In Nigeria, taxation laws are crucial for businesses to understand and comply with. One of the key laws governing company income tax is the Company Income Tax Act (CITA) 1990. However, like any legal framework, CITA has undergone amendments to address changing economic realities and improve clarity. A significant update came with the Finance Act 2019, particularly in Section 12, which amends Section 29 of the CITA. Check out the amazing cloud hosting services offered by Truehost  here ! In this article, let’s highlight the subtle modifications section 12 of the Finance Act 2019 make in the CITA 1990, focusing on the computation of assessable profits for a company just commencing business or trade—commencement rules—in Nigeria. Assessable Profit of Companies Commencing Business: The Old Rules Originally, under the old rules, Section 29 of the CITA 1990 detailed how the profits for the first three years of a new trade or business in Nigeria should be assessed. The rules ...

The examination timetable of the November diet of the Institute of Chartered Accountants of Nigeria (ICAN) is currently out. The examinations are scheduled to commence in this month of November. The question I was frequently asked by students is: How do I pass the larger-than-life examinations of the Institute of Chartered Accountants of Nigeria (ICAN) without hassle? And borrowed from this is the question of how to tackle ICAN’s examination questions?   Without much ado, let me begin by dispelling as untrue the saying gaining currency among student members of the Institute that you cannot pass its examinations at one sitting. You can pass your ICAN examinations at one sitting, and you will; just simply follow these principles that worked for me and which I have told some of my students to follow through on: Prepare ‘professionally’ To begin with, to even muster the thought of passing any examination at all you need to be prepared. Now, professional examinations like tho...

In this tutorial you shall journey with me into the maze of how to prepare a consolidated statement of financial position (or group balance sheet as it was formerly known). Here I shall use an illustrative exercise which is the recent Corporate Reporting compulsory question no 1 of May 2015 diet examination of the Institute of chartered Accountants of Nigeria (ICAN). So, pay close attention and follow along as I solve the question and alongside explain the details and secrets of the ‘how’ of preparing a consolidated statement of financial position. Please move to the next page for the question.   PAGE:            1   2   3   4   5   6   7   8   9   10   11   12   13

How to account for inventories (or stock, as it was formerly called) is covered by the principles of IAS 2, Inventories . In this short article, keeping with the principles of IAS 2, you shall be intimated with notable points on how to account for inventories in the financial INVENTORIES OF ITEMS statements. IAS 2, inventories covers the principles that guide how to account for various types of inventories with the exception of the following items: ·            Work-in-progress on construction contract. ·          Inventory of agricultural produce. ·          Inventory of mineral resources such as crude oil and tin ore. Point 1: Meaning of Inventories Inventories are assets in the form of raw materials used for production, material work-in-progress, finished products held for sale and spares or goods consumed in the process of production or provision of service...

The International Financial Reporting Standards (IFRSs) are the ‘in-thing’ in the world of accounting. With the promulgation of the Financial Reporting Act 2011 (which repealed the Nigerian Accounting Standards Board Act, No 22 of 2003), Nigeria as a nation, joined the bandwagon of countries (more than 150 countries) who have adopted the standards in it entirety or in slightly modified form as the de-facto principles guiding the accounting treatments given to items of transactions and events; and the standards guiding the preparation and presentation of financial statements. This behoves on any accounting students and practicing professional accountants alike to keep abreast of the latest standards as well as the amendments to the subsisting ones. A thorough understanding of the standards is also required in their application to items of transaction and event. This in effect makes accounting a dynamic profession as against it static outlook of yesteryears because it is evolved...