November 26, 2012 / By Obinna Chima Thisday
The Financial Reporting Council (FRC) said it had designed an accounting system for churches, mosques and other not-for-profit organisations, adding that it will compel them to report their financial transactions periodically from January 2013.
Executive Secretary/Chief Executive Officer, FRC, Mr. Jim Osayande Obazee, who said this in a keynote address presented at the 2012 annual conference of the Finance Correspondents Association of Nigeria (FICAN) held in Ijebu-Ode at the weekend, explained that the move was to ensure that more Nigerians are dragged into the corporate tax net.
This, according to the FRC boss, is also in line with the International Financial Reporting Standards (IFRS).
This came just as the Director, Corporate Communications, Central Bank of Nigeria (CBN), Mr. Ugochukwu Okoroafor disclosed that in addition to FSDH Securities Limited which on Friday announced that it has gotten a license to operate as a merchant bank, a South African bank –Rand Merchant Bank, has also been granted a merchant banking license to operate in Nigeria.
Continuing, Obazee said: “We want to release our Statement of Accounting Standards (SAS) 32 because we want churches and charities to begin to present accounts. They just file returns to the Corporate Affairs Commission (CAC) and so long as they pay the N1000, they are home and dry. But we are saying that they must report their financial transactions in proper format.
“Also, once charity organisations engage in non-charity activities, they would have to submit those goods for taxable purposes. A country is not run by oil, but by tax. Go to the internet and you see all the branches of the Redeemed Christian Church in United Kingdom, you will see their accounts and over there, they fully disclose the amount collected as a church. But in our own, people are asking me: “Jim, do you want God to render account.”