ADOPTION OF IPSAS IN NIGERIA: WHAT YOU NEED TO KNOW
Q1:
What is IPSAS?
IPSAS is an acronym for International Public Sector Accounting Standards.
IPSASs are a set of accounting Standards issued by the International Public Sector
Accounting Standards Board (IPSASB) for use by public sector entities around the
world in the preparation of Financial Statements. IPSASs are a set of
professionally developed, high quality, global Accounting Standards that require
accounting on cash basis or accrual basis.
Q2:
Who is responsible for issuing/setting IPSAS?
The IPSASB is the independent standard-setting organ of International Federation
of Accountants (IFAC) responsible for developing accounting standards for public
sector entities.
Q3:
What are the objectives of IPSASB?
The primary objective of the IPSASB is to develop and issue IPSAS as well as
other guidance that represents good practice that public sector entities are
encouraged to follow, and resources for use by public sector entities around the
world.
The IPSASB aims specifically to enhance the quality and transparency of public
financial reporting by:
i. Establishing high-quality accounting standards for use by public sector
entities;
ii. Promoting the adoption, and international convergence to IPSAS;
iii. To improve the quality of general purpose financial reporting by public
sector entities, leading to better informed assessments of the resource
allocation decisions made by governments, thereby increasing transparency
and accountability.
iv. Providing comprehensive information for public sector financial
management and decision making; and
v. Providing guidance on issues and experiences in financial reporting in the
public sector.
FAAC Sub-Committee on IPSAS Implementation
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Q4: What is the scope of IPSAS?
This is applicable to General Purpose Financial Statements (GPFS) prepared and
presented under the cash basis or accrual basis of accounting in accordance with
IPSAS for public sector entities other than Government Business Enterprises
(GBEs).
IPSAS are tailored for the public sector and its use is considered best practice for
public sector entities (e.g. Governments, Non Governmental Organizations and
International Organizations).
Q5:
What is the composition/membership of the IPSASB?
The IPSASB consists of 18 volunteer members. Out of the 18 members, 15 are
from IFAC member bodies and 3 public members.
Members include representative from Ministries of Finance, Government Audit
Institutions, Public Practice and Academia.
All members of the IPSASB are appointed by the IFAC Board upon
recommendations from the IFAC Nominating Committee.
The18 members are with experience and expertise in public sector financial
reporting as well as a gender and geographic balance.
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MAP: SEE ATTACHED
FAAC Sub-Committee on IPSAS Implementation
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Q6:
How is the IPSASB structured?
IPSASB is structured as shown below:
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Q7:
How does the IPSASB sets and issues standards?
IPSASB follows a very structured and public due process in the development of all
IPSASs. This process provides the opportunity for all those interested in financial
reporting in the public sector to make their views known to the IPSASB. The views
of preparers and users directly affected by the IPSASs are considered in the
standard-setting development process. Any Standard pass through a three stage
process as follows:
Q8:
What is IFRS?
International Financial Reporting Standards (IFRS) are a set of accounting
Standards issued by the International Accounting Standards Board (IASB) for use
by private sector entities around the world in the preparation of Financial
Statements.
IFRS are designed as a high quality common global language for business affairs
so that Government Business Enterprise (GBE) and company accounts are
understandable and comparable across international boundaries. They are
progressively replacing the many different national accounting standards.
Q9:
What is the relationship and difference between the IPSAS and the IFRS?
IPSAS is drawn primarily from/based on International Financial Reporting
Standards (IFRS) issued by the International Accounting Standards Board (IASB)
to take into account public sector specific requirements.
Public and private companies carrying out commercial activities, including
Government Business Enterprises (GBEs) do apply IFRS while Governments,
public institutions and international organisations without commercial purposes
adopt IPSAS.
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Q10:
What is a GBE?
A Government Business Enterprise (GBE) is an entity that has all of the following
characteristics:
A. It is an entity with the power to contract in its own name;
B. It has been assigned the financial and operational authority to carry on a
business;
C. It sells goods and services, in the normal cause of its business, to other
entities at profit or full cost recovery;
D. It is no reliant on continuing government funding to be a going concern;
E. It is controlled by a public sector entity
Some of the GBEs include the following:
i. Central Bank of Nigeria;
ii. Securities and Exchange Commission;
iii. Power Holding Company of Nigeria (Former NEPA);
iv. Nigerian Ports Authority;
v. Nigeria Communications Commission;
vi. Nigerian National Petroleum Corporation;
vii. Nigerian Maritime Administration and Safety Agency.
Q11:
What is the difference between Cash and Accrual Basis of Accounting?
The difference between Cash and Accrual Basis stem from the basis of accounting
adopted by the reporting entity.
Cash Basis of Accounting is the recognition and recording of income and expenses
only when cash (income) is actually received and expenses actually paid.
While Accrual Basis is a basis of accounting under which transactions and other
events are recognized when they occur (and not only when cash or its equivalent is
received or paid).
Q12:
How many standards has IPSASB issued as at August, 2014?
A total of thirty two (32) standards have been issued by the IPSASB on Accrual
Basis of Accounting. However, IPSAS 15: Financial Instrument – Disclosure &
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Presentation has been withdrawn. The Board has issued only one (1) Standard on
the IPSAS Cash Basis of Accounting.
IPSAS
IPSAS 1
IPSAS 2
IPSAS 3
IPSAS 4
Summary of IPSAS Accrual Basis issued to date
Description of the Summary of the Standard
Standard
• Sets out the manner in which GPFS shall
be prepared.
• A complete set of financial statements
comprises:
– Statement of financial position;
Presentation
of
– Statement of financial performance;
Financial
– Statement of changes in net assets/equity;
Statements
– Cash flow statement;
– When the entity makes its approved budget
publicly available, a comparison of budget
and actual amounts;
– Notes to the Accounts.
• Requires the presentation of information
about historical changes in a public sector
entity’s cash and cash equivalent using a
Cash
Flow
cash flow statement.
Statements
• The standard describes how to classify
cash flows during the period to: operating,
investing and financing activities.
• Prescribes the criteria for selecting and
Accounting
changing accounting policies, together
Policies, Changes in
with the accounting treatment and
Accounting
disclosure of changes in accounting
Estimates
and
policies, changes in accounting estimates,
Errors
and corrections of errors.
The Effects of • Prescribes the accounting treatment for an
Changes in Foreign
entity’s foreign currency transactions and
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Based on
IAS 1S
IAS1
IAS 7
IAS 8
IAS 21
Exchange Rates
•
•
•
IPSAS 5
Borrowing Costs
•
IPSAS 6
Consolidated and
Separate Financial
•
Statements
•
IPSAS 7
Investments
Associates
in
•
IPSAS 8
Interests in
Ventures
Joint
from
IPSAS 9
Revenue
Exchange
Transactions
•
foreign operations.
The standard defines the functional
currency and prescribes how to convert
from foreign to functional currency.
Prescribes the accounting treatment for
borrowing costs.
Borrowing costs include interest,
amortization of discounts or premiums on,
and amortization of ancillary costs
incurred in the arrangement of
borrowings.
Identifies the requirements for preparing
and presenting consolidated financial
statements for an economic entity under
the accrual basis of accounting.
Also addresses how to account for
investments in controlled entities, jointly
controlled entities and associates in
separate financial statements.
Prescribes the investor’s accounting for
investments in associates where the
investment in the associate leads to the
holding of an ownership interest in the
form of a shareholding or other formal
equity structure.
Provides the accounting treatment for
interests in joint ventures, regardless of
the structures or legal forms of the joint
venture activities.
applies to revenue arising from the
following exchange transactions and
events:
 The rendering of services;
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IAS 23
IAS 27
IAS 28
IAS 31
IAS 18
•
Financial Reporting
IPSAS 10 in Hyperinflationary
Economies
•
•
IPSAS 11
Construction
Contracts
•
IPSAS 12 Inventories
•
IPSAS 13 Leases
•
 The sale of goods, and
 The use of others of entity assets
yielding interest, royalties and
dividends.
Prescribes specific standards for entities
reporting in the currency of a
hyperinflationary economy, so that the
financial information (including the
consolidated
financial
information)
provided is meaningful.
The financial statements of an entity that
reports
in
the
currency
of
a
hyperinflationary economy shall be stated
in terms of the measuring unit current at
the reporting date.
This standard relates to the accounting
treatment for revenue and costs associated
with construction contracts in the financial
statements of the contractor.
Prescribes the accounting treatment of
inventories, including cost determination
and expense recognition, including any
write-down to net-realizable value. It also
provides guidance on the cost formulas
that are used to assign costs to inventories.
Relates to lessees and lessors, the
appropriate accounting policies and
disclosures to apply in relation to finance
and operating leases.
The standard classifies leases into: finance
and operating for accounting treatment
purposes.
•
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IAS 29
IAS 11
IAS 2
IAS 17
IPSAS 14
Events After the
Reporting Date
• Prescribes:
1. When an entity shall adjust its financial
statements for events after the reporting
date.
2. Disclosures that an entity should give IAS 10
about the date when the financial
statements were authorized for issue,
and about events after the reporting
date.
Financial
This Standard has been withdrawned.
Instruments:
Disclosure
and
IPSAS 15 Presentation
IAS 32
(withdrawn
&
issued as IPSAS 28
& 30 Separately)
• Relates to accounting treatment for
investment
property
and
related
disclosures
• Investment property is land or buildings
held (whether by the owner or under a
finance lease) to earn rentals or for capital
IPSAS 16 Investment Property
IAS 40
appreciation or both, rather than for:
 use in the production or supply of
goods or services or for administrative
purposes;
 sale in the ordinary course of
operations.
• Prescribes the principles for the initial
Property, Plant &
recognition and subsequent accounting
IPAS 17
IAS 16
Equipment
(determination carrying amount and the
depreciation charges and impairment
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losses) for property, plant and
equipment so that users of financial
statements can discern information
about an entity’s investment in its
property, plant and equipment and the
changes in such investment.
• Establishes the principles for reporting
financial information by segments to
better understand the entity’s past
performance and to identify the resources
IPSAS 18 Segment Reporting
allocated to support the major activities of IAS 14
the entity, and enhance the transparency
of financial reporting and enable the entity
to better discharge its accountability
obligations.
• Prescribes appropriate recognition criteria
and measurement bases for provisions,
contingent liabilities and contingent
assets, and to ensure that sufficient
Provisions,
information is disclosed in the notes to the
Contingent
financial statements to enable users to IAS 37
IPSAS 19
Liabilities
&
understand their nature, timing and
Contingent Assets
amount.
IPSAS 20
Related
Disclosures
This standard aims at ensuring that only
genuine obligations are dealt with in the
financial statements.
• Ensures that financial statements disclose
the existence of related party relationships
Party
and transactions between the entity and its
IAS 24
related parties.
• This information is required for
accountability purposes and to facilitate a
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Impairment of NonIPSAS 21 Cash-Generating
Assets
•
•
Disclosure
of
Financial
•
IPSAS 22 Information About
the
General
Government Sector
•
Revenue from NonExchange
IPSAS 23
•
Transactions (Taxes
&Transfers)
Presentation
of •
IPSAS 24 Budget Information
in
Financial
better understanding of the financial
position and performance of the reporting
entity.
Ensure that non-cash-generating assets are
carried at no more than their recoverable
service amount, and to prescribe how
recoverable service amount is calculated.
Sets the disclosure requirements for
governments which elect to present
information about the general government
sector (GGS) in their consolidated
financial statements.
The disclosure of appropriate information
about the GGS of a government can
provide a better understanding of the
relationship between the market and nonmarket activities of the government and
between
financial
statements
and
statistical bases of financial reporting.
Prescribes requirements for the financial
reporting of revenue arising from nonexchange transactions, other than nonexchange transactions that give rise to an
entity combination.
In a non-exchange transaction, an entity
either receives value from another entity
without directly giving approximately
equal value in exchange, or gives value to
another entity without directly receiving
approximately equal value in exchange.
Ensures that public sector entities
discharge their accountability obligations
and enhance the transparency of their
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IAS 36
No
correspon
ding IFRS
No
correspon
ding IFRS
No
correspon
ding IFRS
Statements
•
•
IPSAS 25 Employee Benefits
•
Impairment
of
IPSAS 26 Cash-Generating
Assets
•
•
IPSAS 27 Agriculture
•
financial statements by demonstrating
compliance with the approved budget for
which they are held publicly accountable
and, where the budget and the financial
statements are prepared on the same basis,
their financial performance in achieving
the budgeted results.
Prescribes the accounting and disclosure
for employee benefits.
The include: short-term benefits (wages,
annual leave, sick leave, bonuses, profitsharing and non-monetary benefits);
pensions; post-employment life insurance
and medical benefits; termination benefits IAS 19
and other long term employee benefits
(long-service leave, disability, deferred
compensation, and bonuses and long term
profit-sharing), except for share based
transactions and employee retirement
benefit plans.
Prescribes the procedures that an entity
applies to determine whether a cashgenerating asset is impaired and to ensure
that impairment losses are recognized.
IAS 36
This standard also specifies when an entity
shall reverse an impairment loss and
prescribes disclosures.
Sets the accounting treatment and
disclosures for agricultural activity.
Agricultural activity is the management by
IAS 41
an entity of the biological transformation
of living animals or plants (biological
assets) for sale, or for distribution at no
FAAC Sub-Committee on IPSAS Implementation
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•
Financial
IPSAS 28 Instruments:
Presentation
•
Financial
Instruments:
IPSAS 29
Recognition
Measurement
•
and
•
Financial
IPSAS 30 Instruments:
Disclosures
•
•
IPSAS 31 Intangible Assets
Service Concession •
IPSAS 32 Arrangements:
Grantor
charge or for a nominal charge or for
conversion into agricultural produce or
into additional biological assets.
This standard sets the principles for
classifying and presenting financial
instruments as liabilities or net assets/
equity, and for offsetting financial assets
and liabilities.
Establishes principles for recognizing,
derecognizing and measuring financial
assets and financial liabilities.
All financial assets and financial
liabilities, including all derivatives and
certain embedded derivatives, are
recognized in the statement of financial
position.
Prescribes disclosures that enable
financial statement users to evaluate the
significance of financial instruments to an
entity, the nature and extent of their risks,
and how the entity manages those risks.
Sets the accounting treatment for
intangible assets that are not dealt with
specifically in another IPSAS.
IPSAS 31 does not apply to intangible
assets acquired in an entity combination
from a non-exchange transaction, and to
powers and rights conferred by legislation,
a constitution or by equivalent means,
such as the power to tax.
Prescribes the accounting for service
concession arrangement by the grantor, a
public sector entity.
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IAS 32
IAS 39
IFRS 7
IAS 38
IFRIC 12
The only one standard on IPSAS Cash Basis has two parts as follows:
Q13:
What are the components of IPSAS Cash and IPSAS Accrual Based General
Purpose Financial Statements (GPFS)?
IPSAS Cash Basis sets out a complete component of the GPFS as:
i. Statement of Cash Receipts and Payments (Cash Flow Statement);
ii. Comparison of Budget and Actual Amounts either as a separate additional
Financial Statement or as a Budget Column in the Statement of Cash
Receipts and Payments;
iii. Accounting Policies; and
iv. Notes to the Financial Statements.
A Complete set of IPSAS Accrual Based GPFS includes the following
components:
i. Cash Flow Statement;
ii. Statement of Financial Position;
iii. Statement of Financial Performance;
iv. Statement of Changes in Net Assets/Equity;
v. Accounting Policies and
vi. Notes to the Financial Statements.
Q14:
What is the current reporting format for IPSAS Cash and IPSAS Accrual as
approved by FAAC for the three tiers of governments?
Summary of current IPSAS Cash GPFS approved by FAAC
A. Cash Basis Main Financial Statements:
i. Format of Statement 1-Cash Flow Statement
ii. Format of Statement 2- Statement of Assets and Liabilities
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iii.
iv.
v.
vi.
Format of Statement 3- Statement of Consolidated Revenue Fund
Format of Statement 4- Statement of Capital Development Fund
Notes to the Accounts
Supplementary Notes
B. Cash Basis Performance Reports:
i. Format of Revenue Performance Report
ii. Format of Recurrent Expenditure Performance Report
iii. Format of Capital Expenditure Performance Report
iv. Format of Periodic Bank Reconciliation Statements
v. Format of Monthly Cash Advances Report
C. Cash Basis Statistical Reports:
i. Format of Functional Report
ii. Format of Programme Report
iii. Format of Geo Location Report
D. Cash Basis Accounting Policies:
i. Format of IPSAS Cash Basis Accounting Policies
Summary of current IPSAS Accrual GPFS approved by FAAC
A. Accrual Basis Main Financial Statements:
i. Format of Consolidated Statement of Financial Performance (Income &
Expenditure)
ii. Format of Consolidated Statement of Financial Position (Balance Sheet)
iii. Format of Statement of Consolidated Statement of Cash Flow
iv. Format of Statement of Changes in Net assets/ Equity
v. Notes to the Accounts
vi. Supplementary Notes
B. Accrual Basis Performance Reports:
i. Format of Revenue Performance Report
ii. Format of Recurrent Expenditure Performance Report
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iii. Format of Capital Expenditure Performance Report
iv. Format of Periodic Bank Reconciliation Statements
v. Format of Monthly Cash Advances Report
C. Accrual Basis Statistical Reports:
i. Format of Functional Report
ii. Format of Programme Report
iii. Format of Geo Location Report
D. Accrual Basis Accounting Policies:
i. Format of IPSAS Accrual Basis Accounting Policies
Q15:
How can I find out what amendments have been made to a standard and
when those amendments will take effect?
Information can be downloaded from the IPSASB website: www.ipsasb.org or
www.ifac.org
Q16:
What is the role of FAAC?
The role of the Federation Account Allocation Committee (FAAC) is clearly stated
in the Act establishing FAAC, thus: “An Act to prescribe the basis for distribution
of revenue accruing to the Federation Account between the Federal and State
Governments and the Local Government Councils in the States; the formula for
distribution amongst the States inter se; the proportion of the total revenue of each
State to be contributed to the State Joint Local Government Account; and for other
purposes connected therewith.
Q17:
Which Sub-Committee is responsible for the adoption of IPSAS in Nigeria?
The initial Sub-Committee was known as ‘FAAC Sub-Committee on the Roadmap
for the Adoption of IPSAS in Nigeria’ and presently known as ‘FAAC SubCommittee on IPSAS Implementation.’
FAAC Sub-Committee on IPSAS Implementation
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Q18:
What is the composition/membership of the Sub-Committee in Nigeria?
The Sub-Committee has the under listed membership drawn from the three tiers of
Government in Nigeria, i.e. Federal, States and Local Government Councils
(LGC):
i. Accountant-General of the Federation - Chairman;
ii. Director (Funds Department), Office of the Accountant-General of the
Federation (OAGF);
iii. Director (Consolidated Accounts Department), Office of the AccountantGeneral of the Federation (OAGF);
iv. Director (Revenue and Investment Department), OAGF;
v. Director (Home Finance Department), Federal Ministry of Finance;
vi. Director, Revenue Mobilisation Allocation and Fiscal Commission;
vii. Chairman, FAAC Post-Mortem Sub-Committee;
viii. Accountants-General of the States representing each of the six geo-political
zones of the country, namely:
a. Accountant-General Borno State, representing North East;
b. Accountant-General Sokoto State, representing North-West;
c. Accountant-General Nasarawa State, representing North-Central;
d. Accountant-General Enugu State, representing South East;
e. Accountant-General Ogun State, representing South West; and
f. Accountant-General Akwa-Ibom State, representing South-South.
ix. Director Treasury Audit, Office of the Auditor-General for the Federation;
x. Chairman, Body of Federal and States Auditors-General in Nigeria;
xi. Chairman, Forum of Auditors-General for Local Government in Nigeria;
xii. Representative of the Financial Reporting Council of Nigeria; and
xiii. Representative of the Consolidated Accounts Department of the OAGF,
Secretary.
Q19: Can any tier of government set up its IPSAS implementation Sub-Committee?
In order to ensure a seamless and successful implementation of the various
activities that will usher in the adoption of the provision of IPSAS on the part of
the Federal and State/Local Government Councils, a committee was constituted
with membership as follows:
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I. Federal Government IPSAS Implementation Committee a. Accountant-General of the Federation – Chairman.
b. Three (3) Officers from the Office of the Accountant General of the Federation.
c. Two (2) Officers from Budget Office of the Federation.
d. National Planning Commission.
e. One (1) Officer from the Office of the Auditor General for the Federation.
f. Two (2) Officers from the National Assembly.
g. Two (2) Officers from the Judiciary (one each from National Judicial Council
and National Judicial Institute).
h. Financial Reporting Council of Nigeria.
i. Fiscal Responsibility Commission.
j. Five (5) Officers, each from the following MDA;
i. Federal Ministry of Agriculture.
ii. Federal Ministry of Health.
iii. Federal Ministry of Education.
iv. Federal Ministry of Works.
v. Ministry of Foreign Affairs.
k. An Officer in the Consolidated Accounts Department of the OAGF to serve as
Secretary.
II. State/Local Government IPSAS Implementation Committee a. Commissioner of Finance – Chairman.
b. Permanent Secretary in charge of Local Government Affairs.
c. Accountant-General of the State.
d. Auditor General for the State.
e. Auditor General for Local Government.
f. Director, Budget Office of the State.
g. Director, Planning Office of the State.
i. Chairman, State Board of Internal Revenue.
j. Coordinating Director Local Government Budget.
k. Director, Final Account (State Accountant General Office) to serve as the
Secretary.
FAAC Sub-Committee on IPSAS Implementation
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Q20: What are the deliverables/publications of the Sub-Committee?
The deliverables are to ensure seamless adoption of IPSAS, they include the
following:
 Unified National Chart of Accounts (NCOA);
 Users’ Manual of the NCOA;
 Format of General Purpose Financial Statements (GPFS) - IPSAS Cash
Basis including Statutory Reports, Statistical Reports, Performance
Reports and Accounting Policies;
 Format of General Purpose Financial Statements (GPFS) - IPSAS
Accrual Basis including Statutory Reports, Statistical Reports,
Performance Reports and Accounting Policies;
 IPSAS Compliant Budget Templates;
 Mapping of the NCOA to GPFS IPSAS Cash Basis; and
 Mapping of the NCOA to GPFS IPSAS Accrual Basis.
The above deliverables have been approved by FAAC for use by the three tiers of
government and a National Circular is issued to ensure smooth adoption.
Q21:
Do I have to buy copies of the above publications of the FAAC SubCommittee?
All the publications/deliverables of the FAAC Sub-Committee are free both in hard
and soft copies and can be downloaded on the Sub-Committee Website.
Q22:
What is the time line for IPSAS implementation in Nigeria?
• The approved timelines for migration to IPSAS is
as
follows:
•
MIGRATION PERIOD
2014
2016
IPSAS CASH BASIS
IPSAS ACCRUAL BASIS
13
FAAC Sub-Committee on IPSAS Implementation
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Q23:
Why must Nigeria transit from IPSAS Cash Basis to IPSAS Accrual Basis?
The IPSASB has also developed guidance on the transition from cash to accrual
based reporting. The traditional emphasis on cash accounting has been found
inadequate through failure to recognize true costs, and all assets and liabilities.
Cash accounting can too easily neglect asset management, creditors, debtors and
contingent liabilities then; there is need to successfully transit to IPSAS accrual
basis.
Q24: What Steps have been taken to ensure commencement of Accrual accounting in
2016?
a. The developed National Chart of Accounts is Accrual accounting ready;
b. Entities have been directed by the Sub-Committee to setup IPSAS Assets
and Liabilities Division under the Finance and Accounts Department to
identify and commence the process for Fixed Assets identification and
process for valuation;
c. A Technical Study Group has been set up to domesticate the Standards to the
Nigeria context.
Q25: What is the brief history of adoption of IPSAS in Nigeria?
The Federal Executive Council (FEC) at its meeting of 28 th July, 2010 approved
that Nigeria should adopt the provisions of the International Financial Reporting
Standards (IFRS) and International Public Sector Accounting Standards (IPSAS)
for Private and Public Sectors respectively. Consequently, the Federation Account
Allocation Committee (FAAC) at its meeting held on 13th June, 2011 set up a Sub Committee to provide a Roadmap for the implementation of IPSAS in the three
tiers of government in Nigeria.
Q26:
Is the current way of budgeting and accounting in Nigeria IPSAS compliant?
The Budget and Financial Statements in Nigeria are not fully IPSAS compliant.
Therefore, there is need to meet up with the public sector specific requirement in
accordance with IPSAS.
In line with the Public Expenditure and Financial Accountability Framework
(PEFA) requirements, comprehensive budget information is to be presented to the
FAAC Sub-Committee on IPSAS Implementation
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legislature. According to PEFA PI-6- Comprehensiveness of Information included
in Budget Documentation, the following are required to be disclosed in the budget
of the Federal, States and Local Governments in order to comply with IPSAS:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
Macro-economic assumptions, including at least estimates of aggregate
growth, inflation and exchange rate.
Fiscal deficit, defined according to Government Finance Statistics (GFS) or
other internationally recognized standards.
Deficit financing, describing anticipated composition.
Debt stock, including details at least for the beginning of the current year.
Financial Assets, including details at least for the beginning of the current
year.
Prior year’s budget outturn, presented in the same format as the budget
proposal.
Current year’s budget (either the revised budget or the estimated outturn),
presented in the same format as the budget proposal.
Summarized budget data for both revenue and expenditure according to the
main heads of the classifications used (Ref. PI-5), including data for the
current and previous year.
Explanation of budget implications of new policy initiatives, with estimates
of the budgetary impact of all major revenue policy changes and/or some
major changes to expenditure programmes.
It is glad to note that our Budgeting and Accounting System has met some of the
above mentioned requirements. However, there is need to include all budget
information to fully meet IPSAS requirements.
Q27:
What are the benefits that Nigeria will gain from adopting IPSAS?
The adoption of IPSAS in Nigeria will give the following benefits:
 Improve accountability and transparency hence, quality service delivery;
 Ensure credibility/integrity that will build confidence in donor agencies,
lenders and other stakeholders;
 Secure political & economic leverage;
 In line with international best practice that will ensure comparability;
FAAC Sub-Committee on IPSAS Implementation
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 Greater disclosures which provide information for better decision-making
and in turn should lead to better use of public resources.
 To enhance Fiscal Operation Report that will increase control of public
agencies
 Enhance Public-Private Partnership arrangements;
 Increased cross-border investment and foreign direct investment,
 Enhance implementation of the Freedom of Information (FOI) Act 2011
Q28:
Q29:
Is there any Legal and Administrative framework for the three tiers of
government in Nigeria to adopt IPSAS?
i. Finance (Control and Management) Act, 1958
ii. Fiscal Responsibility Act, 2007 [Section 49(3)]
iii. The Federal Executive Council (FEC) approved the adoption of IPSAS in
Nigeria at its meeting of 28th July, 2010.
iv. The Federation Account Allocation Committee (FAAC) at its meeting of
13th June, 2011 set up a Sub-Committee to work out modalities for the
implementation of IPSAS in the three tiers of government in Nigeria.
v. A National Circular dated 13th May, 2013with ref. no. TYY/A48/2013
OAGF/CAD/026/V.1/190 was issued for the Federal, States and Local
Government Councils in Nigeria to commence implementation of IPSAS
Cash by 2014 and IPSAS Accrual by 2016.
How can I file a complaint about issues concerning the implementation of
IPSAS in my MDA?
You can contact the Chairman or Secretary to the Sub-Committee as stated
hereunder.
FAAC Sub-Committee on IPSAS Implementation
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Q30:
Where can I find more information/ keep up-to-date with the activities of the
Sub-Committee?
For enquiries, please contact:
The Secretary
IPSAS Secretariat
Consolidated Accounts Department
Office of the Accountant General of the Federation
Treasury House
Ladoke Akintola Boulevard
Abuja
E-Mail: faacipsasabuja@yahoo.com
Website: www.faacipsas.gov.ng
Telephone: +234(0)92918425
FAAC Sub-Committee on IPSAS Implementation
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