Contents JANUARY/MARCH, 2018 Vol. 51, No.1 4 FEATURES * SEVEN Habits of Highly Exceptional Accountants 7 NEWS/EVENTS The Nigerian ACCOUNTANT (ISSN: 0048 – 0371) is published quarterly by THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA HEAD OFFICE: Plot 16, Idowu Taylor Street, Victoria Island, Lagos. P.O. Box 1580, Lagos. Telephone: 09053847510, 09053847511 17 DEVELOPMENT E-mail: [email protected] Firm Performance and Web-based Environmental Website: www.icanig.org * Disclosures: An Empirical Evidence of Nigerian Firms ANNEXE OFFICE: 82, Murtala Mohammed Way, Ebute Metta, Lagos. 26 FINANCIAL REPORTING Telephone: 09053847513 * International Financial Reporting Standards for Small and Medium Entities (SMEs): A Summary * The views expressed by correspondents or contributors in this journal are not necessarily those of the Institute. By making submissions 36 TECHNICAL to The Nigerian Accountant, the contributors Non-Oil Exports: Way Out of Forex Challenge undertake that the contributions are original * and have not been accepted or submitted elsewhere for publication. 47 HEALTH Overcoming Resistant Hypertension * The Institute reserves the right to refuse, * cancel, amend or suspend an advertisement or insertion and no liability can be accepted for loss arising from non-publication or late 49 COVER ARTICLE publication of any advertisement or insertion. Business Process Improvement and Accounting All articles are subject to editing. * 56 CORPORATE GOVERNANCE * © No part of this publication may be reproduced without the prior written Effect of Board Characteristics on Financial Performance * permission of the publisher. of Banks in Nigeria THE NIGERIAN ACCOUNTANT 1 January/March, 2018 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA (Established by Act of Parliament No.15 of 1965) Vision Officers & Council Members Statement 2017-2018 To be a leading global President professional body. Isma’ila Muhammadu ZAKARI (Mallam), mni, BSc, FBR, FCA Vice President Mission Razak JAIYEOLA (Alhaji), BSc, ACFE, CRISC, FCA Statement 1st Deputy Vice President To produce Nnamdi Anthony OKWUADIGBO (Mazi), BSc, FCA world-class chartered 2nd Deputy Vice President accountants, regulate and Onome Joy ADEWUYI, BSc, MSc, FCIB, FCA continually enhance their Immediate Past President ethical standards and Titus Alao SOETAN (Deacon), FCA technical competence in Honorary Treasurer the public interest. Oyemolu Olugbenga AKINSULIRE (Chief), MSc, MBA, FNIM, FCA Members ICAN Centre: Plot 12, Kofo Kasumu Street, Oluwatobi Ayodele ABIOLA, HND, BSc, FCA Amuwo Odofin, Lagos. Solomon Oluwole ADELEKE (Deacon), FCA Titilayo Ariyike Nurat AKIBAYO (Alhaja), MBA, FCIT, FCA ICAN LIAISON OFFICES Davidson Chizuoke Stephen ALARIBE (Chief), MA, CFA, MNIM, FCA Chibuzor Noel ANYANECHI, BSc, MBA, FCA Abuja Liaison Office: Deji AWOBOTU (Dr.), M.IoD, FCA Akintola Williams House Felicia Aina BAMGBOSE, FCA Plot 2048, Michael Okpara Way, Adaku Chilaka CHIDUME-OKORO (HRM), BSc, MSc, FCA Zone 7, Wuse District, Abuja. Samson Adewale DISU (Rev.), MSc, FCA Tel: 09 – 8722302, 07034520270 Jude Sunday EGBO, HND, MBA, FCA E-mail: [email protected] Omehe Gaddafi Peter EHKORAGBON, HND, FCA [email protected] Comfort Olujumoke EYITAYO, mni, CFA, FCA Contact Person: Tijjani Musa ISA (Mallam), BSc, M.IoD, FCA Mr. Yusuf Adamu Ahmed Modu KUMSHE, PhD, FCA Nasiru MUHAMMADU, BSc, MSc, FCIT, FCA Kaduna Liaison Office: 3, Kanta Road, Ali Turaki House, Kaduna. Godwin OBAJE (Navy Capt.), FCA Tel: 08036788275 Olutola OGUNDIPE, B.Eng, FCA E-mail: [email protected] Monica Ngozi OKONKWO, MSc, ACIB, FCA Contact Person: Innocent OKWUOSA, MSc, ACIB, FCA Mrs. A.A. Adegoke Tajudeen Adewale OLAYINKA, BSc, MBF, FCA Etofolam Felix OSUJI (Dr.), mni, MSc, FCTI, FCA Kano Liaison Office: Hilda Ofure OZOH, MBA, FCA Murtala Mohammed Library Complex Queensley Sofuratu SEGHOSIME, mni, MBA, FCA Ahmadu Bello Way, Haruna Nma YAHAYA (Alhaji), BSc, MBA, ANIM, FCA P.O. Box 11283, Kano. Tel: 08035900399 Registrar/Chief Executive Email: [email protected] John Irabor EVBODAGHE, MBA, FCA [email protected] Contact Person: Joint Auditors Mr. A.H. Umaru PriceWaterhouseCoopers (Chartered Accountants) UHY Maaji & Co. (Chartered Accountants) THE NIGERIAN ACCOUNTANT 2 January/March, 2018 From The Editor EDITORIAL BOARD o remain relevant in a dynamic, competitive Chairman environment and continuous changes in global economic conditions, organisations have Etofolam F. OSUJI (Dr.), mni, FCA Tbeen forced to realise the need for continuous improvement and innovation in their business processes. Deputy Chairmen This has led to several business process improvement Ahmed Modu KUMSHE (Dr.), FCA strategies. Frederick OGUNJUBOUN, FCA Our lead article in this edition entitled “Business Process Improvement and Accounting: Establishing Members and Defining the Mutual Links” examines the changing Okechukwu ADAWAISI, ACA role of the accounting function from the record keeping and Mojisola ADEWOYIN (Mrs.), ACA custodian function, to a proactive business support role, Aisha Uwani ALIYU (Mrs.), ACA with the capacity to drive innovation, business intelligence Asukwo Joseph ITA, ACA and competitive advantage through business process improvement. Emmanuel NWOKEDIUKO, ACA The paper also traces the relationship between business Augustine OJEH, ACA process improvement and accounting. The authors Efe OVRAWAH (Ms.), ACA examined this from two perspectives by considering the Oyefemi Oyelami OYETUNJI, FCA accounting function as an enabler for business process Mariam Abosede TIAMIYU (Mrs.), ACA improvement and how business process improvement Bichi Sule UMAR, FCA techniques can be used to improve accounting processes. In our article with the title “Firm Performance and Web-based Environmental Disclosures: An Emperical Editor Evidence of Nigerian Firms” the author tries to investigate Bunmi OWOLABI whether Firms’ Performances (FP) enhance Web-based Deputy Editor Environmental Disclosure (WED). He however discovered Dayo KOWE that the average disclosure content over the study period 2010-2013 was 25.7%, which is very low. Assistant Editor The third article concentrates on “International Muyiwa DARE Financial Reporting Standards for Small and Medium Entities”. It summarises the various sections of IFRS for Manager, Adverts Nkem JACOB SMEs. The paper concludes that SMEs in Nigeria should adopt IFRS for SMEs to ensure qualitative financial Reporter reporting. Ruth IDUMUEKWU You will also read about “Effect of Board Characteristics on Financial Performance of Banks in Nigeria”. The Correspondence should be addressed to:- author used a panel data research design and a scope Corporate Communications and period of 2005 to 2014. Marketing Directorate Other article in this edition is “Non-Oil Exports: Way THE INSTITUTE OF CHARTERED Out of Forex Challenge” and on the health page, you will ACCOUNTANTS OF NIGERIA read about overcoming resistant hypertension as a common Plot 16, Professional Centre Layout, health issue in older men. Idowu Taylor Street, Victoria Island. Your comments on the various articles, news, and other P.O. Box 1580, Lagos. items published in this edition are welcome. Please send Tel: 09053847510, 09053847511 E-mail: [email protected] them to [email protected] or ICAN Website: www.icanig.org [email protected] THE NIGERIAN ACCOUNTANT 3 January/March, 2018 Features SEVEN Habits of Highly Exceptional Accountants s accounting and finance professionals, you do so much more than just handle money matters — you’re also critical Afor creating strategy and driving process improvements GET across the entire organisation. But if the majority of your days are HABIT spent manually reconciling accounts and matching transactions, 1: ORGANISED little time is left for these bigger picture activities. What if you could be more productive with fewer resources, less overtime, and How often do you begin your also easily improve the quality of your work? Not only would you work day knowing exactly what be pleased with this improvement, but it would also set you apart needs to get done, when, and by whom? Developing detailed in the industry. By adopting seven key habits, you can become an schedules adds discipline and structure to your financial exceptional accountant. systems and ensures your accounting stays on track. But when you have tens of thousands of accounts to What is an Exceptional Accountant? reconcile, multiple checklists and calendars, and no idea Historically, too much of accounting and close activities what your coworkers have completed — especially during involved mundane book-keeping and manual data validation. the close — this is easier said than done. With new technology that can automatically discover errors, Automating the account reconciliation process improves inaccuracies, and exceptions, accountants are freed to focus on organisation through easy access to data and workflow the issues instead of losing days just trying to find them in the benefits. Implementing a task management tool provides first place. visibility into what your team has on their plate, replaces the By only researching the anomalies, accounting and finance inefficient spreadsheets approval process, and manages the staff can also refocus on providing strategic guidance to the entire financial close with checklists, real-time dashboards, business, such as improving internal processes or finding cost- and structure to ensure compliance. saving opportunities. In other words, the added time allows accountants to apply not just their knowledge and expertise,