THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA · stewardship report for the 2014/2015...

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIAAnnual Report & Financial Statements2014

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CONTENTS

3

Notice of Meeting

4 Officers and Council

5 Past Presidents

6 President’s Statement

21 Reports of Committees of Council

* MEMBERSHIP AFFAIRS* ANNUAL ACCOUNTANTS’

CONFERENCE* ASSOCIATE MEMBERS OF THE

INSTITUTE* MEMBERS’ EDUCATION AND

TRAINING * RESEARCH AND TECHNICAL* PROFESSIONAL PRACTICE

MONITORING* FACULTIES

* STUDENTS’ AFFAIRS* STUDENTS’ SPECIAL PROJECT* PROFESSIONAL EXAMINATIONS

* LEGAL SERVICES* PUBLICATIONS AND IMAGE

* FINANCE & GENERAL PURPOSES * INTER-GOVERNMENTAL

RELATIONS

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Financial Statements

Vision Statement

To be a leading global professional

body.

Mission Statement

To produce world-class chartered accountants, regulate

and continually enhance their ethical

standards and technical competence in the

public interest.



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50TH ANNUAL GENERAL MEETING

AGENDA

NOTICE IS HEREBY GIVEN that the 50th Annual General Meeting of The Institute of Chartered Accountants of Nigeria will take place at Shell Hall, Muson Centre, Onikan, Lagos on Wednesday, May 27, 2015 at 10.00 a.m. to transact the following business:-

1. To adopt the minutes of the Annual General Meeting held on May 30, 2014.

2. To receive the Annual Report of Council, Financial Statements for the Year ended December 31, 2014 and the Auditor’s Report thereon.

3. To elect members of Council.

4. To appoint the Auditors and authorise the Council to fix their remuneration.

By order of the Council

ROTIMI A. OMOTOSO, MBA, FCARegistrar/Chief Executive

Dated this .........28th ............day of April 2015.

NOTICE of Meeting


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OFFICERS and Council

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA(Established by Act of Parliament No.15 of 1965)

OFFICERS & COUNCIL 2014–2015President

Chidi Onyeukwu AJAEGBU, FCS, MBF, Dip. in Polygraph (USA), FCA (2001) Vice President

Samuel Olufemi DERU (Otunba), FCA (2002)

1st Deputy Vice PresidentTitus Alao SOETAN (Deacon), FCA (2004)

2nd Deputy Vice President Isma’ila Muhammadu ZAKARI (Alhaji), mni, BSc, FCA (2004)

Immediate Past President

Kabir Alkali MOHAMMED (Alhaji), mni, MFR, FCIS, CGMA, FCA (1997)

Honorary TreasurerOnome Joy OLAOLU-ADEWUYI (Mrs.), BSc, MSc, ACPIN, FCIB, FCA (2007)

MembersOye Clement AKINSULIRE (Chief), MSc, MBA, FNIM, FCA (2013)

Davidson Chizuoke ALARIBE (Chief), MA, CFA, MIMC, MNIM, FCA (2012)Shakirat Adepeju BABATUNDE (Alhaja), BSc, MBA, MSc, FCA (2006, 2014)

Ibrahim Madugu Abdullahi BABAYO, FCA (2014)Sunday Abayomi BAMMEKE, BSc, FCA (2004)

Adaku Chilaka CHIDUME-OKORO (HRH), BSc, MSc, FCA (2009)Uchenna Ifesinachi EROBU (Mrs.), MBA, FCA (2007)

Comfort Olujumoke EYITAYO (Mrs.), mni, CFA, FCA (2007)Tijjani Musa ISA (Mallam), BSc, FCA (2009)

Razak JAIYEOLA (Alhaji), BSc, CRISC, FCA (2005)Nasiru MUHAMMAD, BSc, MSc, FIICA, FCTI, FCA (2014)

Hilda Ozoh OFURE, MBA, FCA (2014)Monica Ngozi OKONKWO, MSc, ACIB, CFA, CFC, FCA (2011)

Nnamdi Anthony OKWUADIGBO (Mazi), BSc, FCA (2007)Innocent OKWUOSA, MSc, ACIB, FCA (2011)

Tajudeen Adewale OLAYINKA, MBF, FCA (2014)Sam Onyebuchi ONUKWE, MBA, MSc, FCS, FCA (2014)

Etofolam Felix OSUJI, MSc, FCTI, FCA (2014)Hart Wahab Odafen OZOYA (Rev.), MBA, ACIS, ACS, FCA (2013)

Tayo PHILLIPS, MBA, FCA (2005, 2014)Oyebowale Rafiu RAJI, BSc, FCA (2014)

Queensley Sofuratu SEGHOSIME, MBA, FCA (2014)Samuel UKURA, FCA (2014)

Haruna Nma YAHAYA (Alhaji), BSc, MBA, ANIM, FCA (2011, 2014)

Registrar/Chief ExecutiveRotimi A. OMOTOSO, MBA, FCIB, FCA

Joint AuditorsPricewaterhouseCoopers (Chartered Accountants)

UHJ Maaji & Co. (Chartered Accountants)



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PAST Presidents

THE ASSOCIATION OF ACCOUNTANTS IN NIGERIA (The Forerunner of the Institute)

1960 – 1961 Akintola WILLIAMS, CBE, CFR, B.Com., FCA1961 – 1962 Akintola WILLIAMS, CBE, CFR, B.Com., FCA1962 – 1963 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased)1963 – 1964 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased)1964 – 1965 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased)

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA

1965 – 1966 Frank Cuthbert Oladipo COKER, CFR, B.Com., FCA (Deceased)1966 – 1967 Ephraim Adekunle OSINDERO (Otunba), MON, FCA (Deceased)1967 – 1968 Herbert William BOND, FCA (Deceased)1968 – 1969 Zacchaeus Oludayo OSOSANYA, FCA (Deceased)1969 – 1970 Alfred EHREN, FCA1970 – 1971 Felix Bankole CARDOSO, FCA (Deceased)1971 – 1972 Emmanuel Ayodele ODUKOYA (Archdeacon), FCA (Deceased)1972 – 1973 Musliu Olaiya ANIBABA (Chief), FCA1973 – 1974 Vincent Obajimi Adebisi OGUNBA, FCA (Deceased)1974 – 1975 Julius Akinyokun OWOSENI (Chief), FCA (Deceased)1975 – 1976 Michael Adepoju ADEYEMO (Prof.), MSc (Econs.), FCA (Deceased)1976 – 1977 Cecil Oyeniyi Olurotimi OYEDIRAN, BSc (Econs.), MFR, FCA1977 – 1978 Anthony Asuquo ANI (Chief), MON, FCA1978 – 1979 Arthur Christopher Izuegbunam MBANEFO (Chief, Amb.), (Odu III), MFR, CON, FCA1979 – 1980 Joseph Akintunde Alaba ADEBAYO (Prince), FCA1980 – 1981 John Adepoju BALOGUN (Sir), FCA (Deceased)1981 – 1982 Idris Onaolapo SULAIMON (Alhaji), FCA1982 – 1983 Olusola FALEYE (Chief), FCA1983 – 1984 Dolanimi Babafemi Olabamidele OGUTUGA, FCA1984 – 1985 Johnson Kayode Osiyemi OSINAIKE, FCA1985 – 1986 Adedoyin Olayide OGUNDE (Otunba), FCA (Deceased)1986 – 1987 Samie Aremu WILLIAMS, FCA (Deceased) 1987 – 1988 Johnson Olaobaju Olabisi OMIDIORA (Balogun), BSc, OON, FCA1988 – 1989 Ebenezer Folorunsho OKE (Chief), BSc, FCA (Deceased)1989 – 1990 Bola KUFORIJI-OLUBI (HH, Otunba Ayora, Dr.) BSc, OON, FCA1990 – 1991 Michael Ayodeji ONI, BSc, FCA1991 – 1992 Cornelius Oladipupo Sunday OSENI, BSc, FCA (Deceased)1992 – 1993 Oluwole Alani ADEOSUN (Chief), BSc, OON, FCA (Deceased)1993 – 1994 Ismaila USMAN (Mallam), FCA1994 – 1995 Olutoyin Olusola OLAKUNRI (Chief, Mrs.), OFR, FCA1995 – 1996 Simeon Olusola OGUNTIMEHIN (High Chief, Sir), OON, FCA1996 – 1997 Emmanuel Itoya IJEWERE, FCA1997 – 1998 Agnes Adenike ADENIRAN (Princess), FCA1998 – 1999 Ike NWOKOLO (Sir), OFR, KSC, FCA1999 – 2000 Adeboye Olugboyega BADEJO (Chief), FCA2000 – 2001 Herbert Adewole AGBEBIYI, FCA2001 – 2002 Ugochukwu Stephen NWANKWO (Chief), MON, FCA2002 – 2003 Felix Kolawole BAJOMO (Senator, Chief), mni, FCA2003 – 2004 Jaiye Kofolaran RANDLE (Bashorun), CFR, FCA 2004 – 2005 Ibironke Mojisola OSIYEMI (Mrs.), FCA 2005 – 2006 Abdul Lateef Adebayo OWOYEMI (Alhaji, Otunba), FCA2006 – 2007 Catherine Ginikanwa OKPAREKE (Chief, Dr., Mrs.), mni, B.A, MBA, D(Lit.), MNIM, FCA2007 – 2008 Adebajo Abiodun BABINGTON-ASHAYE (Prince), FCA (Deceased)2008 – 2009 Richard Uchechukwu UCHE (Chief), PhD, FCA2009 – 2010 Elizabeth Omeresan ADEGITE (Chief, Mrs.), BSc, MBA, FCA2010 – 2011 Sebastian Achulike OWUAMA (Major-General retd.), BSc, FCA2011 – 2012 Francis OJAIDE (Professor), MSc, PhD, OON, FCA2012 – 2013 Adedoyin Idowu OWOLABI, BSc, MILR, FNIM, FCA2013 – 2014 Kabir Alkali MOHAMMED (Alhaji), mni, FCIS, CGMA, MFR, FCA (IPP)


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PRESIDENT’s Statement

Mr. Chidi Onyeukwu Ajaegbu, MBF, FCS,

Dip. in Polygraph, FCAGolden Jubilee

President



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My distinguished professional colleagues, ladies and gentlemen, I welcome you all most warmly to this 49th Annual General Meeting (AGM) of our Institute. As you are aware, chairing this AGM is one of my

last major responsibilities as the Golden Jubilee President of this great Institute. I am therefore very delighted to present my stewardship report for the 2014/2015 presidential year as well as the Year 2014 Annual Report and Audited Financial Statements of the Institute.

The last twelve months have been very eventful and memorable as it gave me the rare privilege of being your flag-bearer and the opportunity to steer the ship of our Institute at a historic time. To God be all the glory for giving me the grace and strength of character to achieve my set goals of contributing to the advancement of our great Institute and the Accountancy Profession in the continent. Thank you all most sincerely for the confidence reposed in me and the opportunity to make a modest difference. However, the credit for the accomplishments must go to my colleagues in Council, Management, Staff and general membership of the Institute. I salute you all for your invaluable support, cooperation and team spirit.

OVERVIEW OF THE ECONOMYAs a major stakeholder in the Nigerian economy

whose activities are also impacted by developments in its external environment, it is apt to commence this stewardship report with an overview of the economy during my presidential year which spanned the period June 2014 to May 2015. Against the backdrop of the high rate of youth unemployment, parlous state of infrastructure, insecurity of lives and property and the poor quality of life of many Nigerians, the Federal Government proposed a “Budget for Job Creation and Inclusive Growth” of N4.69 trillion for the 2014 fiscal year to address these challenges as well as cater for the needs of the weak and vulnerable in the society.

As commendable as the plan to invest more in housing, agriculture and infrastructural developments as a strategy to spur more investment activities in other sectors was, not much was achieved at year end. The passage of the 2014 fiscal document, like in preceding years, was delayed till May before its enactment while funds were not promptly released to fund capital projects. Indeed, on the average, in the last 5 years, budget implementation has hovered around 70 percent with a greater proportion of this occurring in November and December each year! The impact has been the rising hope and increased frustration of the populace due to the poor or non-delivery of the promised dividends of democracy. Beyond the issue of delayed passage of the Appropriation Act, there were also challenges in the realisation of the budgeted revenue targets caused, in the main, by pipeline vandalisation, incredible oil price volatility and market dynamics over which the nation has no control.

Nigeria’s daily output of crude oil, on the average, according to the National Bureau of Statistics, fell from the projected 2.38 million bpd to 2.2 million bpd in 2014 while demand from the nation’s traditional market thinned out following the discovery and huge investment in shale oil and gas by USA. With the resultant “shut-ins” of production, weak demand and the decline in crude oil price from a peak of about US$114 pb in June, 2014 to less than US$60 pb in December, 2014 (a figure that is less

than the budget benchmark price of $77.5 pb), projected revenue earnings shrunk considerably from N3.73 trillion to about N2.72 trillion at the end of October, 2014. The Excess Crude Account created years ago and built up over time to take care of the rainy day was not only fully depleted, but also, the budgeted deficit financing of N1 trillion was surpassed. Put simply, the nation’s economy remained in dire straits all through the year.

Expectedly, the decline in oil price and projected revenue significantly and negatively impacted the quantum of the nation’s foreign reserve and by extension, the ability of the apex bank, the Central Bank of Nigeria, to defend the value of the local currency. In the face of alleged non-remittance of some funds by NNPC to the Federation Account, foreign reserve declined from US$43.238 billion on January 23, 2014 to US$34.5 billion on December 31, 2014 representing over 20% fall! The stock market, which mirrors the performance and strength of corporate entities in the economy did not fare better. For instance, the Nigerian

Stock Exchange (NSE) Equity market capitalisation which stood at N13.23 trillion in December 2013 fell to N11.77 trillion in December 2014 losing about N1.75 trillion or 13% during the year. Indeed, with the bears on the driving seat, data compiled as at December 24, 2014 by CNNMoney using benchmark year-to-date performances of Exchanges, showed that the Nigerian Stock Exchange ranked 72 out of 74 Exchanges considered with the NSE All-Share Index at 20.67 percent negative. The situation in the first half of 2015 became worse with crude oil price falling further to as low as US$53 pb in February/March while market capitalisation continues to hover around N9.7 trillion in the first quarter of 2015.

In response, the pace of divestment and capital flight increased thus putting pressure on the national currency. Given these indicators, devaluation became not only inevitable, the costs of dollar-denominated borrowings and imports rose astronomically thereby imposing excruciating burden on businesses. For instance, by March 2015, one USA dollar exchanged for N230 in the parallel market while the official rate was around N198. The various spheres of governance were not spared as salary payments suffered delays while capital expenditure were put on

ICAN President, Mr. Chidi Ajaegbu presenting a souvenir to the Minister of Finance and Coordinating Minister for the Economy, Ngozi Okonjo-Iweala

at the 44th Annual Accountants’ Conference


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hold in the 3rd and 4th quarters of 2014 due to dearth of funds. In the midst of these challenges, electioneering campaigns took great precedence over governance and legislative activities in the first quarter of 2015. With the successful and peaceful conduct of the Elections and victory by the opposition, there appears to be a ray of hope. In fact, the market capitalisation of the Nigerian Stock Exchange gained N904 billion (8.5% rise) the day after the release of the presidential results and statesmanlike acceptance of defeat by the incumbent, Dr. Goodluck Ebele Jonathan, GCFR.

The above developments bring to the fore the urgent need to deliberately diversify the Nigerian economy in order to insulate it from the vagaries in the global price of oil, its main foreign exchange earner. In spite of the euphoria created by the rebasing of the nation’s Gross Domestic Product (GDP) in April 2014 which raised its value to US$510 billion and made it the biggest in Africa and the 26th largest in the world, the place of oil is still very profound. Thus, there is need to accelerate the passage of the Petroleum Industry Bill (PIB) which has the potential of attracting more foreign direct investments into the industry and increasing its capacity to earn more revenue for the country. Secondly, the current spate of deficit budgeting must be revisited such that it does not continue to crowd out the quantum of investible funds that can be readily accessed by the private sector. Without doubts, tied to capital projects, deficit financing can positively impact the economy; but if spent on recurrent expenditure, as the nation currently does, the comfort of future generations will, unwittingly, be mortgaged. It is therefore imperative for the government to reduce the subsisting ratio of recurrent to capital expenditure as well as reduce the cost of governance in the long term interest of the nation and its citizens. We should not consume our future today.

ROLE IN GLOBAL ACCOUNTANCY PROFESSIONIFAC World Congress – AttendanceFollowing a massive marketing initiative embarked upon by

the Local Organising Committee (LOC) set up by the Council, a total of 950 chartered accountants attended the Accountancy Profession’s Olympics, the 19TH IFAC World Congress of Accountants, which took place in Rome, Italy between November 9 – 13, 2014 with the theme, “2020 Vision: Learning From the Past, Building the Future.’’ With this number and ANAN members that also attended the Congress, Nigeria emerged as the nation with the highest number of delegates. We beat the host country Italy to the second place! While many may criticise the large size, I strongly believe that we made a strategic statement not only about the vibrancy and growth of the Accountancy Profession in Nigeria, but also the huge investment potentials of the Nigerian economy given the quality of its people. A potential investor will certainly be persuaded that skilled labour will not be a challenge when investing in the country. In addition, we also

provided two resource persons at the technical sessions. I wish to specially commend all the past presidents and members that were able to make and enjoy the trip in spite of a few logistic challenges that we experienced.

Sponsorship of WCOA Research ProgrammeAs part of its strategies to globally market the ICAN brand, the

Council deliberately decided to sponsor the Academic Research Programme of the Congress. The Institute was designated as the Academic Partner/Sponsor of the Congress. This was done at a cost of Twenty-five Thousand (25,000) Euros. Part of the benefits included the conspicuous display of the ICAN logo at the main Congress venue throughout the Congress. Secondly, I was given the opportunity to present the Prizes to the Winners in their various categories and also delivered a keynote speech. The quality of the speech was highly commended. I thank all members and many revered past Presidents that congratulated and also shared their thoughts with me on this.

Election of First Female IFAC PresidentAt the IFAC Council meeting which preceded the 19th World

Congress which I attended with the Registrar/Chief Executive, Ms Olivia Kirtley, was elected first female President of IFAC. Ms Kirtley is an American and also the first president elected from business and industry, rather than public accounting, and will hold the position of president for a two-year term ending in November 2016. Kirltey was first elected to the IFAC board in 2007, rising to the post of deputy president in 2012. A certified public accountant and chartered global management accountant, Kirtley is also non-executive director of US Bancorp, ResCare Inc and Papa John’s International. With a long-standing background in accounting and management, she is a former chair of the American Institute of Certified Public Accountants (AICPA) and

ICAN Registrar, Rotimi Omotoso (left); 2nd Deputy Vice President of ICAN, Alhaji Ismaila Zakari; ICAN Vice President, Otunba Femi Deru; ICAN Past President, Mrs Catherine Okpareke; ICAN President, Mr. Chidi Ajaegbu; ICAN Past President, Otunba Lateef Owoyemi; ICAN

Past President, Kabir Mohammed; ICAN 1st Deputy Vice President, Titus Soetan and Deputy Registrar (Technical), Abel Asein at the World Congress of Accountants in Rome



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the AICPA Board of examiners. She was formally introduced to the audience during the closing ceremonies of the Congress.

Pre-Congress SeminarTo ensure that members were fully apprised about the thrusts

of the various technical sessions and what was expected of them to be able to make the Congress, the LOC organised a very hugely successful pre-Congress workshop which took place at the Agip Hall MUSON Centre on October 8, 2014. From the feedback received, participants found the sessions both enlightening and technically enriching. While thanking Past President E.I. Ijewere, FCA for graciously chairing the session, I also express my appreciation to Chief (Mrs.) E.O. Adegite, FCA and other senior members of the Institute who were able to make the event. In sum, the Institute derived huge mileage from its active participation in this Congress. I congratulate the LOC for a job well done.

IFAC Statements of Membership Obligations (SMOs)Part of the responsibilities of member-bodies of IFAC is to

annually review their work plans aimed at complying with the body’s seven Statements of Membership of Obligations (SMOs). In appreciation of its technical competence and steadfastness in submitting its annual reports, ICAN was classified by IFAC as one of the few professional bodies in the world that should supply its Compliance information biennially, that is, once in two years. This reporting activity was due in April 2015 and the relevant Council Committee, the Professional Practice Monitoring Committee, carried out the review process. Its final report, which was considered and approved at the February 2015 meeting of Council has been forwarded to the IFAC Compliance Committee. The final approval is still being awaited from the global body.

Partnership with CIPFAAs you all will recall, the Institute signed a 3-year memorandum

of understanding (MoU) with the Chartered Institute of Public Finance and Accountancy (CIPFA), UK in July 2011 which expired in June 2014. Under the MoU, the Institute partnered with the body and the Office of the Accountant-General of the Federation to resuscitate and run the Treasury Academy, Abuja. Both professional bodies have been conducting joint examinations in

the school which would lead to the award of a Diploma in Public Financial Management to its students who are mainly employees in the Public Sector. Although the Academy is yet to produce its first set of graduands, we have reviewed the expired MoU in order to broaden its scope for strengthening the Institute’s technical capacity in the Public Sector. Under the revised MoU which we signed in London on Thursday, March 19, 2015, ICAN members with at least five years practical experience in the Public Sector, will enjoy direct membership of CIPFA. The new MoU outlines the future co-operative relationship between the two institutes which seeks to improve the governance of public finance within the country and helps to improve the training options for those in the Accountancy Profession. The collaboration will also pave the way for dual membership for members of ICAN and CIPFA. In fact, “the framework of the MoU reflects the overlapping interest of both bodies and their mutual desire to share expertise, skills and experience to further the cause of good financial management.” The signing ceremony took place at CIPFA’s annual dinner with Rob Whiteman, CIPFA’s Chief Executive in attendance. I and the RCE signed on behalf of the Institute. The Council has set up an 8-man committee chaired by the Auditor-General for the Federation, Mr. Sam Ukura, to drive the implementation process.

ICAN Included in PAO Capacity Building Database of Potential Partner OrganisationsThe Institute of Chartered Accountants of Nigeria (ICAN),

amongst others, has been selected by an Independent Selection Panel for inclusion in the International Federation of Accountants (IFAC)’s Professional Accountancy Organisation (PAO) capacity building database of potential partner organisations.

This was the outcome of the Expression of Interest (EoI) submitted by the Institute in November 2014 in response to an invitation from IFAC to indicate interest in providing PAO capacity building services. The database of potential partner organisations will be used to identify recipients of future Requests for Proposal (RFP) to provide services for specific PAO capacity building projects.”

This is a significant milestone in the history of Accountancy development in Nigeria. Presently, the Institute is mentoring the ONECCA, Cameroon while it recently mentored ANAN to become a member of IFAC. The Institute has so far benefited from two

World Bank sponsored projects which it implemented successfully.

OTHER ACTIVITIES OF THE INSTITUTE

Golden Jubilee Anniversary CelebrationsAs you are all aware, the Institute will be fifty years on

September 1, 2015. To mark this historic Golden jubilee anniversary, a series of all-year round activities have been lined up by the Council and a Planning Committee set up to drive the implementation process. These include a world press conference, a book launch, anniversary lecture, quiz competitions for students in secondary and tertiary institutions, religious activities and a ball room dance during the forthcoming Annual Accountants’ Conference. In line with this well thought-out programme, I held a world press conference on Wednesday, March 25, 2015 at the Council Chamber of the Institute during which I highlighted the invaluable contributions that the Institute has made to human capacity building initiatives, growth of the Accountancy Profession and development of the nation’s economy. Without doubts, we have every reason

ICAN President, Mr. Chidi Ajaegbu (left); Anambra State Governor, Chief Willie Obiano and his wife at a Dinner organised in honour of

ICAN President during the 9th Eastern Zonal Conference


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to celebrate and thank our founding fathers for laying the solid foundation of this noble Institute on which successive generations have been striving to build. Also, the Golden Jubilee Anniversary Lecture was held on May 18, 2015 with Mr. Daniel Monehin, FCA as the resource person. The anniversary lecture was not only well received, but also, very enriching as it catalogued, among others, the invaluable roles of the Institute and its members in the creation of value over the years. It truly gave an engaging insight into our heritage of which we are proud. I congratulate the erudite resource person and the Planning Committee for the success recorded.

ICAN 50th Anniversary Book As part of the 50th Anniversary

celebrations, Mr. Kola Olutimehin, FCCA and Prof. Emmanuel Emenyonu, FCA were commissioned to write a book showcasing the achievements of the Institute. Titled, the “Indelible Footprints: The ICAN Story,” the book was published by the Council to commemorate and celebrate the Institute’s five decades of excellent services to the local and international economy. Segmented into five parts, Indelible Footprints: The ICAN Story is incisive, rich in history and it lucidly presents the sacrifices of noble men and women which manifested in the accomplishments of the built-to-endure professional accountancy organisation called ICAN. I urge all members to obtain a copy of this rich, collector’s publication.

44th Annual Accountants’ ConferenceThe 44th Annual Accountants’ Conference of the Institute was

held at the International Conference Centre and the Sheraton Hotel and Towers, Abuja ;between September 8 and 11, 2014. The theme of the conference, “Protecting the Public Interest – Enhancing Professionalism” was carefully chosen to drive home the prime role that professionals can play and indeed, have been playing to achieve the society of their dream; that is, a society that cares and thrives on general will, rather than, narrow personal interests. The Conference was declared opened by the Special Guest of Honour, President, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, Dr. Goodluck Ebele Jonathan, GCFR who was ably represented by the Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala.

In spite of the massive negative publicity that attended the health and security challenges in the country by the Western and local media, a total of 3,925 delegates including invited guests and resource persons from Canada, New Zealand, South Africa, United Kingdom, USA and host, Nigeria attended the Conference. It is instructive to mention that two serving Ministers (Dr. Okonjo-Iweala and Dr. Olusegun Aganga, FCA) and the former Executive Governor of Imo State, Chief Achike Udenwa, FCA, graced the occasion with their esteemed presence. The presence of Mr. Warren Allen, the global President of the International Federation of Accountants (IFAC), the body that regulates the Accountancy Profession in 125 countries of the world added great colour to the historic event. In all, there were seven technical sessions which comprised the Lead Paper, two plenary and four workshop sessions. I sincerely appreciate you all for your individual and

collective roles that made the conference a huge success. The communiqué of the Conference was widely circulated.

Image of the InstituteThroughout my tenure, the Council

sustained and strengthened its cordial relationship with gentlemen of the press such that most, if not all, the Institute’s events were adequately covered and reported in the print and electronic media. Indeed, almost on daily basis, ICAN was reported in the newspapers due to a series of scheduled press interviews, press releases and press conferences which were held. As you may have also observed, the Council resuscitated its aggressive adverts to educate members of the public and other stakeholders of the value that chartered accountants add to business and wealth creation. To reinforce this, the Institute’s website was redesigned to make it more interactive. Indeed, in response to competition, we also embarked on aggressive marketing, including through social media, to make

ICAN the first choice for accountancy qualification amongst Nigerian students. These measures have helped significantly to enhance the goodwill of the Institute.

Contributions to Educational Development – Lecture TheatresAs part of its strategies to further the Institute’s public interest

mandate and to encourage the production of highly skilled Accounting graduates, the governing Council recently approved the construction of lecture theatres in five selected tertiary institutions across the country as follows: Obafemi Awolowo University, Ile-Ife, University of Benin, University of Nigeria, Enugu Campus, Federal University of Technology, Birnin Kebbi and Northwest University, Kano. It is expected that this donation will assist the Departments of Accountancy in these institutions to admit more deserving students into its training programmes. The Institute as a successful global brand, believes that this joint effort will further raise the profile of the various Accountancy Departments. The Foundation Stone Laying ceremonies have been performed in all the institutions. Others will be done shortly. In order to honour foundation members of the Institute who made invaluable contributions to the Institute and the Accountancy Profession and indeed, to inspire many more to contribute, the Council approved that the halls being built in Uniben and OAU would on completion be, respectively, named after Chief Garrick Sunday Aghahowa, FCA (MB000003) and Balogun J.O. O. Omidiora, BSc, FCA, OON (MB000377), Chairman, BOPP. I warmly congratulate the honourees for their well-deserved recognitions.

Advocacy InitiativesAs you are all aware, one of the prime objectives for the

establishment of the Institute is the promotion and defence of the public interest. Throughout this presidential year, the Institute issued some Advocacy Papers designed to educate the public as well as draw policy makers’ attention to issues that can either advance the course of the Institute and Profession or vitiate economic growth and development. We issued the following

ICAN President, Mr. Chidi Ajaegbu with a Past President of ICAN, Johnson Kayode Osinnaike



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papers:● Communiqué of the Symposium on the 2014 FGN Budget

(The Guardian, Thursday, July 31, 2014).● A Case for Joint Audit (The Guardian, Monday, August 25,

2014).● Case for Mergers of Small and Medium-sized Accounting

Firms in Nigeria (The Guardian, Wednesday, September 24, 2014).

● Cushioning Oil Price Shock: Rethinking Policy Alternatives for Nigeria (The Guardian, December 10, 2014).

● Executives Serving on Audit Committees (widely circulated to stakeholders).

It is my hope that the tradition will be sustained in the years ahead in order to continue to draw attention to the thorny policy issues.

Five-Year Strategic Alliances with CIS and NBA for Nigeria’s Economic DevelopmentOn behalf of the Council, I signed a 5-year collaboration

agreement for Nigeria’s socio-economic development with the Presidents of Chartered Institute of Stockbrokers (CIS), and President of Nigerian Bar Association (NBA) on February 17, 2015. The tripartite agreement covers all areas of mutual interests for enhanced development of the Nigerian capital market, the financial and legal systems and the entire socio-economic life of Nigerians. Under the 5-year renewable agreement, each party shall cooperate in the promotion and exploitation of the project and all associated areas of total development. The “collaborative project is considered a joint project under the relevant laws and will result in an equal split of ownership among the parties.” Also, each party is obliged to ensure prompt execution of any assignment that would bring about overall development of Nigeria’s economy. For instance, each body has agreed to contribute to the efficient flow of information and access to relevant data according to the agreed access rights without prejudice to confidentiality rules. In order to sustain the culture of transparency, each party shall inform others in the project of relevant communications it receives from third parties in relation to the initiative.

Tribunal Sittings In order to reinforce the Institute’s advocacy programme

designed to raise the bar of accountability and transparency even within the Profession, the Council resolved to resuscitate the practice of inviting the press to its Tribunal sittings. This will also help to convey to the public that the Institute does not condone any professional misdemeanour and that it does not have sacred cows. Throughout the period under review, the Tribunal had eight (8) sittings during which a total of seven (7) cases were concluded, four (4) judgements delivered and three (3) rulings read.

DEFENCE OF THE ICAN ACT

The Resolution of ICAN and CITN SagaThe Association of Professional Bodies of Nigeria (APBN)

successfully brokered a resolution of the dispute between the Institute and the Chartered Institute of Taxation of Nigeria (CITN) on the right of chartered accountants to practice taxation without becoming members of the latter through examinations. As members would recall, judgement of the High Court pronounced CITN as the regulating body for tax practice in Nigeria. This position was affirmed by the Court of Appeal which also

declared that ICAN members can practice taxation. An appeal was filed by the Institute at the Supreme Court to clarify these seemingly ambiguous pronouncements by the Court of Appeal. Notwithstanding the judgements of the High Court and Court of Appeal, the Council felt that it will be improper for members to continue to practice tax without been members of CITN. After extensive negotiation, the content of an MoU was mutually agreed by the Councils of ICAN and CITN and this was subsequently filed as terms of settlement and judgement of the Supreme Court on the matter. The MoU provides that ICAN members with ICAN practising Licence will continue to enjoy direct membership of CITN by just filling the CITN membership form without having to sit for any examinations. ICAN Members without ICAN practising Licence would be required, on application, to attend only CITN orientation programme/induction ceremonies for the purpose of admission into its membership. The MoU was publicly signed by; both bodies on March 10, 2015 at the Golden Gate Hotel, Ikoyi Lagos. I seize this opportunity to appreciate the roles played by our Body of Past Presidents and the APBN leadership in the resolution of this dispute.

Bill to Establish CIMA, NigeriaAs members will recall, a Bill to establish the Institute of

Cost and Management Accountants, Nigeria was presented to the Senate in 2012 for consideration and passage into law. The distinguished Senators saw no merit in such a body and the Bill was accordingly dropped. Early this year, the bill re-emerged as the Chartered Institute of Management Accountants (CIMA) in the Senate again and has gone through second reading. This body is not connected in any way to the well known CIMA, UK. Clearly, between 2012 and 2015, nothing has changed to merit the re-presentation of such a Bill for passage into an Act.

Curiously, Part 1(2) of the bill renders illegal or prohibits the practise of management accounting by the two recognised professional accounting bodies in Nigeria (notably ICAN and ANAN) and thereby seeking to establish Management Accountancy as a profession. Since Management Accounting is an integral part of the Accountancy Profession, the Council sees such a provision as absurd while the bill represents an underserved assault on the noble Accountancy Profession. As I mentioned to the press on March 25, 2015, there is need for the government to halt the trend towards the fragmentation of Professional Accountancy bodies in the country. In the last ten years, many associations, without any legitimate claim to technical excellence and expertise, have been masquerading as accountancy bodies, fleecing innocent Nigerians of their hard earned income. With ICAN and ANAN in existence, there is no aspect of Accountancy that is not adequately covered.

In our view, the country cannot rationalise the creation of more accountancy associations on the altar of commercial expediency at the expense of the overall national interest and commitment to professional excellence. Accountancy is not a trade but a distinct professional calling with internationally accepted best practices. It must therefore be treated with the respect it deserves.

PUBLIC SERVICE SEMINARSAs part of its capacity building initiatives designed to raise

the bar of accountability and transparency in governance, the Council organised non-fee training sessions for stakeholders in the economy. The following free training sessions were held at the Ebute-Metta Office Annex during the period under review:

● A Case for Mandatory Joint Audit – Chaired by Sir H.A. Agbebiyi, KSC, FCA.


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● IFRS for Audit committee members of listed companies.

● Not-for-profit entities – Chaired by Mr. Ayo Oni, FCA.

A session of the not-for-profit organisations was held in Abuja in March 2015. Let me seize this opportunity to add that plans have been concluded to hold sessions of these seminars in other major cities of the country. I am delighted to report that the feedbacks received from participants have been very encouraging. Indeed, many commended the Institute for its desire to support stakeholders through capacity building.

WHISTLEBLOWERS’ FUNDThe Institute recently created a N50

million Whistleblowers’ Protection Fund as part of strategies to ensure high moral, financial, ethical and legal standards by members in the discharge of their duties. The aim of the Fund is to protect ICAN members and the Public from any form of reprisals or victimisation when an alarm is raised on financial impropriety by public or private establishments, individuals or groups within the country. The Fund is also to assist whistleblowers in litigation expenses reasonably incurred and to assist members of the Institute to discharge their professional duties without fear of being victimised. The Council of the Institute considers whistle blowing as a crucial instrument to detect and report corruption, fraud and mismanagement in the public, private and non-profit sectors of the economy.

Since charity begins at home, the Institute also apprised members of the public on its disciplinary processes. According to the release, members of the public were urged to promptly report any alleged case(s) of misconduct by any member of ICAN to the Institute through the Registrar/Chief Executive. This will assist the Institute investigate, try and where necessary, sanction any member found culpable of professional misconduct in line with its enabling Act. They were assured that any member of ICAN found guilty of unethical behaviour or professional misconduct will be appropriately sanctioned to serve as deterrent to others.

ANNUAL BUDGET SYMPOSIUM As you are all aware, annually, the Institute organises a post

budget symposium during which it x-rays and analyses the sectoral provisions, fiscal and other policies of the Federal Government’s Budget and their possible implications for productive economic activities and strategic impact on the citizenry. In line with this established tradition, the Institute organised a Symposium on the 2014 Annual Budget of the Federal Government of Nigeria in Lagos, during which presentations were made by the Dr. Bright Okogu, Director-General, Budget Office of the Federation, The Presidency and other eminent resource persons. The resultant communiqué was sent to government and also widely circulated.

VISIT TO PUBLIC OFFICIALSFall-Out of the Visit to Dr. Goodluck Ebele Jonathan, GCFRAs part of the Institute’s constructive engagement initiative,

the Immediate Past President led a delegation of the Institute

to pay a courtesy call on the President, Commander-In-Chief of the Armed Forces, Dr. Goodluck Ebele Jonathan, GCFR at the Aso Rock Villa in April, 2014. During the very warm and interactive sessions, the Institute submitted a memorandum to the government containing a lot of issues requiring urgent attention by the leadership of the nation. As a follow up to the visit, the government requested the Institute to make a proposal in respect of the increasing call for the creation of the Office of the Accountant-General of Federal Government as distinct from the Office of the Accountant-General of the Federation. The memorandum on this was subsequently submitted to the President. I will like to put on record the appreciation of the Institute to Past President, Chief (Mrs) E.O. Adegite, FCA who chaired the adhoc committee that prepared the draft memorandum which was subsequently reviewed and approved by Council for submission to the government.

Visit to the Honourable Minister of EducationAs part of the Institute’s constructive engagement initiative,

I led a delegation of the Institute to pay a courtesy call on our supervisory minister, Mallam Ibrahim Shekarau, Hon. Minister of Education at his FCT, Abuja office. In my address, I briefed the Minister on the activities of the Institute, some of its achievements and needs. These include the fact that the Institute:

● Has produced over 18,000 AATWA and 39,665 Professional Members.

● Recently reviewed and launched its new syllabus in May 2014.

● Has embarked on a series of sensitisation programme across the six geo-political zones on the new syllabus.

● Is a founding member of IFAC, PAFA and ABWA.● Mentored ANAN to become an associate member of IFAC.● Has been training members to upscale their proficiency in

IFRS and IPSAS. ● Has established Research Grants to support doctorial

students in universities.● Has commenced the construction of lecture theatres in five

tertiary Institutions across the nation.I also seized the opportunity to apprise the Minister of some of

the problems facing the Educational Sector including inadequate budgetary allocation, poor performance of students at West African Senior School Certificate Examination (WASSCE) level, the frequent strikes by teachers, etc. Finally, I invited the Hon.

ICAN President and his team during his courtesy visit to KPMG



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Minister to consider and approve the names of Government Nominees earlier submitted to him to fill the vacancies in the Institute’s governing Council. In his remarks, the Hon. Minister of Education thanked us for accommodating several postponements of the visit and assured the Institute of the Ministry’s support at all times. He also promised to consider and revert on the various issues raised. I am delighted to report that the Hon. Minister considered and approved the list of government nominees submitted to his office and also successfully ended the strike by teachers of Polytechnics and Colleges of Education within a very short time. The government nominees have since been sworn-in.

Visit to Financial Reporting Council of Nigeria (FRCN)Further to Council’s resolve to reach out to our key

stakeholders, I led a delegation of the Institute and managing partners of the Big 4 Firms to pay a courtesy call on The Executive Secretary/CEO, Financial Reporting Council (FRC) of Nigeria, Mr Jim Osayande Obazee, FCA and his Management team on August 13, 2014. In his welcome remarks, Mr. Obazee expressed his delight at receiving us and specially congratulated me on my investiture as the 50th President of the Institute. He also commended the Institute’s age-long tradition of hitch-free yearly succession and the Institute’s importance to national life. Issues raised in his remarks include:

► Proposed visit by International Accounting Standards Board (IASB) following the classification of Nigeria as an IFRS Country. Their officials will visit in November, 2014 to run a “Train-the-Trainers” programme on IFRS for SMEs.

► The need to review the Curricula of Accounting Courses in tertiary institutions to include IFRS, Financial Reporting & Ethics as pathway to sustaining excellence in the accounting profession.

► The need for the Institute to do more to assist its sister body, ANAN, to gain full membership of IFAC and to mentor ANAN leadership to be able to play their role well in the public sector.

► The need for the Institute to seek Leadership Role in the Nigerian Accounting Association.

► The need for the Institute to open “An Emergency Ward” for members in practice to address their practice challenges.

► The need for the Institute to take more interest in legislative changes.

► The need for the Institute to partner with FRC for the establishment of IFRS Academy to train experts as contained in FRC Act 2011.

► The plan by FRC to release the National Code of Corporate Governance for Nigeria to replace the current streams of persuasive codes as well as ethics for professionals.

In my response, I stressed the purpose of the visit which was to consolidate and strengthen the cordial relationship that had made FRC & ICAN partners in progress over the years. I recalled the pioneering roles played by the Institute in the formation of NASB, the precursor of FRC until it was taken over in 1992 by Federal Government. During the very interactive session, we reiterated as follows:

● That the Institute will continue to advise corporate bodies on the need to adopt IFRS as their reporting framework as provided in the FRC’s enabling law.

● That the Institute, as a member of IFAC, is irrevocably committed to the Federation’s broad mission for the

development & enhancement of Accountancy Profession with harmonised standards in the public interest.

● That the Institute will continue to review and adopt International Standards on Auditing as Nigerian Standards on Auditing.

● That the Institute will press forward with its practice monitoring regime designed to raise the quality of professional practice and financial reporting in the country.

● That the Institute will partner & cooperate with FRC especially in the area of registration of Professionals & other persons who can sign Financial Statements.

● That the FRC will support the Institute’s quest for support of other stakeholders in its call for “Joint Audit.”

● That the FRC and the Institute will encourage and promote more open discussions on the implications of the Local Content Act on professional accountants across all sectors.

Further to this visit, Mr. Jim Obazee, FCA was invited to brief the Council on the thrust of the IFRS Academy on which he wanted the Institute to provide a No Objection report. Given the likely impact of the Academy on the capacity building initiatives of the Institute and its members, the Council subsequently decided not to give the No Objection requested.

Visit to the Auditor-General for the FederationAgain, as part of my engagement initiative, I paid a courtesy

call on the Auditor-General for the Federation, Mr Samuel T. Ukura, FCA in his office at Audit House, Federal Capital Territory, Abuja on Monday, July 7, 2014. We were received by the Auditor-General for the Federation himself in company of his Directors and many ICAN members in his office. During the interactive session, I stressed the need:

● To embrace the philosophy and adopt the use of International Public Sector Accounting Standards (IPSAS) as basis for financial reporting in the public sector in line with the government’s Roadmap.

● To expeditiously computerise government business such that its reports can be published six months after year end in the true spirit of transparency and accountability.

● To foster the engagement of members in practice who are desirous of rendering professional services to the government and its agencies.

● For the new scale of professional fees recently approved by the Council of the institute to be adopted by the Office of Auditor-General for the Federation as guide to pay our members.

● To support and sponsor members to the 44th Annual Accountants’ Conference.

In his response, the Auditor-General for the Federation reassured me that:

► Members and staff in his office were being sent on training to update their knowledge on IPSAS.

► There were no arrears of Audit Reports as the 1999–2012 Reports have been submitted to the National Assembly while 2013 would be submitted as soon as issues raised on it were addressed by the office of Accountant-General of the Federation.

► Members and staff in his office were regularly allowed, sponsored and released to attend Institute’s Training Programmes as this will further enhance their knowledge and professional competence.

► The office will support ICAN Conference in line with established tradition.

The entire visit was hugely successful.


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Visit to the Accountant-General of the FederationI also led a delegation of the Institute to visit

the Accountant-General of the Federation, Mr. Jonah Otunla, FCA and his Management during which issues of accountability and transparency in government were extensively discussed. We both agreed that the phased-adoption of IPSAS will certainly help to raise the bar of accountability in the public sector when completed. I was delighted to note that the government had developed a new chart of accounts based on IPSAS and that training sessions were being held in the six geopolitical zones of the country. It was heart-warming to hear that the Institute was collaborating with his office to drive this capacity building initiatives. We both promised to continue to build on the existing relationship in order further raise the quality of financial reporting in the public sector.

Visit to the CBN GovernorAs part of the continuing engagement of government

institutions, a courtesy call was paid on the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele. He was on hand to receive us. During the visit, I raised a lot of issues which I urged the bank to expeditiously address as follows:

● Withdrawal or significant reduction in the number of dirty notes in circulation.

● Lowering of cost of borrowing funds for developmental purposes.

● Employment of more chartered accountants. ● Sponsoring of our members to participate in the Institute’s

training programmes through MCPE and Faculties.● Partnership with the Institute to pursue their public interest

mandate without fear or favour.● Support of the Whistleblowers’ Fund as part of the

bank’s contributions to promoting accountability and transparency.

In his response, the Governor commended ICAN’s contributions to capacity building in the country and expressed the willingness to continue to support the Institute in this regard. He thanked me for raising the aforementioned issues and promised to address them expeditiously. Finally I applauded the various interventions of the CBN leadership in the economy and in particular, the cashless policy and the recent rebasing of the nation’s GDP which led to the emergence of Nigeria as the largest economy in Africa. Thereafter, the CBN Governor expressed the hope that CBN will sustain the subsisting mutually beneficial relationship with the Institute.

Visit to Securities and Exchange CommissionAs members are aware, many blue chip companies in the

telecommunication and petroleum sectors are not quoted on the Nigerian Stock Exchange. Yet they make huge profits from the economy and repatriate same to their home countries. Besides the capital flight involved, the depth and breadth of the Stock Market is nothing to write home about. Currently, the listed companies in the market are less than 250. In my view, there is need to compel some companies with given turnover to be listed on the Exchange such that Nigerians can benefit from their huge profits in the form of dividends and bonuses. It was to market this initiative that I paid a courtesy call on the erstwhile Director-General of Securities and Exchange Commission, Ms Arunma

Oteh and other Management Staff of the Commission. During the visit, I commended the SEC under her leadership

for the various reforms initiated by the Commission which brought not only sanity to the market but also attracted more foreign direct investments needed to drive economic development initiatives. In spite of the relative progress made, I emphasised the need to deepen the market in order to increase its capacity to support various developmental initiatives by compelling public interest entities in telecommunication (MTN, GLO, Airtel, ETISALAT, etc) not listed in the market to be mandatorily listed. I also informed the Commission of the following strategies embarked upon by the Institute:

● To raise the quality of financial reporting in Nigeria.● The advocacy for joint audit to build capacity and share

experiences, benchmark their operations on global best practices.

● Training of members in the new IFRS & IPSAS.In her response, the Director-General commended the

CBN Governor, Mr. Godwin Emefiele (right); ICAN President, Mr. Chidi Ajaegbu; and ICAN Vice President, Otunba Femi Deru during Ajaegbu’s courtesy visit to CBN in Abuja

ICAN President visits the former Director-General of Security and Exchange Commission, Ms Arunma Oteh



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Institute’s leadership for these wonderful initiatives and submitted that the Commission would support and collaborate with the Institute for the actualisation of these goals.

CELEBRATIONSVisit to the Doyen on his 95th Birthday AnniversaryThe 95th Birthday of the Doyen took place on Saturday, August

9, 2014. However, my request for a visit to celebrate and rejoice with the Doyen was postponed till Wednesday, August 13, 2014. On the scheduled date, I led other members of Council and Secretariat to the Doyen’s house at Ikoyi to salute, felicitate and also present him a birthday cake. With the Doyen’s approval, I arranged for a soloist to perform during the visit and this made the short occasion very memorable.

The Doyen expressed his appreciation for the visit and remarked that he enjoyed the soloist’s rendition of beautiful tunes and songs which surprised him and made his day. He said that the cake presented to him was the best he ever got for the celebration. The Doyen advised that the Council to encourage members to diversify into other areas of endeavour outside accounting, auditing and finance in order to enhance their employment opportunities. He was full of satisfaction and

fulfilment when told that ICAN Examinations were now being conducted in nearly all major cities in the country, the UK and Cameroun and all over Nigeria. Photo, cake cutting, songs and prayer sessions were the highlights of the celebration. We wish him and all past presidents longevity of life in good health.

97th Birthday of Chief (Dr.) G.S.Z.U. Aghahowa, FCA (MB000003)The second day of November 2014 was very unique in the

ancient city of Benin as chartered accountants gathered in their number to celebrate an icon of the Accountancy Profession, the first professionally qualified Cost Accountant in British West Africa, a foundation member of the Institute, Chief (Dr.) Garrick Sunday Zaccheus Uwa Aghahowa, FCA (MB No.000003). Born on Sunday, November 2, 1917, the nonagenarian celebrated his 97th birthday among his professional peers. I led a delegation of the Institute to felicitate with him. Pa Aghahowa, FCA is, from available records, likely to be the oldest living chartered accountant in Nigeria today! Thus, the ceremony was a carnival of some sort for members of the Benin and District Society led by their Chairman, Mr. Efe Iserhienrhien, ACA. Chief Aghahowa,

FCA (The Aiwereoba of Benin Kingdom), was full of praises for the Institute and the pioneering roles of Mr. Akintola Williams.

80th Birthday Celebration of Sir (Chief) S.O. Oguntimehin, FCA, OON (PP)I also led a delegation of the Institute to the 80th Birthday of

Sir (Chief) Simeon Olusola Oguntimehin, FCA, OON (PP) and his installation as Lisa of Ondo Kingdom on Friday October 3, 2014 at the palace of Osemawe of Ondo Kingdom. The event was well attended by captains of Industry and many other distinguished personalities from across various sectors of the economy including the following Past Presidents: Balogun O.O. Omidiora, Sir H.A. Agbebiyi, Senator Kola Bajomo, mni, and His Excellency, Chief U.S. Nwankwo. We thank them all.

VISITS TO DISTRICT SOCIETIESAs part of the efforts to monitor the welfare of members,

acquaint myself with their problems and proffer solutions to them, I visited a total of eighteen (18) District Societies. As outposts of the Institute, such visits are crucial if the information gap subsisting between the Institute and its members and students who are widely interspersed is to be bridged. I also seized the opportunity of the visits to pay courtesy calls on Executive Governors of States where they are located to appreciate the office bearers for employing our members and to encourage them to engage more because of the associated benefits of using professionals. I visited six Governors – Chief Theodore Orji of Abia State, Chief Sullivan Chime of Enugu State, Ogbeni Rauf Aregbesola of Osun State, Chief Ibikunle Amosun, FCA of Ogun State, Dr. Muazu Babaginda Aliyu of Niger State and Alh. Ibrahim Dankwanbo, FCA of Gombe State. Besides the fact that the visits were very revealing, I must admit that the ground swell of support I received from them and the various Districts visited confirm the towering image and goodwill of our Institute.

Inauguration of the Jalingo & District SocietyIn order to create a formal platform for members in this locality

to interact, share experiences and present common positions on challenges facing them, I inaugurated the Jalingo and District Society on Monday, January 19, 2015. With the inauguration of this District, ICAN now has fifty-two (52) District Societies spread over country, Cameroon, UK and USA. These Districts will also help to sensitise the students in their respective sphere of influence to encourage them to pursue careers in accounting through the Institute’s examination programmes.

Inauguration of the ICAN-Canada District Society The inauguration of Canada and District Society was held on

February 6 – 7, 2015 in Calgary, Canada. With this, the total number of Districts rose to 53.

ZONAL CONFERENCES

9th Eastern Districts’ Zonal ConferenceI led a delegation of the Council to attend the 9th Eastern

Districts’ Conference of the Institute held at the Finotel Classique Hotel and Reservations, Akwa, Anambra State from July 30 – August 2, 2014. The theme of the conference was “Micro Financing and Economic Empowerment: Nigeria in Focus.” The conference theme was carefully chosen to draw attention to the need to generate institutional and policy framework to address the problem of that sector. Four papers were delivered

Chief Garrick Aghahowa (left) with ICAN President, Mr. Chidi Ajaegbu


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by eminent scholars and captains of industy during the 3-day event and a communiqué had been issued and published in the newspapers.

9th Western Districts’ Zonal ConferenceAlso, the 9th Western District Conference

was held at the Plaza de Aruna, Ele-ekara, Oyo State between March 2 – 5, 2015. It was declared open by His Royal Majesty, the Alaafin of Oyo, Oba Lamidi Olayiwola Adeyemi, the conference was attended by over 300 chartered accountants. The theme of the conference, “Security, Governance and National Development: Issues, Challenges and Implications for Professionals,” was very timely and appropriate as it captured the current mood of the nation. As you are all aware, one of the Fundamental Objectives and Directive Principles of State Policy enshrined in Chapter 2, Section 2(b) of the 1999 Constitution of the Federal Republic of Nigeria is that the “Security and Welfare of the People shall be the Primary Purpose of Government.” This provision was not made by accident.

At the heart of economic prosperity of any nation is a conducive environment epitomised chiefly by security of life and property and observance of Rule of Law. Defined as freedom from risk, danger, anxiety, fear and uncertainty, security or lack of it can make or mar investment activities with severe implications for economic growth and development. No productive activities including distribution of finished goods to final consumers can conveniently take place in a strife-torn environment. These issues were extensively discussed by the participants while the communiqué issued at the end of proceedings was well circulated.

First ICAN-USA Conference, Toronto, CanadaThe inaugural ICAN-USA District Society’s conference

was held in Toronto, Canada between August 25 – 30, 2014. I led a delegation comprising, the Vice President, Immediate

Past President and 140 fee-paying members to the Conference. The Conference was a huge success.

Visits to Firms of Chartered AccountantsDuring my investiture, I promised

to constructively engage critical stakeholders such that we can strengthen the technical network of the Institute for better service delivery in the public interest. Pursuant to this, I paid courtesy calls on the following leading Accountancy firms in the country to court their support: Akintola Williams Deloitte, PricewaterhouseCoopers, KPMG Professional Services, Ernst and Young, BBC Professional Services, Grant Thornton, Olusola Adekanola & Co., Sulaimon & Co., PKF, Giwa Osagie & Co. and Uhy MAAJI & Co.

The Managing Partners, Senior Partners and the Management Staff of all the firms warmly received my entourage at their various office locations. Discussions were mainly on how to move the Institute forward such that it can retain its leadership position in the Nigerian market. I commend their pre-disposition to the cause of the Institute.

Visit to Dangote GroupI led a delegation of the Council to pay a courtesy call on the

President/Chief Executive Officer, Dangote Group, Alhaji Aliko Dangote, GCON on Thursday, August 14, 2014 to express our appreciation for employing a lot of our members and to encourage him to hire more. In his address on that occasion, Alhaji Aliko Dangote, GCON urged the Council under my leadership to take the Institute to the next level.

In response, I thanked Alhaji Aliko Dangote, GCON for creating time out of his busy schedules to receive me and my entourage. I acknowledged Dangote Group as one of the major employers of labour and fastest growing companies in Africa. While commending the Group for employing many chartered accountants and for supporting the Institute’s Conference, I

assured him that the Council was working assiduously to enhance the quality of its products. In pursuance of this, it recently reviewed its syllabus and training curricula. I further acquainted Alhaji Dangote with some of the Institute’s activities such as the Students Special Project aimed at encouraging the educationally disadvantaged States of the Federation to produce Chartered Accountants, the call by the Institute to all stakeholders to embrace “Joint Audit” and various initiatives to ensure enhanced service delivery and support to members.

Enthused by these initiatives, Alhaji Dangote immediately requested for a proposal on Students Special Project promising to partner with the Institute in that regard either directly or through his Foundation. Also he requested that resume of some members should be forwarded to his organisation from the Institute’s ICAN President with some members from the Eastern zone during the Eastern Zonal Conference

Dr. Ashaolu; ICAN President, Mr. Chidi Ajaegbu (middle); and Otunba Olusola Adekanola during

Ajaegbu’s visit to Adekanola & Co.



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Employment Bureau for possible employment. He also pledged the organisation’s willingness to continue to support the Annual Accountants’ Conference as it had been done in the past. Proposals have been forwarded to him.

Visit to the Chief of Army StaffAs you are aware, there are many members of the Institute

in the Nigerian Army. Behind this trend is the Nigerian Army School of Finance and Administration which was first accredited by the Institute in 1985. Unfortunately, we have been receiving complaints from our members about their inappropriate placement after passing the qualifying examinations as it is done in the Civil Service. In view of this, I had to pay a courtesy call on the Chief of Army Staff, Lt.-General Kenneth Minimah, CFR, first, to stress the need to strengthen the subsisting mutually beneficial relationship between our two institutions and secondly, to invite him to consider the plight of many Army personnel who, through dint of hard work and commitment to professionalism, have successfully passed the very rigorous qualifying professional examinations of our Institute but have remained on the same level in spite of their new professional status. He promised to use his good offices to address the matter within the extant Nigerian Army regulations.

SWAN Presidential LuncheonThe Society of Women Accountants of Nigeria (SWAN)

organised a special luncheon in my honour which was held at the Marcopolo Restaurant, Victoria Island. The chairperson of SWAN, Mrs Onome Olaolu-Adewuyi, FCA delivered the welcome address at the event which was attended by a lot of dignitaries. It is worthy of note that since its formation in 1978 by Chief Mrs Elizabeth Omeresan Adegite (PP), SWAN has been in the vanguard of promoting not only economic empowerment of women through entrepreneurship training but also encouraging and assisting young women to become members of the disciplined accountancy profession. The body makes regular donations to indigent students and award prizes to the Best Female students in the Institute’s final qualifying examinations.

Launching of Members’ StanbicIBTC Credit CardDuring my investiture, I promised that members’ welfare

would be given deserved attention in the year. Accordingly, I launched the members’ credit card which is a product designed

and supported by StanbicIBTC Bank to provide credit facilities at zero interest free rate to members for 55 days. Interest will only be paid, if the period agreed is exceeded. To qualify, a member is required to be in good financial standing with the Institute and also open an account with the bank. That is, he or she must not be owing the Institute. The event was held at the Institute’s Council Chamber on Tuesday, December 16, 2014.

INSTITUTE’S REVENUEThe Council has taken some decisions to boost the revenue

of the Institute. These include:

(a) Delisting of MembersThe Council has resolved that in line with the Institute’s

enabling Act, all members who did not fulfil their financial obligations to the Institute as an when due will be delisted. The Council however gave a concession that the cut off date for delisting should be January 1, 2013. The details of members (excluding their names) delisted have been hosted on the Institute’s website. We have checked and updated our financial records to ensure that nobody is wrongly delisted. Since the publication, many members have been striving to pay their debts.

(b) Reduction in Foreign TripsIn order to reduce the cost of the Institute’s governance, I

decided to reduce by 80% the number and size of Institute’s delegation to international events. For instance, the Registrar/Chief Executive attended the last PAFA meeting alone in South Africa. In the same vein, visits to District Societies were also scaled down considerably.

(c) Investment PolicyAs part of the strategies to further boost the Institute’s

revenue, the Council has effectively been diversifying and monitoring the implementation of its investment policy in order to obtain maximum returns.

MEMBERSHIP GROWTH AND DEVELOPMENT

(a) Growth of Membership – 54th Induction Ceremony We have continued to witness steady growth in the Institute’s

membership. For instance, a total of 599 candidates were inducted into the Institute’s membership at the 54th Induction Ceremony for members which took place on November 3 – 4, 2014 at ICAN Student Centre, Amuwo, Lagos. With this, the total membership strength of our Institute is now 39,107. This is very commendable considering its modest beginning of 250 in 1965. I thank all the past presidents who were able to attend the 2-day event.

(b) Association of Accounting TechniciansAn induction ceremony was held to admit a cumulative total of

981 newly qualified young men and women into the Association of Accounting Technicians in June and December, 2014 at very colourful ceremonies. This brings to 18,808 the total number of AAT so far produced by the Institute. I thank the Past Presidents that also graced the two occasions.

(c) Practice Monitoring InitiativeAs revered past presidents will recall, the Council in 2009

approved the introduction of practice monitoring to ensure compliance with standards and best practices in the profession.

Alhaji Aliko Dangote and ICAN President, Mr. Chidi Ajaegbu


18


Since year 2010 when the practice monitoring mechanism commenced, over three hundred (300) practicing firms (particularly SMPs) have been reviewed with all expenses paid by the Institute. The Council is deeply encouraged by the outcome of the various practice reviews as they bring to the fore common challenges and critical areas of practices that need to be reinforced either through consistent capacity building or mutually agreed action plans. In fact to address these issues, the PPMC commenced a highly subsidised nation-wide training programme for members in practice. The theme of the inaugural edition which was held in Lagos on October 23, 2014 was, “Auditing Standards, Audit Quality and Practice Development.” Through this initiative, the Council wants to deliberately address some of the obstacles in practice management, improve the quality of financial reporting and the degree of uniformity of auditing practice and related services in the country. Ultimately, Nigeria’s investment market will be the better for it.

(d) Quality Control ChecklistThe Professional Practice Monitoring Committee developed

a quality control checklist based on the Nigerian Standards on Quality Control (NSQC) 1. Described by some people as practice made easy, the publication has proved very useful to small and medium-sized firms who lack capacity to leverage the provisions of NSQC 1. On behalf of the Council, I thank the Committee for its efforts.

(e) Creation of Financial Reporting Faculty In appreciation of the dynamics in the field of financial

reporting globally, the Council, during the year, decided to establish the Financial Reporting Faculty which will serve as the mechanism for tracking and apprising members of the changes. This brings to seven, the number of Faculties so far created by the Institute. The Faculty’s Board is chaired by Mr. Oduware Uwadiae, Partner, Akintola Williams Deloitte.

(f) World Bank Project As you are all aware, the World Bank approved a grant of

US$499,300 to enable the Institute strengthen its technical

capacity such that it can adequately support its members. The 3-component Grant was successfully implemented under a Twinning Programme signed with the Institute of Chartered Accountants in England and Wales. I am delighted to report that the Project has been concluded and audited to the satisfaction of the donor agency, the World Bank. I wish to specially commend the Project Implementation Team and the Secretariat for doing the Institute proud.

STUDENTS DEVELOPMENT

(a) Visit to National Universities Commission (NUC)In order to apprise the NUC of current

developments in our certification processes, I led a delegation of the Institute to pay a courtesy call on its Executive Secretary, Prof. Julius Okogie and other Management Staff. During the interactive session, I reiterated the Institute’s policy of enhancing the quality of accounting education in the country

through timely accreditation of various tertiary institutions and contributions to their human and physical capacity. Some of the measures include: decision by Council to build Lecture Theatres in five tertiary institutions across the Country; review of the ICAN Syllabus; and the development of learning materials for use by ICAN and other students

In response, Prof. Okogie commended the Institute for its contributions to Accounting education in the country and promised to look into the request made by ICAN that the ATSWA should be accepted by all Nigerian universities for direct entry into institutions.

(b) Students Sensitisation on the New Professional Examinations Syllabus In order to create awareness among stakeholders especially

the students about the newly approved syllabus, a one-day awareness seminar was put together by the Students’ Affairs Directorate. This awareness programme was held in Lagos, Ibadan, Port Harcourt, Kano and Abuja. In each of the sessions, four papers were presented as follows:

● Paper 1 – What is New in the New ICAN Professional Exams Syllabus by Alh. Abubakar Farouk Umar, ACA.

● Paper 2 – Professional Exams Exemptions Modalities by Mr Toyin A. Adepate, OON, FCA.

● Paper 3 – Effective Preparation for ICAN Exams by Mr. S.A. Bammeke, FCA.

● Paper 4 – How to Attempt, Answer and Solve Case Study Questions by Alh. I.M. Zakari, FCA.

From the feedbacks received, the students and their teachers found the sessions very informative and enriching.

(c) Printing of New Study PacksThe Council has awarded a contract for the printing of the new

learning materials mostly developed by Emile Woolf International for the 16 subjects of the new syllabus to a Singaporean company. The study packs have been received and are now been distributed free to all the Institute’s students who registered for the May 2015 diet. The soft copies are also available on the Institute’s website for students to download.

ICAN President and his team during a courtesy visit to the Chief of Army Staff, Lt.-General Kenneth Minimah, CFR, in Abuja



19


(d) Signing of MoU with NNDCFollowing the expiration of the 3-year memorandum of

understanding between the Institute and the New Nigeria Development Company under which the Student Special Projects for the Northern states are being managed, we had to review and sign a revised MoU. The NNDC was very pleased with the successful implementation and achievements under the erstwhile MoU signed in 2010. I signed the MoU on behalf of the Institute and the Group Managing Director of NNDC, Dr. Ahmed Mohammed signed for the organisation with some management staff of both organisations in attendance.

(e) Tuition Houses’ Support FundIn its strategic efforts to improve the quality of accounting

education in the country, the Institute, on Wednesday, March 25, 2015, launched, the Tuition Houses’ Support Fund in the sum of fifty million Naira. The main thrust of this initiative is to make funds available to accredited Tuition Houses not only to improve their training facilities including libraries and learning environment but also enhance their capacity to support and prepare students for the Institute’s Professional and Accounting Technicians’ Scheme West Africa (ATSWA) examinations at subsidised tuition rates. Through this initiative, ICAN and tuition providers can collectively and positively impact the learning environment and raise the quality of teaching and accounting education in the country. The initiative is being pursued as part of the social responsibilities of the Institute of building highly skilled professional accountants for the Nigerian and global economy.

(f) Mutual Cooperation Agreement with Tertiary Institution (MCATI)Further to the objections raised by members

over the memorandum of understanding signed with Babcock and other universities, the Council reviewed the agreement and came up the Mutual Cooperation Agreement with Tertiary Institutions (MCATI). The MCATI offers peculiar exemption conditions to any tertiary institution willing to sign onto the programme. Besides, all tertiary institutions that sign on must make ATS examination compulsory for all its 100 level students. Thus this initiative will help provide a stream of students into the professional stream of the Institute’s examinations. Since the approval by the Council, I have visited over eight tertiary institutions to market the Scheme. I am delighted to report that some tertiary institutions have signed on while the Council has created a Standing Committee to supervise the Scheme.

(g) Completion of Bayelsa Student Study CentreAs you all may recall, the Yenagoa and

District Society was the first to commence the Student Special project and this was during the tenure of Dr. Goodluck Ebele Jonathan, GCFR, the then Executive Governor of Balyesa State. To create a conducive environment for the delivery of training programmes for students

and for the district to carry out its mandate as an outpost of the Institute, the District Society commenced the building of its Secretariat with a grant given by the Council. I am delighted to report that the edifice has been completed and commissioned.

(h) Endowment of N10m Subject Prize by Retired Partners of PwCAs part of its contributions to the promotion of high ethical

standards and development of the Accountancy Profession in Nigeria, the Retired Partners of PricewaterhouseCoopers (PwC) in the country, have endowed a Subject Prize in perpetuity in the sum of ten million Naira (N10m). The subject is Management, Governance and Ethics at the Skills Level of the Institute’s qualifying examination. The best student in this subject, in each diet, will be awarded a Prize in line with the terms of the endowment. On behalf of the Council, I express our profound appreciation to the Retired Partners of PwC for

this invaluable support and commitment to the ideals of the Institute and Profession, even in retirement.

ICAN PROPERTY

(a) ICAN Centre, AbaShortly before my investiture, I pledged to

provide a counterpart-fund of N25 million to build an ICAN Centre for the Aba and District Society in Aba city while the Institute will contribute same sum. For this gesture and in line with Council’s policy, the centre is to be christened Chidi Onyeukwu Ajaegbu ICAN Centre, Aba. I am delighted to report that the project has been completed and it was commissioned on May 1, 2015. Hopefully, the lecture theatres will be concluded soon. I thank the Past Presidents and eminent members who reached out to commend me for this modest contribution to the Institute.

(b) ICAN Land, AbujaAs part of its strategies to enhance its

revenue base as well as create visibility for the Institute in the nation’s fledgling capital city,

ICAN President, Mr. Chidi Ajaegbu with the Chairman of Aba & District

Society of ICAN, Mrs. Ify Nwachukwu, during the commissioning of the Chidi Onyeukwu Ajaegbu ICAN

Centre in Aba, Abia State


20

the Council approved the acquisition of 4.2 hectres of land in Abuja in the total sum of two hundred and forty-five million Naira (N245 million). The Institute paid a deposit of N35 million to facilitate the official change in the purpose for which the land was initially allocated. This approval was obtained but unfortunately, the approval obtained was not adequate for the anticipated use. Council constituted a sub-committee to carry out further investigation on the Use of the Property. The sub-committee met with a Consultant and eventually agreed that the documentation was not suitable for the Institute. As a result of the foregoing, Council was advised not to purchase. The Seller had been informed of the Council decision and he agreed to pay back the initial deposit as soon as he gets another buyer.

(c) ICAN Centre, Amuwo OdofinFollowing the report of poor financial performance

of the property manager engaged to manage this property, the Council decided to terminate the contract. Pending the engagement of another company, the Secretariat is currently managing the place with impressive results. The areas that require maintenance have been repaired.

(d) ICAN Library, AbujaOver the years, students and other stakeholders in Abuja

have been clamouring for a conducive venue where they can carry out their studies and research work. In response to this dire need, the Council approved the establishment of a library at the Akintola Williams House, Abuja. Accordingly, the Council had to request one of the tenants on the ground floor to quit to give room for the initiative. The contract for this has been awarded to the successful company from the series of bids received by the Major Tenders Board. It is our hope that the project will be completed in 3 – 4 months.

INTERNATIONAL ACITIVITES

(a) UK Annual Dinner and AwardsI was the special guest at the ICAN UK District Society

2014 Annual Dinner and Award ceremony held in London from December 12–13, 2014. I was accompanied by the Vice President, Otunba Femi Deru, FCA and Mr Kayode Abe, the Director of Human Resources and Administration. The very colourful event was well attended by many members in the Diaspora. The Nigerian High Commissioner to the UK, His Excellency, Amb. (Dr.) Dalhatu Sarki Tafida, OFR, CFR was the special guest of honour.

(b) ISAR–UNCTAD 31st Session in GenevaI led a 3-man delegation of Council to attend the ISAR-

UNCTAD 31st session in Geneva, Switzerland from October 13 – 17, 2014. The trust of the technical session was the future of financial reporting. Information from the session influenced the Council’s decision to create a Financial Reporting Faculty.

(c) PAFA Board MeetingI attended a PAFA Board meeting with the Vice President of

the Institute, Otunba Femi Deru and Mr. Olusoji O. Odukoya, Deputy Registrar, Corporate Services at Arusha, in Tanzania from December 2 – 4, 2014. The meeting discussed issues that


were germane to the accountancy profession.

THE SECRETARIAT

Staff GratuityIn order to stop the rapidly growing liability arising from the

largely unfunded staff gratuity scheme, the Council engaged the staff union in a series of negotiation leading to an agreement on the matter. I am delighted to report that the Council signed an exit agreement with management and staff of the Institute and paid a total sum of N667 million to effectively terminate the gratuity scheme. We are aware that the lost interest income would have led to a surplus in the financial statements. However, as a responsible Council, we are more interested in the long-term good financial health of the Institute. Secondly, in line with the 2014 Pension Act, the Council reduced its contributions to staff pension from 15% to the statutory 10%.

Staff Mortgage Scheme In order to assist staff of the Institute particularly the junior

and middle level category, the Council has introduced a staff mortgage scheme. Pursuant to this, we made an arrangement with a financial institution and set aside N50 million seed money from where qualified staff can obtain mortgage facility.

CONCLUSION Finally, let me end this stewardship report by expressing,

once again, my gratitude to all of you for your support, words of wisdom, untiring and unwavering disposition to the cause of the Institute. I feel greatly honoured to have been given the opportunity to carry the Institute’s mantle of leadership for the 2014/2015 presidential year. I assure you all that I will continue to defend the ideals of the Institute at all times.

Thank you and God bless.

Mr. Chidi Onyeukwu Ajaegbu, MBF, FCS, Dip. in Polygraph, FCAGolden Jubilee President

ICAN President, Mr. Chidi Ajaegbu presenting the Academic Award sponsored by ICAN to the winners at WCOA



21

REPORTS of Committees of CouncilTO MEMBERS OF THE INSTITUTE

MEMBERSHIP AFFAIRS

During the period under review, 63 Licences to Practice and 104 Attachment forms were successfully processed and approved by Council.

INDUCTION CEREMONIESThe May and November 2014 induction

ceremonies produced a total of 1,000 Inductees who were admitted as against 1,163 Inductees admitted in 2013. The two ceremonies were held at ICAN Centre, Amuwo-Odofin, Lagos.

As at December 2013, the membership of the Institute was 39,107 made up of 39,086 Chartered Accountants and 21 Registered Accountants.

The number in each class of membership is as follows:

Category of Membership Fellows Associate Totala) Members with Practicing Licence 3,874 2,401 6,275

b) Members without Practicing Licence 4,879 27,932 32,811

Total 8,753 30,333 39,086

Registered Accountants under Section 8(2) of the ICAN Act 21 Total Membership as at 31st December 2014 39,107

MORE INFORMATION ON MEMBERSHIP RECORDS Total membership of the Institute as at 31st December, 2014 39,107

a) Recorded Death as at 31st December 2014 508

b) Members on pending list due to unresolved issues with the Institute 50

c) Members suspended as at 31st December 2014 by the Tribunal by virtue of S.12(2) of the ICAN Act –

d) Members whose names were struck out as at 31st December 2014 by the Tribunal by virtue of S.12(2) of the ICAN Act –

e) Reinstated –

f) Therefore total membership number as at 31st December 2014 (i.e. Foundation/Admitted Members and Registered Accountants) 39,665

OBITUARIES FOR 2013/2014 PRESIDENTIAL YEARName Membership No.● Ume Akachi Godwin 003130● Alemeru Aringbe Timothy 020197● Adikankwu Onichie Ebubechukwu 20077● Shonibare Gbeyi Olatunbosun 011026● Olawuwo Nathaniel Olatunde 025758● Okpebiri Okoi Inyang 002885● Amoge Ani 014543● Amusan Segun Samuel 002226● Adelani Olusayo Oyedeji 001648● Olurankinse Felix Olugundoye 001525

MEMBERS’ RECORDS AND DOCUMENTATION ON CHANGE OF NAMES, FIRMS & EXEMPTION FOR SUBSCRIPTION

Description Nos.a) Marital Grounds 70b) Other Grounds (such as Religion, Tradition, Personal, etc) 28c) Firms 26d) Exemption for Subscription 4e) Commencement of New Practice 2

Members can update their records on-line at the Institute’s website: www.icanig.org.

However, financial members (those up-to-date with their membership dues) as at December 31st 2014 is 15,078.

CIPFA Chief Executive, Mr. Rob Whiteman with ICAN President and members of the UK District and Society after

the signing of the CIPFA-ICAN MoU


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THE ANNUAL ACCOUNTANTS’ CONFERENCE

The 44th Annual Accountants’ Conference was successfully held at the International Conference Centre, Abuja and Abuja Sheraton Hotel from 8 to 12 September 2014. The theme of the Conference was “Protecting the Public Interest: Enhancing Professionalism.” The Conference recorded a total attendance of 3,852 delegates comprising 3,639 fee-paying delegates and 213 non-fee paying delegates. The non-

fee paying delegates included the Presidency, Council Members, invited dignitaries, President’s guests, Past Presidents, Past Registrar/Chief Executives, ABWA representatives, Resource Persons, Discussants, Chairmen of Sessions, Committee Members and Staff.

The Conference was declared open by President and Commander-in-Chief of the Federal Republic of Nigeria Dr. Goodluck Ebele Jonathan, GCFR, who was represented by the Co-ordinating Minister for the Economy and Minister of Finance, Dr. (Mrs) Ngozi Okonjo-Iweala.

In attendance were representatives of Professional Accountancy bodies in Africa, USA and the United Kingdom. Members of Association of Professional Bodies in Nigeria were also in attendance. Other dignitaries that graced

the occasion were the IFAC President, Mr Warren Allen, who presented the Lead Paper, the Honorable Minister of Trade and Investment, Dr. Olusegun Aganga, FCA, and Chairmen/CEO of top private and public organisations who presented papers at the various sessions.

The Conference kicked off with both Christian and Islamic religious activities. Other activities held during the conference were: Pre-Conference Cocktail, President’s Party, District Societies’ Competition, Health Talk, Sports, and Tours. The turnout at these activities was very impressive.

A total of 43 Exhibitors participated in the exhibition organised at the International Conference Centre, Abuja. These included

private organisations and State Governments which sponsored and made donations towards the Conference. The exhibition was a huge success.

The attendance at Gala-Nite was impressive as members and invited guests had King Sunny Ade, MON and his band on stage to entertain them. In addition to this, there was a D.J. on ground that thrilled delegates at the Gala-Nite in the Executive Hall of the Conference Centre.

The high point of the Gala-Nite was a raffle draw where two members won the star prizes (Nissan Almera and Kia Cerato), in addition to other consolation prizes that included HP Laptop, Samsung Galaxy S4 Phone and weekend stay for couples in Transcorp Hilton and Abuja Sheraton Hotels. The Nissan Almera and Kia Cerato were donated by Fidelity Bank Plc and Delta State Oil Producing Areas Development Commission (DESOPADEC) respectively.

The conference was declared closed by one of the Institute’s revered Past President, Balogun Johnson Olaobaju Olabisi Omidiora, BSc, FCA, OON who is also the Chairman of Body of Past Presidents.


ICAN Council member, Mrs. Uchenna Erobu (left); ICAN’s Immediate Past President, Kabir Mohammed; 2nd Deputy Vice President of ICAN, Alhaji Ismaila Zakari; ICAN President, Mr. Chidi Ajaegbu; Minister of Industry,

Trade and Investment, Olusegun Aganga; 1st Deputy Vice President, Deacon Titus Soetan; Mrs. Comfort Olujumoke Eyitayo (Council Member); Alhaji Razak Jaiyeola (Council Member) and Registrar/Chief Executive,

ICAN, Mr. Rotimi Omotoso at the opening ceremony of ICAN’s 44th Annual Accountants’ Conference

Executive Secretary, Financial Reporting Council of Nigeria, Jim Obazee (left); Minister of Industry, Trade and Investment, Olusegun Aganga; former President of IFAC, Warren

Allen; Minister of Finance and coordinating Minister for the Economy, Ngozi Okonjo-Iweala; ICAN President, Mr. Chidi Ajaegbu at the 44th Annual Conference



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ASSOCIATE MEMBERS OF THE INSTITUTE

During the presidential year under review, two induction ceremonies were held in May and October respectively. A total of 401 and 599 members were admitted into the Associate Membership fold of the Institute. The total membership strength of the Institute as at December 2014 was 39,107. In addition to papers delivered by erudite scholars during the induction ceremonies, inductees had a stimulating open discussion with the Institute’s Vice-President.

ASSOCIATION OF ACCOUNTING TECHNICIANS WEST AFRICA (AATWA) INDUCTION CEREMONYDuring the year under review, two induction ceremonies

were held in June and December respectively. A total of 466 and 511 ATSWA graduates were admitted into the Association`s membership fold of the Institute. The total membership strength of the Association as at December 2014 was 18,808. At both inductions, papers were presented by knowledgeable speakers.

AATWA ANNUAL CONFERENCEThe AATWA 19th Annual Conference was held on Saturday

December 6, 2014 at the ICAN Centre, Amuwo Odofin, Lagos. A paper on “Technicians and the Society: The Realities of Serving the Public Interest” was delivered by Professor Kabiru Isa Dandago, FNIM, MNES, PhD, FCA, Department of Accounting, Bayero University, Kano.

AATWA ANNUAL GENERAL MEETINGThe 19th Annual General Meeting of the Association was held

on Saturday 6th December 2014 at the ICAN Centre, Plot 12 Kofo Kasumu Street, Amuwo Odofin, Lagos. The meeting was held before the commencement of the Annual Conference where over

Name Examination Number Registration Number

Position Part

Johnson Toluwalase Faith ATS/20141/11209/A AT/102412 1ST Part I

Shotunde Taiwo ATS/20141/10129/A AT/101562 2ND Part I

Onafadeji Iyanuoluwa Oluwatobi ATS/20141/11393/A AT/101701 3RD Part I

Olajide Abdul-Razzaq Folarin ATS/20141/20374/A AT/100674 1ST Part II

Adebisi Henry Olamide ATS/20141/20683/A AT/097927 2ND Part II

Adamson Modinat Folaranmi ATS/20141/20602/A AT/100184 3RD Part II

Akinsulire Yewande Oyebusola ATS/20141/30425/A AT/097682 1ST Part III

Owolabi Oyinkansola Oreoluwa ATS/20141/30608/A AT/097082 2ND Part III

Oluwasola Ogooluwa Adesolape ATS/20141/30210/A AT/093871 3RD Part III

ACCOUNTING TECHNICIANS SCHEME WEST AFRICA (ATSWA)The Examinations took place as usual in March and September

2014 under the aegis of the Association of Accountancy Bodies in West Africa (ABWA) without any hitch. The participating member Institutes in the examinations were four for the two diets, i.e. Ghana, Liberia, Nigeria and Sierra-Leone for year 2014.

In Nigeria, the March 2014 diet of the examination took place in the following thirty centres: Aba, Abakaliki, Abeokuta, Abuja, Ado-Ekiti, Akure, Awka, Benin City, Calabar, Enugu, Ibadan, Ikorodu, Ilesha, Ilisan, Ilorin, Jos, Kaduna, Kano, Lagos, Lokoja, Makurdi, Ogbomosho, Okija, Oko, Onitsha, Owerri, Port Harcourt, Sokoto, Umuhia, Uyo, Warri and Yenagoa. While the September 2014 diet of the examination took place in thirty-one centres namely: Aba, Abakaliki, Abeokuta, Abuja, Ado-Ekiti, Akure, Awka, Benin City, Calabar, Enugu, Ibadan, Ikorodu, Ilesha, Ilisan, Ilorin, Jos, Kaduna, Kano, Lagos, Makurdi, Ogbomosho, Okija, Oko, Onitsha, Owerri, Port Harcourt, Umuahia, Uyo, Warri and Yenagoa.

The breakdown of candidate’s enrolment for March and September examinations are as follows:

Level March 2014 September 2014Part I 1,775 1,591

Part II 1,210 1,291

Part III 717 788

Total 3,702 3,670

Merit, Subject and Special Prizes were awarded to candidates with outstanding performance in the March and September 2014 examinations as stated below:

850 members were in attendance.Five (5) members of the Executive Committee retired in

accordance with rule 12 of the Constitution and Bye Laws of the Association. All the five vacancies created were filled through an election process in line with rule 10 of the Association`s Constitution and Bye Laws. Details of the results are contained in the minute of the 2014 Annual General Meeting of the Association.

MARCH 2014 DIETa) MERIT PRIZES


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Level Subject Prize Winner

Part

I

Basic Accounting Processes & Systems Chief (Dr.) R.U. Uche’s Prize ATS/20141/11277/A AT/101088

Odiboh Nene Cece

Economics Mrs. I.M. Osiyemi’s Prize ATS/20141/10607/A AT/101245Ikwuemesibe Ozioma Precious

Business Law Otunba Abdul Lateef Owoyemi’s Prize

ATS/20141/11209/A AT/102412Johnson Toluwalase Faith

Communication Skills Chief C.F.G. Akinwolemiwa’s Prize

ATS/20141/11209/A AT/102412Johnson Toluwalase Faith

Part

II

Principles and Practice of Financial Accounting

Major-General S.A. Owuama’s Prize

ATS/20141/20522/A AT/100522Okewole Victor Ayodeji

Public Sector Accounting F.B. Cardoso’s Prize N/A

Quantitative Analysis Ayo Oni’s Prize ATS/20141/20374/A AT/100674Olajide Abdul-Razzaq Folarin

Information Technology Otunba Ayora (Dr.) Bola-Olubi’s Prize

ATS/20141/20489/A AT/100336Aremu Oluwadamilola Blessing

Part

III

Principles of Auditing Alhaji I.O. Sulaimon’s Prize ATS/20141/30608/A AT/097082Owolabi Oyinkansola Oreoluwa

Cost Accounting U.S. Nwankwo’s Prize ATS/20141/30251/A AT/098275Adeoye Kehinde Oluwafunke

Preparing Tax Computation & Returns D.B.O. Ogutuga’s Prize ATS/20141/30425/A AT/097682

Akinsulire Yewande Oyebusola

Management Chief F.K. Bajomo’ s Prize ATS/20141/30425/A AT/097682Akinsulire Yewande Oyebusola

« It should be noted that no candidate satisfied the requirements for winning F.B. Cardoso’s Prize in Public Sector Accounting.

b) SUBJECT PRIZES

c) SPECIAL PRIZES ► F.I. Ogunjuboun’s Prize for best qualifying female candidate in March 2014 diet examination:

SEPTEMBER 2014 DIETa) MERIT PRIZES

Level Name Examination Number Registration Number

Part III Akinsulire Yewande Oyebusola ATS/20141/30425/A AT/097682


Position Part

Omolola Oluwatobilola Oluwasegun ATS/20142/11216/A AT/103230 1ST Part I

Ujo Christana Chioma ATS/20142/11300/A AT/103668 2ND Part I

Omotesho Akindele Babatunde ATS/20142/10566/A AT/102078 3RD Part I

Dairo Afolabi Oluwagbenga ATS/20142/20314/A AT/102387 1ST Part II

Ogunmuko Olaoluwa Oluwatosin ATS/20142/20982/A AT/101413 2ND Part II

Ikwuemesibe Ozioma Precious ATS/20142/20491/A AT/101245 3RD Part II

Adebisi Henry Olamide ATS/20142/30366/A AT/097927 1ST Part III

Adeyemo Dare Lanre ATS/20142/30241/A AT/098143 2ND Part III

Akinnibi Oluwatosin Segun ATS/20142/30251/A AT/099580 3RD Part III



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Level Subject Prize Winner

Part

I

Basic Accounting Processes & Systems Chief (Dr.) R.U. Uche’s Prize ATS/20142/11300/A AT/103668

Ujo Christana Chioma

Economics Mrs. I.M. Osiyemi’s Prize ATS/20142/10756/A AT/103755Olatunde Qudus Olawale

Business Law Otunba Abdul Lateef Owoyemi’s Prize

ATS/20142/11238/A AT/102787Orodeji Victoria Oluwatoyin

Communication Skills Chief C.F.G. Akinwolemiwa’s Prize N/A

Part

II

Principles and Practice of Financial Accounting

Major-General S.A. Owuama’s Prize

ATS/20142/20481/A AT/101138Falola Sarah Oluwakunmifayo

Public Sector Accounting F.B. Cardoso’s Prize ATS/20142/20307/A AT/091366Ayoola Oluwafunminiyi Tosin

Quantitative Analysis Ayo Oni’s Prize ATS/20142/20491/A AT/101245Ikwuemesibe Ozioma Precious

Information Technology Otunba Ayora (Dr.) Bola-Olubi’s Prize

ATS/20142/20504/A AT/100663Ogunnaike Oyindamola Mariam

Part

III

Principles of Auditing Alhaji I.O. Sulaimon’s Prize ATS/20142/30255/A AT/100336Aremu Oluwadamilola Blessing

Cost Accounting U.S. Nwankwo’s Prize ATS/20142/30770/A AT/100983Balogun Faossi Abayomi

Preparing Tax Computation & Returns D.B.O. Ogutuga’s Prize ATS/20142/30241/A AT/098143

Adeyemo Dare Lanre

Management Chief F.K. Bajomo’ s Prize ATS/20142/30208/A AT/097709Imhajie Charles Paul

« It should be noted that no candidate satisfied the requirements for winning Chief C.F.G. Akinwolemiwa’s Prize in Communication Skills.

b) SUBJECT PRIZES

c) SPECIAL PRIZES ► F.I. Ogunjuboun’s Prize for the “Best Qualifying Female Candidate” in September 2014 Diet Examination:


Adamson Modinat Folaranmi ATS/20142/30364/A AT/100184


Akinsulire Yewande Oyebusola ATS/20141/30425/A AT/097682


Adebisi Henry Olamide ATS/20142/30366/A AT/097927


Adebisi Henry Olamide ATS/20142/30366/A AT/097927

► Princess A.A. Adeniran’s Prize for the “Best Qualifying Female Candidate” for the year:

► Alhaja (Mrs.) Shakirat Adepeju Babatunde’s Prize for the “Best Qualifying Male Candidate” for the year:

► Silver Scholarship:


26


MEMBERS’ EDUCATION

AND TRAINING

The MCPE provides the platform for members to continually update their skills and knowledge in order to remain professionally competent and attain their true potential. The emphasis here is on continuity because learning never ceases regardless of age or seniority; professionalism because it is focused on professional competence in a professional role and concerned with development because the goal is to improve personal performance and enhance career progression. The scope and depth of coverage of seminars is being reviewed on a regular basis to be in line with the requirements of the economy and the profession.

REVIEW OF 2014 ACTIVITIES

INSTITUTE’S ORGANISED SEMINARS AND WORKSHOPSFifty-eighty (58) seminars and workshops were conducted

during the period under review in the following locations across the country: Abeokuta, Abuja, Asaba, Akure, Awka, Benin-City, Calabar, Enugu, Ibadan, Ilorin, Kano, Kaduna, Lagos, Owerri, Port-Harcourt, Uyo, Jos, Warri. These seminars recorded high attendance. In addition to the regular MCPE, workshops were held under the Executive MCPE and CPE respectively, while in-house seminars were conducted in several organisations within the period under review as follows:

1. Chevron Nigeria Limited 2. MTN Communications Limited 3. Nigerian Bottling Company Plc 4. PZ Cussons Nigeria 5. Shell Petroleum Development Company of Nigeria, P/Harcourt 6. Shell – Lagos 7. GlaxoSmithKline Nigeria 8. Stanbic IBTC Pension Manager Ltd. 9. Skye Bank Plc 10. Zenith Bank Plc 11. Nigerian Breweries Plc 12. Stanbic/IBTC Bank 13. Nigeria Deposit Insurance Corporation (NDIC)14. ETISALAT 15. PricewaterhouseCoopers 16. AIRTEL Nigeria 17. Seven-up Bottling Company Plc 18. UNILAG Consult

OFFSHORE TRAINING PROGRAMMEAn Executive Continuous Professional Education (ECPE)

Programme was held in Dakar, Senegal from May 4-9, 2014 with 39 Members in attendance. The theme of the programme was “The Finance Professional and the Challenges of Development.”

ACCREDITATION OF SEMINARS/WORKSHOPSDuring the period, fifty-four (54) workshops organised by

District Societies and other organisations were accredited. A total of fourteen thousand and three participants (14,003) were in attendance at the MCPE, CPE, EMCPE, ECPE, topic specific, in-house MCPE and conferences, while eighteen thousand and seventy-seven (18,077) members were accredited under other programmes. In all, thirty-two thousand and eighty (32,080) members actively participated in the Institute’s training programmes within the period under review.

MCPE COMPLIANCE AND SANCTIONSThe Institute is continuing with the implementation of sanctions

for members deficient in MCPE requirements as approved by Council. Such sanctions include exclusion from the following:

● Sponsorship of students for registration, exemptions and graduate members for induction into membership of the Institute.

● Elevation to Fellowship status.● Obtaining and renewal of practicing licence, and

membership of Committees.● Contesting or nominating members for Council elections

and occupying any executive position in a District Society.

E-LEARNINGTo increase participation in the Institute’s MCPE programmes,

work has commenced on e-learning project so that members can do and obtain their MCPE credit hours without necessarily leaving their offices.

Participants at the offshore MCPE programme in Senegal



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RESEARCH AND TECHNICALThe Committee has continued to carry out the responsibility

bestowed upon it to conduct research into Accounting, Taxation, Auditing, Finance, Economics and related disciplines with a view to expanding the frontier of knowledge in the profession and it delivered result based on its terms of reference in the following areas during the year.

ACADEMIC CONFERENCEThe maiden edition of ICAN Academic Conference was held

at the Lagos Airport Hotel, Ikeja from May 18 – 20 this year. Scholars and practitioners from across the country participated in the two-day event which was aimed at projecting the image of the Institute as an educator, providing a platform for scholars both in the accountancy profession as well as related fields to broaden their knowledge and enhance their research skills.

AWARD OF RESEARCH GRANTS TO MEMBERS IN ACADEMIAThe Committee during this Presidential year considered and

recommended to the Council for approval request for research grants received from both academia and industry. Seventeen applications were received for PhD grants during this period, fifteen of these applications were successful and two were rejected. The first and second instalments have been made available to five applicants while one applicant has received the final instalment. Nine applications are still undergoing review.

ICAN SPONSORSHIP OF PROFESSORIAL LECTUREIn order to encourage Institute members in academia to

aspire to the highest position to foster scholarship and training, the Committee requested and obtained approval for inaugural professorial sponsorship. The value of the award is N1 million to be given to the post holder to be utilised in ways considered necessary for the event.

SYMPOSIUM ON FEDERAL GOVERNMENT BUDGETThe Committee organised a budget symposium on September

15, 2014 at MUSON Centre, Lagos. The objective was to present a holistic view of fiscal and monetary policies to the Nigerian populace as well as their implications for economic, socio-economic, provisions for different sectors of the economy. The event was successful and the number of membership attendance was high.

RESEARCH JOURNALSThe department continues to produce ICAN Journal of

Accounting and Finance (IJAF). The sixth edition of this journal was successfully produced and sold at the last Annual Accountants’ Conference. Two copies of the journal were sent to higher institutions in Nigeria. The department has commenced the preparation for the 7th edition. The Journal is highly regarded in tertiary institutions in Nigeria as an outlet for rigorous research.

STRATEGY, ADVOCACY AND PERFORMANCE TRACKING WORKSHOP FOR NOT-FOR-PROFIT ORGANISATIONS (NfPOs)As part of its social responsibility and with a view to creating

awareness amongst NfPOs in keeping financial records, the Advocacy Committee organised two workshops, one in Lagos and another in Abuja, for religious organisations, NGOs and interested members of the public.

FORUM OF FIRMS – ADVOCACY FOR JOINT AUDITS AND MERGERS & ACQUISITIONSDuring the year under review, advocacy was promoted by the

Institute through a series of seminars. One of such seminars was to stimulate discussions on joint audit of public listed companies as a strategy to improve competence of members in small and medium-sized practices (SMPs). A seminar was also held to encourage mergers and acquisitions in the SMPs segment to enable them improve their competitive position.

MUTUAL COOPERATION AGREEMENT WITH TERTIARY INSTITUTIONS (MCATI)MCATI initiative was born out of the Institute’s desire to ensure

that accounting graduates possess adequate technical and theoretical knowledge for a speedy completion of the professional examinations. The scheme is offered to all tertiary institutions in the country that are willing and able to meet the Institute’s requirements. MCATI is based on the 2014 ICAN professional examinations syllabus.

Under MCATI scheme, graduates of the ICAN integrated programme will be exempted from all the five subjects in the Knowledge Level and four subjects from the Application Level. However, graduates of this scheme will be required to sit and pass two other papers from the Application Level, namely, Public Sector Accounting and Management, Governance and Ethics. MCATI offers exemption from nine papers in the professional examinations syllabus while graduates from the general accredited programmes are granted exemptions in seven papers.

LIBRARY SERVICESBook Donation to Tertiary InstitutionsDuring the year under review, 459 professional and technical

books were donated to some accredited universities, polytechnics and selected schools across the country. The institutions are as follows:

● Federal Polytechnic, Ede.● Federal Polytechnic, Bida.● Sacred Heart College, Ijebu-Ode.● Ekiti State University, Ado-Ekiti.● University of Jos, Jos.● Abia State University, Uturu.● Redeemers University, Ogun State.● Michael Okpara University of Agriculture, Umudike.● University of Nigeria, Nsukka.● Godfrey Okoye University, Enugu.

Acquired New Books In an effort to improve on the existing library collection, a total

of 534 new accounting, management and related professional


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books were acquired to increase the volume of books in the Libraries at Victoria Island and Ebute-Metta.

Library Facelift The Libraries at Victoria Island and Ebute-Metta

were given a facelift to provide a more conducive environment for learning and scholarship.

Electronic Library ServicesThe awareness of electronic library services has

continued to increase the usage of the e-resources databases. During the year under review, Council approved that access to the e-library should be open to all financially up-to-date members and consequently the process of despatch of access password to members has commenced.

ICAN PROJECTSLecture Theatres As part of the strategy to further the public interest

mandate of the Institute and encourage the production of highly skilled graduate accountants, Council approved the construction of lecture theatres in some selected tertiary institutions across the country. Five tertiary institutions were selected for the pilot scheme of the project and the foundation laying ceremonies were performed by the Golden Jubilee President, Mr. Chidi Ajaegbu as follows:

● Obafemi Awolowo University (OAU), Ile-Ife — July 22, 2014● University of Benin (UNIBEN), Benin City — August 7, 2014● University of Nigeria (UNN), Nsukka (Enugu Campus) — September 2, 2014● North West University, Kano — November 25, 2014● Federal University, Birnin Kebbi.

The contracts for the projects were awarded in September, 2014, by the Major Tenders Board:

Four of the projects were commissioned in OAU (Ile-Ife), UniBen (Benin), UNN (Enugu) and NWU (Kano) respectively by the Golden Jubilee President in May 2015. The Birnin Kebbi Project is still on-going.

District Society OfficeIn 2011, Council approved a prototype design for the construction of an office for each of its District Societies whose contract sum

must not exceed N50 million Naira. The Office, which was to be jointly funded by the Institute and a donor sourced by the District on a 50-50 basis, would be named after the donor.

In April 2014, the Chairman and Secretary of Aba and District Society of ICAN informed the Institute that the District had got a parcel of land in addition to the pledged counterpart fund for the building of the District office and therefore requested the Institute to commence the development of the land immediately. The donor who also gave his own land for that purpose was the Golden Jubilee President, Mr. Chidi Ajaegbu.

Subsequently, Council approved the commencement of the Aba District building known as Chidi Onyeukwu Ajaegbu ICAN Centre.The project was also commissioned by the President in May 2015.

Project Contractor Consultant Coordinator Commencement Completion

1. OAU (Ile-Ife) AB Design & Company

Eagle Projects Services Nig. Ltd.

Alh. Razaq Jaiyeola November 2014 April 2015

2. UniBen (Benin) Tegha & Associates Nig. Ltd.

Eagle Projects Services Nig. Ltd.

Mrs. Onome Olaolu-Adewuyi

November 2014 April 2015

3. UNN (Enugu) Calvarini Nig. Ltd. Eagle Projects Services Nig. Ltd.

Mazi Nnamdi Okwuadigbo

November 2014 April 2015

4. NWU (Kano) Arid Builders Nig. Ltd. Design Plus Alh. Isma’ila Zakari December 2014 April 2015

5. FU (Birnin Kebbi) Al-Amin Engineering Services Ltd.

Design Plus Alh. Isma’ila Zakari

ICAN President, Mr. Chidi Ajaegbu laying the foundation stone for the ICAN Lecture Theatre at University of Nigeria, Nsukka (Enugu Campus)



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PROFESSIONAL PRACTICE MONITORING

The Professional Practice Monitoring Committee (PPMC) discharged its responsibilities in line with the terms of reference given to it by the Council of the Institute. Below is the summary of the Committee’s activities during the period:

1. PROVISION OF PRIVATE COMPANY AUDIT SOFTWARE (PCAS)The Institute, through the Professional Practice Monitoring

Committee (PPMC), liaised with the Institute of Chartered Accountants in England and Wales (ICAEW) to make available Private Company Audit Software (PCAS) to Practitioners especially the Small and Medium-sized firms. The Software is currently being test run pro bono by interested practitioners for twelve (12) months which will lapse at the end of February, 2015. The Institute has commenced negotiation with the ICAEW Consultants on the software on how interested practitioners will subscribe for the software. Once the arrangement is concluded, information will be disseminated to all the members.

2. DISTRIBUTION OF STANDARDS TO DISTRICT SOCIETIESThe Committee distributed two copies of each of Nigerian

Standards on Auditing (NSAs) and Nigerian Standard on Quality Control 1 (NSQC 1) to all the ICAN accredited tertiary institutions in the country through the District Societies. Later, it also distributed one copy of each of the standards to the District Societies that assisted in carrying out the assignment with evidence of delivery of the documents to the tertiary institutions. The District Societies involved were advised to keep the documents at their respective libraries to make them easily accessible to most of the members as reference materials.

3. DEVELOPMENT OF TECHNICAL DOCUMENTSThe Committee developed some technical documents to assist

members especially the Small and Medium-sized Practices to carry out their professional engagements effectively and efficiently in line with global best practices. These documents include:

● Audit Engagement Questionnaire.● Checklist on NSQC 1.● Checklist on Companies and Allied Matters Act/ Financial Reporting Council Act.● Group Audit Checklist. ● Reviewers’ Checklist, etc.These documents are available on the Institute’s website. 4. PROFESSIONAL PRACTICE MONITORING EXERCISE PHASES 11 – 13In line with its mandate to ensure that the work of members

in practice is regularly reviewed, the committee continued the practice monitoring exercise and has concluded phases 11 and 12. Phase 13 of the exercise is currently on-going. It is important to note that after the training of the staff of Professional Practice Monitoring Department on Audit Quality Manual, the staff currently join in the practice monitoring exercise as co-reviewers. As usual, the reviewers issue report after every review. The report on each firm containing the observations and recommendations of the Reviewers is usually sent to the firm with a covering letter requiring it to write to the Institute stating the action plans they will put in place to correct the shortcomings observed by the reviewers. The practice monitoring has assisted immensely in updating and improving the knowledge and skills of members in practice. About three hundred (300) firms had been reviewed since the inception of the exercise.

5. PUBLICATION OF REVISED SCALE OF PROFESSIONAL FEES The Scale of Professional Fees was recently reviewed and

updated to ensure that all the services rendered by our members to their clients are covered. The revised scale of professional fees was published in June 2014 and it has been hosted on the Institute’s website. The Committee is currently working with the Legal Department of the Institute to ensure that the Scale is put in the Federal Government’s Gazette.

6. SEMINAR ON AUDITING STANDARDS, AUDIT QUALITY AND PRACTICE

DEVELOPMENTIn the course of carrying out practice monitoring of Audit Firms,

some knowledge gaps were identified among the practitioners. The Committee developed seminar topics to bridge these gaps. The Seminar topics are classified into four modules. The first seminar comprising Modules 1 and 2 is basically for the Audit trainees, Managers and Senior Managers in Audit Firms. The second Seminar is mainly for Senior Managers and Managing Partners. The theme of the seminar is Auditing Standards, Audit Quality and Practice Development. The Seminars were designed to assist the practitioners especially the Small and Medium-sized Practices (SMPs) to improve capacity and quality of services they render to their clients.

7. UPDATE OF STATEMENTS OF MEMBERSHIP OBLIGATIONSFollowing its eligibility for biennial update of its Statements of

Membership Obligations (SMO) attained in 2013, the Institute did not submit any SMOs in 2014. However, the Committee has reviewed and updated the Institute’s SMOs for 2015. The updated SMOs will soon be submitted to International Federation of Accountants (IFAC) to ensure that the Institute continues to be one of the elite Accountancy Professional Bodies worldwide.

The ICAN President, Mr. Chidi Ajaegbu with pupils of Ronik International school, Lagos during his visit to Ronik Polytechnic


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FACULTIESPreambleFinancial Reporting Faculty was created during this Presidential

year thus increasing to seven, the number of faculties in the Institute. The earlier six were created in 2001 and re-launched in 2008. These faculties serve as strategic response to provide technical support to members as well as create a platform for the regulation of the activities of members engaged in different specialisms of the accountancy profession. During the year under review, the faculties undertook the following activities:

1. AUDIT, INVESTIGATIONS AND FORENSIC ACCOUNTING FACULTYi. Forensic Accounting Certification Programme The faculty continued with its certification training in

Forensic Accounting. A total of 158 members attended various sessions of modules 1 to 6 held in Lagos and Abuja. On request by the Port Harcourt and District Society, the Faculty conducted an intensive 5-day training session for 18 members in Port Harcourt on 14th – 18th July, 2014 to cover all the six modules. The Faculty also conducted an in-house six-day training session for 35 members of staff of the Office of Auditor-General of Lagos State from Friday 31st October to Thursday 6th November, 2014.

ii. Moot Court Session As part of practical exposure to court room procedure and

grooming participants to become expert witnesses, a moot court session was conducted on Tuesday, 2nd December,

2014 for members who have completed the six modular training prior to their examination/viva held on Thursday 4th December, 2014.

iii. Induction A total of 365 members have been inducted so far,

while 37 members who have successfully completed the examination/viva are awaiting induction slated for Thursday 2nd April, 2015.

iv. Forum of CFAN In its effort to create a forum for members already inducted

as Certified Forensic Accountants of Nigeria, the faculty organised a Forum of CFAN on Thursday 12th June, 2014. Two presentations were made as follows:— Winning Forensic Assignments: Issues and

Challenges by Mr. Christian Ekeigwe, FCA; and— Executing Forensic Assignments: Issues and

Challenges by Mr. Ngozi O. Keshi, FCA. v. Forum of Members A Forum of Members of the Faculty was held on Tuesday,

24th February, 2015 at ICAN Annex Office, Ebute-Metta, Lagos with the theme “New Audit Opinion.” Two papers were delivered as follows:— “Background to the New Audit Opinion” by Mr.

Cyril Azobu, FCA, Partner, PricewaterhouseCoopers; and

— “Going Forward: Expectations, Pitfalls and Observation, Impact on Clientele and Practitioners” by Mrs. Uchenna Erobu, FCA, Senior Partner, Deloitte West and Central Africa.

Mr. Chidi Ajaegbu with Council members



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2. CONSULTANCY AND INFORMATION TECHNOLOGY FACULTYThe Faculty held a one-day Forum of Members at Port

Harcourt on Tuesday, 21st October 2014 which was attended by 203 members. Presentations were made as follows:

i. “Information Systems Implication of IFRS” by Alhaji Razak Jaiyeola, FCA, a Council Member and Managing Consultant/CEO, A.J. Silicon.

ii. “Cyber Securities” by Mr. Benedict Anyalenkeya, FCA, the Group Head, e-Business at Unity Bank Plc.

iii. “Stress Management” by Dr. Nnenna O. Nnadi, MBBS, FWACP, a Consultant Family Physician based in Port Harcourt.

The Faculty has trained a total of 23 members on Consultancy and Information Technology who are awaiting examination/viva before they are presented for induction on successful completion.

A weekly e-newsletter for members of the Faculty has commenced circulation from Monday 16th February, 2015.

Three events of Forum of Members as well as training sessions have been lined up for the current year.

3. CORPORATE FINANCE MANAGEMENT FACULTYi. IFRS Certification Training Programme Prior to the carving out of the Financial Reporting Faculty,

the Corporate Finance and Management Faculty carried out 12 runs of IFRS certification training programmes in various cities in Nigeria. Graduates of the programmes were inducted on April 2nd, 2015. With the transfer of IFRS certification to Financial Reporting Faculty, the Board is already drawing up a training curriculum for the Faculty.

ii. Forum of Members The Faculty organised a forum on October 28th, 2014 with

the theme “Leading Issues in Financial Reporting.” Speakers were Mr. Jim Obazee, the Executive Secretary/CEO Financial Reporting Council of Nigeria (FRCN) and Mr. George Onekhena, Deputy Commissioner for Finance, National Insurance Commission, Abuja. A total of


64 members attended the forum.

4. FINANCIAL REPORTING FACULTYIn line with global best practice, the Council approved the

carving out of the Financial Reporting Faculty out of the erstwhile Corporate Finance and Management Faculty. This brings the number of Faculties to seven. The Board of the Faculty was inaugurated by the Golden Jubilee President on November 14th 2014. Registration of members into the new Faculty is already in progress.

5. INSOLVENCY AND CORPORATE RE-ENGINEERING FACULTYForum of MembersAs part of efforts to increase membership of the Faculty and

create awareness about the Insolvency Practice, a non-fee paying forum of members was held on Tuesday, November 25th 2014 at Premier Hotel, Ibadan with the topic: “The Accountant in Insolvency Practice: Opportunities in Emerging Economies.” Speakers were Mr. Dele Odunowo, FCA, President, Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN); and Mr. Babatunde Ajayi, LL.M, FCA, Chairman, Board of Insolvency and Corporate Re-engineering Faculty and Managing Partner, Babington Ashaye and Co. The event recorded an attendance of 168 members. A similar seminar would be held in Kaduna during the year.

6. PUBLIC FINANCE MANAGEMENT FACULTYSeminars on IPSAS The Faculty organised two sensitisation seminars on IPSAS

in Lagos on 27th March, 2014 and Abuja on Thursday 25th September, 2014. Two presentations were made as follows:

— Budget Preparation Under IPSAS; and — Final Accounts and Chart of Accounts – The IPSAS

Perspective. Three training programmes and seminars are lined up for the

year. The Faculty is also having constructive engagement with the Chartered Institute of Public Finance and Accountancy (CIPFA).

7. TAXATION AND FISCAL POLICY MANAGEMENT FACULTYi. Newsletter The Faculty released its first quarter newsletter in February,

2015. The newsletter focused on recently decided case on taxation and news items that were considered beneficial to members of the Faculty.

ii. Forum of Members The Faculty organised a one-day forum for its members

on Tuesday 4th March, 2015 with two paper presentations as follows:— Dividend Tax Rule and Recent Court Decisions

by Mr. Fatai Folarin, FCA, Lead Partner, Tax and Regulatory Services, Deloitte Nigeria.

— Withholding Tax Administration by Mr. Julius Bamidele, FCA, Chairman, Board of Taxation and Fiscal Policy Management Faculty and Director, Federal Inland Revenue Services.

ICAN President, Mr. Chidi Ajaegbu (right); Executive Director, Stanbic IBTC, Mr. Obinnia Abaju; 1st Deputy Vice President of ICAN, Deacon Titus Soetan; and Registrar/CE of ICAN, Mr. Rotimi Omotoso at the

presentation of Credit Card for ICAN members by Stanbic IBTC Bank


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STUDENTS’ AFFAIRS

REGISTRATION/EXEMPTION A total of seven thousand, one hundred

and twenty-seven (7,127) students were registered during the year under review. This brings the number of registered students to two hundred thousand, three hundred and seventy-nine (200,379) as at December 2014. While five thousand, five hundred and ninety-eight (5,598) students were granted exemptions from various levels of the Professional Examinations from January to December 2014. Five thousand, two hundred and forty-one (5,241) students were registered for the Accounting Technicians Scheme West Africa (ATSWA) in the year under review bringing the total number of registered ATSWA students to one hundred and four thousand, five hundred and twenty-nine (104,529) while two hundred and thirty-eight thousand students (238) were granted Exemption from various levels of ATSWA.

ACCREDITATIONFifteen (15) Universities and three (3) Polytechnics which met

the required educational standard of the Institute were accorded full accreditation status during the year while seventeen (17) Tuition Centres were granted recognition as approved training centres for the Institute’s Examinations. The Institutions are:

Universities1. Abubakar Tafawa Balewa University, Bauchi, Bauchi

State.2. Afe Babalola University, Ado-Ekiti, Ekiti State.3. Ahmadu Bello University, Zaria, Kaduna State.4. Bowen University, Iwo, Oyo State. 5. Caleb University Imota, Lagos State.6. Covenant University, Ota, Ogun State. 7. Crawford University, Igbesa, Ogun State. 8. Crescent University, Abeokuta, Ogun State.9. Cross River University of Technology, Ogoja Campus, Cross River State.10. Kogi State University, Anyigba Kogi State. 11. Landmark University, Omu-Aran, Kwara State.12. Obafemi Awolowo University, Ile-Ife, Osun State.13. Paul University, Awka, Anambra State. 14. University of Ilorin, Ilorin, Kwara State.15. Western Delta University, Oghara, Delta State.

Polytechnics1. Federal Polytechnic, Ede, Osun State.2. Ogun State Institute of Technology, Igbesa, Ogun State. 3. Rufus Giwa Polytechnic, Owo, Ondo State.

Tuition Houses 1. Accuracy Tutors, Aba, Abia State. 2. Atlas Professionals Limited, Ota, Ogun State.3. Best Option Tuition Centre, Makurdi, Benue State. 4. Career Intelligent Professionals, Abuja FCT.

5. Deo-Gratia Professional Tutors, Osogbo, Osun State.6. Excellent Tutors, Abakaliki, Ebonyi State.7. Globa Focus Initiative Consulting Company, Abuja FCT.8. JK Consulting Co. Ltd., Abuja FCT.9. Precept with Passion Consulting, Agege, Lagos State.10. Protract Associates Limited, Ikorodu, Lagos State.11. Risk Free Standards Associates Limited, Obanikoro, Lagos State.12. Sky Associates Nigeria Limited, Abuja FCT.13. Starry Gold Academy, Oregun, Lagos State.14. Students SWOT & Associates, Enugu, Enugu State.15. Summit Accountancy Tutors, Port Harcourt, Rivers State.16. Top Professional Solutions, Port Harcourt, Rivers State.17. Triumph Dynamics Professionals Limited, Ibadan, Oyo State.

ICAN SCHOLARSHIP SCHEMEThe Institute has put in place a strategy which will make

Accountancy Profession more attractive to the brightest youths from all Universities and Polytechnics in the country. The scholarship programme is to elicit the interest of Nigerian youths as well as attract the best brains into the Accountancy Profession. This is also in compliance with the social responsibility programme of the Institute to the society.

A total of forty-six (46) students out of fifty-four applications benefitted from the Scholarship Scheme by sitting for various levels of the Professional Examination in May and November 2014, bringing the number of beneficiaries to seventy-three (73). Detailed information on the Scheme for all interested and qualified students can be obtained from the Institute’s website.

CATCH THEM YOUNG PROGRAMMEThe “Catch Them Young” Programme is an initiative designed

to attract young students of Secondary Schools to boost the candidature of the Accounting Technicians’ Scheme West Africa (ATSWA) and eventually, the Professional Examinations of the Institute. The Programme focuses on building continuous, relevant and purposeful relationship in Secondary Schools.

It is also an avenue to increase the studentship of the ATSWA

ICAN President and his entourage with the students of Nnamdi Azikiwe University, Awka



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STUDENTS’ SPECIAL PROJECT

OBJECTIVES The objectives of the Students’ Special Project are:ÜTo identify areas and indigenous students of educationally

less developed parts of the country;ÜTo expand studentship in educationally less developed

parts of the country;ÜTo facilitate establishment of standard tuition centres in

these areas;ÜTo create awareness in these areas about the availability

of such a scheme;ÜTo encourage States, Local Governments, Private- and

Public Sector-Institutions to provide facilities for standard tuition centres, grant scholarships, bursary awards and other assistances to deserving indigenous students in educationally less developed areas of the country; and

ÜTo encourage and assist indigenous students in educationally less developed parts of the country to take the Institute’s Examinations with a view to rapidly producing a desirable number of Chartered Accountants there from.

In the last twelve years, the SSP Committee anchoring the project, which comprises members from different parts of the country, has worked assiduously towards attaining the foregoing objectives.

CHARTERED ACCOUNTANTS PRODUCED ON A CENTRE-BY-CENTRE BASIS As at the end of the November 2014 Diet Examinations, the

following number of Chartered Accountants were produced on a centre-by-centre basis:« Kano Centre has produced 193 Chartered Accountants

from 2008.« Kaduna Centre has produced 199 Chartered Accountants

from 2007. « Ilorin Centre has produced 140 Chartered Accountants

from 2008.« Calabar Centre has produced 86 Chartered Accountants

from 2008.« Bayelsa Centre has produced 72 Chartered Accountants

from 2007.

CAPACITY BUILDING As a way of building capacity among resident lecturers in the

different centres of the SSP and ensure they are abreast of current

developments in the profession, the Council, in the course of the year, approved a free training programme on IPSAS and IFRS for them under the aegis of the Institute’s Members Education and Training department (MCPE). Council has also recently approved a training programme on the new syllabus for the lecturers at the various centres.

REVIEW OF AGREEMENT WITH NEW NIGERIA DEVELOPMENT COMPANY (NNDC) On December 15, 2014, the Institute renewed its agreement

on the project with one of its major stakeholders – New Nigeria Development Company (NNDC) Ltd. The ceremony which was widely publicised was well attended on both sides.

MILESTONE – COMPLETION OF THE YENAGOA & DISTRICT SOCIETY BUILDING The District Office of Yenagoa & District Society of ICAN was

completed this year and commissioned by the Golden Jubillee President. The building also houses the Students’ Special Project Centre.

NEW CENTRESThe Institute is planning to bring Accounting Technicians

Scheme (West Africa) aboard the SSP programme as well as establish more study centres. In the course of the year, the Institute approached and followed up on the Governments of Abia, Imo and Anambra States with regard to the proposal to establish SSP Centres. The Institute also collaborated with NNDC to seek the partnership of Gombe, Taraba and Jigawa State Governments.

The Gombe State Governor responded by releasing the sum of N26.5 million for setting up of a centre in his state, and necessary planning has commenced for the establishment of the Centre so that lectures could begin in earnest to prepare students for the November diet of ICAN examination.

CURRENT PARTNERS ON THE PROJECT« New Nigeria Development Company Ltd through which

three centres were established as follows: — NNDC/ICAN Study Centre, Kaduna; — NNDC/ICAN Study Centre, Kano; and — NNDC/ICAN Study Centre, Ilorin. « The Bayelsa State Government through which BYSG/

ICAN Study Centre, Yenagoa was established.

« The Cross River State Government through which CRSG/ICAN Study Centre, Calabar was established. The centre was officially handed over to the Cross River State Government in February 2013.

UPCOMING LAUNCH OF SPONSORSHIP PROGRAMMEThe Institute is also collaborating with NNDC to seek partnership

with other interested stakeholders, namely, State Governments, Parastatals, Corporate Organisations, philanthropists and well-meaning individuals on the project. The ceremony to launch the sponsorship programme for the project would be held in Kaduna in July, 2015.

through extensive awareness and sensitisation activities. It is a programme that has the strategy of catching students young and endearing them to the accountancy profession as their future course of choice.

The Institute, in collaboration with the Ministry of Education in some States of the Federation, had run the programmes in Eight (8) locations within Lagos and in the following cities: Kano, Port Harcourt, Owerri, Abakaliki, Minna, Kaduna, Akure and Yenagoa. The total attendance of students thus far is five thousand, four hundred and forty-four (5,444).


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PROFESSIONAL EXAMINATIONS The Professional Examinations took place in May and November 2014 with 14,131 and 11,826 candidates, respectively. They

were conducted in thirty-eight centres in various parts of Nigeria, one centre each in Cameroon and United Kingdom (London). A new syllabus took effect from November 2014 diet with 3 levels as against the previous one with 4 levels. The Institute continued to enhance the Information Technology deployment for examination processes. The effect was tremendous.

The breakdown of the candidates for both examinations is stated below:-

Level of Examinations May 2014

Foundation 1,030

Intermediate 1,761

Professional Examination Level I 7,619

Professional Examination Level II 3,721

Total 14,131

MAY 2014 DIETa) MERIT PRIZES

Level of Examinations November 2014

Foundation 1,502

Skills 8,714

Professional 1,610

Total 11,826

Foundation

Name Examination No. Registration No. Award

Ayoade Rebecca Folashade 20141/000699/F/A 196083 1st

Adedoyin Adetutu Christiana 20141/000297/F/A 196033 2nd

Fowora Taiye Olusola 20141/000418/F/A 193663 3rd

Intermediate


Oderinwale Oluwatobi 20141/101420/P/A 185605 1st

Alatishe Joseph Kayode 20141/101147/P/A 189792 2nd

Odekunle Oluwaseun Ayotunde 20141/101418/P/A 188473 3rd

Professional Level I


Oranyelu Joy Obianuju 20141/207052/Q/A 173664 1st

Monago Chimsom Obiageli 20141/201038/Q/A 192202 2nd

Umeoduagu Chiamaka Ukamaka 20141/203303/Q/A 195155 3rd

Professional Level II


Ayinde Idris Adewole 20141/300975/V/A 188560 1st

Adeyeye Oluwakemi Alice 20141/302255/V/A 188729 2nd

Agbato Oluwaseun OlubukolaAlabi Temitope David

20141/300834/V/A20141/302850/V/A

175973191683

3rd



35


b) SUBJECT PRIZES

Level Subject Prize WinnerFoundation

Fundamentals of Financial Accounting Sir John A. Balogun NIL

Corporate & Business Law I.O. SulaimonPrincess A.A. Adeniran

20141/000699/F/A 196083 Ayoade Rebecca Folashade

Economics & Business Environment M.B. Taiwo J.A. Owoseni NIL

Intermediate

Costing & Quantitative Techniques Prof. M.A. Adeyemo Mr. M. Ayo Oni

20141/101147/P/A 189792 Alatishe Joseph Kayode20141/101420/P/A 185605Oderinwale Oluwatobi

Taxation Z.O. Ososanya 20141/101418/P/A 188473 Odekunle Oluwaseun Ayotunde

Auditing and Assurance N.L. Westgarth 20141/100792/P/A 192576 Igbanugo Izuchukwu Clement

Bus. Comm. And Research Methodology Sir Ike Nwokolo NIL

PE I

Information Technology Chief E.F. Oke 20141/207052/Q/A 173664 Oranyelu Joy Obianuju

Management Accounting G.J. Burk NILFinancial Accounting S.B. Baylis-Smith NILAdvanced Audit and Assurance J.M.T. Morris & KPMG NIL

PE II

Public Sector Accounting & Finance Balogun J.O. Omidiora 20141/300973/V/A 147428 Ayeshung Fredaline Eshinatang

Financial Reporting and Ethics Arthur Young, Osindero & Moret NIL

Strategic Financial Management Bola Kuforiji-Olubi Elder M.E. Daniels NIL

Advanced Taxation Akintola Williams & Co. Olushola Adekanola

20141/302858/V/A 191688 Awonusi Omolola Oluwafunmilayo

c) SPECIAL PRIZES ► SWAN Prize for the best qualifying female candidate for the diet:

Level Name Examination No. Registration No.PE II Adeyeye Oluwakemi Alice 20141/302255/V/A 188729

► Akintola Williams Delloite and Touche Prize for the best qualifying candidate in a diet:

Level Name Examination No. Registration No.PE II Ayinde Idris Adewole 20141/300975/V/A 188560

NOVEMBER 2014 DIETa) MERIT PRIZES

Foundation Level

Name Examination No. Registration No. AwardAkanmu Idris OlalekanDosunmu Olawale Khafeel

20142/100498/F/234520142/100993/F/2345

195049197942 1st

Balogun Olushola AbiodunIyizoba Theresa Odera

20142/100965/F/234520142/101101/F/2345

199159199026 2nd

NIL NIL NIL 3rd


36


c) SPECIAL PRIZES ► SWAN Prize for the best qualifying female candidate for the diet:

Level Name Examination No. Registration No.Professional NIL NIL NIL

► Akintola Williams Delloite and Touche Prize for the best qualifying candidate in a diet:

Level Name Examination No. Registration No.Professional NIL NIL NIL

► Akintola Williams Prize for the best qualifying candidate in a year:

Level Name Examination No. Registration No.PE II Ayinde Idris Adewole 20141/300975/V/A 188560

Skills LevelsName Examination No. Registration No. AwardNIL NIL NIL 1st NIL NIL NIL 2nd

NIL NIL NIL 3rd

Professional LevelName Examination No. Registration No. AwardNIL NIL NIL 1st NIL NIL NIL 2nd

NIL NIL NIL 3rd

b) SUBJECT PRIZES

Level Subject Prize WinnerFoundation

Financial Accounting Sir John A. Balogun 20142/100860/F/2345 197890Agomo Eberechi

Business Law I.O. SulaimonPrincess A.A. Adeniran

20142/100498/F/2345 195049 Akanmu Idris Olalekan

Economics & Business Environment/Business & Finance

M.B. Taiwo J.A. Owoseni

20142/100993/F/2345 197942 Dosunmu Olawale Khafeel

Quantitative Techniques in Business Mr. M. Ayo Oni 20142/100683/F/2345 190923 Omajeh Enoch Oghene-Mairo

Management Information Late Chief E.F. Oke Prof. M.A. Adeyemo

20142/101184/F/2345 199461 Odutemowo Agbolahan Lekan

SkillsTaxation Z.O. Ososanya NILAuditing and Assurance N.L. Westgarth NILBusiness Comm. and Research Methodology Sir Ike Nwokolo NIL

Performance Management G.J. Burk NILFinancial Reporting S.B. Baylis-Smith NILManagement, Governance & Ethics NILPublic Sector Accounting & Finance Balogun J.O. Omidiora NIL

ProfessionalCorporate Reporting Arthur Young, Osindero & Moret NILAdvanced Audit & Assurance J.M.T. Morris & KPMG NIL

Strategic Financial Management Bola Kuforiji-Olubi Elder M.E. Daniels NIL

Advanced Taxation Akintola Williams & Co. Olushola Adekanola NIL

Case Study KPMG NIL



37


LEGAL SERVICES 1. INVESTIGATING PANEL Between July 2014 and February 2015, the Investigating

Panel considered a total of twenty-four (24) cases.

a) Pending CasesThe Investigating Panel is currently considering twenty-two

(22) cases of alleged Professional Misconduct.The nature of the cases are briefly classified as follows: ● Misappropriation of Funds — 10● Defective Audit Report — 1● Unethical Practice with regards to Audit work — 2● Unethical Conduct as a staff — 0● Financial Dispute — 5● Manipulation of Accounts/Records — 0● Others — 4 Total = 22

b) Cases Referred from the Investigating Panel to the Disciplinary TribunalIn the period under review, one matter was referred to the

Accountants’ Disciplinary Tribunal.

c) Concluded CasesThe Panel concluded one case relating to unethical practice

with regards to audit work.

2. DISCIPLINARY TRIBUNALThe Accountants’ Disciplinary Tribunal considered a total of

nineteen (19) cases of alleged professional misconduct between July 2014 and January 2015. The cases are as follows:

(a) Pending CasesThere are twelve (12) cases presently pending at various

stages of hearing, which have not been concluded.The cases are classified as follows:● Unethical Practice with regards to Audit work — 3● Defective Report — 2● Dispute on the Appointment of new Auditor — 0● Misappropriation of Funds — 6● Financial Dispute — 1

Total = 12

(b) Concluded CasesThe Tribunal concluded seven (7) cases as follows:« 2 cases against 2 members were struck out.« A member was suspended from membership of the

Institute for five (5) years.« A member pleaded liable for disrespect. He was cautioned

and fined the sum of N200,000 which he complied with.« A member who refunded certain amount and pleaded ill

health was cautioned.

« A member was fined the sum of N100,000 after he had settled with a Complainant.

« A member was suspended for three (3) years.

3. STUDENTS’ INVESTIGATING COMMITTEEBetween July 2014 and February 2015, the Students’

Investigating Committee considered a total of twenty-nine (29) cases.

a) Pending CasesThe Students’ Investigating Committee is currently considering

twelve (12) cases.The nature of the cases are briefly classified as follows: ● Examination Malpractices/Misconduct — 2● Alleged Unethical Conduct as an Employee — 4● Alleged Misappropriation of Funds/Fraud — 6

Total = 12

b) Concluded CasesThe Students’ Investigating Committee has concluded

seventeen (17) cases of examination malpractices.

4. AAT INVESTIGATING COMMITTEEThere is no pending case currently before AAT Investigating

Committee.

ICAN President, Mr. Chidi Ajaegbu (left); New IFAC President, Mrs Olivia Kertley; ICAN Past President, Maj-Gen. Sebastian Owuama (rtd.); ICAN Registrar, Mr. Rotimi Omotoso shortly

after Kertley’s election in New York


38


PUBLICATIONS & IMAGE

INSTITUTE’S IMAGEThe Institute leveraged on a number

of special events, programmes and innovations to sustain its positive image through professional perception management strategies evolved by the Corporate Communications and Marketing Directorate during the year. The Institute maintained strong presence in the print, electronic and online/social media using both external and in-house channels. The Publications and Image Committee (PIC) continued to provide invaluable guide to image management activities for sustained positive impression of both the internal and external publics as highlighted below:

PUBLICATIONSThe Institute produced and circulated

The Nigerian Accountant, ICAN Students’ Journal, The Annual Report & Financial Statements and 2015 Diary promptly. The publications have also witnessed improved content management resulting in better production, variation of content, and general appeal. Soft copies of the flagship publication, The Nigerian Accountant and the Annual Report is made available to stakeholders on the Institute’s website.

ANNUAL DINNER AND MERIT AWARDThe Annual Dinner and Merit Award

was held at Intercontinental Hotel, Victoria Island, Lagos. This year’s event was remarkable as it was part of the Institute’s golden jubilee. Accountancy stakeholders including ICAN members,

ICAN President, Mr. Chidi Ajaegbu and Past Presidents of ICAN in a group photograph with Chief Richard Akinjide and his wife shortly after he received his award

regulatory bodies, government officials, and leaders of organisations in public and private sectors of the economy were available not just to learn new things about accounting and finance but also to socialise and unwind. The Dinner provided an opportunity for the Institute to honour outstanding individuals and corporate bodies for their contributions to the development of ICAN, accountancy profession and the economy.

The Award Recipients include:

Members’ Category1. Alhaji Muhtari Dangana, FCA2. Mr. Henry Ehi Egbiki, FCA

3. Elder Moses Olutunji Malomo, FCA4. Mr. Frederick Iluyomade Ogunjuboun, FCA

Non-Members’ Category1. Chief Richard O.A. Akinjide, QC, CON, SAN, FCI Arb. (UK) FCE2. Chief Theo Nkire, SAN

Corporate Body Category1. Masters Energy & Gas Ltd.2. Niger Delta Development Commission (NDDC)

ICAN President, Mr. Chidi Ajaegbu presenting award to Mr. Henry Egbiki while Mrs. Egbiki watches in admiration



39


FINANCE & GENERAL PURPOSES (F&GPC)

● Formulation of Investment Policy for the Institute.● Effective and Efficient working Capital Management.● Increase in sum assured on members’ Group Life

Assurance Policy to N1.5 million from N1 million.● Strict adherence to budgetary provisions.● The F&GPC is exploring other ways to making the Institute

responsive to the needs of Members.● In addition to the two existing sub-committees of F&GPC

(FRCC & S&O), an Investment sub-committee was created to monitor the utilisation of excess fund with a view to maximising return to the Institute.

More pro-active ways of subscription recovery:► Interns employed for debt collection were able to reach

out to members on their various challenges and feedbacks received by members within 48 hours.

► Introduction of Debt Recovery Initiative for collection of old and current subscriptions.

► As an incentive to pay up indebtedness, a discount of 10% was approved for members owing N100,000 and above up to December 31, 2014.

► Demand notes for year 2015 subscription were sent to all members through e-mails and SMS.

INTER-GOVERNMENTAL RELATIONS (IGRC)

The Committee met five (5) times during this Presidential Year.

ANTI-CORRUPTION WORKSHOPThe Committee held Anti-Corruption Workshop on the 17th

of December, 2014 at National Merit House, Maitama, Abuja. The Workshop which was attended by over two hundred and twenty five (225) participants had its theme as “Enhancing Transparency for a Suitable Future.” It was considered important to contribute to the on-going war against corruption in Nigeria. A Communiqué which has been approved by Council for publication was issued during the Workshop.

ELITE CLUB FOR POLITICIANS (ECP)As part of its strategies to encourage members who are in

politics or wish to engage in politics, the Committee is putting in place plans to inaugurate the Elite Club for Politicians (ECP) in all the Districts of the Institute. It is hoped that before the end of this presidential year, the Club would have been inaugurated in most of the Districts.

ICAN President, Mr. Chidi Ajaegbu presenting the merit award to Alhaji Muhtari Dangana

ICAN President, Mr. Chidi Ajaegbu decorating Elder Moses Malomo, FCA

ICAN President, Mr. Chidi Ajaegbu decorating Mr. Fredrick Ogunjuboun, FCA

ICAN PARTNERS AIRFRANCE/KLMThe Institute, in its bid to better the lot of members, is working

on a partnership with Airfrance/KLM to offer special benefits to financial members of ICAN. The benefits include special discounted fares, attractive/competitive group fares, corporate recognition of ICAN staff and financial members, discount on flight tickets to participants of ICAN’s global meetings and special welcome promo for summer trips for ICAN financial members only.


40

FINANCIAL StatementsFOR THE YEAR ENDED 31 DECEMBER 2014

41 Report of the Independent Auditors

42 Honorary Treasurer’s Report

43 Statement of Financial Position

44 Statement of Comprehensive Income

45 Statement of Cash Flows

46 Statement of Change in Equity

48 Notes to the Financial Statements



41

REPORT of the Independent AuditorsTO THE MEMBERS OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA

Report on the Financial Statements We have audited the accompanying financial statements of The Institute of Chartered Accountants of Nigeria (“The Institute”).

These financial statements comprise the statement of financial position as at 31 December 2014 and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

Council’s Responsibility for the Financial StatementsThe Council are responsible for the preparation and fair presentation of these financial statements in accordance with International

Financial Reporting Standards and with the requirements of The Institute of Chartered Accountants of Nigeria Act and for such internal control, as the Council determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance

with Nigeria Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform our audit to obtain reasonable assurance that the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion In our opinion, the accompanying financial statements give a true and fair view of the state of the Institute’s financial affairs at 31

December 2014 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of The Institute of Chartered Accountants of Nigeria Act.

For: PricewaterhouseCoopers For: UHY MaajiChartered Accountants Chartered AccountantsLagos, Nigeria. Lagos, Nigeria.

Engagement Partner: Edafe Erhie, FCA Engagement Partner: Gabriel Idahosa, FCAFRC/2013/ICAN/0000001143 FRC/2014/ICAN/0000009524Lagos, Nigeria. Lagos, Nigeria.29 April 2015 29 April 2015


42

HONORARY TREASURER’s ReportTO MEMBERS OF THE INSTITUTE

I am pleased to welcome you to the 50th Annual General Meeting of the Institute of Chartered Accountants of Nigeria and to present the year 2014 Financial Statements which were considered and recommended by the Council at its meeting of April 22nd, 2015 for your consideration and approval.

Below are the highlights of the 2014 Financial Statements:

YEAR 2014 YEAR 2013 INCREASE/DECREASE

INCREASE/DECREASE

N’000 N’000 N’000 %

TOTAL ASSETS 3,606,931 4,162,539 -555,608 -13.35%

TOTAL LIABILITIES 239,428 790,377 550,949 69.71%

TOTAL FUNDS AND RESERVES 3,367,503 3,372,162 -4,659 -0.14%

ACCUMULATED FUNDS 1,030,048 1,045,454 -15,406 -1.47%

TOTAL INCOME 1,905,012 2,214,874 -309,862 -13.99%

TOTAL EXPENDITURE 1,918,609 1,911,808 6,801 0.36%

TOTAL SURPLUS/(DEFICIT) FOR THE YEAR -11,875 364,037 -375,912 -103.26%

ONOME JOY OLAOLU-ADEWUYI, BSc, MSc, FCIB, (JP) FCAHonorary TreasurerFRC/2014/ICAN/00000006958

APRIL 29th, 2015

COMMENTS ON THE OPERATING RESULTS AND MAJOR BALANCE SHEET ITEMSDuring the year under review, the firms of UHY MAAJI & CO were appointed to audit our accounts jointly with PricewaterhouseCoopers

(existing external auditor) with a view to giving effect to our earlier clamour for Joint Audit of accounts. The year also witnessed the termination of the Staff Gratuity scheme resulting in the payment of N667 million. This was financed

from the proceeds arising out of the termination of investment in Treasury Bills hence a reduction in total assets from N4.16 billion to N3.61 billion. In the same vein, total liabilities reduced by 69.71% as a result of settlement of Staff Gratuity which form the bulk of the liabilities.

The Institute recorded a deficit of N11.875 million as against the budgeted deficit of N273.06 million in the year under review. Despite the challenging macroeconomic environment, continued devaluation of the Naira, falling Oil Prices with the resultant increase in cost of doing business, total expenditure during the year increased slightly by 0.36%.

In addition, we recorded a 13.99% drop in total Income as a result of general decline in the revenue from self financing activities and returns from investment in treasury bills/fixed deposit.

Throughout the year under review, there was strict adherence to budget provisions. Extra budgetary requests were not entertained and we matched authority with responsibility by insisting on Committee Chairmen authorising, ascertainable and attributable cost to their various committees.

As part of Council desire that members get value for their financial commitment to the Institute, the sum assured on the Group Personal Assurance Policy for financial members was increased from N1 million to N1.5 million in the year under review, Some families of our deceased members have benefitted from this new rate. It is worthy to note that the Insurance Premium still remain same.

As founding members of IFAC, PAFA and ABWA, the Institute plays prominent roles in these International Bodies and adequately met its financial obligations to these bodies during the year under review. The total amount incurred was N118 million (N110 million in Year 2013).

I hereby express my heartfelt gratitude to Management and Staff of the Institute for all the support given in ensuring the presentation of our 2014 Accounts in accordance with IFRSs.

Finally, we give glory to God Almighty for the success recorded in the year and the opportunity given me to be of service to our esteemed Institute as the Honorary Treasurer.



43

STATEMENT of Financial PositionAS AT 31 DECEMBER 2014

31 December 31 December Notes 2014 2013 N’000 N’000ASSETS Non-current assets Property, plant and equipment 13 806,237 671,533 Intangible assets 14 5 5 Investment property 15a 1,458,000 1,370,000 Available-for-sale investments 16 85,545 83,592 Loans and receivables 17(b) 9,770 6,726 Total non-current assets 2,359,557 2,131,856 Current assets Loans and receivables 17(b) 31,517 30,122 Inventories 18 200,052 110,953 Subscription and other receivables 19 104,612 63,914 Prepayment 20 32,102 7,702 Deferred expense 21 6,461 1,334 Cash and cash equivalents 22 872,630 1,816,658 Total current assets 1,247,374 2,030,683 Total assets 3,606,931 4,162,539 FUNDS AND RESERVE Accumulated fund 27a 1,030,048 1,045,454 Other charitable and trust funds 27b 2,304,236 2,295,211 Available-for-sale reserve 33,219 31,497 Total funds and reserve 3,367,503 3,372,162 Non-current liabilities Retirement benefit obligation 23(b) – 606,620 Deferred income 25 12,606 4,917 Total non-current liabilities 12,606 611,537 Current liabilities Trade and other payables 25 226,822 178,840 Total current liabilities 226,822 178,840 Total liabilities 239,428 790,377 Total reserves and liabilities 3,606,931 4,162,539 The financial statements were approved and authorised for issue by council on ……….….………….. and signed on its behalf by: …………………………………………………… ………………………………………………….. President Honorary Treasurer FRC/2014/MULTI/00000008031 FRC/2014/ICAN/00000006958 ………………………………………………. Registrar/Chief Executive FRC/2013/ICAN/00000004466 The notes on pages 48 to 74 are an integral part of these financial statements.

April 22, 2015


44

STATEMENT of Comprehensive IncomeFOR THE YEAR ENDED 31 DECEMBER 2014

31 December 31 December Notes 2014 2013 N’000 N’000

INCOME Fees and subscriptions 4 902,245 940,107 Operating activities 5(a) 2,349,926 2,082,025 3,252,171 3,022,132 Operational expenditure 5(b) 1,697,459 1,218,153 Surplus of income over expenditure 1,554,712 1,803,979 Investments income 6(a) 176,729 210,705 Gain on fair valuation of investment property 15b 88,000 169,000 Sundry income 6(b) 85,571 31,190 Total income 1,905,012 2,214,874 Expenditure International affiliation cost 7 117,997 109,714 Depreciation of property, plant and equipment 8 133,389 128,917 General and administrative expenses 9 652,677 583,542 Personnel cost 10 757,879 783,856 Other expenditure 11a 246,206 200,270 Impairment charges 11b 10,461 105,509 1,918,609 1,911,808 (Deficit)/surplus for the year (13,597) 303,066 Other comprehensive income Change in fair value of available-for-sale investments 16 1,722 9,868 Re-measurements of post-employment benefit obligations 23(a) – 51,103 Total (deficit)/surplus for the year (11,875) 364,037



45

STATEMENT of Cash FlowsFOR THE YEAR ENDED 31 DECEMBER 2014

31 December 31 December Notes 2014 2013 N’000 N’000

CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from/(utilised in) activities 29a (829,836) 44,439 Cash from/(utilised in) funding activities 29b 6,985 (18,025) Net cash from operating activities (822,851) 26,414 Cash flows from investing activities Acquisition of property, plant and equipment 13 (268,093) (84,475) Proceed from disposal of property, plant and equipment 6b 420 4,998 Interest received 6a 146,496 181,924 Net cash (used in)/generated from investing activities (121,177) 102,447 Financing activities – – Cashflow absorbed by financing activities – – Net (decrease)/increase in cash and cash equivalents (944,028) 128,861 Cash and cash equivalents at the beginning of the year 1,816,658 1,687,797 Cash and cash equivalents at the end of the year 872,630 1,816,658


46

STATEMENT of Change in EquityFOR THE YEAR ENDED 31 DECEMBER 2014

<--------------------------------------------------------------------- Other Charitable and Trust Funds ---------------------------------------------------------------------> Avaliable-for-Sale Accumulated Development Prizes Benevolent Library Professorial Accountancy Total Investments Funds Fund Fund Fund Fund Chair Reseach Fund N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 Balance at 1 January 2013 21,629 772,606 1,547,173 9,176 85,609 325,085 119,403 145,469 3,026,150 Suplus for the year – 303,066 – – – – – – 303,066 Transfer to funds – (81,321) – – 14,161 67,160 – – – Other comprehensive income for the year – – – – – – – – – Available-for-sale investments 9,868 – – – – – – – 9,868 Receipt/(payment) to members/students – – 6,050 (673) (17,352) (6,050) – – (18,025) Recognition of actuarial gain – 51,103 – – 51,103 Total other comprehensive income 9,868 272,848 6,050 (673) (3,191) 61,110 – – 346,012 Balance at 31 December 2013 31,497 1,045,454 1,553,223 8,503 82,418 386,195 119,403 145,469 3,372,162 Deficit for the year – (13,597) – – – – – – (13,597) Transfer to funds – – – – – – – – –

Other comprehensive income for the year Available-for-sale investments 1,722 – – – – – – – 1,722 Total comprehensive income for year 1,722 (13,597) – – – – – – (11,875)

Movement in funds Payment during the year from fund – – – (1,401) (14,161) – – – (15,562) Receipt from members/students – 231 10,093 303 14,191 – – – 24,818 Transfer to AAT – (2,040) – – – – – – (2,040) – (1,809) 10,093 (1,098) 30 – – – 7,216 Balance at 31 December 2014 33,219 1,030,048 1,563,316 7,405 82,448 386,195 119,403 145,469 3,367,503

The analysis of reserves is presented in note 27



47

STATEMENT of Change in EquityFOR THE YEAR ENDED 31 DECEMBER 2014

<--------------------------------------------------------------------- Other Charitable and Trust Funds ---------------------------------------------------------------------> Avaliable-for-Sale Accumulated Development Prizes Benevolent Library Professorial Accountancy Total Investments Funds Fund Fund Fund Fund Chair Reseach Fund N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 Balance at 1 January 2013 21,629 772,606 1,547,173 9,176 85,609 325,085 119,403 145,469 3,026,150 Suplus for the year – 303,066 – – – – – – 303,066 Transfer to funds – (81,321) – – 14,161 67,160 – – – Other comprehensive income for the year – – – – – – – – – Available-for-sale investments 9,868 – – – – – – – 9,868 Receipt/(payment) to members/students – – 6,050 (673) (17,352) (6,050) – – (18,025) Recognition of actuarial gain – 51,103 – – 51,103 Total other comprehensive income 9,868 272,848 6,050 (673) (3,191) 61,110 – – 346,012 Balance at 31 December 2013 31,497 1,045,454 1,553,223 8,503 82,418 386,195 119,403 145,469 3,372,162 Deficit for the year – (13,597) – – – – – – (13,597) Transfer to funds – – – – – – – – –

Other comprehensive income for the year Available-for-sale investments 1,722 – – – – – – – 1,722 Total comprehensive income for year 1,722 (13,597) – – – – – – (11,875)

Movement in funds Payment during the year from fund – – – (1,401) (14,161) – – – (15,562) Receipt from members/students – 231 10,093 303 14,191 – – – 24,818 Transfer to AAT – (2,040) – – – – – – (2,040) – (1,809) 10,093 (1,098) 30 – – – 7,216 Balance at 31 December 2014 33,219 1,030,048 1,563,316 7,405 82,448 386,195 119,403 145,469 3,367,503

The analysis of reserves is presented in note 27


48

NOTES to the Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2014

1. GENERAL INFORMATION The Institute of Chartered Accountants of Nigeria (ICAN) is a body established by Act of Parliament No.15 of 1965 to: i) Determine what standards of knowledge and skill are to be attained by persons seeking to become member of the accountancy profession and to raise those standards from time to time as circumstances may permit; ii) Secure in accordance with the provisions of the Act, the establishment and maintenance of the registers of fellows, associates and registered Accountants entitled to practice as Accountants and Auditors and to publish from time a list of those persons; iii) Perform, through the Council of the Institute, all other functions conferred on it by the Act. The Institute is an accountancy body in Nigeria recognised by the International Federation of Accountants (IFAC) as the foremost professional accountancy body in the West African sub-region, the Institute, in 1982, initiated and contributed significantly to the formation of the Association of Accountancy Bodies in West Africa (ABWA). The Institute is also a pioneer member of Pan-African Federation of Accountants (PAFA) and indeed produced its pioneer president.

HEAD OFFICE Plot 16, Idowu Taylor Street, Victoria Island, Lagos, Nigeria P.O. Box 1580, Lagos. e-mail: [email protected] website: www.ican-ngr.org VISION To be a leading global professional body. MISSION STATEMENT To produce world-class Chartered Accountants, regulate and continually enhance their ethical standards and technical competence in the public interest. MOTTO Accuracy and Integrity. FINANCIAL REPORTING REGISTRATION NO: FRC/2013/0000000017 JOINT AUDITORS PricewaterhouseCoopers (PwC) Chartered Accountants 252E, Muri Okunola Street , Victoria Island, Lagos. UHY Maaji & Co Chartered Accountants Lisa Court 1, Ilaka Street, Off Coker Road, Ilupeju, Lagos.



49


2. SUMMARY OF ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

The financial statements of the Institute of Chartered Accountants of Nigeria have been prepared in accordance with

International Financial Reporting Standards (IFRS), including International Accounting Standards and Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) applicable to companies reporting under IFRS. Further standards may be issued by the International Accounting Standards Board (IASB) and may be subject to the interpretations issued by the IFRIC.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Council to exercise its judgment in the process of applying the Institute’s accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. Council believes that the underlying assumptions are appropriate and that the institute’s financial statements, therefore, present the financial position and results fairly. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.

The financial statements have been prepared on a historical cost basis and are presented in Naira. All values are rounded to the nearest thousand (N’000), except when otherwise indicated.

2.1.1 Going concern

The Institute has consistently been generating funds through the members’ subscriptions and students’ exams fee. The

Council members believe that there is no intention or threat from any source to curtail significantly its membership and students enrollment in the foreseeable future. Thus, these financial statements are prepared on going concern basis.

2.2 Changes in accounting policies and disclosures

(a) Standards, amendments and interpretations effective on or after 1 January 2014

A number of new standards and amendments to standards came into effect for annual periods beginning after 1 January

2014: Amendment to IAS 32, ‘Financial Instruments: Presentation’ on offsetting financial assets; and financial liabilities; Amendments to IAS 36, ‘Impairment of assets,’ on the recoverable amount disclosures for non-financial assets. Amendment to IAS 39, ‘Financial Instruments: Recognition and Measurement’ on the novation of derivatives and the continuation of hedge accounting; IFRIC 21, ‘Levies,’ sets out the accounting; for an obligation to pay a levy if that liability is within the scope of IAS 37 ‘Provisions.’ The interpretation addresses what the obligating event is, that gives rise to pay a levy and when a liability should be recognised. The Institute is not currently subjected to significant levies so the impact on the Institute is not material. Other standards, amendments and interpretations which are effective for the financial year beginning on 1 January 2014 are not material to the Institute.

(b) Accounting standards and amendments issued but not yet adopted

A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 January 2014, and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statements of the Institute, except the following set out below:

IFRS 9, ‘Financial instruments,’ is effective for accounting periods beginning on or after 1 January 2018

IFRS 9, ‘Financial Instruments,’ addresses the classification, measurement and recognition of financial assets and financial liabilities. The complete version of IFRS 9 was issued in July 2014. It replaces the guidance in IAS 39 that relates the classification and measurement of financial instruments. IFRS 9 retains but simplifies the mixed measurement model and establishes three primary measurement categories for financial assets: amortised cost, fair value through OCI and fair value through P&L.


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The basis of classification depends on the entity’s business model and the contractual cash flow characteristics of the financial asset. Investments in equity instruments are required to be measured at fair value through profit or loss with the irrevocable option at inception to present changes in fair value in OCI not recycling.

There is now a new expectation in IAS 39. For financial liabilities, there were no changes to classification and measurement except for the recognition of changes in own credit risk in other comprehensive income, for liabilities designated at fair value through profit or loss. The standard is effective for accounting periods beginning on or after 1 January 2018. Early adoption is permitted. The Institute is yet to assess IFRS 9’s full impact.

SIGNIFICANT ACCOUNTING POLICIES

3. Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires the Institute to make certain accounting estimates and judgements

that have an impact on the policies and the amounts reported in the financial statements. Estimates and judgements are continually evaluated and based on historical experiences and other factors including expectations of future events that are believed to be reasonable at the time such estimates and judgements are made, although actual experience may vary from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the critical judgements and estimates that the Council have made in the process of applying the Institute’s accounting policies and that have the most significant effect on the amounts recognised in financial statements.

The estimates and assumptions which have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are highlighted below.

3.1 Employee benefit obligations

The present value of the long-term and post employment – gratuity schemes, under the Institute’s benefit obligations depend

on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) for these benefits include the discount rate. Any changes in these assumptions will impact the carrying amount of employee benefit obligations. The Institute’s actuaries determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the employee benefit obligations.

In determining the appropriate discount rate, the actuary considers the present value of the unfunded benefit that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related employee benefit obligation. Other key assumptions for employee benefit obligations are based in part on current market conditions. In the year, the Institute discontinued its defined benefit scheme and all staff grauity were paid in full. Additional information is disclosed in note 23.

3.2 Income recognition

Members’ and students’ fees and subscriptions are accounted for as income in the period to which they relate. Income

from qualifications and examinations relate to examination and exemption income from the Professional qualification and are accounted for in the period to which they relate. Income generated from Publications relates to advertising services. Conferences and courses income is accounted for as the services are performed. Income from regulation and discipline relates to annual licence fees, monitoring visit fees and fines recoverable and all are accounted for as income in the period to which they relate. Other revenues are recorded as earned or as the services are performed.

3.3 Dividend income

Dividend income from investment is recognised when the shareholders right to receive payment is established.




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3.4 Investment income

Investment income is recognised in the statement of comprehensive income as it accrues by using the effective interest rate method. Fees and commission that are integral part of the effective yield of the financial asset or liabilities are recognised as adjustment to the effective interest rate of the financial instrument.

3.5a Donations to members of the Institute

The Institute receives donations from its members and other stakeholders, which are generally non-reciprocal transfers, involve transfers from entities other than the owners and these contributions are voluntary. These donations whether cash or asset (e.g. Property, Plant and Equipment) shall be recognised as income in the period it is received or receivable when and only when all the following conditions have been satisfied:

(a) There is irrevocable commitment from the donor to the Institute;

(b) It is probable that the economic benefits arising from the donation will flow to the Institute; and

(c) The amount of the donation can be measured reliably.

Donations by the Institute to institutions & others

The Institute from time to time as part of its Corporate Social Responsibility (CRS) donates by way of non-reciprocal

transfers in form of cash and/or assets (e.g. Property, Plant and Equipment). In either way, donation by cash or asset shall be accounted in the Institute’s financial statement as follows:

(a) Donation by way of cash transfers shall be expensed.

(b) Donations by way of assets – On completion, this will be capitalised to the fixed assets accounts and subjected to a depreciation rate of 25% (four years) before being fully handed over to the recipients.

3.5b Rental income

Rental income relates to income from the use of Amuwo Odofin building for social activities and rent collected from Akintola Williams House, Abuja. Both property are classified as investment property. Rental income is recognised on accrual basis.

3.6 Inventories Inventories are stated at the lower of cost and net realisable value after making adequate provision for obsolescence and damaged items. Cost comprises suppliers’ invoice, prices and other costs incured to bring the stocks to its present location and condition. Cost is determined using the first-in, first-out (FIFO) method.

3.7 Investments property

Investment property are property held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment property are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment property are measured at fair value. Gains or losses arising from changes in the fair value of investment property are included in statement of comprehensive income in the period in which they arise.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use

and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised.

SIGNIFICANT ACCOUNTING POLICIES (continued)



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3.8 Available-for-sale investments Available-for-sale financial assets are non-derivative financial assets that designated in this category or not classified in any other category.

Available-for-sale financial assets are intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates or equity prices. They are included in non-current assets unless the investment matures or management intends to dispose of it within 12 months of the end of the reporting period.

Available-for-sale financial assets are initially recognised at fair value, which is the cash consideration including any

transaction cost, and measured subsequently at fair value with gains or losses being recognise in the statement of comprehensive income and calculated in a separate reserve in equity, Available for sale reserve until the financial asset is derecognised. However, interest is calculated using the effective interest method, and currency gain and losses on monetary assets classified as available-for-sale are recognised in statement of comprehensive income.

3.9 Property, plant and equipment All categories of property plant and equipment are stated initially at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the assets. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Institute and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the Income Statement during the financial period in which they are incurred. Depreciation of assets commences when assets are available for use.

3.10 Depreciation

Depreciation of assets commences when they are ready for their intended use. Depreciation is provided on all property, plant and equipment, other than leasehold land which is not depreciated, at rates calculated to write-off the cost or valuation, of each asset on a straight-line basis over its expected useful life, as follows:

● Freehold Property – Not depreciated ● Buildings – 2%

● Motor Vehicles – 33.33% ● Office Furniture and Fittings – 25% ● Computer hardware equipment – 25% ● Property Plant and Equipment – 25% ● Library Books – 25%

3.11 Impairment of financial assets

At each balance sheet date, the Institute reviews the carrying amounts of its financial assets to determine whether there is

any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset. The Institute estimates the recoverable amount of the cash-generating unit to which the asset belongs. An impairment loss is charged to the statement of comprehensive income immediately unless the asset is carried at its revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease to the extent of a previously recognised revaluation surplus for the same asset.

In respect of available-for-sale financial assets, at the balance sheet date the Institute assesses whether there is objective evidence that the financial assets are impaired. In the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is also evidence that the assets are impaired. If any such evidence exists for available-for-sale assets, the cumulative loss – measured as the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in the statement of comprehensive income is removed from fair value reserves and recognised in the separate statement of comprehensive income.




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In respect of property, plant and equipment and when there is a change in the estimates used to determine the recoverable amount, a subsequent increase in the recoverable amount of an asset is treated as a reversal of the previous impairment loss and is recognised to the extent of the carrying amount of the asset that would have been determined (net of amortisation and depreciation) had no impairment loss been recognised. The reversal is recognised in the statement of comprehensive income immediately, unless the asset is carried at its revalued amount. A reversal of an impairment loss on a revalued asset is credited directly to the revaluation surplus. However, to the extent that an impairment loss on the same revalued asset was previously recognised as an expense in the statement of comprehensive income, a reversal of that impairment loss is recognised as income in the statement of comprehensive income.There have been no revision to estimates during the year.

Impairment losses recognised in the separate consolidated statement of comprehensive income on equity investments are not reversed through the separate statement of comprehensive income. If, in a subsequent period, the fair value of a debt instrument classified as available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in the statement of comprehensive income, the impairment loss is reversed through the separate statement of comprehensive income.

Financial assets are grouped on the basis of similar credit risk characteristics that are indicative of the debtors’ ability to

pay all amounts due according to the contractual terms and the collective impairment provision is estimated for any such group where credit risk characteristics of the group of financial assets has deteriorated. Factors such as any deterioration in country risk, technological obsolescence as well as identified structural weaknesses or deterioration in cash flows are taken into consideration and the amount of the provision is based on the historical loss pattern within each group.

3.12 Intangible assets and impairment

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Intangible assets which are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

3.13 Foreign currency translation

For the purpose of these financial statements, the results and financial position of the Institute are expressed in Naira,

which is the functional currency of the Institute, and the presentation currency for the financial statements.

In preparing the financial statements, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing on the dates of the transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

3.14 Defined contribution plan The Institute operates a defined contribution based retirement benefit scheme for its staff, in accordance with the Pension

Reform Act of 2004 with employee contributing 10% and employer contributing 10% each of the employee’s relevant emoluments. Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered the service entitling them to the contributions.

3.14.1 Defined benefits plan The Institute also operates a gratuity scheme in previous years for its qualified staff but has been stopped in the year

2014. Benefits are related to the employees’ length of service and remuneration. The cost of providing gratuity benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each reporting period. Actuarial gains and losses (if any) are recognised fully in other comprehensive income. Also, past service cost is recognised immediately in the statement of comprehensive income.



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3.15 Provisions Provisions are recognised when the Institute has a present obligation (legal or constructive) as a result of a past event, it

is probable that the Institute will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle present obligation at the

end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimate to settle present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

3.16 Financial instruments Financial assets are classified into the following specified categories: financial assets at ‘fair value through profit or

loss’ (FVTPL), ‘held-to-maturity’ investments, ‘available-for-sale’ (AFS) financial assets and ‘loan and receivables.’ The classification depends on the nature and purpose of the financial assets and is determined at the time of intial recognition. All regular way purchases or sales of financial assets are recognised or derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.

3.17 Effective interest method The effective interest method is a method of calculating the amortised cost of a debt instument and of allocating interest

income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees paid or received that form an integral part of the effective rate and transaction) through the expected life of the debt instrument, or where appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognised on an effective interest rate basis for debt instruments other than those financial assets classified as fair value through profit or loss (FVTPL).

3.17.1 Financial assets at fair value through profit or loss (FVTPL)

Financial assets are classified as fair value through profit or loss’ (FVTPL) when the financial asset is either held for trading or it is designated as (FVTPL).

A financial asset is classified as held for trading if: ► It has been acquired principally for the purpose of selling it in the near term; or

► On initial recognition it is part of a portfolio of identified financial instruments that the Institute manages together and has a recent actual pattern of short-term profit-taking: or

► It is a derivative that is not designated and effective as a hedging instrument.

A financial asset other than a financial asset held for trading may be designated as fair value through profit or loss’ (FVTPL)

initial recognition if: ► Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or ► The financial asset form part of the the Institute’s financial assets or financial liabilities or both, which is managed and its performamce is evaluated on a fair value basis, in accordance with the Institute’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

► It forms part of a contract containing one or more embeded derivatives, and IAS 39 Financial Instruments: Recognition and Measurement permit the entire combined contract (asset or liability) to be designated as fair value

through profit or loss (FVTPL).





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Financial assets at fair value through profit or loss (FVTPL) are stated at fair value, with any gains or losses arising on remeasurement recognised in the the statement of comprehensive income. The net gain or loss recognised in the statement of comprehensive income incorporates any dividend or interest earned on the financial asset and is included in the ‘other gains and losses’ line item in the Institute’s (statement of comprehensive income/income statement).

3.18 Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in

an active market. Loans and receivables include ‘staff loans’ and other ‘advance to district societies’ in the statement of financial position which are measured at amortised cost using the effective interest method, less any impairment and other employee benefit embedded in the loans.

Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition

of interest would be immaterial. 3.19 Subscription and other receivables Subscription and other receivables are stated at amortised cost based on the original invoice amount less an allowance for

any irrecoverable amounts. Provision is made when there is objective evidence that the institute will not be able to collect certain debts. Bad debts are written off when identified. Terms on receivables balances range from 30 to 90 days.

3.20 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand and short-term deposits with banks and similar institutions, which are readily convertible to known amounts of cash and are subject to insignificant risk of changes in their fair value and used by the Institute in the management of its short-term commitments. Short-term is defined as being three months or less. This definition is also used for the cash flow statement.

3.21 Available-for-sale financial assets (AFS financial assets)

AFS financial assets are non-derivatives that are either designated as AFS or are not classified as: (a) loans and receivables,

(b) held-to-maturity investments, or (c) financial assets at fair value through profit or loss. Listed redeemable notes held by the Insitute that are traded in an active market are classified as AFS and are stated at

fair value at the end of each reporting period. Changes in the carrying amount of AFS monetary financial assets relating to changes in interest income calculated using the effective interest method and dividends on AFS equity investment are recognised in the statement of comprehensive income. Other changes in the carrying amounts of available-for-sale financial assets are recognised in other comprehensive income and accumulated under the heading of investment revaluation reserve. When the investment is disposed off or is determined to be impaired, the cumulative gain or loss previously accumulated in the investments revaluation is reclassified to statement of comprehensive income.

Dividends on AFS equity instruments are recognised in the statement of comprehensive income when the Institute’s right to receive the dividend is established.

The fair value of AFS monetary financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate prevailing at the end of the reporting period. The foreign currency gains and losses that are recognised in the statement of comprehensive income are determined based on the amortised cost of the monetary asset. Other foreign exchange gains and losses in other comprehensive income.




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3.22 Derecognition of financial assets The Institute derecognises a financial asset when the contractual rights to the cashflows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Institute neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Institute recognises its retained interest in the asset and an associated liabilty for amounts it may have to pay.

If the Institute retains substantially all the risk and rewards of ownership of a transferred financial asset, the Institute continues to recognise the financial asset and also recognise a collaterised borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the assets’s carrying amount and the sum of the consideration received and recievable and the cummulative gains or loss that had been recognised in other comprehensive income and accumulated in the equity is recognised in the statement of comprehensive income.

On derecognition of a financial asset other than in its entirety (e.g. when the Institute retains an option to repurchase part of a transferred asset), the Institute allocates the previous carrying amount of the financial asset between the part it continues to recognise under continuing involvement, and the part it no longer recognises on the basis of the relative fair value of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in other comprehensive income is recognised in the statement of comprehensive income. A cumulative gain or loss that had been recognised in other comprehensive income is allocated between the part that continues to be recognised and the part that is no longer recognised on the basis of the realtive fair value of those parts.

3.23 Derecognition of financial liabilities The Institute derecognises financial liabilities when, and only when, the Institute’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in statement of comprehensive income.

3.24 Trade payables Trade payables classified as financial liabilities are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Other payables that are within the scope of IAS 39 are subsequently measured at amortised cost. Others are measured in respect to their applicable standards.

3.25 Financial risk management The main financial risks arising from the Institute’s activities are credit risk, liquidity risk, investment risk and market risk. These are monitored by management on a regular basis.

3.25.1 Credit risk management

Credit risk arises principally from cash and cash equivalents, deposits with banks and financial institutions, equity held as available-for-sale investments, trade receivables and other financial instruments. The Institute regularly monitors and reviews its exposure with key banking and investment manager, suppliers and for deposits, only independently rated banks and financial institutions with a minimum rating of ‘A’ are used. The Institute’s trade receivables relate substantially to members’ and students’ fees and subscriptions.

The credit risk is that one party to a financial instrument fails to discharge its obligation in respect of the instrument. The Institute has no significant concentration of credit risk, with exposure spread over a large number of students and members throughout the country. The Institute believes that the maximum exposure equates to the carrying value of trade and other receivables. Management reviews the trade receivables balance on a regular basis and undertakes an exercise to remove students and members from the receivables ledger register for non-payment of annual fees and subscriptions through impairment process. The level of removals is shown in note 20.





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At the balance sheet date, 95% of the Institute’s trade and other receivables were held in subcriptions and faculties (2013: 85%).

3.25.2 Liquidity risk

Liquidity risk arises from Institute’s management of working capital. It is the risk that the Institute will encounter difficulty

in meeting its financial obligations as they fall due. The Institute manages its liquidity risk by ensuring that it has adequate fund. The Institute receives the majority of its income as subscriptions in the first quarter of the year, or as examination fees, exemption fees, relating to two examination sessions each year. Cash not required for short-term operating purposes is invested to maximise return with an acceptable level of risk. In addition to its own bankers, the Institute uses specialist investment advisers to invest cash surpluses with major banks of suitable credit standing to spread the risk, a maximum of 20% obligor limit is maintained per bank. Cash surpluses are invested in interest bearing fixed and call financial instrument and Federal Government Treasury Bills. At the balance sheet date the institute held N465 billion (2013: N1,272 billion) in term deposits, N206 million (2013: N400 million) in Treasury Bills and N.169 million (2013: N.106 million) in call accounts.Liquidity is managed to ensure investments are liquidated in a timely manner to meet operating requirements.

3.25.3 Market risk

Market risk arises from Institute’s use of interest bearing, tradable and financial instruments. It is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in the interest rates (interest rate risk), foreign exchange rates (currency risk) or other market factors (other price risk).

Interest rate risk relates to the risk of loss due to fluctuations in both cash flows and the fair value of financial assets and liabilities due to change in market interest rates. The Institute invests surplus cash in the short-term and in doing so exposes itself to the fluctuation in interest rates that are inherent in such a market.

Currency risk relates to the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange risk. The Institute operates nationally and internationally in affiliation with foreign professional bodies such as IFAC, ABWA and PAFA. It also has foreign District Societies: (USA, Cameroun and UK) and is exposed to foreign currency exchange risk arising from the transfer of foreign currency to these bodies. The Institute mitigates the risk with regards to income because all fees and subscriptions charged by it are in Naira. In addition, the Institute uses forward currency contracts to mitigate the risk of currency fluctuations. At the balance sheet date, 100% of the Institute’s cash and cash equivalents were held in various Nigeria banks (2013: 100%).

Other price risk relates to the risk of changes in market prices of the available-for-sale investments. The Institute invests surplus cash in a managed fund operated by fund managers and in doing so exposes itself to the fluctuations in price that are inherent in such a market. The Institute’s Finance and General Purposes Committee has given Fund Managers discretionary management of the funds.

3.25.4 Investment risk

Though investment income decreased by N34.5 million (19%) in the year as a result of about N667 million investment liquidated to settle staff grauity. In prior year investment income increased by N138 million (83.37%) in total. This was the realisation of part of the increase in market value; the remaining was driven by ICAN’s investments realising higher returns than the Central Bank of Nigeria’s base rate, which continued to remain low. Budgets are prepared on a prudent basis and income from investments is not relied on for ICAN’s ongoing activities. Investments are reviewed on a regular basis.

3.26 Capital

The Institute considers its capital to be its accumulated fund and its fair value reserves. Council’s financial objective is to generate a targeted operating position, to build and maintain reserves at a sustainable level, taking into account the various competitive risks. The Institute also aims to achieve additional long-term growth in reserves through the active management of the investment portfolio. A five-year financial plan has been developed which, over the period of the plan, targets an agreed level of accumulated fund. The Institute’s Finance and General Purposes Committee reviews the financial position of ICAN at each committee meeting. The Institute is not subject to any material externally imposed capital requirements.



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31 December 31 December 2014 2013 N’000 N’000

4. FEES AND SUBSCRIPTIONS 4.1 Members: Admission fees 9,870 10,380 Annual subscriptions 408,696 404,643 Fellowship/practicing licence, fees 19,148 32,258 Faculty registration/subscription 49,675 62,146 Graduate membership subscription 539 1,478 487,928 510,905

4.2 Professional students: Subscriptions 68,125 69,975 Registrations 51,238 60,434 Exemption fees 229,233 251,622 348,596 382,031 4.3 ATS students: Subscriptions 19,902 12,864 Registrations 31,446 19,737 Exemption fees 14,373 14,570 65,721 47,171 Total fees and subscriptions 902,245 940,107




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5(a) OPERATING ACTIVITIES

Qualifications and fellowship Professional examinations 832,417 961,505 ATS examinations 147,000 145,477 Fellowship award conferment 37,208 56,720 New members’ induction 56,679 59,757

1,073,304 1,223,459

Regulation, education and discipline

Faculties 71,131 72,477 MCPE 248,148 252,508

319,279 324,985

Conferences and courses Annual Accountants’ conference 500,711 472,042 Annual dinner/Institute merit award 13,832 16,043 WCOA/Rome 2014 347,576 – UK-USA conference 46,600 –

908,719 488,085

Publications and stamps

Institute members’ seal and stamps 48,452 45,188 Students’ study packs 172 308

48,624 45,496

Total operating activities 2,349,926 2,082,025

5(b) OPERATIONAL EXPENDITURE

Qualifications and fellowship Professional examinations 537,908 460,870 ATS examinations 121,726 110,677 Fellowship award conferment 11,712 19,080 New members’ induction 22,896 20,085

694,241 610,712

Regulation, education and discipline

Faculties 62,622 66,579 MCPE 157,595 167,763

220,217 234,342



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OPERATIONAL EXPENDITURE (continued)

Conferences and courses Annual Accountants’ conference 378,635 331,461 Annual dinner/Institute merit award 16,743 12,162 WCOA/Rome 2014 338,946 – UK-USA conference 45,000 22,719

779,323 366,342

Publications and stamps Institute members’ seal and stamps 3,678 6,757 Students’ study packs – –

3,678 6,757

Total operational expenditure 1,697,459 1,218,153

5(c) ANALYSIS OF OPERATIONAL ACTIVITIES Year ended December 31, 2014

GROSS GROSS INCOME EXPENDITURE NET

N’000 N’000 N’000 Qualifications and fellowship

Professional examinations 832,417 537,908 294,509 ATS examinations 147,000 121,726 25,274 Fellowship award conferment 37,208 11,712 25,496 New members’ induction 56,679 22,896 33,783

1,073,304 694,241 379,063

Regulation, education and discipline Faculties 71,131 62,622 8,509 MCPE 248,148 157,595 90,553

319,279 220,217 99,062 Conferences and courses

Annual Accountants’ conference 500,711 378,635 122,076 Annual dinner/Institute merit award 13,832 16,743 (2,911) WCOA/Rome 2014 347,576 338,946 8,630 UK-USA conference 46,600 45,000 1,600

908,719 779,323 129,395

Publications and stamps

Institute members’ seal and stamps 48,452 3,678 44,774 Students’ study packs 172 – 172

48,624 3,678 44,946

Total net surplus from operational activities 2,349,926 1,697,459 652,466




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5(d) ANALYSIS OF OPERATIONAL ACTIVITIES (continued) Year ended December 31, 2013

GROSS GROSS INCOME EXPENDITURE NET

N’000 N’000 N’000 Qualifications and fellowship

Professional examinations 961,505 460,870 500,635 ATS examinations 145,477 110,677 34,800 Fellowship award conferment 56,720 19,080 37,640 New members’ induction 59,757 20,085 39,672

1,223,459 610,712 612,747

Regulation, education and discipline Faculties 72,477 66,579 5,898 MCPE 252,508 167,763 84,745

324,985 234,342 90,643

Conferences and courses Annual Accountants’ Conference 472,042 331,461 140,581 Annual dinner/Institute merit award 16,043 12,162 3,881 Special candidates’ course – 22,719 (22,719)

488,085 366,342 121,743

Publications and stamps Institute members’ seal and stamps 45,188 6,757 38,431 Students’ study packs 308 – 308

45,496 6,757 38,739

Total net surplus from operational activities 2,082,025 1,218,153 863,872


6(a) INCOME FROM INVESTMENT

Bank deposit interest 146,496 181,924

Investment income 965 2,503 Rental income 29,268 26,278

176,729 210,705



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6(b) OTHER INCOME

Income from sale of store items 5,827 4,748 TCI – Remittance 1,563 2,467 TCI – Accreditation 3,407 1,820 Contractors’ registration fees 2,041 1,674 Loss on currency translation (101) (2,319) Insurance commission 1,112 1,814 Advertisement income 1,411 969 PPMC Seminar 3,360 – Profit on disposal of motor vehicles 420 4,998 Insurance claims – 1,618 Fed Treasury Academy examinations 8,952 1,206 Transcripts fees 3,713 3,953 E-Library 1,618 – SSPC – Management fee 2,792 1,847 Donation towards ICAN-Aba District Society 38,000 – Other Donations 8,265 – Miscellaneous 3,191 6,395

85,571 31,190

7. INTERNATIONAL AFFILIATION COSTS

IFAC: Subscription 14,532 9,501 Travelling and other meeting expenses 20,623 26,236

35,155 35,737

ABWA: Subscription 24,100 23,550 Travelling and other meeting expenses 2,718 6,715

26,818 30,265

PAFA: Subscription 27,577 24,000 Travelling and other meeting expenses 28,447 19,712

56,024 43,712

Total International affiliation costs 117,997 109,714

8. DEPRECIATION AND AMORTISATION

Depreciation on property, plant and equipment 133,389 128,685

Amortisation on intangible assets – 232

133,389 128,917




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9. GENERAL AND ADMINISTRATIVE EXPENSES

General repairs and maintenance 63,348 53,730 Council and committee meeting expenses 105,875 85,990 Annual general meeting expenses 15,666 18,032 Insurance 20,445 21,113 Local and overseas tours and other activities 106,970 79,476 Co-ordination of district societies 65,952 93,630

Subscription and donations 22,972 29,088 Advertisements and publicity 16,991 10,332 Printing, photocopy and stationery 48,402 34,135 Telephone and postages 37,788 40,389 Vehicle running costs 35,883 28,292 Travelling expenses 43,185 36,645 Refreshment at meetings 14,631 10,945 Computer expenses 16,825 9,700 Debt recovery expense 9,893 – Audit fees 10,000 8,000 Bank charges 8,672 8,989 Others 9,179 15,056

652,677 583,542

10. PERSONNEL COST

Basic salary 269,545 246,097

Post-employment benefit obligations: ● Defined contribution costs 64,868 51,596 ● Other allowances 423,466 486,163

757,879 783,856

11a OTHER EXPENDITURE

Contribution to students special project (SSP) 20,457 10,959 Institute members’ welfare scheme 9,818 8,707

Joint symposia/conference 6,120 4,634 Professional charges 30,940 25,786 Accreditation/visitation expenses 16,934 15,477 ‘Catch Them Young’ awareness programme 24,135 – Scholarship scheme 1,563 – Education and training expenses 32,604 34,981 Practice monitoring activities 27,821 30,239 World Congress of Accountants expenses 37,317 5,000 The Nigerian Accountant journal 18,410 4,452 Research grants and expenses 4,036 10,170 Subscription to professional bodies (FRCN, APBN) 6,010 851 Research journal 3,444 2,176 ICAN Students’ journal 6,597 1,455 PAFA conference – Ghana – 43,976 Syllabus review – 1,407

246,206 200,270



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11b IMPAIRMENT CHARGES

Impairment allowance for doubtful subscription – 49,735 Impairment allowance for doubtful staff loan 1,678 – Impairment allowance for doubtful student special project 8,783 55,774

10,461 105,509

12. ACTIVITIES RESULT

The activities result includes the following:

a. Salaries and related costs The costs of employing staff during the year were as follows:

● Staff costs 269,545 246,097 Post-employment benefit obligations:

● Defined benefit 64,868 51,596 ● Other allowances 423,466 486,163

757,879 783,856

The average number of employees was 192 (31 December, 2013: 179) The average annual salary was NGN1.404m (31 December, 2013: NGN1.370m).

b. Income Income from subscriptions and examination and exemption fees amounting to NGN3,207,171,000 (31 December 2013: NGN3,022,132,000) is stated net of adjustments relating to the non-payment of subscriptions and fees (31 December 2013: NGN790m).

c. Depreciation and amortisation Depreciation of property, plant and equipment 133,389 128,685 Amortisation of intangible assets – 232

d. Auditors’ remuneration Fees payable to joint auditors 10,000 8,000




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13. PROPERTY, PLANT AND EQUIPMENT Land Buildings Motor Plant Furniture Library Building Total Vehicles and and Books Under Machinery Equipment Construction N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 Cost

Balance at 1 January 2013 – 669,813 165,175 68,406 274,612 19,166 – 1,197,172 Additions 56,574 7,150 20,614 137 – 84,475 Reclassifications 26,203 (26,203) – – – – – – Disposals – – (18,630) – – – – (18,630) Balance at 31 December 2013 26,203 643,610 203,119 75,556 295,226 19,303 – 1,263,017

Balance at 1 January 2014 26,203 643,610 203,119 75,556 295,226 19,303 – 1,263,017 Additions – 29,058 105,271 – 58,457 1,839 73,468 268,093 Disposals – – (2,830) – – – – (2,830) Balance at 31 December 2014 26,203 672,668 305,560 75,556 353,683 21,142 73,468 1,528,280 Accumulated depreciation Balance at 1 January 2013 – 88,774 120,770 44,468 212,271 15,146 – 481,429 Depreciation charge for the year – 23,558 50,055 10,261 42,601 2,210 – 128,685 Disposals – – (18,630) – – – – (18,630) Balance at 31 December 2013 – 112,332 152,195 54,729 254,872 17,356 – 591,484 Balance at 1 January 2014 Depreciation charges for the year – 13,453 67,150 9,515 41,537 1,734 – 133,389 Disposals – – (2,830) – – – – (2,830) Balance at 31 December 2014 125,785 216,515 64,244 296,409 19,090 – 722,043 Net book value At 31December 2013 26,203 531,278 50,924 20,827 40,354 1,947 – 671,533 At 31 December 2014 26,203 546,883 89,045 11,312 57,274 2,052 73,468 806,237



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14. INTANGIBLE ASSETS Cost Balance at 1 January 2014 16,818 16,818

Balance at 31 December 2014 16,818 16,818

Accumulated amortisation and impairment

Balance at 1 January 2014 16,813 16,581 Amortisation charge – 232

Balance at 31 December 2014 16,813 16,813

Net carrying amount

At 31 December 2014 5 5

15a INVESTMENT PROPERTY

Akintola Williams building, Abuja 756,000 720,000

Awuwo-Odofin building, Lagos 702,000 650,000

1,458,000 1,370,000

15b GAIN ON FAIR VALUATION OF INVESTMENT PROPERTY

Balance at 1 January 2014 1,370,000 1,201,000

Gain in the year 88,000 169,000

At 31 December 2014 1,458,000 1,370,000

Investment property were valued as at 31 December 2014 by Ubosi Eleh, an independent firm of Chartered Surveyors and

Property Consultants. The Amuwo Odofin and Abuja property are managed by Eliezer and Jide Taiwo Co. respectively. Income generated from both property in 2014 was N88m (2013: N169m).

16. AVAILABLE-FOR-SALE INVESTMENTS

Quoted investments:

At 1 January 83,592 73,725 Additions 231 – Net gains transferred to fair value reserve 1,722 9,867

At 31 December 85,545 83,592

Historical cost of tradable investments 52,096 52,096

Available-for-sale investments funds are fair valued annually at the close of business on the date of the financial

position. Wherever possible, fair value is determined by reference to stock exchange quoted bid prices. Available-for-sale investments are classified as non-current assets unless they are expected to be realised within twelve months of the balance sheet date.

All available-for-sale investments are denominated in Naira. The Institute monitors its exposures by way of regular reports from the fund managers who have discretionary management of the investment portfolio. None of these financial assets are impaired.




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17(a) LOANS AND RECEIVABLES

Staff loans 35,703 30,133 Staff advances 1,005 1,746 Enugu district society – 4,969 Owerri district society 840 – Minna district society 1,000 – Ilorin district society 2,739 –

41,287 36,848

17(b) LOANS AND RECEIVABLES

Current 31,517 30,122

Non Current 9,770 6,726

41,287 36,848

The non current loan and receivables represents the long term portion of the car loans granted to staff.

18. INVENTORIES

Stationery 22,892 12,496

Electrical parts 176 90 Diesel 2,776 2,138 Students’ study packs 11,207 23,342 Others sellable items 7,634 14,567 Annual Accountants’ conference bags 40,500 58,320 Student study packs in transit 114,867 –

200,052 110,953

Inventories comprise the Institute Students’ study packs in store and transit, stationery and other saleable materials carried at cost. Annual Accountants conference bags were supplied in 2013 and was partly utilised in 2014 while the remaining would be used in 2015 Accountants’ conference.

19. SUBSCRIPTION AND OTHER RECEIVABLES

Subscription receivables 675,773 675,773

Other receivables 104,612 63,914 Impairments allowance (675,773) (675,773)

104,612 63,914

19.1 MOVEMENT IN IMPAIRMENT ALLOWANCE

At 1 January (675,773) (626,038)

Charge for the year – (49,735)

At 31 December (675,773) (675,773)



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19.2 OTHER RECEIVABLES

Bayelsa ICAN Students’ Special Project (SSP) 4,268 46,522 NNDC/ICAN Students’ Special Project (SSP) 22,875 30,005 Cross River/ICAN Students’ Special Project (SSP) 9,703 8,783 Accountants’ conference receivables – 12,049 Other sundry debtors 735 1,035 Deposit with Aero and Arik airlines 5,000 3,000 MCPE recievables 8,485 10,095 WCOA receivables 2,064 8,199 Deposit for land – Abuja 35,000 – Aba District Donor – Mr. Chidi Ajaegbu 14,523 – Federal Treasury Academy 10,742 – Impairment allowance for doubtful SSP (8,783) (55,774)

104,612 63,914

19.2.1 MOVEMENT IN IMPAIRMENT ALLOWANCE

At 1 January (55,574) – Charge for the year (8,783) – Written off 55,574 (55,574)

At 31 December (8,783) (55,574)

20. PREPAYMENT

Group life insurance – ICAN members 7,935 5,376 Group life insurance – ICAN staff 8,227 – Motor vehicle, fire and burglary insurance 3,948 2,326 ATS Pool Setting 2015 6,467 Conference centre 5,525 –

32,102 7,702

Deferred charges represent deferred interest expense on car loans to staff using effective interest rate on balance sheet date.

21. DEFERRED EXPENSE

At 1 January 1,334 1,921 Additions 7,114 1,718 Charge for the year (1,987) (2,305)

At 31 December 6,461 1,334

Deferred charges represent deferred interest expense on car loans to staff using effective interest rate on balance sheet date.




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22. CASH AND CASH EQUIVALENTS

Treasury bills 206,250 997,108 Short term bank deposit 464,552 713,658 Cash at bank and in hand 201,828 105,892

872,630 1,816,658

The effective interest rate on short term bank deposits was 11.65% (2013: 11.63%).

23a DEFINED CONTRIBUTION PLAN

The Institute operates a defined contribution based retirement benefit scheme for its staff, in accordance with the Pension Reform Act of 2004. The employee and employer contributes 10% each of the employee’s relevant emoluments. Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered the service entitling them to the contributions.

Pension costs The amounts recognised in the statement of comprehensive income for the Schemes are as follows:

Pension costs 59,560 51,596

59,560 51,596

Defined benefits plan The Institute also operates a gratuity scheme for its qualified staff, benefits are related to the employees’ length

of service and remuneration. The cost of providing gratuity benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at the end of each reporting period. Actuarial gains or losses (if any) are recognised fully in other comprehensive income. Also, past service cost is recognised immediately in statement of comprehensive income.

The most recent actuarial valuation of the ICAN staff scheme was at 31 December 2013. In the year, the Institute discontinued its defined benefit scheme and all staff grauity were paid in full. The actuarial valuation was based on the following principal financial assumptions:

Rate of investment return Average pay increase 12%

Average inflation rate 9% Discount factor 14%

The total pension charge is made up as follows: Current service costs 59,560 51,596

59,560 51,596

Note: The Institute has discontinued define benefit plan as at August 31st, 2014 and have settled in full all staff gratuity liability to date.



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23b RETIREMENT BENEFIT OBLIGATIONS

Amounts recognised in the balance sheet to reflect funded status – 606,620 Net liability in the balance sheet at 31 December – 606,620

Change in benefit obligation

Present value of benefit obligation at 1 January 606,620 570,359 Current service cost 64,868 50,529 Interest on obligation – 73,638 Benefits paid (667,502) (36,803) Write back (3,986) – Actuarial gains – (51,103)

Present value of benefit obligation at 31 December – 606,620

Amounts recognised in the balance sheet for pensions are predominantly non-current and are reported as non-current liabilities.

Movement in the net liability recognised in the balance sheet

At 1 January 606,620 570,359 Retirement benefit obligation 64,868 124,167 Benefits paid (667,502) (36,803) Write back (3,986) – Recognition of actuarial gain – (51,103)

At 31 December – 606,620




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24. THE ANALYSIS OF FUNDS AND OTHER RESERVES

(a) Library Fund The contribution to Library fund is to obtain all the resources needed for the use of the Institute’s members. This is in line

with the Council belief of the need to provide a befitting library facility to help students and members turn information into knowledge. This fund helps fill the gap by providing high quality library facility, necessary materials and equipment. 3% of the year’s gross income is made available to meet capital expenditure on library development.

(b) Benevolent Fund The ICAN members benevolent and educational trust was established by Council of the Institute of Chartered Accountants

of Nigeria to assist persons in need who are or have been ICAN members and/or their families and dependants. It is also aimed at promoting and supporting educational/research in Accountancy, Financial Management, Taxation and related subjects. The fund is managed by a five-man Board of Trustees. The major activities of the management board are fund raising and management of investments. 3% of the Annual Accountants’ Conference gross income is credited to the fund annually. The fund generated are invested and it is the income from the investments that are disbursed to members in need and families that are distraught. Since inception, the Fund has been used to assist members and families of dead members. This include members who had renal (kidney) failure, blindness, stroke, spinal cord injuries, disaster (fire/flood/accident) victims, children’s education, etc. The minimum amount of benefit to applicants is fifty thousand Naira (N50,000) only; while the maximum shall be a sum of five hundred thousand Naira (N500,000) only.

(c) Accountancy Research Fund

Transfers to the fund are based on Council’s resolutions. The fund is made available to meet expenditure on research to specialised areas of accountancy. The fund is invested in fixed deposit and any interest accrued there from is credited to the fund.

(d) Professorial Chair Endowment

Transfers to the fund are based on Council’s resolutions. The fund is made available to meet expenditure on professorial chair endowment in selected universities. The fund is invested in fixed deposit and any interest accrued there from is credited to the fund.

(e) Developmental Fund

Transfers to the fund are based on Council’s resolutions. The fund is made available to meet expenditure on the Institute’s infrastructural development. The fund is invested in fixed deposit and any interest accrued there from is credited to the fund.

(f) Prizes Fund

The Prizes Fund is funded by donors of each prize. The fund is made available to meet expenditure on the award of prizes to deserving outstanding students in the Institute’s examinations. The fund is invested in fixed deposit and any interest accrued there from is credited to the fund. In 2013, 28 awards were made in ATSWA category, while 38 were made in the Professional Examinations category.

(g) Available-for-sale Reserve

The available-for-sale investments fair value reserve represents the excess of unrealised gains and losses on available-for-sale investments over their historic costs.

(h) Accumulated Fund

The accumulated fund represent the excess of income over expenditure which have been accumulated over the years.



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25. TRADE AND OTHER PAYABLES

Trade payables 78,330 56,320 AAT account balance 34,788 36,220

Accrued expenses 113,704 86,300

226,822 178,840

25(a) TRADE PAYABLES

ICAN staff pension fund 1,411 109

Withholding tax (FIRS)/LSIR 44,766 26,168 NASB fund 4,520 4,031 WCOA creditors 5,747 15,000 Law suit – 10,000 ICAN/ICAEW/World Bank 2,422 – Boards of internal revenue 323 – NASU 16 – National housing fund 1,079 –

Other creditors 17,638 1,012 USA district 408 –

78,330 56,320

25(b) ACCRUED EXPENSES

AAT outstanding bills 3,042 3,492

Examination processes accrued expenses 31,484 36,468 Audit fees 10,000 8,000 Akintola Williams Deloitte – 2,000 Accountants’ conference expenses – 3,099 MCPE expenses 3,969 656 Insurance claim 10,745 6,000 Insurance expenses – 1,877 PAFA subscription 15,434 19,635 ABWA – 714 Printing and adverts 8,779 – Presidential local travels 2,865 955 Staff promotion arrears 5,161 – Committee claims 2,174 – Study pack 11,262 – PPMC creditors 2,920 – Sundry accrual 5,869 3,404

113,704 86,300

26. DEFERRED INCOME

Subscription income 4,910 3,583 MCPE income 2,400 – Interest income 2,675 1,334 Rental income 2,621 –

12,606 4,917




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27. FUNDS

(a) Accumulated fund 1,030,048 1,045,454

(b) Other charitable and trust funds: Development fund 1,563,316 1,553,223 Accountancy research fund 145,469 145,469 Benevolent fund 82,448 82,418 Professorial fund 119,403 119,403 Prizes fund 7,405 8,503 Library fund 386,195 386,195

2,304,236 2,295,211

28. RELATIONSHIPS

Council members as office bearers: Chidi Onyeukwu Ajaegbu (President)

Samuel Olufemi Deru (Vice President) Titus Alao Soetan (1st Deputy Vice President) Isma’ila Muhammadu Zakari (2nd Deputy Vice President) Kabir Alkali Mohammed (Immediate Past President) Onome Joy Olaolu-Adewuyi (Honorary Treasurer)

Other Council members: Sunday Abayomi Bammeke, Etofolam Felix Osuji,

Oye Clement Akinsulire, Davideson Chizuoke Alaribe, Tijjani Musa Isa, Razak Jaiyeola, Monica Ngozi Okonkwo, Adaku Chilaka Chidume-Okoro, Uchenna Ifesinachi Erobu, Comfort Olajumoke Eyitayo, Hart Wahab Odefen Ozoya, Nnamdi Anthony Okwadigbo, Innocent Okwuosa, Haruna Mma Yahaya, Tajudeen Olayinka, Samuel Tyonongo Ukura, Shakirat Adepeju Babatunde, Olutayo Phillips, Oyebowale Rafiu Raji, Queensley Sofuratu Seghosime, Hilda Ofure Ozoh, Ibrahim Abdullahi Babayo, Nasiru Muhammad, Samuel Onyebuchi Onukwue

No member of the Council receives payment in respect of services to ICAN. In line with Council travel and expenses policy, Council members are reimbursed for any expenses which they directly incur on behalf of ICAN as part of their role as a Council member. No loans is granted to related parties.

Remuneration of Key Management Personnel (KMP)

The Registrar/Chief Executive is the key management personnel of the Institute. He has responsibility for implementing Council’s policies and drives the Secretariat in promoting the ICAN brand. The KMP has no business relationship with the Institute. The remuneration of the key management personnel of the Institute is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.


Registrar/Chief Executive: Short-term employee benefits 22,340 22,340

22,340 22,340



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31 December 31 December Notes 2014 2013 N’000 N’00029. CASH FLOW STATEMENT

(a) Cash generated from activities: (Deficit)/surplus for the year (13,597) 303,066

Adjustments for:

Interest received 6a (146,496) (181,924) Depreciation on property, plant and equipment 13 133,389 128,685 Amortisation of intangible assets – 232 Profit on disposal of property, plant and equipment 6b (420) (4,998) Actuarial valuation gain 22 – 51,103 Gain on valuation of investment property 15b (88,000) (169,000)

Changes in working capital (excluding the

effects of exchange differences): Increase in inventory (89,099) (69,915) Increase in loans and receivables (4,439) (1,961) (Increase)/decrease in prepayments (24,400) 15,128 (Increase)/decrease in subscription and other receivables (40,698) 116,865 Increase/(decrease) in trade and other payables 47,982 (180,258) Increase in deferred income 7,689 568 (Increase)/decrease in deferred expense (5,127) 587 (Decrease)/increase in retirement benefit obligations (606,620) 36,261 Cash generated from activities (829,836) 44,439

(b) Cash from funding activities: Development fund 10,093 6,050 Prizes fund (1,098) (673) Benevolent fund 30 (17,352) Accumulated fund (2,040) – Library fund – (6,050) 6,985 (18,025)

30. CONTINGENT LIABILITIES AND COMMITMENTS There were no contingent liabilities or capital commitments as at the reporting dates.

31. EVENTS AFTER STATEMENT OF FINANCIAL POSITION DATE

There are no significant subsequent events, which could have had a material effect on the state of affairs of the Institute as at

31 December 2014 that have not been adequately provided for or disclosed in the financial statements.




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NOTES

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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA(Established by Act of Parliament No.15 of 1965)

Plot 16, Professional Centre Layout, Idowu Taylor Street, Victoria Island.

P.O. Box 1580, Lagos. Tel: 7642294, 7642295

Fax: 4627048 E-mail: [email protected]

ICAN Website: www.ican-ngr.org

Designed by BEP Graphix, Lagos.

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