Accountant Urges FG To Extend IPSAS Deadline

A Chartered Accountant, Mr Joshua Okeowo, has  urged the Federal Government to extend the deadline for the adoption of International Public Sector Accounting Standards (IPSAS) for public organisations.

Okeowo, former Chairman, Institute of Chartered Accountants of Nigeria (ICAN), Ikeja district, made the plea in an interview  in Lagos.

Reports say that IPSAS is the internationally acceptable standard of preparing financial statements for the public sector.

IPSAS was first introduced into the country in 2010 and was sent to the Federal Executive Council for approval.

The Accountant-General of the Federation (AGF), Mr Jonah Otunla had said that the Federal Government would ensure compliance with the IPSAS before the end of 2012.

Okeowo said that the extension would enable more government establishments to comply with the adoption of IPSAS.

He said that the extension would make the officers preparing the financial statements to understand the IPSAS effectively.

“It is a good development and an international best practice which has been embraced in most developed countries.

“There is nothing wrong with Nigeria taking queue in making sure that public entities in the country fully adopt IPSAS.

“However, there is need for Federal Government to extend the deadline for the commencement date beyond the effective date of January, 2013.’’

The former ICAN chief said that IPSAS would improve on the quality of financial reporting in the public sector.

Okeowo called on the public sector to embrace the IPSAS immediately, saying that one of the benefits of complying with the adoption was to ensure improved transparency and accountability.

He said that the introduction of IPSAS would reduce most errors that occurred in the course of preparing balance sheet audits, adding that it would also give detailed information.

“This is because in Nigeria for instance, the operation of government business and accounts has been within the general framework of the principles of fund accounting,’’ he said.