BY ABUBAKAR YUSUF
Under the leadership of the new Executive Secretary, Chief Executive Officer (ES CEO,) Financial Reporting Council FRC, Dr Rabiu Onaolapo Olowo, appointed by President Bola Ahmed Tinubu in October, 2023 introduced DOSE as a template to reaching the stated objectives and meeting the desired reforms been introduced by the new management.
Olowo who met an incomplete organization who originally is meant to have seven departments, but for administrative lapses operated with five departments that made it’s regulatory and supervisory roles incomplete and leave much to be desired.
With the introduction of “DOSE”, (Digitization, Operational Excellence, Stakeholders Engagement and Excellence).the need to operate under a full fledged departments was obvious, hence the need to complement the remaining two Departments of Valuation and Standards and Department of Actuarial Standards to address the lingering gap that had militated against it’s operation over the years.
Without further delay, he raised alarm on the un- conducive atmosphere and office accommodation that was not befitting of a government parastatal and quickly put in place a befitting accommodation both in Abuja and Lagos office , that staffers became contented with along with prioritizing workers welfare.
The two new departments of Valuation and Standards is crucial and significant to the performance of its role as it measures the activities of companies in the country and ensured it met with both local and global standards, the absence that created a wider gap among others.
For the department of Actuarial standards is to develop a well thought out workable standards and concepts that will actualise inventions and innovations, as well as turning proposal into a working tool for subsequent deployment, including liasing with local and international bodies to ensure standard among others.
With the full complement of seven departments after the creation of two new departments, the job of regulations and monitoring became a little easier and focused based on the new template and reviewed order .
Other Directorates are
Directorate of Accounting Standards – Private Sector
The Directorate of Accounting Standards ― Private Sector shall for the Council:
(a) develop accounting and financial reporting standards to be observed in the preparation of financial statements in the private sector and small and medium scale enterprises;
(b) promote the general acceptance and adoption of such standards by preparers and users of financial statements;
(c) promote compliance with the accounting standards developed or reviewed by the Directorate;
(d) review from time to time the accounting standards developed in line with the prevalent social, economic and political environment;
(e) promote compliance with the accounting and financial reporting standards adopted by the Council;
(f) promote, in the public interest, accounting and financial reporting standards to be observed in the preparation of financial statements of public interest entities; and
g) perform such other duties which in the opinion of the Board are necessary or expedient to ensure the efficient performance of the functions of the Council.
Directorate of Accounting Standards
-Public Sector
The directorate of Accounting Standards ― Public Sector shall for the Council:
(a) develop accounting and financial reporting standards for the public sector;
(b) consider significant areas of accounting and financial reporting that can be improved through the standard-setting process;
(c) promote the general acceptance and adoption of such standards by preparers and users of financial statements in the public sector;
(d) promote compliance with the accounting standards developed or reviewed by the Directorate;
(e) review from time to time the accounting standards developed in line with the prevalent social, economic and political environment; and
(f) perform such other duties which in the opinion of the Board are necessary or expedient to ensure the efficient performance of the functions of the Council.
Directorate of Auditing Practices Standards
The Directorate of Auditing Practices Standards shall, for the Council:
(a) develop or liaise with relevant professional bodies on auditing and ethical standards set by it.
(b) promote auditing standards which set out the basic principles and essential procedures with which external Auditors in Nigeria are required to comply;
(c) issue guidance on the application of auditing standards in particular circumstances and industries and timely guidance on new and emerging issues;
(d) establish standards and related guidance for Accountants providing assurance services;
(e) encourage establishment of ethical standards in relation to the independence, objectivity and integrity of external auditors and those providing assurance services;
(f) play appropriate role in the development of regulations and accounting standards which affect the conduct of auditing and assurance services, both domestically and internationally;
(g) collaborate with relevant professional bodies to advance public understanding of the roles and responsibilities of external auditors and the providers of assurance services including the sponsorship of research; and
(h) perform such other duties which in the opinion of the Board are necessary or expedient to ensure the efficient performance of external Auditors.
Directorate of Actuarial Standards
The Directorate of Actuarial Standard shall, for the Council:
(a) develop an appropriate conceptual framework to guide the setting of relevant actuarial standards, including the explicit objectives and characteristics of such standards;
(b) create a process for the development and adoption of standards which ensures that the objectives of the conceptual framework can be applied in practice;
(c) develop relevant actuarial standards, or amend existing ones, in response to evolving commercial practices, economic development and deficiencies identified in current practice;
(d) take account, where appropriate, of the regulatory requirements of the legislation or any other relevant regulatory body and liaise with the actuarial profession regarding areas of practice for which new standards may be required or existing standard should be modified or clarified;
(e) consider the need for a generic standard for the communication of actuarial advice;
(f ) liaise with the International Actuarial Association and other international bodies on the development and application of international actuarial standards; and
(g) perform such other duties which in the opinion of the Board are necessary or expedient to ensure the efficient performance of the functions of the Council.
Directorate of Valuation Standards
The Directorate of Valuation Standards shall, for the Council:
(a) develop an appropriate conceptual framework to guide the setting of relevant valuation standards, including the explicit objectives and characteristics of such standards;
(b) create a process for the development and adoption of standards which ensures that the objectives of the conceptual framework can be applied in practice;
(c) develop relevant valuation standards, or amend existing ones, in response to evolving commercial practices, economic developments and deficiencies identified in current practice;
(d) take account, where appropriate, of the regulatory requirements of the legislation and any other relevant regulatory body. Liaise with the valuation profession regarding areas of practice for which new standards may be required or existing standards should be modified or clarified;
(e) consider the need for a generic standard for the communication of valuation advice;
(f) liaise with the International Valuation Standards Board and other international bodies on the development and application of international valuation standards; and
(g) perform such other duties which in the opinion of the Board are necessary or expedient to ensure the efficient performance of the functions of the Council.
Directorate of Inspection and Monitoring
Directorate of Inspection and Monitoring shall, for the Council:
(a) monitor compliance with auditing, accounting, actuarial and valuation standards and guidelines reviewed and adopted by the Council;
(b) recommend through the Technical and Oversight Committee, sanctions as may be necessary for the Council’s approval; and
(c) implement sanctions and fines as approved by the Council in sub-section (1) (b) of this section.
Directorate of Corporate Governance
The objectives of the Directorate of Corporate Governance are ―
(a) to develop principles and practices of corporate governance;
(b) to promote the highest standards of corporate governance;
(c) to promote public awareness about corporate governance principles and practices;
(d) to, on behalf of Council, act as the national coordinating body responsible for all matters pertaining to corporate governance;
(e) to promote sound financial reporting and accountability based on true and fair financial statements duly audited by competent independent Auditors;
(f) to encourage sound systems of internal control to safeguard stakeholders’ investment and assets of public interest entities; and
(g) to ensure that audit Committees of public interest entities keep under review the scope of the audit and its cost effectiveness, the independence and objectivity of the Auditors.
With full fledged directorates , the mission and vision to implement modest , modern and full time online program that concerned financial reporting in line with the domestic and international standards will be achieved.
Written BY ABUBAKAR YUSUF on yus.abubakar3@gmail.com.
