By:
Oluseyi Olanrewaju HND, BSc, MBA, MSc, AMNIM, M.IoD, FCCM, FCTI, FCCA, FCA
Finance Expert – IS InternetSolutions Limited, Lagos
&
Executive Director – Risk Free Standard Associates Limited, Lagos
 Overview of ICT
 Overview of Financial Reporting
 Handshake between ICT and Financial Reporting
 Finance Expert and the Future of Financial Reporting
 Finance Expert Functions and Fundamental Principles
 Closing Remarks
 ICT (information and communications technology - or technologies) is an umbrella
term that includes any communication device or application, encompassing: radio,
television, cellular phones, computer and network hardware and software, satellite
systems and so on, as well as the various services and applications associated with
them, such as videoconferencing and distance learning.
 In our fast-growing global information society, technology has had a profound effect
on every aspect of society and each individual's life. Importantly two distinct
technologies: information technology (IT) and communications technology (CT) have
gradually become integrated to form a new technology – ICT (information
communications technology). Coupled with the huge success and popularity of the
Internet, society has now indisputably entered the era of ICT.
 Largely consultative approach to industry regulation; the Nigerian data services
market is in the most part self-regulating and most changes to regulation or
Nigerian Communications Commission (NCC) intervention is targeted at the
mobile market
 30MHz of 2.3GHz spectrum currently under public auction with a reserved price of
$23m (NGN3.7bn) for ten years (excludes a once off $2.3m universal access
licence) was recently awarded; the NCC plans a further auction of 5.4GHz
spectrum for broadband penetration in 2014 – this particular spectrum will support
an SME play for competitors
 Technology continues to profoundly affect the way we:
 Work
 Collaborate
 Communicate
 Play
 Learn
 Socialize
 Succeed in almost every arena
 CLOUD OFFERINGS - outsourcing
 BIG DATA
 Etc.
 Financial reporting is presenting financial data of a company's operating
performance, position and cash flow for an accounting period. Financial statements
alongside related information/documents may be contained in various forms
mainly for external party use such as in the annual report.
 It is basically financial information that companies give about their activities,
including how they prepare and show it.
 The International Accounting Standards Committee (IASC), now called IFRS
Foundation, formed in 1973, was the first international standards-setting body. It was
reorganized in 2001 and became an independent international standard setter, the
International Accounting Standards Board (IASB). Since then, the use of international
standards has progressed rapidly.
 As of 2012, the European Union and over 120 other countries either require or permit
the use of International Financial Reporting Standards (IFRSs) issued by the IASB.
 International Financial Reporting Standards were first adopted in 2005 in many
countries around the world.
 A Road map committee was inaugurated on October 22, 2009.
 The Road Map committee’s report was submitted January 26, 2010.
 Government took a decision on July 28, 2010 to adopt IFRS effective January 1, 2012
following the approval of the committee report.
 Financial Reporting Council of Nigeria Act (FRCN Act) was signed into law in 2011.
 Nigerian Accounting Standard Board Act (NASB Act) was repelled by the new Act
 FRCN members are now 19 ( 5 members were added to the 14 member under NASB)
 Monthly, Quarterly and Annual Reports
 Understand financial performance
 SOCI, SOFP & SOCF
 Careful analysis of analysis to guarantee accuracy
 Creating value as a Finance Expert
 Make financing, investing and dividend decisions
 Sustainability Reporting
 A sustainability report is an organizational report that gives information about
economic, environmental, social and governance performance.
 Sustainability reporting is not just report generation of collected data it is a method
to internalize and improve an organization’s commitment to sustainable
development in a way that can be demonstrated to both internal and external
stakeholders.
 Organizations must ensure a robust system for sustainability management and
reporting with regard to:
 Transparency
 Traceability
 Compliance
 Integrated Reporting
 Integrated reporting is a "process that results in communication, most visibly a
periodic “integrated report”, about value creation over time. An integrated report
is a concise communication about how an organization’s strategy, governance,
performance and prospects lead to the creation of value over the short, medium
and long term.
 It means the integrated representation of a company’s performance in terms of
both financial and other value relevant information. Integrated Reporting provides
greater context for performance data, clarifies how value relevant information fits
into operations or a business, and may help embed long-termism into company
decision making. While the communications that result from IR will be of benefit to
a range of stakeholders, they are principally aimed at providers of financial capital
allocation decisions.
 Over the years, ICT & FR have come to be Siamese twin. Financial Reporting are
done predominately using ICT tools.
 It is obvious that the biggest impact of Information and Communication Technology
(ICT) has been made on accounting; and it is the ability of companies to develop
and use computerized system to track and record financial transactions properly
and accurately.
 The recording of business transaction manually on ledgers, papers, spread sheets
etc has been translated and computerized for quick and easy presentation of
individual financial transaction and give report on it. (Granlund & Mouritsen, 2003).
 ICT adds values to Financial Reporting in the area of Cloud Accounting, Forensic
Accounting, Carbon Finance etc.
Modern Function
Business
Partner
Traditional Function
Diligent
Caretaker
Commentator
ScoreKeeper
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Today’s Finance Experts are expected to play four diverse and challenging roles. The two
traditional roles are steward, preserving the assets of the organisation by minimising risk and
getting the books right, and operator, running a tight finance operation that is efficient and
effective. It’s increasingly important for Finance Experts to be strategists, helping to shape
overall strategy and direction, and catalysts, instilling a financial approach and mind set
throughout the organization to help other parts of the business perform better. These varied roles
make a Finance Expert’s job more complex than ever.
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Steward (Traditional)
 Accounting, control, risk management and asset preservation are the province of the Steward.
 The Steward must ensure company compliance with financial reporting and control
requirements. Information quality and control rationalisation are top-of-mind issues for the
Steward.
Operator (Traditional)
 Efficiency and service levels are the primary areas of focus for the Operator.
 The Operator must dynamically balance cost and service levels in delivering on the finance
organization's responsibilities, and adapt finance's operating model as necessary.
 Talent management, offshoring and shared service decisions are often the key issues to be
addressed.
Strategist (Modern)
 The Strategist is a director, focused on defining the future of the company to enhance business
performance and shareholder value.
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 Provides a financial perspective on innovation and profitable growth;
 Leverages this financial perspective to improve risk-awareness, strategic decision-making and
performance management integration;
 Translates the expectations of the capital markets into internal business imperatives.
Catalyst (Modern)
 The Catalyst is an agent for change, focused on establishing a value attitude throughout the
organization.
 Aligns business to identify, evaluate and execute strategies.
 Serves as a business partner to other decision makers including business unit leaders, the
chief information officer, and sales and marketing leaders.
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In our quest to stay tuned the ever-dynamic changes in the business ecosystem requires for Finance Expert function to be
steered by fundamental principles which will continually be shaped to functional fruition.
According to the IFAC study, the five principles stated below should be adopted :
 An active role in senior management. The Finance Expert should be there to support, and at times guide, the CEO.
 Balance the responsibilities of economic planning and business partnership. Finance Experts are used to taking
care of business on the finance end of things. But they should also be invested in their companies’ goals and missions.
 Act as an integrator and navigator for the organization. Because finance officers usually have a pretty good picture
of multiple areas of their companies work, there’s no one better to help steer the ship and provide guidance during
inter-departmental projects.
 Be an effective leader in the finance department. As head of Finance, Finance Experts need to refine their
managerial skills to ensure their department is running like a well-oiled machine.
 Bring professional qualities to the role and organization. As an important member of senior management, Finance
Experts should conduct themselves professionally. Finance officers are role models in their companies and should
keep that in mind when making decisions and leading.
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 ICT & FR are Siamese twin.
 No Finance Expert can function and create much more value without adopting ICT
 ICT is dynamic and brought dynamism into Financial Reporting
 Finance Expert should be flexible and stay abreast of latest information
"It is not the strongest of the species that survives, nor the most intelligent …
it is the one that is the most adaptable to change."
By Charles Darwin