The Federal Government on Tuesday directed all its Ministries, Departments and Agencies to ensure compliance with the provisions of the International Public Sector Accounting Standards.
Vice President Namadi Sambo gave the directive in Abuja during the unveiling of the Accrual Accounting Manual for public sector entities in the country.
The unveiling of the manual was part of measures to ensure the seamless implementation of the accrual-based IPSAS in the preparation of financial statements in the public sector.
The Federal Executive Council had at its meeting of July 10, 2010 took the decision that Nigeria should adopt the provisions of the international accounting standards, including the International Financial Reporting Standards.
The IPSAS are robust and well considered set of accounting standards specifically tailored to the needs of the public sector.
The standards help to promote transparency and accountability in government’s public finances.
The country has already converted into the cash-based IPSAS and has plans to implement accrual-based IPSAS across the three tiers of government by January 2016.
Sambo said the adoption of the new standards would ensure that the country’s financial statements were prepared in line with international standards.
He also said that budgetary provisions should also be made to assist in the accrual accounting concepts, especially in the process of identification and valuation of all government assets.
Represented by the Minister of State for Finance, Bashir Yuguda, the vice president said, “I have been briefed that the fundamental turning point in the nation’s implementation of IPSAS is the adoption pf accrual-based accounting, which has become the leading practice in public financial management across the globe.
“The adoption of accrual-basis of accounting in an IPSAS environment is believed to present a complete, true and fair view of accounting and promote transparency and accountability in financial reporting for public sector entities
“The manual, which we presents and launch here today, has been developed as a comprehensive guideline for the practice of IPSAS Compliant accrual accounting in public sector entities across the federation.
“With the launch of the manual, the government hereby directs that all public sector entities must fully comply with its provisions. Budgetary provisions should also be made to assist in the accrual accounting concepts, especially in the process for identification and valuation of all government assets.”
The Accountant-General of the Federation, Mr. Jonah Otunla, who also spoke at the event, said the adoption of accrual accounting standards was part of the government’s efforts to reform public finance management in the country.
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