Professional Documents
Culture Documents
Usage of Template
A template is intended to assist the
preparer and that not every item will be
applicable to every entity.
There was a mere reproduction of
accounting policies irrespective of whether
they were relevant for specific entities or
not.
E.g. notes borrowing costs, business
combinations, goodwill, associates, and
joint ventures for Regional Secretariats,
ministries, and some LGAs
Usage of Template
Items with no entries for the current and
comparative year are shown as dashes instead of
omitting them completely. It implies most are merely
filling in a pre-deigned template without due care
of relating events to the LGAs operations.
Accounting Policies/Notes
Format
Statement of compliance with IPSAS
Summary of significant accounting policies
applied.
Supporting information for items presented on
the face of statement of financial position,
statement of financial performance statement
of change in net assets/equity and statement
of cash flow.
Other
disclosures
Contingent
contractual
commitment,
on
information
Liabilities,
financial
Accounting Policies/Notes
Accounting policies for most MDAs are based on cash
basis IPSAS part 2 instead Accrual based IPSASs.
Totals in the schedules do not match with figures
appearing in main Financial Statements particularly in
relation to PPE, deferred revenue and capital
balances.
No adjustments in the statement of budget Vs actual
relating to balances as per financial statements to
actual payment or receipts.
Consolidation of FS
Preparation of consolidated FS of
entities that they control under
their ministries.
Some MDAs have even disclosed
controlled
entities
with
shareholding proportions.
IPSAS 1
The ranges of financial statements were not being
indicated in the sets of FS.
i.e. FS are covered from pages . to
IPSAS 1 encourages production of additional
information but should be excluded being part of FS
Name of an entity has to appear on every page of
the FS in several FSs - names LGAs/MDs were
missing.
Sequencing of notes numbers was inconsistent
CG majority did not start with note number1. In
the Statement of Financial Position notes start with
no. 49
IPSAS 13 Leases
Some LGAs/MDA have property/equipment which
are rented or hired out or themselves are renting their
office accommodations.
Review of their FS indicate no disclosures according
to this standard i.e. less than 1 year, 1 5 years and
beyond 5 years.
All LGAs/MDAs have accounting policy statements
relating to lease transactions as lessees or lessors.
There is neither disclosure of whether the leases are
operating or finance leases.
IPSAS 17 - PPE
Reliefs adopted require following additional
disclosures para 104:
Information on the major classes of asset that
have not been recognized.
for a second or subsequent reporting period,
details of the assets or classes of asset that
were not recognized at the previous reporting
date but that are now recognized.
IPSAS 17 - PPE
Misstatement of the figure relating to PPE,
Combining land and building
Depreciating land and building
Capital Commitments
AFS
Risk disclosures relating to liquidity, credit, and
market risks not made at all for receivables,
investments, deposits and payables.
Conclusion
Disclose accounting policies applicable to
your entity.
to
check