History Of Accounting In Nigeria

History Of Accounting In Nigeria

In Nigeria, record keeping has antecedents in the ancient kingdoms and empire and prominent then was the periodic contributions which were recorded on the wall. 

But the granting of royal character to Royal Niger Company was the turning point in record keeping. The governing accounting principles in Nigeria is almost the same as the ones in Britain.

Before the evolution of accounting as a profession, man had old methods of managing resources and determining profits after trading. Based on business objectives, humans adopted their primitive understanding of accounting in controlling their businesses, financial assets and calculating the profit which was made from production/sale of goods and services.

However, professional accounting evolved through man’s awareness that correct summaries of financial transactions should be done so as to determine the status of a business in relation to profit and loss. Thus, the need for sufficient evaluation and control of financial transactions as a result of several factors which include; trade expansion, capital growth, wealth accumulation and increased levels of production.

As a result of this, accounting is undoubtedly the most efficient answer to the overwhelming demands of individuals, firms, and governments to have correct financial records and economic activities. Therefore, it is obvious that both developing and developed societies need accountants to handle certain aspects of the economy.

In 1965, the Institute of Chartered Accountants of Nigeria (ICAN) was established and affiliated with the professional institutes in Britain and USA. Many Nigerians came back from overseas after independence as professional accountants and being members. The institute was charged with the responsibilities of regulating procedures and practice in Nigeria.

In 1982, Nigeria Accounting Standard Board (NASB) was established to regulate and set standards to guide accounting operations in Nigeria. Some of the members of Nigeria Accounting Standard Board (NASB) include Central Bank of Nigeria (CBN), Ministry of Finance (MoF), Nigeria Accounting Teachers Association (NATA), Chambers of Commerce (CoC), etc.

Currently in Nigeria, there are two recognized accounting bodies namely; Institute of Chartered Accountants of Nigeria (ICAN) and Association of National Accountants of Nigeria (ANAN).

Some of the professional bodies in accounting across the world include:
  •  Institute of Chartered  Accountants of Scotland
  •   Institute of Chartered  Accountants of England and Whales
  • Institute of Chartered  Accountants of Ireland
  • Association of Chartered Accountants
  • Institute of Cost and Management Accounting
  • Chartered Institute of Public Finance and Accountancy
  • Association of Accountants Technicians
  • Institute of Chartered Accountants of Nigeria

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