The Regulatory Frameworks and Accounting Standards in Nigeria

Abstract

The preparation of financial statements by corporate organization must follow certain rules, principles and guideline Nigeria before the introduction of IFRS. The rules are stated In the Company and Allied Matter Act (CAMA) 1990. The act prescribes some format and content of what must be included in the company's financial statements disclosure requirements and auditing. It requires that financial statement of companies must comply with the Statement of Accounting Standards (SAS) issued from time to time by the Nigerian Accounting Standard Board (NASB) and audit carried out in accordance with generally accepted auditing guidelines and standards. The NASB Act No22 of 2003 formerly created the NASB and established for it an inspectorate unit. The NASB came into being on September 9, 1982. It is the only recognized independent body in Nigeria responsible for the development and issuance of statement of accounting standards for users and preparers of financial statements, investors, commercial entities and regulatory agencies of government. Other laws include the Bank and other Financial Act (BOFIA) 2004 and the Small and Medium Scale Entities are to adhere strictly to the presentation of their information using relevant sections of SAS (Orakwu, 2015).