FG, states, councils to implement the new accounting format by Jan. 2016

The Federal Government yesterday disclosed that the new accounting technique— International Public Sector Accounting Standards ( IPSAS)  will become fully operational by the three tiers of government latest  January ,2016 even as it directed all public sector entities to comply with its provisions.

It is hoped that the implementation of IPSAS will promote transparency and accountability in public finance management and would ensure financial reports of the Federal government are compared with those of States as well as Local governments.

Vice President Namadi Sambo  made the disclosure  while launching the Accrual Accounting Manual IPSAS in Abuja. 

Sambo, who was represented at the event by the Minister of State for Finance, Ambassador Bashir Yuguda also directed that budgetary provisions should be made to assist the accrual accounting concepts especially in the process for identification and valuation of all government assets.

He said the accounting accrual manuals for IPSAS being launched was the initiative of the present government aimed at promoting transparency and accountability in the public sector

He noted  that the fundamental turning point in the nation’s implementation of IPSAS was the adoption of Accrual – Basis of Accounting which had become the leading practice in Public Financial Management across the globe, the VP said the adoption of Accrual Basis of Accounting in an IPSAS environment is believed to present a complete, true and fair view of accounting and promote transparency and accountability in financial reporting for p6blic sector entities in a standadised approach.

“ It is in the light of the importance of Accrual Accounting to the full Implemtation  of IPSAS that the FAAC Sub Committee had identified the development of an Accrual Accounting Manual as a pivotal milestone and deliverable towards the implementation of IPSAS in Nigera”he stresed.

He stressed that the  manual being launched had been developed as a comprehensive guideline for the practice of IPSAS Compkiant Accrual Accounting in public sector entities across the federation, the VP said “ The manual provides the policies, processes and procedures to adhere or comply with in recognition,  recording and reporting of finacial transactions of the publicblic sector entities”.

Arch, Sambo reiterated that it was carefully put together to meet the needs and aspirations of all ifficers involved in public financial management across the Federal, State and Local Governments.

Fielding questions from journalists shortly after the launching, the Accountant General of the Federation, Mr Jonas Ogunniyi Otunla confirmed the 2016 implementation date.

On the issue of training of key officers for the take off,  the Accountant General said training is based on identification of skills gaps,  adding that once a gap is ide tified in a particular competence,  those people that will need that skill would be identified. for training .

“Training eliminates waste, so government has done a lot, particularly the Office of the Accountant General of the Federation to see that we are properly trained and we will preach the sermon also to other tiers if government” he disclosed