating activities 2,620,244 2,218,453

5(b) OPERATIONAL EXPENDITURE

Qualifications and fellowship Professional examinations 771,640 648,633 ATS examinations 166,312 157,769 Fellowship award conferment 11,207 11,586 New members’ induction 27,441 18,936

976,600 836,924

Regulation, education and discipline Faculties 75,012 30,743 MCPE 127,396 158,127

202,408 188,870

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 73 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December 2016 2015 N’000 N’000 5(b) OPERATIONAL EXPENDITURE (cont’d)

Conferences and courses Annual Accountants’ conference 341,505 376,847 Annual dinner and Institute merit award 17,147 16,752 UK-USA-CANADA conference 23,724 20,894

382,376 414,493

Publications and stamps Institute members’ seal and stamps 6,981 3,968

6,981 3,968

Total operational expenditure 1,568,365 1,444,255

5(c) ANALYSIS OF OPERATIONAL ACTIVITIES Period ended December 31, 2016 GROSS GROSS NET INCOME/ INCOME EXPENDITURE EXPENDITURE N’000 N’000 N’000

Qualifications and fellowship Professional examination 1,274,516 771,640 502,876 ATS examinations 165,840 166,312 (472) Fellowship award conferment 75,758 11,207 64,551 New members’ induction 70,486 27,441 43,045

1,586,600 976,600 610,000

Regulation, education and discipline Faculties 103,895 75,012 28,883 MCPE 239,282 127,396 111,886

343,177 202,408 140,769

Conferences and courses Annual Accountants’ conference 557,824 341,505 216,319 Annual dinner and Institute merit award 15,045 17,147 (2,102) UK-USA-CANADA conference 12,448 23,724 (11,276)

585,317 382,376 202,941

Publications and stamps Institute members’ seal and stamps 104,538 6,981 97,557 Students’ study text 612 – 612

105,150 6,981 98,169

Total net surplus from operational activities 2,620,244 1,568,365 1,051,879

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 74 FOR THE YEAR ENDED 31 DECEMBER 2016

5(d) ANALYSIS OF OPERATIONAL ACTIVITIES Year ended December 31, 2015 GROSS GROSS NET INCOME/ INCOME EXPENDITURE EXPENDITURE N’000 N’000 N’000

Qualifications and fellowship Professional examinations 1,022,228 648,633 373,595 ATS examinations 171,560 157,769 13,791 Fellowship award conferment 37,429 11,586 25,843 New members’ induction 35,866 18,936 16,930

1,267,083 836,924 430,159

Regulation, education and discipline Faculties 32,631 30,743 1,888 MCPE 248,234 158,127 90,107

280,865 188,870 91,995

Conferences and courses Annual Accountants’ Conference 551,342 376,847 174,495 Annual dinner and Institute merit award 21,064 16,752 4,312 UK-USA-CANADA conference 22,931 20,894 2,037

595,337 414,493 180,844

Publications and stamps Institute members’ seal and stamps 74,124 3,968 70,156 Students’ study text 1,044 – 1,044

75,168 3,968 71,200

Total net surplus from operational activities 2,218,453 1,444,255 774,198

31 December 31 December 2016 2015 N’000 N’000

6(a) INVESTMENT INCOME

Bank deposit interest 59,495 60,844 Interest – Others – 2,675 Investment income 530 429 Rental income 39,822 34,551

99,847 98,499

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 75 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December 2016 2015 N’000 N’000 6(b) OTHER INCOME

Income from sale of store items 2,282 3,107 Accreditation fees 6,471 3,973 Contractors’ registration fees 5,584 1,263 Gain/(Loss) on currency translation 16,476 (2,235) Insurance commission 1,772 2,214 Advertisement income 3,666 2,854 National Open University – 2,230 Insurance claims 5,311 4,602 Profit on disposal of property, plant and equipment 4,902 385 Federal Treasury Academy examinations 760 1,480 Transcripts fees 6,181 4,129 E-Library 247 798 SSPC management fee 3,008 1,574 Donation towards ICAN-ABA District Society Building – 4,265 Donations towards Prize fund – 10,000 50th anniversary – 53,074 University of Lagos – Endowment fund 14,530 – Reissue of Certificate 432 285 Research Seminar 2,325 3,845 Commission on Advert 1,498 1,175 Hire of Vehicles 220 110 Examination Results 229 193 Change of Name 164 115 Group Internet 410 198 Replacement of ID Cards 22 28 Tribunal – Fines – 4,445 Photocopy Income – Library – 206

76,490 104,313

7. INTERNATIONAL AFFILIATION COSTS

IFAC: Subscription 14,347 11,451 Travelling and other meeting expenses 65,452 34,008

79,799 45,459

ABWA: Subscription 18,672 16,129 Travelling and other meeting expenses 4,316 6,197

22,988 22,326

PAFA: Subscription 37,301 32,988 Travelling and other meeting expenses 38,145 22,658

75,446 55,646

Total International affiliation costs 178,233 123,431

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 76 FOR THE YEAR ENDED 31 DECEMBER 2016

2016 2015 N’000 N’000

8. DEPRECIATION AND AMORTISATION

Depreciation on property, plant and equipment 159,563 151,283 Amortisation of intangible asset 12,370 12,370

171,933 163,653

9. GENERAL AND ADMINISTRATIVE EXPENSES

General repairs and maintenance 86,864 80,270 Council and committee meeting expenses 143,992 125,365 Annual general meeting expenses 32,075 26,312 Insurance 25,343 32,570 Local and overseas tours and other activities 124,245 101,664 Co-ordination of district societies 31,396 23,070 Subscription and donations 16,167 19,164 Advertisements and publicity 5,140 6,826 Printing, photocopy and stationery 21,201 39,206 Telephone and postages 44,318 37,830 Vehicle running costs 52,304 41,184 Travelling expenses 59,952 56,116 Library expenses 3,797 – Refreshment at meetings 11,734 12,581 Computer expenses 4,872 5,426 Debt recovery expense – 5,883 Audit fees 10,000 10,000 Bank charges 9,585 7,509 50th anniversary – 23,245 Other expenses 8,100 13,260

691,085 667,481

10. PERSONNEL COST

Basic salary 335,184 295,277 Defined contribution costs 56,691 52,665 Other allowances & related costs 472,418 452,337

864,293 800,279

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 77 FOR THE YEAR ENDED 31 DECEMBER 2016

2016 2015 N’000 N’000

11(a) OTHER EXPENDITURE

Contribution to students special project (SSP) 15,639 10,782 Institute members’ welfare scheme 19,648 19,582 Professional charges 11,354 26,060 Accreditation and visitation expenses 9,101 7,904 Catch Them Young awareness programme 23,946 16,001 Scholarship scheme 12,221 5,170 Education and training expenses 42,755 31,701 Practice monitoring activities 2,735 14,655 The Nigerian Accountant journal 23,099 11,234 Research grants and expenses 9,296 12,286 Subscription to professional bodies 3,972 7,354 Research journal 4,781 2,892 ICAN students’ journal 3,286 3,365 PAFA conference – Malaysia – 19,170 Syllabus review 3,661 400 Entrepreneur Scheme 5,181 – Prizes – Students 1,649 –

192,324 188,556

11(b) IMPAIRMENT CHARGES

Impairment allowance for doubtful Ilorin District Society, Bayelsa SSP and FTA debt 14,181 – Impairment allowance for doubtful FTA debt – 6,985

14,181 6,985

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 335,184 295,277 Defined contribution costs 56,691 52,665 Other allowances 472,418 452,337

864,293 800,279

The average number of employees was 192 (2015: 198)

b) Depreciation and amortisation

Depreciation of property, plant and equipment 159,563 151,283 Amortisation of intangible asset 12,370 12,379

171,933 163,662

c) Auditors’ remuneration

Fee payable to joint auditors 10,000 10,000

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 78 FOR THE YEAR ENDED 31 DECEMBER 2016

13. PROPERTY, PLANT AND EQUIPMENT

Land Buildings Motor Plant Furniture Library Lecture Work-In- Total Vehicles and and Books Theatres Progress Machinery Equipment N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 Cost Balance at 1 January 2015 26,203 672,668 305,560 75,556 353,683 21,142 – 73,468 1,528,280 Additions – 66,768 21,315 – 9,332 1,064 57,087 53,284 208,850 Disposals – – (4,148) – – – – – (4,148) Reclassification – – – – – – 73,468 (73,468) –

Balance at 31 December 2015 26,203 739,436 322,727 75,556 363,015 22,206 130,555 53,284 1,732,982

Balance at 1 January 2016 26,203 739,436 322,727 75,556 363,015 22,206 130,555 53,284 1,732,982 Additions – 1,096 41,423 – 71,240 1,566 56,898 125,976 298,199 Disposals – – (47,684) – – – – – (47,684) Write-offs – – – – (27,668) – – (16,496) (44,164) Reclassification – – – – – 25,572 19,874 (45,446) –

Balance at 31 December 2016 26,203 740,532 316,466 75,556 406,587 49,344 207,327 117,318 1,939,333

Accumulated depreciation Balance at 1 January 2015 – 125,785 216,515 64,244 296,409 19,090 – – 722,043 Depreciation charge for the year – 14,789 57,557 9,515 35,655 1,129 32,639 – 151,284 Disposals – – (4,148) – – – – – (4,148)

Balance at 31 December 2015 – 140,574 269,924 73,759 332,064 20,219 32,639 – 869,179

Balance at 1 January 2016 Depreciation charge for the year – 14,811 56,002 1,790 27,070 8,058 51,832 – 159,563 Disposals – – (47,684) – – – – – (47,684) Write-offs – – – – (27,668) – – – (27,668)

Balance at 31 December 2016 – 155,385 278,242 75,549 331,466 28,277 84,471 – 953,390

Net carrying amount At 31 December 2015 26,203 598,862 52,803 1,797 30,951 1,987 97,916 53,284 863,803

Balance at 31 December 2016 26,203 585,147 38,224 7 75,121 21,067 122,856 117,318 985,943

Work in progress of N117.38m represents computer equipment acquired for the Navision, the new ERP that will be implemented by the Institute for accounting and other operations. Write-off of N44.16m includes: (i) N27.67m which is the value of fully depreciated assets lost in the fire incident during an examination extraction exercise during the year. Additional assets were purchased in the year to replace the lost items; and (ii) N16.49 in capital work-in-progress which relates to donation of partly constructed building to Yenagoa District Society.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 79 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December 2016 2015 N’000 N’000 14. INTANGIBLE ASSETS

Cost Balance at 1 January 2016 78,667 16,818 Addition in the year – 61,849

Balance at 31 December 2016 78,667 78,667

Accumulated amortisation and impairment Balance at 1 January 2016 29,183 16,813 Amortisation for the year 12,370 12,370

Balance at 31 December 2016 41,553 29,183

Net carrying amount: Balance at 31 December 2016 37,114 49,484

Intangible assets relate to separately incurred development costs on student study text.

15(a) INVESTMENT PROPERTY

Akintola Williams building, Abuja 831,000 831,000 Awuwo-Odofin building, Lagos 807,000 807,000

1,638,000 1,638,000

15(b) GAIN ON FAIR VALUATION OF INVESTMENT PROPERTY

Balance at 1 January 2015 1,638,000 1,458,000 Gain in the year – 180,000

Balance at 31 December 2016 1,638,000 1,638,000

Investment properties were not valued as at 31 December 2016 in accordance with the Institute’s policy to perform a fair valuation of the properties every three years. The Abuja property is being managed by Jide Taiwo & Co. Income generated from both property in 2016 was N23.7m (2015: N15.7m).The Institute is only occupying about 10% of the property.

16. AVAILABLE-FOR-SALE INVESTMENTS

Quoted investments: At 1 January 64,450 85,545 Additions 16,666 13,678 Loss charged to other comprehensive income (9,239) (34,773)

At 31 December 71,877 64,450

Historical cost of tradable investments 105,116 88,450

Available-for-sale investments funds are fair valued annually at the close of business on the date of the financial position. 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 available-for-sale investments are denominated in Naira. The Institute monitors its exposures by way of regular reports from the Fund managers who have discretionary management of the investment portfolio. None of these financial assets are impaired.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 80 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December 2016 2015 N’000 N’000 17(a) LOANS AND RECEIVABLES

Staff loans 40,408 34,323 Staff advances 4,453 3,268 Owerri district society 840 840 Minna district society 1,000 1,000 Ilorin district society 2,739 2,739 Impairment allowance for doubtful Ilorin district society (2,739) (2,739)

46,701 39,431

17(b) LOANS AND RECEIVABLES

Non Current 21,957 11,435 Current 24,744 27,996

46,701 39,431

The non-current loan and receivables represents the long term portion of the car loans granted to staff.

18. INVENTORIES

Stationery 18,112 15,150 Electrical parts 530 540 Diesel 3,605 1,708 Students’ study text 23,115 20,753 Others sellable items 9,520 5,480 Annual Accountants conference materials 5,302 4,637 50th Anniversary Book 20,911 22,560 Student study text in transit – 24,000

81,095 94,828

19(a) OTHER RECEIVABLES

Bayelsa ICAN Students’ Special Project (SSP) 12,218 8,171 NNDC/ICAN Students’ Special Project (SSP) 33,548 16,345 Cross River/ICAN Students’ Special Project (SSP) 9,703 9,703 Gombe State/ICAN Students’ Special Project (SSP) 28,697 9,919 Mutual Alliance Investment & Securities Ltd. 1,671 181 Deposit with Aero and Arik airlines 2,764 5,000 MCPE recievables 7,240 21,160 Deposit for land – Abuja – 35,000 Federal Treasury Academy 10,255 10,255 Heritage Capital 5 5 Cusworth Insurance Brokers – 4,359 Sheraton Lagos Hotel and Towers – 3,086 University of Lagos – Endowment fund 14,530 – ABWA 650 – Impairment allowance for doubtful receivables (27,209) (13,029)

94,072 110,155

Impairment allowance of N27.21 million includes full provision for Federal Treasury Academy, Cross River SSP and part provision of N8.17 million for Bayelsa SSP.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 81 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December 2016 2015 N’000 N’000

19(b) MOVEMENT IN IMPAIRMENT ALLOWANCE

At 1 January 13,029) (6,044) Charge for the year (14,180) (6,985)

At 31 December (27,209) (13,029)

20. PREPAYMENT

Group life insurance – ICAN members 7,407 10,691 Group life insurance – ICAN staff 11,661 12,766 Motor vehicle, fire and burglary insurance 3,182 3,137 Printing of members’ stamp 5,334 8,033 ATS pool setting/harmonisation – 2016 7,509 – Computerisation project – GEM Consulting – 29,325

35,093 63,952

21. DEFERRED EXPENSE

At 1 January 5,894 6,461 Additions – – Charge for the year (654) (567)

At 31 December 5,240 5,894

Deferred charges represent deferred interest expense on car loans to staff using effective interest rate on balance sheet date.

22. CASH AND CASH EQUIVALENTS

Treasury bills 656,868 – Dedicated funds – Bank deposit 3,055 120,070 Other short term bank deposit – 501,133 Cash at bank and in hand 155,993 141,199

815,916 762,402

The effective interest rate on short term bank deposits was 16% (2015: 9.71%).

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 82 FOR THE YEAR ENDED 31 DECEMBER 2016

23. EMPLOYEES

The average number of persons employed by the Institute during the period was as follows:

31 December 31 December 2016 2015 Number Number

Senior managers and directors 33 36

Managers and junior staff 159 162

192 198

31 December 31 December 2016 2015 N’000 N’000 Staff cost Wages and salaries 807,602 747,614

Pension costs 56,691 52,665

864,293 800,279

Remuneration of key management personnel (KMP) The Registrar/Chief Executive is the key management personnel (KMP) of the Institute. He has responsibility for implementing Council’s policies and drives the Secretariat in promoting the ICAN brand. The KMP has no business relationship with the Institute. The remuneration of the key management personnel of the Institute is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

Registrar/Chief Executive: Short-term employee benefits 22,340 22,340

22,340 22,340

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 83 FOR THE YEAR ENDED 31 DECEMBER 2016

The number of employees of the Institute whose total earnings were more than N300,000 in the year was:

31 December 31 December 2016 2015 Number Number

N300,000 To N900,000 1 11 N900,001 To N1,000,000 5 5 N1,000,001 To N1,100,000 – – N1,100,001 To N1,200,000 6 6 N1,200,001 To N1,400,000 8 8 N1,400,001 To N1,600,000 9 9 N1,600,001 To N2,000,000 21 21 N2,000,001 To N2,100,000 2 2 N2,100,001 To N2,200,000 3 3 N2,200,001 To N2,500,000 8 8 N2,500,001 To N2,600,000 7 7 N2,700,001 To N2,800,000 2 2 N2,800,001 To N2,900,000 – – N2,900,001 To N4,000,000 69 70 N4,000,001 To N4,600,000 19 19 N4,600,001 To N5,200,000 6 6 N5,200,001 To N6,100,000 1 1 N6,000,001 To N6,400,000 – – N6,400,001 To N7,300,000 1 1 N7,300,001 To N7,800,000 3 3 N7,800,001 To N8,100,000 5 5 N8.100,001 To N8,300,000 – – N8,300,001 To N9,400,000 2 3 N9,400,001 To N9,500,000 – – N9,500,001 To N10,100,000 1 1 N10,600,001 To N10,700,000 – – N10,900,001 To N11,600,000 1 4 N11,600,001 To N12,900,000 – – N12,900,001 and above 2 3

192 198

31 December 31 December 2016 2015 N’000 N’000 24. ACCOUNTS PAYABLES

Sundry payables 61,609 60,224 AAT account balance 43,137 39,201 Accrued expenses 182,754 145,976

287,500 245,401

24(a) SUNDRY PAYABLES

ICAN staff pension fund – 17,624 Withholding tax (FIRS)/LIRS 44,615 31,347 National Housing Fund 16,994 8,570 Other creditors – 2,683

61,609 60,224

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 84 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December 2016 2015 N’000 N’000

24(b) ACCRUED EXPENSES

AAT outstanding bills 2,402 258 Examination processes 89,291 51,269 Audit fees 10,000 10,000 Students’ & Nigerian Accountant journal 6,630 1,104 Catch them young – 224 MCPE expenses 9,554 5,283 Insurance claim 7,450 2,743 Accountant conference 1,697 15,049 PAFA subscription 11,508 15,045 Computer implementation fee – 7,500 Presidential travels 7,731 3,356 Committee claims – 959 ICAN co-operative thrift and credit society – 13,417 Lecture Theatres 9,504 – Staff Promotion arrears 12,493 – Sundry accrual 14,494 19,769

182,754 145,976

25. DEFERRED INCOME

Subscription income 5,687 4,839 Interest income 25,496 – Rental income 1,321 1,547

32,504 6,386

Deferred income relates to: subscriptions in advance received from members, unearned interest income on Federal Government treasury bills and unearned rental income on investment properties.

26. FUNDS

a) Accumulated fund 1,382,879 1,021,910

b) Other charitable and trust funds: Development fund 1,563,316 1,563,316 Accountancy research fund 145,469 145,469 Benevolent fund 150,645 113,194 Professorial fund – 119,403 Prizes fund 14,771 16,420 Student development & support fund 27,801 29,680 Study text revolving fund 166,814 52,045 Library fund 50,145 380,730

2,118,961 2,420,257

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 85 FOR THE YEAR ENDED 31 DECEMBER 2016

27. THE ANALYSIS OF FUNDS AND OTHER RESERVES

(a) Library Fund The contribution to Library fund is to obtain all the resources 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 gap by providing high quality library facility, necessary materials and equipment. 3% of the Institute’s annual gross income is to be transferred to library development. No transfer was made in 2016 (2015: Nil).

(b) Benevolent Fund The ICAN members’ Benevolent and Educational Trust Fund was established by Council of the Institute of Chartered Accountants of Nigeria to assist persons in need who are or have been ICAN members and/or their families and dependants. It is also aimed at promoting and supporting educational/research in accountancy, financial Management, taxation and related subjects. The Fund is managed by a five man Board of trustees. The major activities of the management board are fund raising and management of investments. 3% of the Annual Accountants’ Conference gross income is credited to the Fund annually. The Fund generated are invested and it is the income from the investments that are disbursed to members in need and families that are distraught. Since inception, the Fund has been used to assist members and families of dead members. This include members who had renal (kidney) failure, blindness, stroke, spinal cord injuries, disaster (fire/flood/ accident) victims, children’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 N500,000) only.

(c) Accountancy Research Fund Transfers to this Fund is based on Council’s resolutions. The Fund is made available to meet expenditure on research on specialised areas of accountancy. The Fund is invested in fixed deposit and any interest accrued therefrom is credited to the Fund.

(d) Professorial Chair Endowment Fund Transfers to this Fund is based on Council’s resolutions. The Fund is made available to meet expenditure on professorial chair endowment in selected universities. The Fund is invested in fixed deposit and any interest accrued therefrom is credited to the Fund. However, the Institute has abolished the Fund effective year 2016.

(e) Developmental Fund Transfers to this Fund is based on Council’s resolutions. The Fund is made available to meet expenditure on the Institute’s infrastructural development. The Fund is invested in fixed deposit and any interest accrued therefrom is credited to the Fund.

(f) Prizes Fund This is funded by donors of each prize. The Fund is made available to meet expenditure on the award of prizes to deserving outstanding students in the Institute’s examinations. The Fund is invested in fixed deposit and any interest accrued therefrom is credited to the Fund.

(g) Study Text Revolving Fund This is to be funded by a portion of the amount realised from the sale of study text to students. The Fund is available to meet expenditure on development, printing and distribution of study text to student. The Fund is invested in fixed deposit and any interest accrued therefrom is credited to the Fund.

(h) Students Development & Support Fund This is to be funded by surplus realised from the sale of study text and is to be applied to the development and support of students writing the Institute’s examination.

(i) Avaliable-for-sale Reserve The available-for-sale investments fair value reserve represents the excess of unrealised gains and losses on available-for- sale investments over their historic costs.

(j) Accumulated Fund The accumulated fund represent the excess of income over expenditure which have been accumulated over the years.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 86 FOR THE YEAR ENDED 31 DECEMBER 2016

28. RELATED PARTY TRANSACTIONS

Council members as office bearers

Titus Alao SOETAN (President) Isma’ila Muhammadu ZAKARI (Vice President) Razak JAIYEOLA (1st Deputy Vice President) Uchenna Ifesinachi EROBU (2nd Deputy Vice President) – Deceased Samuel Olufemi DERU (Immediate Past President) Olutayo PHILLIPS (Honorary Treasurer)

Other Council members

Oyemolu Olugbenga AKINSULIRE (Chief), Davidson Chizuoke Stephen ALARIBE (Chief), Deji AWOBOTU (Hon. Dr) Ibrahim Madugu Abdullahi BABAYO, Oluwole Solomon ADELEKE, Adaku Chilaka CHIDUME-OKORO (HRM), Titilayo Ariyike Nurat AKIBAYO (Alhaja) Comfort Olujumoke EYITAYO (Mrs.), Tijjani Musa ISA (Mallam), B. Nasiru MUHAMMAD (Hon.) Sylvester Chukwudi NWANNA, Ngozi Monica OKONKWO (Lady), Nnamdi Anthony OKWUADIGBO (Mazi), Innocent OKWUOSA, Onome Joy OLAOLU-ADEWUYI (Mrs) Tajudeen Olawale OLAYINKA, Sam Onyebuchi ONUKWUE, Etofolam Felix OSUJI (Dr.), mni, Hilda Ofure OZOH (Mrs.), Chibuzor Noel Anyanechi, Oyebowale Rafiu RAJI, Queensley Sofuratu SEGHOSIME (Alhaja),Samuel UKURA, Haruna Nma YAHAYA (Alhaji)

No member of the Council receives payment in respect of services to ICAN. In line with Council travel and expenses policy, Council members are reimbursed for any expenses which they directly incur on behalf of the Institute as part of their role as a Council member. No loan is granted to related parties.

31 December 31 December Notes 2016 2015 N’000 N’000

29. CASH FLOW STATEMENT

a) Cash generated from activities:

Surplus for the year 59,673 100,127

Adjustments for: Interest received 6a (59,495) (60,844) Movement in accumulated fund (136,837) (108,265) Depreciation on property, plant and equipment 13 159,563 151,283 Amortisation of intangible asset 14 12,370 12,370 Profit on disposal of property, plant and equipment 6b (4,902) (385) Gain on valuation of investment property 15b – (180,000)

Changes in working capital (excluding the effects of exchange differences): Decrease in inventory 13,733 105,224 Increase in loans and receivables (4,531) (883) Decrease/(increase) in prepayments 28,859 (31,850) Decrease/(increase) in subscription and other receivables 13,344 (2,804) Decrease in deferred expense 654 567 Increase in trade and other payables 42,099 18,579 Increase/(decrease) in deferred income 26,118 (6,220)

Cash generated from/(utilised in) operating activities 150,648 (3,100)

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Notes to the FINANCIAL STATEMENTS 87 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December Notes 2016 2015 N’000 N’000 b) Cash from/(utilised in) funding activities:

(Decrease)/increase in prizes fund (1,649) 9,015 Increase in benevolent fund 37,451 30,746 Decrease in library fund (11,855) (5,465) Increase in study text revolving fund 114,769 52,045 Increase in student development and support fund (1,879) 29,680

136,837 116,021

30. CONTINGENT LIABILITIES AND COMMITMENTS

Contingent Liabilities exist in a number of legal suits instituted by different parties against the Institute. These amounted to N176.16 million (2015: N150 million). No provision has been made in these financial statements as the actions are being defended and the Council are of the opinion that no material liability will arise.

The Capital commitments of the Institute not included in these financial statements amounted to N24.63 million (2015: N46.52 million).

31. EVENTS AFTER STATEMENT OF FINANCIAL POSITION DATE

There are no significant subsequent events, which could have had a material effect on the state of affairs of the Institute as at 31 December 2016 that have not been adequately provided for or disclosed in the financial statements.

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Statement of VALUE-ADDED 88 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December 2016 2015 N’000 % N’000 %

Operating income 3,563,750 3,111,957

Other income 176,337 382,812

3,740,087 3,494,769

Purchase of services – Local (2,653,427) (2,465,483)

VALUE ADDED 1,086,660 100 1,029,286 100

DISTRIBUTION:

EMPLOYEES Salaries and benefits 864,293 79 800,279 78

THE FUTURE Assets replacement 171,933 16 163,653 16

Surplus/(deficit) in the year 50,434 5 65,354 6

VALUE ADDED 1,086,660 100 1,029,286 100

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Five-Year FINANCIAL SUMMARY 89 FOR THE YEAR ENDED 31 DECEMBER 2016

31 December 31 December 31 December 31 December 31 December 2016 2015 2014 2013 2012 N’000 N’000 N’000 N’000 N’000

IFRS

ASSETS EMPLOYED

Property, plant and equipment 985,943 863,804 806,237 671,533 715,743 Intangible assets 37,114 49,484 5 5 237 Investment property 1,638,000 1,638,000 1,458,000 1,370,000 1,201,000 Available-for-sales investments 71,877 64,450 85,545 83,592 73,725 Loans and receivables 21,957 11,435 9,770 6,726 9,257 Net current assets 768,660 819,826 1,020,552 1,851,843 1,600,897

3,523,551 3,446,999 3,380,109 3,983,699 3,600,859

FINANCED BY

Non-current liabilities 32,504 6,386 12,606 611,537 574,709 Funds and reserve 3,491,047 3,440,613 3,367,503 3,372,162 3,026,150

3,523,551 3,446,999 3,380,109 3,983,699 3,600,859

IFRS COMPREHENSIVE INCOME

Income 3,563,750 3,111,957 3,252,171 3,022,132 3,216,049

Surplus of income over expenditure 1,995,385 1,667,702 1,554,711 1,803,979 1,923,345

Surplus/(deficit) for the year 59,673 100,127 (13,597) 303,066 661,678

OTHER COMPREHENSIVE INCOME:

Items that will not be reclassified to profit or loss

Re-measurements of post-employment benefit obligations – – – 51,103 (175,971)

Change in fair value of available-for-sale investments (9,239) (34,773) 1,722 9,868 21,629

Total comprehensive income for the year 50,434 65,354 (11,875) 364,037 507,336

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements Financial GRAPHS 90 FOR THE YEAR ENDED 31 DECEMBER 2016

INCOME TRENDS (N’000) 2012 – 2016

RECURRENT EXPENDITURE PATTERN (N’000) 2012 – 2016

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements NOTES 91

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2016 Annual Report & Financial Statements 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: 09053847510, 09053847511 E-mail: [email protected] ICAN Website: www.icanig.org

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