Hello Everyone.
You can call me Naijaacctwiz and created this thread for students of Accounting and persons intending to join the profession through ICAN, am also an intending student of ICAN and would love to meet up with like minds who would be willing to help each other out academically. i would be dropping posts on accounting related matters, you know questions and answers as well and would really really want for you to contribute to it. i also have my blog where i do mostly accounting stuff, you can click on my profile for my web address.

Thank you. am hoping you'll make this work as we help out each other

#Signed naijaacctwiz#

Kindly enlighten me about ICAN. I'm an Accounting Education graduate. What stage I'm i likely to skip?

ksbusari:
Kindly enlighten me about ICAN. I'm an Accounting Education graduate. What stage I'm i likely to skip?

hello ksbusari can you send me ur email and i'll forward the comprehensive exemption list to you. or u can send me a mail if you dont want to drop your mail here

Naijaaccountwiz:

hello ksbusari can you send me ur email and i'll forward the comprehensive exemption list to you. or u can send me a mail if you dont want to drop your mail here

thanks very much. ksbusari@yahoo.com

ksbusari:
thanks very much. ksbusari@yahoo.com

couldn't send you the syllables, it was too large to attach, but i sent you a link to download it. here are the papers you are exempted from
A1. Quantitative Techniques in Business
A3. Financial Accounting
A5. Business Law
you'll have to write the rest

Naijaaccountwiz:

couldn't send you the syllables, it was too large to attach, but i sent you a link to download it. here are the papers you are exempted from
A1. Quantitative Techniques in Business
A3. Financial Accounting
A5. Business Law
you'll have to write the rest

tanks very much.

Naijaaccountwiz:

couldn't send you the syllables, it was too large to attach, but i sent you a link to download it. here are the papers you are exempted from
A1. Quantitative Techniques in Business
A3. Financial Accounting
A5. Business Law
you'll have to write the rest

thanks bro. I downloaded d material frm d link. I am more informed nw.

ksbusari:
thanks bro. I downloaded d material frm d link. I am more informed nw.

you are welcome, glad to be of help

Basic concepts of Accounting;
Accounting principles are built on a foundation of a few basic concepts. These concepts are so basic that most accountants do not consciously think of them; they are regarded as being self-evident. Non-accountants will not find these concepts to be self-evident. Some accounting theorists argue that certain of the present concepts are wrong and should be changed. But in order to understand accounting, as it now exists, one must understand what the underlying concepts currently are.
The different aspects are :—
1. Business Entity Concept
2. Money Measurement Concept
3. Cost Concept
4. Going Concern Concept
5. Dual-aspect Concept
6. Realisation Concept
7. Accrual Concept
8. Accounting Period Concept
Explained in details on my blog[http://www.naijaaccountwiz..com]

The Golden Rule of accounting provides how the duality aspect of transactions is to be recorded in the books of accounts. These rules are –
(
A)Nominal Account=Income and Expenses: Accounting treatment=Debit all expenses and losses Credit all incomes and profits
(B) Real Account= Assets and Capital: Accounting treatment=Debit what comes in and Credit what goes out
(C) Personal Account= Debtors and Creditors: Accounting Treatment=Debit the receiver and Credit the giver.

.

Nuyosunny19:
Pls send to my email too anyebesunny@gmail.com

what do you want me to send you, the syllables?

Goodwill
Goodwill is the difference between the value of a business as a whole and the aggregate of the fair values of its separable net assets.
Separable net assets are those assets (and liabilities) which can be identified and sold off separately without necessarily disposing of the business as a whole. They include identifiable intangibles such as patents,
licenses and trademarks.

Fair value is the amount at which an asset or liability could be exchanged in an arm’s length transaction between informed and willing parties, other than in a forced or liquidation sale.
Goodwill may exist because of any combination of a number of possible
factors:
• reputation for quality or service
• technical expertise
• possession of favourable contracts
• good management and staff.

Purchased and non purchased goodwill

Purchased goodwill:

• arises when one business acquires another as a going concern
• includes goodwill arising on the consolidation of a subsidiary or
associated company
• will be recognised in the financial statements as its value at a particular
point in time is certain.

Non purchased goodwill:

• is also known as inherent goodwill
• has no identifiable value
• is not recognised in the financial statements.

Accounting Treatment Of Goodwill
Purchased goodwill:
• should be capitalised as an intangible non current asset
• should not be amortised
• must be tested for impairment annually in accordance with IAS 36, or more frequently if circumstances indicate that it might be impaired.

Benefits Of Computerised Accounting

(i) Time Saving
The processing speed of the computer is relatively faster. It has capability to perform complex computation on a timely basis. It also provides up-to-date information in a real time on timely and flexible manner. Accounting data are processed electronically, much more quickly than if it were done manually. Further time saving can also

be achieved through:
Automatic generation of data like dates, time, and serial numbers unto accounting records and/or source documents

Extraction of descriptive names for inventory, customers and suppliers by entry of relevant code(s)

Quick generation of complex reports (e.g. customers‟ statements and analysis; sales, purchases analysis) based on collected or stored data.

(ii) Enhanced Throughput Efficiency
This is even more pronounced when transaction values are relatively large. Computerized systems are more economical in such applications, since the incremental cost per transaction is quite small.

RECONCILIATION
The term reconciliation refers to a process that compares two sets of records (usually the balances of two accounts, in this case the balance on the cash at bank account and the balance on the bank statement) and explains the reason for any difference between them.

BANK RECONCILIATION
A bank reconciliation therefore, compares the balance on the general ledger cash at bank account to the balance on the bank statement at a given point in time. This should be done at regular intervals (say at the end of each month). Often the balance on the cash at bank account is referred to as the balance on the cash book. This can be confusing but remember that the reconciliation always agrees the balance on the cash at bank account to the balance on the bank statement. Bank reconciliations are a useful check on the accuracy of accounting records for cash. In principle, the balance in the cash at bank account or cash book in the general ledger and the balance shown in the bank statement should be the same but there are often differences and some of these might relate to transactions which the business has not yet accounted for or errors which must be corrected.

DIFFERENCES AND THE NEED FOR A RECONCILIATION
The balance on the general ledger cash at bank account and that shown for the business in its bank statement, at a point in time, will rarely be the same. Differences between might be caused by any of the following:

I Items recorded in the cash at bank account are not (yet) shown in the bank statement.
Some transactions might have been recorded in the cash at bank account in the general ledger, but have not yet been recorded by the bank. Cheques received from customers, recorded in the cash book and paid into the bank and may not have been processed yet by the bank. Processing payments through the banking system might take two or three days, perhaps even longer. These are known as outstanding lodgments. Cheques paid to suppliers are recorded as payments in accounting system of the business but they may not yet have been presented to the bank for payment (i.e. paid into the bank by the business supplier). These are known as unpresented cheques. Even if the cheques have been presented for payment by our supplier the bank may not have processed the deduction from the business account yet. These are timing differences. The transactions will eventually be processed by the bank. There are no errors or omissions in the cash book, and no further action is needed
II. Items in the bank statement that have not been recorded in the cash at bank account.
A business might not know about some items until they receive a bank statement. Examples include: bank charges; bank interest on an overdrawn balance; a payment from a customer that has been rejected by the bank (for example, the customer cheque has been dishonoured). a bank transfer where a payment has been made directly into the business account; a bank might make a mistake either crediting or debiting an incorrect amount into an account (these are rare but they do happen). The general ledger cash at bank account should be amended to include these transactions.

III. Errors by the bank (these are quite rare but do happen).
The bank might sometimes make an error. If so, it should be notified and asked to correct its mistake. No further action is then needed.

IV. Errors in the cash book.
Possibly, an error has been made in the cash book. This should be identified during the reconciliation of the bank statement with the cash at bank account balance. Any such errors must be corrected when discovered.

Possible Cause Of Confusion
The bank statement presents information as recorded in the accounting system of the bank. It always shows the banks view of things. When a business has a positive cash balance that is an asset and as far as the business is concerned it is a debit balance. From the banks point of view they owe the business money. Therefore they show the business as having a credit balance on the bank statement. Similarly a bank account is overdrawn, the business owes money to the bank and shows this as a liability (a credit balance) in its financial statements. However, from the banks point of view they have an asset and show this as a debit balance on the bank statements.

for work Example of a bank reconciliation, please click on the link http://www.naijaaccountwiz..com/2015/08/example-of-bank-reconciliation-statement.html

In recognition of the impact of the naira depreciation of the affordability of its fees for Nigerian students, Global accounting body, Association of Certified and Chartered Accountants (ACCA) has announced 60 percent reduction in registration fees for Nigerian students.
The reductions also include 50 percent reduction in first year subscription, and 50 percent reduction in exemption fees.

ACCA Director, Market Transformation, Mr. Kevin Kernan, disclosed this while addressing a press conference at the sidelines of the launch of ACCA Strategic Pricing Initiative for Nigeria.
Kernan said that the reduction in fees was in response to comments from stakeholders in the wake of the impact of the naira depreciation on the affordability of ACCA fees for Nigerian students.
He said, “ACCA has historically has operated a single pricing strategy for all its customers around the globe. But in Nigeria, after a lot of research and consultation with stakeholders, from today, we are making some new prices for Nigerian students exclusively. We recognise that affordability have been an issue for many Nigerian students, particularly with the exchange rate variations in recent times.
So we are reducing the initial registration fee by 60 percent. We are reducing the first year subscription fee for new students by 50 percent. Also many students claim exemptions from our exams, so we are reducing exemption fees for them by 50 percent. These represents significant reduction in prices students, parents or their employers have to pay in order to start their journey towards ACCA qualification.
“In order to avail themselves of these new prices, the student must be resident in Nigeria. So we consider this good news for all our stakeholders in the Nigerian community.
The new pricing applies to students applying for the foundation and main ACCA examination qualifications but it does not apply to members or affiliates. The focus is on the student population.”
“This is a very new venture for ACCA and we have been considering other markets, but Nigeria is one of the first markets where we have done this. We are currently studying Ghana, Zimbabwe. What we are offering in Nigeria is very targeted and focused on the Nigerian students, with a lot of consultations with the stakeholders.”
Also speaking on the rationale for the reduction, Head of ACCA Nigeria, Mrs Toyin Ademola said, “The new pricing initiative is about making ACCA more affordable for Nigerians. It goes with ACCA values which are affordability accessibility opportunities, innovation, and diversity.

“What is driving this initiative is, having listened to our customers, one of the challenges we find that our students have is affordability. So it is not about competition, it is about us providing values to our students. It is about accessibility and also giving them the opportunities at a more affordable rate to get global qualification.”

http://www.naijaaccountwiz..com/2015/09/naira-depreciation-acca-slashes-fees_11.html#more

Forensic Audit
The general concern about fraud, the need to detect it and to prevent the economic loss as a result of fraud incidences has given rise to the demand for forensic audits. Forensic auditing is the application of accounting and auditing skills to situations that have legal consequences. They involve producing reports that are readily understandable and can, if necessary form part of the evidence in court proceedings.

A forensic audit requires detailed scrutiny and investigation of accounting procedures to ascertain the extent, if any of the falsification of records. Instances where forensic audit is considered necessary is in cases where adverse findings during a normal annual/final audit or where information is received from a “whistle
blower”.
Forensic auditors are investigators of legal and financial documents that are hired to look into possible suspicions of fraudulent activity within a company; or are hired by a company who may just want to prevent fraudulent activities from occurring. They also provide services in areas such as accounting, damages, analysis of data, valuation, and general consulting. Forensic auditors have also been used in divorces, bankruptcy, insurance claims, personal injury claims, fraudulent claims, construction, royalty audits, and anti-money laundering by investigating financial records. Many forensic accountants work closely with law enforcement personnel and lawyers during investigations and often appear as expert witnesses during trials.

QUESTION
1. In auditing the profit or Loss Account of a mining company, you find large sums included therein under the head of 'Prospecting and Development Account," and you are informed that these consist of moneys spent in sinking shafts and driving levels during the year under review, some of which shafts and levels have been productive and others not. Do you consider that this expenditure is properly chargeable to profit or loss?

ANSWER
Expenditure on sinking shafts and driving levels incurred by a mining concern is in the nature of capital expenditure. it was stated in the case of Lee. V. Neuchantel Asphalte Co that there is no obligation on the part of a limited company to make good such capital sunk (i.e. charge to Revenue) before distributing profits, although the directors may consider it advisable to write off the expenditure over a period of years. it is however, recognized in investment circles that every payment of a mining dividends partly represents a return of the capital sunk in, and expended on, the mine.
QUESTION
2. Explain the basic principles which would guide you in allocating expenditure as between capital and revenue. illustrate your answer by reference to the two assets given below, describing expenditure upon them and, and allocating it as between capital and revenue: printing machine; motor vans

ANSWER
Printing Machine. The total cost of the asset, including the necessary expenses entailed in making it ready for use, is a capital charge. In addition to the cost of the asset itself will be Carriage, Freight and Duty (if imported), possible loss on Exchange (if imported), Insurance, Wages and Materials in fixing; the cost of essential subsidiary assets, e.g. type, etc, repairs if essential to rendering it fit for use (particularly likely if second-hand), compensation claims for accidents involved in above, less rebates and discounts arising out of the above.
Renewals of parts, cost of upkeep, e.g. power, lubrication, depreciation, current repairs, cost of inspection, are chargeable to revenue
Motor Vans- purchase price, delivery charges, signwriting, are chargeable to Capital. repairs, if necessary to put them in condition, will be charged to Capital.
Expenses Chargeable to Revenue are
Upkeep of motor Vans- Current repairs, painting, etc., wages and materials used in cleaning


http://www.naijaaccountwiz..com.ng/2015/09/financial-accounting-questions-and.html

Residual Income
Residual Income is a tool for measuring the performance of a particular centre, mostly an investment centre, to ascertain the viability of certain investment decisions taken over time.it is an alternative to using Return on Investment (ROI)
for more on residual income,illustration and examples please visit my blog. http://naijaaccountwiz..com.ng/2015/09/residual-income-performance-management.html

Statutory Audit
Statutory as the name implies means by Law or what is lawful. therefore, a statutory audit is an audit that is required by a government agency
Most countries impose a statutory requirement for an annual (external) audit to be carried out on the financial statements of most companies.

However, in many countries, smaller companies are exempt from this requirement for an audit. Other entities, such as sole traders, partnerships, clubs and societies are usually not subject to a statutory audit requirement. Small companies and these other entities may decide to have a voluntary audit, even
though this is not required by law.

Regulatory Framework
The requirement for an external audit (s375, s377 CAMA 1990)
In most countries there is a legal requirement for listed and other large companies to have an external audit of their published financial statements. This requirement is imposed by law in order to protect the shareholders.
However, in smaller ‘family’ companies, where the shareholders are also the directors, the requirement for assurance in the form of an external audit is much less important.
As a consequence, many countries have a small company audit exemption.

Small company audit exemption (s351 CAMA 1990)
Section 375 of CAMA 1990 requires limited companies in Nigeria to have an independent audit. However, section 377 offers exemption from an audit if the company qualifies as a small company as per section 351 of CAMA 1990.
A company qualifies as a small company in a year if for that year the following conditions are satisfied:
1. it is a private company having a share capital;
2. the amount of its turnover for that year is not more than N2 million or such amount as may be fixed by the Commission;
3. its net assets value is not more than N1 million or such amount as may be fixed by the Commission;
4. none of its members is an alien;
5. none of its members is a Government or a Government corporation or agency or its nominee;
6. and the directors between them hold not less than 51 per cent of its equity share capital.
The outcome of the statutory audit is an opinion on the truth and fairness of the financial statements.

Scope of a Statutory audit
The scope of the statutory audit as described in the independent auditor’s report contains the following points:
1. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
2. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
3.In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
4.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
Advantages of statutory audits
An external audit provides the following benefits:
1. It increases the credibility of published financial statements.
2. It confirms to management that they have performed their statutory duties correctly.
3. It provides assurance to management that they have complied with non statutory
requirements, such as corporate governance requirements (where these are subject to audit or review).
4. It provides feedback on the effectiveness of internal controls. Where internal controls are weak or inadequate, the auditor will give recommendations for improvement. This will assist management in reducing risk and improving the performance of the company.
Even where a statutory audit is not required, for example due to small company statutory exemption limits, an audit will increase the credibility of published financial statements. This may be important for potential lenders to the company.
Potential lenders, such as banks, may insist on the company having an audit as a pre-condition for lending money.
Limitations of statutory audits
The main limitations of an audit are as follows:
1. Its cost. The cost of an audit can be very high. However, if the audit firm is already hired to carry out non-audit work such as accounts preparation or advisory work, the additional cost of an audit may be fairly small.
2. The disruption caused to a company’s staff during the audit. The company’s staff may be required to assist the auditors by answering questions, providing documents and other information.
3. Some items in the subject matter might be estimates whose truth and fairness will not be known with certainty until some point in the future. This means the assurance opinion is ultimately subjective and judgmental.
4. Most fraud will include an attempt to deliberately conceal the truth or misrepresent information.
5. In order to balance cost and efficiency the auditor routinely uses sampling rather than tests every item.
6. Irrespective of how robust a client’s systems are they will always incorporate some degree of inherent limitation.
7. Audit evidence is persuasive rather than conclusive.

naijaacctwiz...ur website has bin very usefull. Really appreciate....pls i need ur assistance in this assignment...calculation of adjusted profit...

morichy:
naijaacctwiz...ur website has bin very usefull. Really appreciate....pls i need ur assistance in this assignment...calculation of adjusted profit...

sorry i got to see this late, i'll solve this and put up the answers for you.

INTERNAL AUDIT PROCESS
An effective internal audit activity acts as an independent, and objective assurance service designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.


To enhance organizational risk management, internal audit must embrace ongoing risk monitoring and frequent enterprise-wide risk assessments.
The ongoing migration to a more risk-based approach to internal audit has spawned a natural evolution with respect to the roles and responsibilities of internal audit and the scope of internal audit activities. A decade ago, only a relative handful of internal audit groups were taking a legitimate risk-based approach to the audit-planning process. Today, there is a growing recognition of the strong link between effective risk assessments and effective audit
coverage. To strengthen risk management performance, consider the following six imperatives:
1. Adopt a process approach to risk assessment and planning.
2. Supplement annual risk assessments with quarterly or more frequent
updates.
3. Leverage your prior assessment results.
4. Align and leverage risk assessments.
5. Seek out the specialized talent you need.
6. Coordinate effectively with other risk management groups.

Purchases Day Book
The purchases day book is the book of original entry used to record all credit purchases. The total therein is transferred to the debit of the purchases ledger at regular intervals. Each supplier's account is credited in the subsidiary ledger. The period may be daily, weekly or monthly depending on the volume of purchases
The details on purchases day book are got from incoming invoices. Each supplier's account is credited in the subsidiary ledger.

Sales Day Book
Sales day book is the book of original entry that records credit sales. The source document is the duplicate of the invoice issued to the customer. The volume of daily sales normally demands that it is issued first to collate a period‟s sale before being transferred to sales ledger accounts. The sales day book shows the following information:

(i) A list of the sales invoices in the order in which they are issued
(ii) The date of issue
(iii) The name of the customer
(iv) The number of the invoice
(v) The sales ledger number to which the individual accounts are posted
(vi) The net amount of the invoice after deducting trade discount and VAT

The sales day book does not show the description of the goods. These are contained in the invoice.

hello guys, try your hands on this ICAN past question on financial acounting and see how well you'll do
http://naijaaccountwiz..com.ng/2015/10/past-question-financial-accounting-may.html

In the context of SAS 13, investment properties are to be valued at
A. Average cost
B. Standard cost
C. Market value
D. Book value
E. Transfer value.

Which of the following is NOT a one-off cost in a computerized accounting system?
A. Hardware cost
B. Networking cost
C. Installation cost
D. Cost of providing additional space
E. Data transmission cost.

Amina Nigeria Plc owned 60% and 70% interest in the ordinary shares of Bongo Nigeria Limited and Kwame Ghana Limited respectively. In relation to Amina Nigeria Plc group, Kwame Ghana Limited is a
A. foreign jointly controlled entity
B. foreign associate
C. foreign partner
D. foreign subsidiary
E. fellow subsidiary.

here is what SAS says about investment property: "Investment properties should be carried in the balance sheet at their market value and revalued periodically on a systematic basis at least once in every three years.". so the correct answer for the first question is C option.

for the second question, every other cost listed in the option can be capitalized, except data transmission cost which is not a capital expense

for Amina Nigeria Plc to own 70% interest in the ordinary shares of Kwame Ghana Limited, makes it a subsidiary to Amina Nigeria Plc, more so a foreign subsidiary because the subsidiary company is not based in Nigeria. therefore option D is the correct answer.
you can visit http://www.naijaaccountwiz..com.ng/2015/10/financial-accounting-past-question_20.html, for the conculding questions and answers on this section.
This will be helpful for student or persons planning on writing ICAN professional exams.

KEEP PUSHING, YOU CAN

Naijaaccountwiz:

hello ksbusari can you send me ur email and i'll forward the comprehensive exemption list to you. or u can send me a mail if you dont want to drop your mail here

pls help a brother...I need the exemption list too. email : valentinesolomon99@gmail.com
Thanks.

Pls how much can I use to start ICAN. Am in 200level but i want to start from the Scratch. Is it advisable? ACCA or ICAN which is cheaper?

Plss sir am in 400 level Agricultural Economics and Extension Services I don't know much about ICAN registration or application, I don't even know if am eligible but I want to apply now if the application is still on, there is an ICAN lecture theatre in my school, can you tell me what to do? And please how is their calender(like each year when does a new section starts and when does it end)

Valsolo:


pls help a brother...I need the exemption list too. email : valentinesolomon99@gmail.com
Thanks.

you didn't specify your field of study but I'll send you the comprehensive list, you can then go through it and find out the once applicable to you

HelperDeji:
Pls how much can I use to start ICAN.
Am in 200level but i want to start from the Scratch.
Is it advisable?
ACCA or ICAN which is cheaper?

what course are you studying in school?, you'll have to start with ATS. ICAN should be cheaper, but with ACCA you can practice anywhere in the World

kingkennyd17:
Plss sir am in 400 level Agricultural Economics and Extension Services I don't know much about ICAN registration or application, I don't even know if am eligible but I want to apply now if the application is still on, there is an ICAN lecture theatre in my school, can you tell me what to do? And please how is their calender(like each year when does a new section starts and when does it end)

I'll advise you finish with school then register for ICAN, i can send you the list of exemption. each year the exams are written twice.one in may and the other in November. for professionals