Thecurrentfinancialreporting

framework(theframework)sets
outthoseentitiesthathavealegal
obligationto:
prepareannualfinancialstatementsin
accordancewithGenerallyAccepted
AccountingPrinciples(GAAP)
fileannualfinancialstatementswith
theNewZealandCompaniesOffice
andmakethempubliclyavailable
obtainanindependentauditopinion
onthetruthandfairnessofthe
financialstatements.
TheCompaniesAct1993requiresall
companies(exceptexemptcompanies1)
toprepareannualgeneralpurpose
financialreports(GPFR)inaccordance
withGAAP,asdefinedbytheFinancial
ReportingAct2003.Generallyother
forprofitentities(ie,partnerships,
tradingtrusts)atpresentdonothave
thesamestatutoryfinancialreporting
requirementsascompanies.
RecentGovernmentdecisions
InSeptember2011Cabinetapproveda
seriesofamendmentstotheFinancial
ReportingAct1993,detailingwho
willberequiredtoprepareGPFR.The
keyproposalsforforprofitentities
included:
Large2privatelyheldcompanies
willhaveastatutoryrequirement
topreparefinancialstatementsin

accordancewithGAAPandwill
alsohaveastatutoryexternalaudit
requirement.Thedirectorsofa
closelyheldcompanywillnothave
theabilitytooptoutofanannual
audit,iftheyaredefinedaslarge
Removalofthestatutory
requirementsformostsmallto
mediumsizedcompaniestoprepare
financialstatementsinaccordance
withGAAP
Publiclyaccountableforprofits
willcontinuetoprepareGPFR
inaccordancewithfullNZIFRS,
continuetohaveastatutoryaudit
requirementandmustpublish
andmakeavailabletheirfinancial
statementstothepublic
Overseasownership(ie,greater
than25%)isnolongeracriteriafor
determiningstatutoryauditandfiling
requirementswiththeNewZealand
CompaniesOffice
1Exemptcompaniesarerequiredtocomplywithsimple
formatreportingrequirementsasdetailedinthe
FinancialReportingOrder1994.Acompanyisdefined
asexemptifitdoesnotexceedanytwoofthefollowing
threesizecriteria:
Totalassets$1million
Annualrevenue$2million
5fulltimeequivalentsemployees
2Goingforwardlargemeanseitherrevenuegreater
than$30millionperyearortotalassetsgreaterthan
$60millionatthereportingdate

AnnouncementsbytheGovernment
andtheXRBinSeptember2011
willradicallychangethebasisof
financialstatementpreparationfor
95%ofreportingentitiesinNew
Zealand.
Page 2
Reasongivenforthechange
Thefailureofalargeprivatelyheld
companycanhaveasignificantly
adverseimpactonsociety.Akey
principleofGovernmentpolicyis
torequireeconomicallysignificant
entitiestobothprepareGPFRandhave
themaudited.Theeliminationofthe
requirementforsmallandmedium
sizedcompanies(SMEs)toprepare
GPFRwillreducebusinesscompliance
costsbyanestimated$90millionayear
andsimplifiedfinancialreportingwill
bettermeetuserneedsandexpectations.
Manyoftheproposedchanges
alignthestatutoryrequirementsfor
NewZealandcompanieswithcurrent
Australianrequirements.
Proposedframework
TheExternalReportingBoard(XRB)
isanindependentCrownentity;its
responsibilitiesincludedevelopingand
implementingtheoverallstrategyfor
financialreportinginNewZealand.

InMarch2012theXRBfinalised
thefinancialreportingframeworkfor
forprofitentitiesrequiredtoprepare
GPFRinaccordancewiththenew
Governmentframework.
Thechangeswillreducethe
numberofcompaniesrequiredto
prepareGPFRfrom460,000toless
than10,000,whileforissuers,the
changeswillbenegligible.
a
a
a
a
A
Publiclyaccountable
entities3
FullNZIFRS4
Yes
Yes
A
Largeforprofit
companies5
NZIFRSwithRDR6
Yes
No
Nonlargeforprofit
companieswith10or
moreshareholders
NZIFRSwithRDR(but
canoptout)7
Yes(butcanoptout)
No
A
NorequirementtoprepareGPFRinaccordancewithGAAP,simpleformatfinancialstatementswillstill
berequiredfortaxpurposes.

Forprofftcompanies
andissuers
GPFRrequirements
Auditrequirement
Requirementtoffleor
makepubliclyavailable
Tierone
Tiertwo
Otherforprofftcompanies
3Publiclyaccountableentitiesaredefinedbythe
InternationalAccountingStandardsBoard(IASB)definition.
Anentityispubliclyaccountableif:
(a)itsdebtorequityistradedinapublicmarketorisin
theprocessofissuingsuchinstruments
(b)itholdsassetsinafiduciarycapacityforabroad
groupofoutsidersasoneofitsprimarybusinesses.
Inallinstancesthefollowingforprofitentities(asdefined
bylegislation)aredeemedtobepubliclyaccountableand
thereforeintierone.
Issuers
Registeredbanks
Deposittakers
RegisteredSuperannuationSchemes
4NZIFRS
NewZealandequivalentstoInternationalFinancial
ReportingStandards(harmonisedwithAustralia)
5Aforprofitentitywillbeclassifiedaslargeifitexceeds
$30millionrevenueor$60millionassets.Thelarge
criteriawillbeusedtodeterminethestatutoryfinancial
reportingrequirementsofprivatelyheldcompaniesat
theentityandgrouplevel
6Reduceddisclosureregime(RDR)
RDRprovidesforasignificantreductioninrequired
GPFRdisclosurerequirements,howevernorecognition
andmeasurementconcessionsareprovided.
Thisdiffersfromthecurrentdifferentialreporting
frameworkwhichdoesprovidesomerecognition

andmeasurementconcessions,suchastheoptionto
accountforincometaxesonataxespayablemethod
asopposedtotheNZIFRSrequirementtoaccountfor
deferredtax
7Optoutrules
Ashareholdermotionisrequiredfornonpublicly
accountableforprofitentities,whicharenotlarge,to
optoutofGPFRpreparationandauditrequirements.
Theoptoutwouldsucceedif95%ofthevotingshares
castonthemotionsupportedtheproposal(requiredon
anannualbasis)
2FinancialReportingAdviserApril2012Issue3

Page 3
Remainingffnancialreporting
requirements
Theproposalsdonoteliminateanyof
theresponsibilitiescurrentlyplaced
ondirectorsundertheCompaniesAct
1993.Acompanymustalwayshave
accountingrecordsthat:
(a)correctlyrecordandexplainthe
transactionsofthecompany
(b)willenablethefinancialposition
ofthecompanytobedetermined
withreasonableaccuracyatany
time.
TheNewZealandInstituteof
CharteredAccountants(NZICA)is
developingbestpracticeguidelinesfor
entitiespreparingfinancialstatements
outsidetheframework.
Implementationofnewframework
TheXRBhasmaderecommendations

totheMinisterofCommerce
concerningthetierstructureforGPFR
andinApril2012heapprovedthem.
Thebilldetailingtheamendments
totheFinancialReportingAct1993
isexpectedtobetabledinthesecond
halfof2012,enactedandeffectivefrom
1July2013.Theseamendmentswill
confirmwhichentitiesarerequiredto
complywiththenewframework.
Expectedtimeframe
Thenewforprofitframework
isexpectedtobeeffectivefor
accountingperiodscommencingon
orafter1July2013
EarlyadoptionofNZIFRS
withRDR6willbeavailablefor
accountingperiodscommencingon
orafter1July2012
Theeffectivedateforentities
transitioningfromcurrentNZIFRS
withDifferentialReportingorOld
GAAP10totiertwoofthenew
frameworkwillbeoneyearafterthe
legislativechangecomesintoforce
NZIFRSstandardsalreadyin
existencewillbereplacedwith
pureIFRSandwillapplytotier
oneentities;effectivelynochange
willresultfromthis
DevelopmentofNZIFRSwith
RDR:
Exposuredraftsissuedinquarter2,

2012
Finalstandardissuedinquarter4,
2012
Effectivedatequarter4,2012
Entitiesimpacted
Whiletheproposedfinancialreporting
frameworkwillprovidewelcomerelief
formanySMEswhocanoptoutofthe
requirementtoprepareGPFR,many
largeprivatelyheldcompaniesmay
facesignificantlyincreasedfinancial
reportingregulation.
Anylargeprivatelyheldcompany
currentlyreportingunderoldGAAP
orNZIFRSwithdifferentialreporting
a
a
a
a
A
Largeforprofitpublic
sectorentities9
FullNZIFRS
Yes
Yes
A
Nonlargeforprofit
publicsectorentities
NZIFRSwithRDR
Yes
Yes
Forprofftpublicsector8
entities
GPFRrequirements
Auditrequirement

Requirementtoffleor
makepubliclyavailable
Tierone
Tiertwo

willberequiredtomakethetransition
toIFRSwithRDR.Thiswillrequire
theremeasurementofpreviously
reportednetassets.
Forexampleanentity,who
previouslyprepareditsannualfinancial
statementsinaccordancewithNZIFRS
withdifferentialreportingwhoadopts
NZIFRSwithRDRfortheyearended
30June2014,willberequiredtore
measuretheopeningequitypositionas
at30June2012,comparativenetassets
andfinancialperformancefortheyear
ended30June2013.
Largeprivatelyheldcompanieswill
haveamandatoryauditrequirement
(nooptoutclauseswillbeavailable).
Securinganunqualifiedopinionin
2014mayrequiretheappointmentofan
auditorbefore30June2012.
Entitiesfallingoutsidethe
frameworkmaycontinuetoprepare
GPFRandhavethemaudited,to
ensuretherequirementsofboth
theFinancialReportingActandthe
CompaniesActhavebeenmet.
8Publicsectorentitiesaredefinedasanyentity
subjecttothePublicAuditAct2011
9Largeforprofitpublicsectorentities,defined
asentities(orgroups)withreportedexpenditure

exceeding$30million
10OldGAAPistheFinancialReportingStandards(FRS
andSSAP)thatwereapplicableinNewZealandprior
toadoptionofNZIFRS
FinancialReportingAdviserApril2012Issue33

Page 4
www.grantthornton.co.nz
2012GrantThorntonNewZealandLtd.Allrightsreserved.
GrantThorntonNewZealandLtdisamemberfirmwithinGrantThorntonInternationalLtd(Grant
ThorntonInternational).GrantThorntonInternational
andthememberfirmsarenotaworldwidepartnership.Servicesaredeliveredbythememberfirms.

Forfurtherinformationcontact:
Auckland
L4,GrantThorntonHouse
152FanshaweStreet
Auckland1140
T+64(0)93082570+64(0)93082570
F+64(0)93094892
MarkHucklesby
Emark.hucklesby@nz.gt.com
AlecFlood
Ealec.flood@nz.gt.com
ChrisDixon
Echris.dixon@nz.gt.com
MattParkinson
Ematt.parkinson@nz.gt.com
VanessaBlack
Evanessa.black@nz.gt.com
JennyEves
Ejenny.eves@nz.gt.com
Wellington
L13,AXACentre
80TheTerrace
Wellington6143
T+64(0)44748500+64(0)44748500

F+64(0)44748509
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Ebrent.kennerley@nz.gt.com
KerryPrice
Ekerry.price@nz.gt.com
AnthonyHeffernan
Eanthony.heffernan@nz.gt.com
Christchurch
L1,TheAntarcticAttraction
38OrchardRoad
ChristchurchAirport8053
T+64(0)33799580+64(0)33799580
F+64(0)33663720
GraemeMcGlinn
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Ebarry.williamson@nz.gt.com

FinancialReportingCouncilofNigeriaAct
2011No.6A79
(e)establishlinkswithregionalandinternationalinstitutionsengagedin
promotingcorporategovernance.
PARTVIIREVIEWANDMONITORINGOFSTANDARDS
52.(1)TheCouncilshalladoptandkeepuptodateaccountingand
financialreportingstandards,andensureconsistencybetweenstandardsissued
undertheInternationalFinancialReportingStandards.
(2)TheCouncilshallspecify,intheaccountingandfinancialreporting
standards,theminimumrequirementsforrecognition,measurement,
presentationanddisclosureinannualfinancialstatements,groupannual
financialstatementsorotherfinancialreportswhicheverypublicinterestentity
shallcomplywith,inthepreparationoffinancialstatementsandreports.
53.(1)TheCouncilshalldeveloporadoptandkeepuptodateauditing

standardsissuedbyrelevantprofessionalbodiesandensureconsistency
betweenthestandardsissuedandtheauditingstandardsandpronouncements
oftheInternationalAuditingandAssuranceStandardsBoard.
(2)TheCouncilmayissuerulesandguidelinesforthepurposeof
implementingauditingandaccountingstandards.
54.Everyregisteredprofessionalaccountantshall,inthepracticeof
hisprofession,complywith
(a)suchminimumrequirementsasshallbespecifiedbytheCouncilin
theauditingandaccountingstandards;and
(b)anyruleandguidelineissuedunderthisAct.
55.(1)Intheexerciseofitspowersfordevelopingandissuing
standards,aDirectorateoftheCouncilshalladoptthefollowingprocedures
(a)identifyaccounting,auditingorfinancialreportingissuesthatrequire
standardization,prepareandpublishexposuredrafts,conductapublic
hearingwherenecessaryandprepareadraftstatementofaccounting
standards;
(b)submitthedraftstatementofaccounting,auditingorfinancialstandards
preparedinaccordancewithsubsection1(a)ofthissectiontotheCouncil
forratificationandthereafter,theCouncilshallissuethestandards;
(c)ratifysuchstatementsofaccounting,auditingandfinancialreporting
standardspreparedinaccordancewiththissection;and
(d)thereafter,thestatementsofaccounting,auditingorfinancialreporting
standardsshallbepublished.
Reviewand
monitoring
of
accounting
andfinancial
reporting
standards.
Reviewand
monitoring
ofauditing

standards.
Compliance
with
Auditing
Standards.
Procedure
forsetting
standards.
Page 28
FinancialReportingCouncilofNigeriaAct
A80
2011No.6
(2)Anyrelevantstandardissuedbyarelevantinternationalbodyshall
beadoptedbytheCouncilinaccordancewiththeprocedureinsubsection(1)
ofthissection.
(3)EachDirectorateshallappointworkinggroupsinordertoaccomplish
itsobjectivesandwhereappropriate,inconsultationwiththeChairmanofthe
Council.
56.(1)WheretheCouncilhascausetoseekamendmenttoanyofits
pronouncements,itshalldosoinconsultationwiththerelevantstandardssetting
bodiesandshallcauseanoticetobepublishedin
(a)theGazette;and
(b)notlessthantwonationaldailynewspapers,invitingcommentsfrom
allinterestedpersons.
(2)Apersonwhowishestosubmitanycommentshall,within30daysof
thelastdateofthepublicationspecifiedinsubsection(1)ofthisSection,
submithiscommentsinwritingtotheCouncil.
(3)TheCouncilshall,indecidingwhethertoconsiderthestandardsor
theiramendmentsshallhaveregardtoanycommentsubmittedundersub
section(2)ofthisSection.
57.Whereanypublicinterestentityisrequiredtoprepareanyfinancial

statementorreportunderanyenactment,itshallensurethatthefinancial
statementsorreportsisincompliancewiththeaccountingandfinancial
reportingstandardsdevelopedbytheCouncilunderthisAct.
58.(1)Whereanypublicinterestentityisrequiredunderanyenactment
tofileitsfinancialstatementsandreportswithagovernmentdepartmentor
authority,theCounciloranyofficerauthorisedbyitinwriting,mayreviewthe
financialstatementsandreportsofanentityfiledwiththegovernment
departmentorauthoritytodeterminewhetherthefinancialstatementsand
reportsareincompliancewiththisAct.
(2)TheCouncil,oranyofficerauthorisedbyit,inwritingmayseek
furtherinformationorclarificationfrom
(a)anydirectorofanypublicinterestentity;
(b)anemployeeofapublicinterestentity;
(c)anyprofessionalaccountantresponsiblefortheauditofthefinancial
statementsofthatpublicinterestentity;and
(d)anyotherpersonorinstitutionwithrelevantinformationandsuch
director,employee,professionalaccountant,institutionorotherpersonshall
comply.
Amendments
toCouncils
pronounce
ments.
Compliance
bypublic
interest
entities.
Monitoring
offinancial
statements
andreports.
Page 29
FinancialReportingCouncilofNigeriaAct

2011No.6A81
(3)Whereapublicinterestentityfilesanyfinancialstatementsandreport
withanygovernmentdepartmentorauthority,theentityshallalsofileacopy
ofthefinancialstatementsandreportswiththeCouncilwithin30days,in
suchmannerasmaybesetoutintherulesoftheCouncil.
59.(1)Theaccounts,financialreportsorannualreturnsandother
documentsrequiredunderthefollowingActs,ortheamendmentsthereafter,
shallbeadoptedforthatpurposebytheCouncil
(a)BanksandotherFinancialInstitutions(Amendment)ActCap.B3
LFN,2004;
(b)CompaniesandAlliedMattersActCap.C20LFN,2004;
(c)InvestmentsandSecuritiesActCap.124LFN,2004;
(d)NigerianInvestmentPromotionCommissionActCap.N117,2004;
(e)InsuranceActCap.117LFN,2004;
(f)PensionsReformActNo2,2004;and
(g)FederalMortgageBankofNigeriaAct,Cap.F16LFN,2004.
(2)Wherethereisanyconflictbetweenthefinancialreportsorannual
returnsandotherdocumentsrequiredorpreparedinfulfillmentoftherelevant
SectionsoftheActslistedinsubsection(1)ofthisSectionandotherActs
whichdealwithfinancialreporting,thestandardsandguidelinesadoptedfor
thatpurposebytheCouncilshalltotheextentofthatinconsistency,prevail.
60.TheCouncil,oranyofficerauthorisedbyit,inwritingmayreview
thepracticeofanauditorandmay,forthatpurpose
(a)inspectanyrelevantbook,documentandrecordinthepossession,or
underthecontroloftheauditor,hispartneroremployeeandmakecopies
of,ortakeanyabstractof,orextractfromanysuchbook,documentand
recordinrelationtoacompanyunderinvestigationsubjecttotheconsent
ofthepublicinterestentity;and
(b)seekinformationorclarificationfromanypartneroremployeeofthe
professional.
61.(1)Annualqualityreviews(inspections)shallbeconductedfor
professionalaccountantsthatauditmorethan20publicinterestentities;all
othersshallbeconductedeverythreeyearsandtheCouncilmayordera

specialinspectionofanyprofessionalaccountantatanytime.
(2)TheCouncilshallrequireregisteredprofessionalaccountingfirms
andotherprofessionalstomaintainforaperiodofnotlessthan6years,audit
workpapersandotherinformationrelatedtoanyauditreport,insufficient
detailtosupporttheconclusionreachedinthereport.
Preparation
ofFinancial
Reportsin
accordance
with
Standards.
Practice
Reviewof
professional
Accountants.
Frequency
ofpractice
reviews.
Page 30
FinancialReportingCouncilofNigeriaAct
A82
2011No.6
(3)TheCouncilshallrequireevidenceofasecondpartnerreviewand
auditapproachthatregisteredprofessionalaccountantsadoptedonquality
control.
62.(1)TheCouncilmayinvestigateorcausetobeinvestigated
(a)anycomplaintordishonestpractice,negligence,professional
misconduct,malpracticemadeagainstanyprofessional;
(b)anybreachoftheCodeofConductandEthicsbyanyregistered
professional;or
(c)anymaterialirregularitynotifiedtoit.

(2)WheretheCouncilinvestigatesacomplaint
(a)itshallnotifytheprofessionalwhoseconduct,actoromissionis
underinvestigation,ofthenatureofthecomplaint;
(b)itshallsummonandheartheprofessional;
(c)itmaysummonandhearwitnesses;
(d)itmaycallforrelevantdocumentsandmakesuchcopiesthereofas
itdeemsfit;and
(e)itmayreviewanyfinancialstatementsandreportsfiledwithany
governmentdepartmentorauthority.
(3)Everypublicinterestentity,professionalorprofessionalaccountant
shallproduceanyrelevantbook,recordordocument(hardcopyorelectronic)
intheirorundertheircontroltotheCouncilwheretheCouncilisconducting
aninvestigationforthepurposeofsubsection(1)ofthissection.
63.(1)Anypersonwhowillfullyobstructsordelaysaninspectorin
theexerciseofanypowerconferreduponhimundersection28(3)ofthisAct
orfailstocomplywiththerequisitionofaninspectorpursuanttothesaid
sectionortoproduceanydocumentorfurnishanyinformationwhichheis
requiredbyinspector,orpursuanttotheprovisionsofthisActtoproduceor
furnish,willfullywithholdsanyinformation,thatpersonshallbedeemedto
haveobstructedaninspectorintheexecutionofhisdutiesunderthisAct.
(2)ApersonwhoobstructsanInspectorintheexecutionofhispowers
ordutiesundertheprovisionsofthisActcommitsanoffenceandisliableon
convictiontoafinenotexceedingN500,000.00ortoimprisonmentforaterm
notexceeding6monthsortoboth.
64.(1)Anypersonwhofailstocomplywiththeprescribedstatement
ofaccountingandfinancialreportingstandardsdevelopedbytheCouncilor
anydecisionoftheCounciltotheeffectthatapublicinterestentityhasfailed
tocomplywithanyofitspronouncementsunderthisAct,andwithsuchother
Powerof
investigation
byCouncil.
Obstruction
ofan

inspector.
Sanctionsfor
non
compliance.
Page 31
FinancialReportingCouncilofNigeriaAct
2011No.6A83
accountingandfinancialreportingstandardsasmaybespecifiedunderthe
relevantenactments,commitsanoffenceandisliableonconvictiontoafine
ofnotexceedingN10,000,000.00orimprisonmentforatermnotexceeding2
yearsorboth,providedthattheCouncilshallbringsuchnoncompliancetothe
noticeofthepreparersofsuchfinancialstatements.
(2)Whereanoticeisservedonapersonorpublicinterestentityunder
subsection(1)ofthisSection,itshall,within60daysoftheserviceofthe
notice,restateitsfinancialstatementsandresubmitthemtotheCouncilandto
anygovernmentdepartmentorauthorityrequiringsuchstatementandholda
generalmeetingofitsshareholdersontherestatedfinancialstatements.
(3)Anypublicinterestentitywhichfailstocomplywiththenoticereferred
toinsubsection(2)ofthissectioncommitsanoffenceandisliable,on
convictiontoafineofnotexceedingN20,000,000.00andrestatethesaid
financialstatementswithin30daysthereafter.
(4)TheCouncilshall,subjecttotheapprovaloftheMinister,reviewthe
amountsstatedinsubsections(1)and(3)ofthissection.
(5)Anyprofessional,auditororprepareroffinancialstatementsfound
liableunderthisActcommitsanoffenceandshall,inadditiontothefineand
imprisonmentprovidedforinsubsection(1)ofthisSectionbedelistedfrom
theregisterofProfessionalsbytheCouncil.
65.(1)WheretheCouncilreachesafinaldecisionundersection57,to
theeffectthatapublicinterestentityhasfailedtocomplywithanyofits
decisionsunderthisAct,andwithsuchotherfinancialreporting,accounting,
auditingandfinancialreportingstandardsasmaybespecifiedunderthe

relevantenactments,theCouncilshallserveanoticeontheentityforan
immediaterestatementofitsfinancialstatements.
(2)Whereanoticeisservedonapublicinterestentityundersubsection
(1)ofthisSection,itshall,within60daysoftheserviceofthenotice,restate
itsfinancialstatementsandresubmitsametotheCouncilandtotherelevant
governmentdepartmentorauthority.
(3)Anypublicinterestentitywhichfailstocomplywiththenoticereferred
toinsubsection(2)ofthissectioncommitsanoffenceandshall,onconviction
beliabletoafinenotexceedingN10,000,000.00andberequiredtorestatethe
saidfinancialstatementswithin30daysthereafterandtheCouncilshallrequire
suchentitytodisclosesameinthefollowingyearsfinancialstatements.
66.(1)TheCouncilshallencourageresolutionofgrievancesbypublic
interestentitiesandallprofessionalaccountantsandotherprofessionals
registeredwithit.
Sanctions
onpublic
interest
entities.
Grievances
procedure.
Page 32
FinancialReportingCouncilofNigeriaAct
A84
2011No.6
(2)TheCouncilshallmakeknowntoregisteredprofessionalaccountants
andotherregisteredprofessionalsallfaultsordefectsdiscoveredfromany
investigationpursuanttotheprovisionsofthisAct,beforeresortingtoprosecution
ofthepublicinterestentity,professionalaccountantorotherprofessional.
(3)Anypublicinterestentityorprofessionalaccountantorother
professionalswhodisagreewithanydecisionofanyoftheDirectoratesmay
appealtotheCouncilsTechnicalandOversightCommittee.

(4)Allthemethodsofgrievanceresolutionasstatedinsubsection(2)
and(3)ofthissectionshallbeexhaustedbeforeanyexternalresolutionis
sought.
67.WithoutprejudicetothepowersoftheCouncilunderthisAct,
whereaninvestigationcarriedoutby,oronbehalfoftheCouncil,revealsthat
anoffencemayhavebeencommitted,thematterunderinvestigationmaybe
referredtotheappropriateauthorities.
PARTVIIILEGALPROCEEDINGS
68.SubjecttotheprovisionsofthisAct,theprovisionofthePublic
OfficersProtectionActshallapplyinrelationtoanysuitinstitutedagainstan
officeroremployeeoftheCouncil.
69.Notices,summonsorotherdocumentsrequiredorauthorisedtobe
servedontheCouncilundertheprovisionofthisActoranyotherlawor
enactmentmaybeservedbydeliveringittotheExecutiveSecretaryorby
sendingitbyregisteredpostaddressedtotheExecutiveSecretaryatthe
principalofficeoftheCouncil.
70.Anysumofmoneywhichbyjudgmentofanycourthasbeenawarded
againsttheCouncilshall,subjecttoanydirectiongivenbytheCourt,whereno
noticeofappealagainstthejudgmenthasbeengiven,bepaidfromthefunds
oftheCouncil.
71.AmemberoftheBoard,theExecutiveSecretaryoranyofficeror
employeeoftheCouncilshallbeindemnifiedoutoftheassetsoftheCouncil
againstanyliabilitysufferedorincurredbyhimindefendinganyproceedings,
whethercivilorcriminal,broughtagainsthiminhiscapacity,inpursuanceor
inexecutionofthisAct,asamemberoftheBoard,ExecutiveSecretary,
officeroremployeeoftheCouncil.
Referralsto
appropriate
authorities.
Limitation
ofsuits
againstthe
officersof

theCouncil.
Serviceof
documents.
Execution
against
propertiesof
theCouncil.
Indemnityof
officers.
Page 33
FinancialReportingCouncilofNigeriaAct
2011No.6A85
PARTIXMISCELLANEOUS
72.(1)TheCouncilshall
(a)periodicallypublishanOfficialBulletinwhichshallcontain:
(i)therulesmadebytheCouncil;and
(ii)suchotherinformationastheCouncilmaydeemnecessary;and
(b)causetobepublishedintheGazette,nationaldailynewspapersand
electronicmedianoticesrelatingtotherulesoftheCouncilwhichhave
beenalteredorrevoked.
(2)TheCouncilmaycausetobepublishedintheGazette,national
newspapersandelectronicmediaitsfindingsordecisionsundersections60
and61ofthisAct.
73.TheMinistermay,ontheadviceoftheCouncil,makesuchregulations
asinhisopinionarenecessaryorexpedientforgivingfulleffecttotheprovisions
ofthisActandforthedueadministrationofitsprovisions.
74.TheNigerianAccountingStandardsBoardAct,No.22of2003is
repealed.
75.AnyreferencemadetotheNigerianAccountingStandardsBoard
asprovidedunderSection335(1)oftheCompaniesandAlliedMattersAct,
andanyotherrelatedorrelevantlegislationshallbeconstruedtorefertothe

FinancialReportingCouncilestablishedunderSection1(1)ofthisAct.
76.TheChairman,amemberoftheBoard,Committee,PanelExperts,
ExecutiveSecretaryoranemployeeshallsweartooraffirmtheOathof
ConfidentialityintheScheduletothisAct.
PARTXINTERPRETATIONS
77.InthisAct
Annualreportmeansthedocumentsthatanentityissuesonanannual
basisonitsaffairs,includingitsfinancialstatementstogetherwiththeaudit
reportthereon,andthereportfromtheBoardofDirectors;
AudithasthesamemeaningasintheInternationalFederationof
Accountants(IFAC)CodeofEthicsforProfessionalAccountants;
Auditfirmmeansafirmwhichprovidesauditservices;
AuditormeansaprofessionallyqualifiedAccountantorfirmof
Accountantsappointedtoconductanexaminationoftherecordsofan
enterpriseandtoformanopinionastowhethertheaccountshavebeen
preparedinaccordancewithgenerallyacceptedaccountingprinciples.
Publication
ofOfficial
Bulletin.
Powerto
make
Regulations.
Repealof
NASBAct
2003.
Cap.C20
LFN,2004.
Oath.
Schedule.
Interpretations.
Page 34

FinancialReportingCouncilofNigeriaAct
A86
2011No.6
BoardmeansthegoverningbodyoftheFinancialReportingCouncil
ofNigeriaestablishedundersection2(1)ofthisAct;
codeofcorporategovernancemeanstheCodeofCorporate
GovernanceissuedbytheDirectorateofCorporateGovernanceinthis
Act;
DirectorhasthesamemeaninggiventoitundertheCompaniesand
AlliedMattersAct,2004;
Entitymeansanypersonorbodyofpersons,whetherincorporatedor
unincorporated;
Financialreportingstandardsmeanaccounting,auditing,actuarial
andvaluationstandardsissuedbytheCouncilunderthisAct;
Financialstatementsmeansthebalancesheet,incomestatements
orprofitandlossaccount,statementofchangesinequity,statementof
cashflows,notes,statementsandexplanatorymaterialsthereonand
otherdocumentstobeincludedinafinancialstatementasrequired
underCompaniesandAlliedMattersAct,2004whetherinterimorfinal,
andanyotherrelevantaccountingstandards;
Functionsincludepowersandduties;
IASBmeanstheInternationalAccountingStandardsBoardorits
successorbody;
IFACmeanstheInternationalFederationofAccountantsorits
successorbody;
MinistermeanstheMinisterchargedwithresponsibilityformatters
relatingtoCommerce;OfficialBulletinmeanstheofficialjournalofthe
Council;
Practiceinrelationtoanauditor,meansthepracticeoftheauditoror
theauditfirm;
PresidentmeansthePresidentoftheFederalRepublicofNigeria;
ProfessionalAccountantmeansapersonwhoisamemberofa
bodyofprofessionalAccountancybodyestablishedbyanActofNational

AssemblyandregisteredwiththeCouncil;
PublicInterestEntitiesmeansgovernments,government
organizations,quotedandunquotedcompaniesandallotherorganizations
whicharerequiredbylawtofilereturnswithregulatoryauthoritiesandthis
excludesprivatecompaniesthatroutinelyfilereturnsonlywiththeCorporate
AffairsCommissionandtheFederalInlandRevenueService;
CorporateGovernancereferstotherolesofpersonsentrustedwith
thesupervision,controlanddirectionofanentity;
Page 35
FinancialReportingCouncilofNigeriaAct
2011No.6A87
materialirregularityincludesfraud,deliberatemisstatementsof
financialstatements,falsifications,defalcations,etc.;
QualifiedreporthasthesamemeaninggiventoitbyIFAC.
78.ThisActshallbecitedastheFinancialReportingCouncilof
NigeriaAct,2011.
Citation.
Page 36
FinancialReportingCouncilofNigeriaAct
A88
2011No.6
SCHEDULE
Section76
OATHOFCONFIDENTIALITY
I...................................................................................havingbeen
appointedasChairman/MemberoftheBoard/MemberofCommittee/Member
ofPanelofExperts/ExecutiveSecretary/Employeedoherebyswear/solemnly
affirmthatIwill,dischargemydutiesandperformmyfunctionshonestly,to
thebestofmyabilityandinaccordancewiththeConstitutionoftheFederal
RepublicofNigeria,objectsoftheCouncil,withtheauthorizationoftheCouncil

orwhereitisreallynecessaryfortheperformanceofmyduties,anyinformation
ofaconfidentialnatureobtainedbymebyvirtueofmyofficialcapacityexcept
asmayberequiredfortheduedischargeofmydutiesandIwilldevotemyself
tothewellbeingoftheCouncil.SohelpmeGod.
DEPONENT
SWORNtoonthe........................dayof.....................2011.
BEFOREME.
..............................................................
CommissionerforOaths
Icertify,inaccordancewithSection2(1)oftheActsAuthenticationAct,
Cap.A2,LawsoftheFederationofNigeria2004,thatthisisatruecopyof
theBillpassedbybothHousesoftheNationalAssembly.
SALISUABUBAKARMAIKASUWA,mni
ClerktotheNationalAssembly
2ndDayofJune,2011.
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FinancialReportingCouncilofNigeriaAct
2011No.6A89
EXPLANATORYMEMORANDUM
ThisActrepealstheNigerianAccountingStandardsBoardAct,No.22
of2003andenactstheFinancialReportingCouncilofNigeriachargedwith
theresponsibilityfor,amongotherthings,developingandpublishingaccounting
andfinancialreportingstandardstobeobservedinthepreparationoffinancial
statementofpublicentitiesinNigeria.
Page 38
FinancialReportingCouncilofNigeriaAct
A90
2011No.6
IcertifythatthisBillhasbeencarefullycomparedbymewiththedecisionreachedbythe
NationalAssemblyandfoundbymeto

betrueandcorrectdecisionoftheHousesandisinaccordancewiththeprovisionsofthe
ActsAuthenticationActCap.A2,Law
softhe
FederationofNigeria,2004.
S
ALISU

A
BUBAKAR

M
AIKASUW
A

,mni
ClerktotheNationalAssembly
2
ndDayofJune
,2011.
D
R

G
OODLUCK

E
BELE

JONA
THAN

,
GCFR

PresidentoftheFederalRepublicofNigeria
3
rdDayofJune
,2011.
IA
SSENT

LSLS
SCHEDULET
O
THEFINANCIAL
REPOR
TING
COUNCIL
OF
NIGERIA
BILL,2011
(1)
(2)
(3)
(4)
(5)
ShortT
itle
LongT
itleofthe
Summaryofthe
Datepassedby
DatePassedby
oftheBill
Bill
ContentsoftheBIll
theSenate
theHouseof
Representatives
AnActtorepealtheNigerianAccountingS
tandardBoardAct,No.
22of2003andenacttheFinancialReportingCouncilofNigeriachargedwiththe
responsibilityfor,amongotherthings,developingandpublishingaccountingand
financialreportingstandardstobeobservedinthepreparationoffinancialstatementof

publicentitiesinNigeria;andforrelatedmatters.
ThisBillseekstorepealtheNigerianAccountingS
tandardBoardAct,No.
22of2003andenacttheFinancialReportingCouncilofNigeriachargedwiththe
responsibilityfor,amongotherthings,developingandpublishingaccountingand
financialreportingstandardstobeobservedinthepreparationoffinancialstatementof
publicentitiesinNigeria;andforrelatedmatters.
FinancialReportingCouncilofNigeriaBill,2011.
31stMay,2011
1stJune,2011