FINANCIAL REPORTING COUNCIL OF NIGERIA ACT 2011

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LAWS OF THE FEDERATION OF NIGERIA 

FINANCIAL REPORTING COUNCIL OF NIGERIA ACT, 2011

EXPLANATORY MEMORANDUM

This Act repeals the Nigerian Accounting Standards Board Act, No.22 of 2003 and enacts the Financial Reporting Council of Nigeria charged with the responsibility for, among other things, developing and publishing accounting and financial reporting standards to be observed in the preparation of financial statement of public entities in Nigeria.

ARRANGEMENT OF SECTIONS

PART I—ESTABLISHMENT OF THE FINANCIAL REPORTING COUNCIL OF NIGERIA

1. Establishment of the Financial Reporting Council of Nigeria.
2. Establishment and Membership of the Board.
3. Appointment and Tenure of Office of Chairman and members of the Board.
4. Disqualification from membership.
5. Vacation of Office.
6. Filling of Vacancies.
7. Powers of the Council.
8. Functions of the Council.
9. Emoluments.
10. Functions of the Board.
11. Objects of the Council.
12. Meetings of the Board.
13. Quorum for Board Meetings.
14. Co-option in the Board.
15. Establishment of Committees for the Council.
16. Affixing of Seal.
17. Validity of proceedings.
18. Disclosure of personal interest.
19. Indemnity of Board members.

PART II—STAFF OF THE COUNCIL

20. Executive Secretary and other staff of the Council.
21. Pensions.
22. Staff Regulations.
23. Establishment of Directorate.

PART III—DIRECTORATES

24. Directorate of Accounting Standard-Private Sector.
25. Directorate of Accounting Standard-Public Sector.
26. Directorate of Auditing Practices Standards.
27. Directorate of Actuarial Standards.
28. Directorate of Inspection and Monitoring.
29. Directorate of Valuation Standards.
30. Rules and codes of practice.
31. Codes of Ethics.
32. Memorandum of understanding and co-operation mechanism.

PART IV—FINANCIAL PROVISIONS

33. Establishment of Fund of the Council.
34. Expenditure of the Council.
35. Annual Estimate.
36. Power to accept gifts.
37. Borrowing powers, investment and records of accounts.
38. Audit and annual reports of the Council.
39. Investment and Securities Act.
40. Exemption from tax.

PART V—REGISTRATION OF PROFESSIONALS

41. Registration of professionals.
42. Duration of Registration.
43. Practice by suspended professional.
44. Report and opinion.
45. Material irregularity.
46. Independence of auditors.
47. Conflict of interest.
48. Sanctions on registered professionals.

PART VI—DIRECTORATE OF CORPORATE GOVERNANCE

49. Establishment of Directorate of Corporate Governance.
50. Objectives of the Directorate of Corporate Governance.
51. Functions of the Directorate of Corporate Governance.

PART VII—REVIEW AND MONITORING OF STANDARDS

52. Review and monitoring of accounting and financial reporting standards.
53. Review and monitoring of auditing standards.
54. Compliance with auditing standards.
55. Procedure for setting standards.
56. Amendments to Council’s pronouncements.
57. Compliance by public interest entities.
58. Monitoring of financial statements and reports.
59. Preparation of financial reports in accordance with standards.
60. Practice review of professional accountants.
61. Frequency of practice reviews.
62. Power of investigation by Council.
63. Obstruction of an inspector.
64. Sanctions for non-compliance.
65. Sanctions on public interest entities.
66. Grievances procedure.
67. Referral to appropriate authorities.

PART VIII—LEGAL PROCEEDINGS

68. Limitation of suits against the officers of the Council.
69. Service of documents.
70. Execution against properties of the Council.
71. Indemnity of officers.

PART IX—MISCELLANEOUS

72. Publication of Official Bulletin.
73. Power to make Regulations.
74. Repeal of NASB Act, 2003.
75. Section 335 (1) of CAMA.
76. Oath.

PART X—INTERPRETATIONS

77. Interpretation.
78. Citation.

SCHEDULE

FINANCIAL REPORTING COUNCIL OF NIGERIA ACT, 2011 ACT No. 6

An Act to repeal the Nigerian Accounting Standards Board Act, No.22 Of 2003 and enact the Financial Reporting Council Of Nigeria charged with the Responsibility for, among other things, developing and publishing accounting and financial reporting standards to be observed in the preparation of financial statement of public entities in Nigeria; and for related matters.

Commencement:         [3rd Day of June, 2011]

ENACTED by the National Assembly of the Federal Republic of Nigeria—

PART I—ESTABLISHMENT OF THE FINANCIAL REPORTING COUNCIL OF NIGERIA

Establishment of the Financial Reporting Council of Nigeria.

1.—(1) There is established the Financial Reporting Council of Nigeria (in this Act referred to as “the Council”).

(2)    The Council shall be:

(a)    a body corporate with perpetual succession and a common seal; and

(b)    may sue and be sued in its corporate name.

(3)    The Council may acquire, hold or dispose of any property, moveable or immoveable, for the purpose of carrying out its functions.

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LAWS MADE BY THE NATIONAL ASSEMBLY OF NIGERIA [1999 – 2019]