Banks exploit accounting flaws to boost results -SEC Some Nigerian banks exploit the country’s weak accounting system to boost their balance sheets, Chairman of Securities and Exchange Commission, Dr. Suleyman Ndaunusa, has said. Ndanusa said this while delivering a keynote address at the 2014 Annual Conference of the Association of National Accountants of Nigeria in Abuja on Tuesday. Quoting a World Bank Report commissioned by the Federal Government in 2010, Ndanusa said the state of accounting infrastructure in Nigeria has been weak. He said, “According to the report (World Bank), a number of banks exploiting loopholes in Nigerian accounting and auditing standards, weak capacity of the regulatory bodies and weak enforcement, employed creative accounting to boost their balance sheets. “These weaknesses in financial reporting, auditing and accounting contributed to Nigeria’s banking sector crisis. Given the magnitude of the costs of the crisis (between N1.5trn and N2trn), government is focused on improving accounting and auditing. “Since 2009, the Central Bank of Nigeria, SEC and other bodies have taken considerable steps to improve financial reporting and disclosure standards. One of such milestone steps is the enactment of the Financial Reporting Council of Nigeria Act No. 6 of 2011.” The SEC chairman said to play its full potential in the nation’s economy, the accounting profession must address two challenges: seize growth opportunities by meeting emerging business needs and fight against corruption. Speaking at the event, President Goodluck Jonathan urged accountants to join the campaign to enlarge the revenue base of the country. Jonathan who was represented at the event by the Accountant General of the Federation, Mr. Jonas Otunla, said the Federal Government had implemented several accounting reforms aimed at sanitising the country’s financial accounting system. He said, “It is noteworthy that the challenge of enhancing government revenue for better financing of annual budgets will no doubt deserve attention in a gathering of professionals such as this. “Despite all criticism of contemporary governance, government is still the most powerful institution of society. No matter how large or influential, private corporation or association may become, they ultimately must abide by the rules that are established and enforced by government. “As a pivotal institution with such enormous and sensitive responsibility, therefore, it is imperative for government to be right and founded on transparency, probity and accountability.” Jonathan said the government remained committed to turning around the fortunes of Nigeria employing the tools of Economic Reforms Governance Programme and Public Financial Management. ift.tt/ZYMBvJ ift.tt/1qGUBZv [[Boost your social presence with NAIRALIKES nairalikes ]] #nigeria x #nairalikes #vanguardng
Posted on: Tue, 28 Oct 2014 17:45:49 +0000
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