The Federal Government may have concluded plans to migrate to the accrual accounting model of the International Public Sector Accounting Standards (IPSAS) by January, going by indications from the Federal Ministry of Finance.
Under the accrual basis of accounting, expenses will be matched with the related revenues and or reported when the expense occurs, not when the cash is paid.
The move, according to the Minister of Finance, Mrs. Kemi Adeosun, was scripted to enthrone a regime of transparency, accountability, probity and informed decision making in public finance management.
Adeosun explained that the adoption has become urgent and imperative, given the administration commitment to the global best practice in public sector financial reporting system.
The Minister, in a message at a one-day workshop in Abuja, on “Making Change Happen in the Public Sector”, jointly organised by the Association of National Accountants of Nigeria (ANAN), International Federation of Accountants (IFAC) and the Office of the Accountant- General of the Federation (OAGF), noted that IPSAS would enable the government to reap the benefits of transparency and accountability.