Financial Reporting Council Revokes ‘Rule Four’ – TheNigerialawyer

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 not
TheNigerialawyer 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.

“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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