The Nigerian accounting standard board (NASB) is the brain child of the Chartered Institutes of Accountants of Nigeria (ICAN). It all started on the 9th day of September 1982. The board was housed in ICAN secretariat for about ten years before it then moved to its secretariat after becoming a full fledge government parastatal in May 1992. The current secretariat of NASB is; Elephant House (3rd floor), Assbifi Road, Alausa, Ikeja, Lagos Nigeria.
NASB first became a government parastatal in 1992 as component of the then Federal Ministry of Trade and Tourism. The NASB issued some standards without being fully established by laws of the Federal Republic of Nigeria. This however did not make Accounting standards issued by NASB less effective or irrelevant but, was not was not whole-heartedly followed by all players in the accounting industry.
Most foreign companies in Nigeria then prefer to prepare their financial statements following the accounting standards of the UK or the one issued by the IASB.
The House of Representatives passed the Bill that gave the NASB a National outlook on the 20th of May 2003 while the Senate passes her own Bill on the 28th day of May 2003. The clerk of the National Assembly in the person of Ibrahim Salam certified the Bill on the 10th day of June 2003 in accordance with the provisions of the Acts, Authentication Act Cap. 4 laws of the Federation of Nigeria 1990.
The then President of the Federal Republic of Nigeria Chief Olusegun Obasanjo, GCFR signed it into law on the 10th day of July 2003. The Act serves as a constitution that governs the operation of NASB- a question that comes to mind at this point in time is, has the Act been followed to the letters? That obviously is not the subject matter of this article.
The NASB up till the time of this writing (2010) has issued a total number of 30 Accounting standards. The NASB numbers her standards systematically by attaching numerical values at the end of the acronym SAS. SAS stands for Statement of Accounting Standards. The Nigerian Accounting standard Boards issued her first implementation guide in 1993 to help solve the confusion going on as to how to treat lease accounting. Lease accounting has always posed serious problem to the accounting profession. The IASB is really working hard to end this confusion caused by the unexpected growth in the industry by working in consultation with other stakeholders to clearly define the classification of assets as either operating lease or financing lease, from the look of things, operating lease may soon become history- sorry about that digression!!!
An issue of concern to many accounting commentators however is that the NASB has always been following the blue-print of the accounting standard setting board of UK.
Just like every other accounting standard setting bodies, the NASB has been subjected to many criticisms, some of which are valid and constructive. The bitter truth that has however never been told is that the Accounting Standard setting Bodies; not only The Nigerian Accounting Standard Boards has been politicians play ground and will continue to be, at least for the foreseeable future.
You will agree with me that the history of NASB will have different version depending on the perspective of the history teller. So, feel free to lay your hands on other useful materials to give you same basic information but from another angle. Thank you for reading, I will keep you posted…..Cheers!