12 FUNCTIONS OF THE FINANCIAL REPORTING COUNCIL OF NIGERIA (FRCN)

The financial reporting council of Nigeria is a federal government parastatal tasked with the responsibility of developing accounting standards that must be followed when preparing financial statements for Nigeria's public interest entities.

The financial reporting council of Nigeria (FRCN) performs the following functions:

1. Develops accounting standards: This is one of the core functions of the financial reporting council of Nigeria.

The financial reporting council of Nigeria developed and publish accounting and financial reporting standards, which must be observed when preparing financial statements and reports of public interest entities.

2. Reviews and ensures compliance: Developing standards is not the only function of the federal reporting council of Nigeria.

It also continuously reviews, promote and ensure that the developed accounting standards are followed by an accountant in all organization

3. Receive copies of annual reports: The FRCN is also charged with the responsibility of receiving copies of annual reports and financial statements of public interest entities within 60 days of the approval of the Board.

4. Keep records of accountants and other accounting related professionals: The financial reporting council of Nigeria maintains a record of accounting professionals, auditing professionals and other accounting-related professionals in Nigeria

This is done to checkmate the activities of quack accountants.

5. Advise the government on accounting-related issues: As a regulatory body in Nigeria's accounting sector, the Financial Reporting Council advises the government on accounting and financial reporting matters

6. Receive non-compliance notices: The FRCN may also receive non-compliance notices from registered professionals, auditors, and even third parties.

When the Federal Reporting Council of Nigeria receives such notice, it is expected to act promptly and examine the non-compliance notice.

7. Monitors compliance: In addition to ensuring that accounting standards are followed, the FRCN also monitor public entity's compliance with the reporting requirements outlined in the established code of corporate governance

8. Promotes compliance with adopted IAS standards: The financial reporting council of Nigeria also ensures that all public interest companies in Nigeria meet the adopted standards of the International Federation of Accountants and the International Standards Board (IAS).

9. Promote education and training: Developing accounting standards will be ineffective unless they are well taught and understood by all concerned.

This is why the FRCN monitor and promotes training in all areas of financial reporting (such as accounting, auditing, corporate governance, etc).

10. Ensures consistency: There may be confusion if the standards issued by the federal reporting council of Nigeria contradict the standards issued by the International Accounting Standards Board.

Similarly, there may also be confusion if the standards issued by the federal reporting council of Nigeria contradict the standards issued by the International Auditing and Assurance Standards Board.

To avoid this, the federal reporting council of Nigeria regularly update its standards so that they can be in line with those of international organization.

11. Ensures compliance with the Legal provisions: The FRCN is also charged with the responsibility of ensuring that all Nigerian companies comply with the provisions of the FRCN Act of 2011.

12. Performs other functions: The federal reporting council of Nigeria can also perform other functions, which in the opinion of the Board,  are necessary or expedient to ensure that the Council's functions are carried out efficiently.

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