Thursday, May 24, 2012 / BusinessDay
 

The Financial Reporting Council of Nigeria, the nation’s accounting and financial reporting standards custodian, yesterday refused to spare the rod against the Institute of Chartered Accountants of Nigeria (ICAN) for contravention(s) of corporate governance rules.
 

Jim Obazee, executive secretary of the FRC who spoke with a select group of journalists in Lagos said ICAN was directed to postpone its annual general meeting (AGM) scheduled for May 25, 2012 “because of issues from its corporate governance and financial reporting”.
 

Obazee stated that the council of ICAN did not approve the institute’s financial statement when it met on January 18, 2012 and that the report of the honourary treasurer also noted that the financial statement which is subject to ratification of the council was not done.
 

In addition to ordering the postponement of the AGM, the FRC directed that ICAN hold the event not earlier than 21 days after the ratification of the 2011 financial statement by its council, in accordance with section 217 (1) and 217 (2b) of the Companies and Allied Matters Act CAP C20 LFN, 2004.
 

He also noted that the actions of ICAN confronted legal requirements of the CAMA and Financial Reporting Council of Nigeria Act No.6, 2011.
 

The FRC, he said, had directed ICAN to explain why the management allowed their external auditors to report on the 2011 financial statements that were not ratified by the council.