On September 9, 1982, the Nigerian Accounting Standards Board (NASB) was officially inaugurated by the Federal Government to serve as the sole authority for the development and issuance of accounting standards in the country.
WITHIN NIGERIA learned that the establishment of the Board was part of government’s efforts to bring order, transparency and international best practice to financial reporting by commercial enterprises, investors and government agencies.
Officials of the NASB, while speaking at the announcement, said the NASB will be responsible for prescribing uniform accounting practices, reviewing existing standards, and ensuring that financial statements prepared in Nigeria reflect a “true and fair view.”
In comparison, the Board’s mandate is similar to those of the Financial Accounting Standards Board in the United States, the Accounting Standards Board in the United Kingdom, and other national standard-setting bodies worldwide.
Under its terms of reference, NASB will work with professional bodies, the corporate sector, and regulators to close gaps that have led to inconsistent reporting and loss of investor confidence.
Accountants and industry players welcomed the move, saying the absence of a central standard had made it difficult to compare financial statements across companies.
The Board will operate as an independent body and is expected to begin issuing its first Statements of Accounting Standards within the coming months.
