Accounting

You should never compare the term tax to levy. Why? They are different in many respects. While taxes are compulsory charges on the income of individuals and organizations, levies are not compulsory and arise when a service is done by a government agency on your behalf. Let’s discuss five of these differences. Similarities between tax … Read more

In this article, we discuss seven kinds or types of partners. You may already know of them or it may be your first time. Understanding the them will help you understand their role in partnership businesses. However, a common type of partner is the active partner. Let’s roll on! General Partner A kind of partner … Read more

Accounting information Systems (AIS) and Management Information Systems (MIS) are a body of knowledge meant to teach accounting professionals the framework of an accounting system in an organization. While MIS is to explain the management support system for an entity. But that is not all! Why it is important to differentiate between AIS and MIS … Read more

A primary benefit of an assurance engagement is that it helps the intended users make unimpaired decisions. However, if the wrong criteria are used it will lead to the wrong roadmap by users and business failures. In this article, let’s discuss the benefits and limitations of the assurance engagement. Benefits of assurance engagement Reliability Assurance … Read more

Considering the ICAN alternative, then this article is for you. The Association of National Accountants of Nigeria (ANAN) is the perfect complement if you’re planning to practice accounting in Nigeria. In the eyes of Nigerian law, both professional certifications have equal footing. ANAN is also a member of the International Federation of Accountants (IFAC). If … Read more

If you practice taxation for a fee, note that you must comply with FIRS’s new standard to remain in the field. Right now, the Federal Inland Revenue Service requests that all tax practitioners must get a license from the Chartered Institute of Taxation of Nigeria. FIRS, CITN, ICAN, and ANAN held a meeting On May … Read more

The Chartered Institute of Stockbrokers currently meets with the federal inland revenue service (FIRS) board. The meeting was held at the Service. And feature the current president of CIS Mr. Oluwole Adeosun and the Executive Chairman of FIRS Mr. Muhammad Nami. What’s happening? This marks the second time CIS visits the Service. During the meeting, … Read more

Government establishments are made to provide essential services to the public and nonprofit organizations. One of the tools used to achieve this is fund accounting. This self-balancing account helps ensure that funds for a specific purpose are traced to such purposes and are efficiently utilized. Fund accounting defined According to the institute of chartered accountants … Read more

Commitment basis accounting is primarily used in the public sector along with the cash basis. It records transactions when an agreement or commitment is made between both parties. The issue of a purchase order signifies a commitment. Therefore, the transaction will be recorded in the commitment account. Read: CIS meets with FIRS boss. Talks on tax … Read more

The commitment basis of government accounting helps in budget control. It helps those in charge of governance to know what expenditures are to be committed in a particular period. Therefore aids planning. Commitment basis of PSA defined It is a basis on which expenditures are recognized as soon as an agreement to make a purchase … Read more

In public sector accounting, the use of cash basis accounting is very common. This might be because of the ease of application. It allows a primary school certificate holder to post accounting records. But it comes with a lot of disadvantages. Cash basis of PSA defined It is a basis in public sector accounting that … Read more

The audit report is a letter that states the opinion of the auditor regarding its examination of the financial statements. It gives him or her to express his professional view regarding those statements. And whether the statements are fairly represented on one hand and free from material misstatements on the other hand. In this article, … Read more

The benefits of cost accounting cannot be denied. However, there are disadvantages or limitations to establishing a costing information system. This is more pronounced if the information system of the entity will operate different systems for financial and cost accounting. It is expensive Having a computerized costing system might be expensive unless an ERP that … Read more

External information for performance management is organized from the business environment. The data collected is used for planning, decision-making, and controlling business processes and resources to achieve organizational goals and objectives. It is mostly required for strategic purposes. However, the business environment can also provide information for tactical and routine decision-making. Elements in the business … Read more

Will you choose the institute of chartered accountants of Nigeria (ICAN) over the Association of certified chartered accountants (ACCA)? That’s a personal choice. But this article shows their differences. In any case, some people wrote ICAN first before pursuing ACCA. Location ICAN is located in Nigeria. Their head office is at Ikoyi Lagos. It is … Read more

ICAN presidents are voted in for the period of one year. Since 1975 when the institution was established, 57 persons have held the role. A few days back, a new person was elected making it the 58th president. More so, out of the 58 persons, nine have kicked the bucket. This article contains a list … Read more

The International public sector statement of accounting standards board (IPSASB) is calling on the finance professionals to respond to its latest exposure draft ED81. The ED is available for comment till the 31st of May, 2022. After which it will not be available. Exposure Draft (ED) is a document prepared by accounting professional bodies. It … Read more

Although taxes have their benefits, there are certain disadvantages you should know about. That’s what we will discuss in this article. One necessary disadvantage of paying tax is that it takes away cash that should be used to meet other needs. Reduce the amount available for spending The disposable income available to taxpayers after paying … Read more

Internal Users of public sector accounting (PSA) are those whose decisions cannot affect the government business enterprises or MDAs negatively. For example, the decision of the president of a country on a particular ministry will not bring the entity to an end. He may change the minister but the ministry remains. Below, we explain thirteen … Read more

Bisola was asked in a government accounting class to list the internal and external users of public sector accounting information. This wasn’t a very difficult task for her, since she has an idea from his class in financial accounting. So she went ahead and let it out. First of all, users are those that need … Read more

Public sector accounting primary objective is to ensure transparency and accountability of government and those they appointed over ministries, departments, and agencies. Of course, citizens need to know how their tax money was utilized. And international lenders and observers want to see how the funds they gave to the government were used. It is through … Read more

Government accounting or PSA is guided by certain principles. Here, we will examine 13 such principles. Many of these principles will be discussed separately later on. And many of them are intertwined with financial accounting. They are listed and explained below. List if 13 principles of government accounting Cash basis Accrual basis Modified cash basis … Read more

The term auditing has been defined and explained. So, let’s move forward to explain the types of auditing that exist. You can decide to be one of them by pushing your career to the limit. It is one of the best jobs you should consider in the finance field. Why? Because it gives you the … Read more

Audit or auditing refers to observing and examining accounting records, financial reports, and other statutory items that have an impact on an entity. In doing so, the auditor has a list of objectives. The main objective or goal of an annual audit is to provide an opinion as to whether the financial statements presented by … Read more

ICAN remains the umbrella body for the accounting profession in Nigeria. It conducts the accounting Technician Scheme and the institute of chartered accountants exams. On completion of ATS, you will become a member of AATWA. While completing ICAN, you are given a membership as an associate chartered accountant (ACA). In this article, I will work … Read more

Knowing your financial status either as a student or a member of ICAN and ACA or ATS and AAT is important. You need to know if you’re financially up to date or owe the institute debt. You will be allowed to check your exam results and sign as a referee to new students only when … Read more

Are you through with your secondary school education in Nigeria? Do you have a goal of becoming an accountant? Are you working on getting into the university or other higher education centers? Then take the ATSWA examination first! The benefit of doing it before university stress is enormous. And that is what I discussed in … Read more