FG Shifts IPSAS Implementation To 2014

The Federal Government has extended the deadline for the implementation of the International Public Sector Accounting Standards (IPSAS) in Nigeria to January 2014.  Secretary, Federation Accounts Allocation Committee (FAAC), Mr James Nongo, sub-committee on the roadmap for the adoption of IPSAS, confirmed the decision in Abuja on Tuesday.

Nongo said the sub-committee recommended the extension because “it was not feasible’’ for the country to adopt the cash-basis for IPSAS by January 2013. He said the committee also recommended that the take-off date for the accrual basis for IPSAS be extended from 2015 to 2016.

“We still need to do a lot of capacity building because this is a new system that requires a lot of training for accountants, budget officers and operators in all the three tiers of government. Nongo said a new module for IPSAS implementation had already been prepared and completed and would be distributed to the three tiers of government after FAAC approval during the week.

He said contrary to wide held views, Nigeria might not require an immediate amendment of existing laws to ensure compliance with IPSAS. “Based on our investigation, the Financing Reporting Act and Fiscal Responsibility Act , 2007 have given us enough cover to implement IPSAS.

“We may not require a new legislation but if there are reasons to amend the existing laws, that will be done but we are still studying the laws,’’ Nongo said. The secretary of the FACC sub-committee said that operators involved in public financial management in the federal, states and local governments would undergo general training for the next three months.

He said the training scheduled to begin on Jan. 21 would hold in the six geo- political zones of the country. Reporters recalls that in July 2010 the Federal Executive Council (FEC) approved that Nigeria should adopt the provisions of the International Financial Reporting Standards (IFRS) and IPSAS for both the public and private sectors.  According to the FAAC sub-committee, the adoption of IPSAS will create a uniform accounts system for the three tiers.

It will also promote accountability, transparency in governance and improve the credibility rating of Nigeria.