Financial Reporting Council Of Nigeria Revokes ‘Rule Four’
Financial Reporting Council Of Nigeria Revokes ‘Rule Four’

The Financial Reporting Council of Nigeria (FRC) has announced its revocation of its Rule 4, which requires registration from statutory bodies such as the National Office for Technology Acquisition and Promotion.

The FRC stated this in a public notice seen by THISDAY at the weekend.

The notice was signed by the Executive Secretary/CEO, FRC, Mr. Daniel Asapokhai. The policy became effective last month.

The erstwhile Rule 4 required that: “Transactions and/or events of a financial nature that require approval and/or registration or any act to be performed by a statutory body in Nigeria and/or where a statute clearly provides for a particular act to be performed and/or registration to be obtained; such transactions or events shall be regarded as having financial reporting implication only when such act is performed and/or such registration is obtained.

Financial Reporting Council Of Nigeria Revokes ‘Rule Four’

“Accordingly, the details of the required act and/or registration obtained from such statutory body shall be disclosed by way of note in the financial statements if the transaction is recognised as part of the financial reporting of the entity.

“For example, an agreement that requires registration from the National Office for Technology Acquisition and Promotion can only be accrued for or received into the financial reporting process when the registration of such agreement has been obtained. The details of the registration including, but not limited to, the registration certificate number, the approved basis and amount, subject matter and validity shall be disclosed in the annual report, financial report, returns or document of a financial nature by way of note.”

It advised financial statement issuers to which the erstwhile Rule 4 applied to give effect to its revocation prospectively from the effective date stated above.

The FRC recently partnered with the Public Accounts Committee (PAC) of the House of Representatives to digitise the Committee’s operation, using a modern electronic document management system.

The Council facilitated deployment of Globodox Enterprise Electronic Document Management Solution (EDMS) to enable the Committee seamlessly carry out its statutory role of ensuring probity and accountability in the nation’s financial system.

To this end, the House of Representatives Deputy Majority Leader, Hon. Idris Ahmed Wase, who represented the Speaker of the House, Honourable Yakubu Dogara, presented a plaque to the Executive Secretary/CEO, FRC, Mr. Daniel Asapokhai, in appreciation of the contribution of FRC at the unveiling of the new digital platform by the Committee in Abuja.

A statement quoted Wase to have commended the council for stepping up to the challenge, adding that the system would go a long way to assist in the smooth operation of PAC. He said PAC had taken a giant stride which was unprecedented in the history of National Assembly.

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