CONTENTS 3 Notice of Meeting Vision Statement 4 To be a President’s Statement leading global professional 18 body. Officers and Council 19 Past Presidents Mission 20 Statement Reports of Committees of Council « MEMBERSHIP AFFAIRS To produce « ANNUAL ACCOUNTANTS’ CONFERENCE « ASSOCIATION OF ACCOUNTING TECHNICIANS world-class « ACCOUNTING TECHNICIANS SCHEME WEST AFRICA chartered « MEMBERS’ EDUCATION AND TRAINING COMMITTEE « TECHNICAL, RESEARCH AND PUBLIC POLICY accountants, regulate « PROFESSIONAL PRACTICE MONITORING COMMITTEE and continually « REPORT OF THE FACULTIES « STUDENTS’ AFFAIRS enhance their « STUDENTS’ SPECIAL PROJECT ethical standards « PROFESSIONAL EXAMINATIONS « LEGAL MATTERS and technical « CORPORATE COMMUNICATION & MARKETING competence in the « FINANCE & GENERAL PURPOSES COMMITTEE public interest. 38 Financial Statements I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 2 2013 Annual Report & Financial Statements NOTICE of Meeting 49TH ANNUAL GENERAL MEETING NOTICE IS HEREBY GIVEN that the 49th Annual General Meeting of The Institute of Chartered Accountants of Nigeria will take place at Shell Hall, Muson Centre, Onikan, Lagos on Friday, May 30, 2014 at 10.00 a.m. to transact the following business:- AGENDA 1. To adopt the minutes of the Annual General Meeting held on May 31, 2013. 2. To receive the Annual Report of Council, Financial Statements for the Year ended December 31, 2013 and the Auditor’s Report thereon. 3. To elect members of Council. 4. To appoint the Auditors and authorise the Council to fix their remuneration. By order of the Council ROTIMI A. OMOTOSO, MBA, FCA Registrar/Chief Executive Dated this .........28th ....................day of April 2014. I C A N THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 3 2013 Annual Report & Financial Statements Kabir Alkali Mohammed (Alhaji), mni, FCIS, CGMA, FCA 49th ICAN President PRESIDENT’s Statement y Distinguished Professional Colleagues, ladies and gentlemen, I welcome you all most sincerely to the 49th Annual General Meeting (AGM) of our great While crude accountthe foreign was r eservedepleted experienced from US$11.5b a slig htin declineDec 2012 of 2.23%to less Institute during which my stewardship report for the fromthan US$2.5bUS$43.83 in in December, Dec 2012 2013. to US$42.85b This was toDec cushion 2013, the effectsexcess 2013/2014 Presidential Year and the Annual Report of oil revenue shortfall, fund FAAC Allocations and also to defend Mand Audited Financial Statements for the year ended December the value of the national currency. The implications of these 31, 2013 will be presented for your consideration and approval. macroeconomic indicators include the stability of the value With all sense of responsibility and humility, I wish to admit for me as the 49th President of our noble Institute. From my ofmonths the national imports curr of capitalency, achiegoods,vement increased of sing creditle digit worthiness inflation, of thatvantage the positionlast one asyear, primus has beeninter vpares,ery challenging I realised butnot onlyfulfilling the increasethe nation in andthe greaterability of access the nation of local to investorsfinance mor to credite than as thr theee towering goodwill of the Institute but also the in respect of consistent delivery of world class huge services expectations and unwavering of its stak defenceeholders of particular its publicly interest mandate. To the glory of God, we built on through a series of activities and initiatives which this the Councilgoodwill under by lar mygely leadership meeting these undertook expectations during the year. In the local and international comities of professional bodies, we made our mark most commendably. I would therefore like to put on record my profound appreciation for the invaluable cooperation and team spirit demonstrated by members of the Presidency, Council, the Body of revered Past Presidents, Management and Staff of achievements made during the year. While thanking theeyou Institutall most sincerely, which significantl I will continuey account to cherished for andthe service and cause of the Institute. Above all, I give the appreciateAlmighty Allah you allthe for glory your for pr givingedisposition me the t owisdom, selfless good health and strength of character to have led the Institute and made my modest contributions to the development of the Accountancy Profession in Nigeria during the period. As a key player in the economy, the Institute ICAN President, Alhaji Kabir Mohammed with President Goodluck Ebele Jonathan environment and therefore, its activities and during ICAN’s visit to Aso Rock Villa operates in a dynamic and complex business quantum of crowded out credit by public sector borrowing was those of its members are influenced largely by reduced. government’seconomy which macr impactedo-economic on the and Institute’s fiscal policies. operations It is undertherefore my The leading international rating agencies – Fitch, Standard appositeoleadership t betweenbriefly review June 2013 the happenings and May 2014. in the local and global & Poor’s, and Moody’s – validated these indicators when they upgraded the outlook for the Nigerian economy. Also, Nigeria’s domestic bonds gained international prominence during OVERVIEW OF THE NIGERIAN ECONOMY the period and were included in the JP Morgan and Barclays The Year 2013 started on a note of uncertainty caused by the Nigerian economy arising from its strong macroeconomic the emerging changes in the global natural resource map in the Emergingfundamentals, Mar ketmanifested indices. Indeed,in bullish the activities increased in confidencethe Nigerian in wake of the discovery of shale oil and gas deposits in USA as well as oil and gas in many African countries. This was further points in December 2012 to 41,332.0 points in December compounded by downward review of growth rate forecast in Stock Exchange as its All Share Index grew from 28,078.81 Incidentally, these did not manifest in the creation of more jobs was set at about 3.5% representing a moderate increase over the 2013 representing 47.2 percent growth in returns to investors. USA, 3.2% theachieved Euro Artheea previous and Asia. year. The Theseexpected developments global growth implied rate particularly in the areas of power generation and distribution. or Inevitably, marked imprlow capacityovement utilisation in the subsisting in industries infrastructural and prohibitive deficits for prudence in resource management. cost of doing business remain disincentives to investments. an Inexpected response, lower the demand government for Nigeria made’s crudecommendable oil and the efforts need Indeed, the high rate of youth unemployment accounts for the rising spate of insecurity of lives and property in the country. GDP but also set out to increase the country’s foreign reserve We therefore recommend that the government should notyo onl t reduce fiscal deficit financing to less than 3% of the initiate measures that would make the acclaimed economic fairly stable oil price, the economy suffered from oil theft and growth of the nation inclusive. Incentives should be introduced and pipelines Excess vandalism Crude A atccount various (ECA). times Ho inwever, 2013, inresulting spite ofin the that will drive growth of small and medium enterprises while loss of about 300,000 – 400,000 barrels per day. Thus, rather the curricula of institutions should embrace entrepreneurship. Finally, the government must accelerate the implementation intended, this quantity shock led to depletion in both accounts. of its infrastructural development programme such that it can than I C A incrN ease both the level of external reserves and ECA as THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA 5 2013 Annual Report & Financial Statements PRESIDENT’s Statement Qualification, Audit Quality and Regulation. The ultimate syllabus, new learning materials, new practice manual, enhanced deliverables from this initiative include a new examination tuition providers and a possible Memorandum of Understanding disciplinary(MoU) on reciprocity processes, to imprbe signedoved withskills ICAEW. of staff, examiners and I am happy to report that the Council approved the new 3-level, 16-subject syllabus at its meeting of January 16, 2014 2014 diet. I formally launched the new syllabus in May while 2014. eI xaminationsam also delighted on it willto reportcommence that thewith contract the No vemberfor the development of the new learning materials for eleven subjects and cover design was awarded to Emile Woolf International, UK in the sum of £114,000 after a very competitive international bidding processes moderated by ICAEW and the World Bank. The other four subjects are to be developed locally because of learning materials on Case Study will be separately awarded in thedue localcourse. fla vourThe supply while theof the contr learningact for materials the development will commence of the soon. I commend the Project Implementation and the joint Business mogul, Alhaji Aliko Dangote; Kebbi State Governor, Usman Saidu Nasamu Dakingari; and ICAN President, Alhaji Kabir Institute. Mohammed during ICAN President’s visit to the governor Syllabus Review Committees for their selfless services to the have profound positive impact on the current prohibitive cost Catch-Them-Young Programme of doing business in the country and capacity under utilisation As you are all aware, the future of the Institute depends in the economy. For instance, the new owners of generation, transmission and distribution companies unbundled