Generally Accepted Accounting Principles

Generally accepted accounting principles (GAAP) are the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards or standard accounting practice. These include the standards, conventions, and rules that accountants follow in recording and summarizing and in the preparation of financial statements. Many businesses choose to "opt out" of GAAP practices as they operate on a cash basis, as opposed to an accrual basis. A comparison would be the way that most people balance their checkbooks: when a check is written, its amount is deducted from the total balance even though the funds have not yet left the account. Financial decisions made after the check is written are based on the balance after the check is deducted.

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Bond Listing

FMDQ OTC Securities Exchange provides an efficient platform for registration, listing, quotation and valuation of bonds. FMDQ through its trading and surveillance systems and and the publication of FMDQ Daily Quotations List has empowered the Nigerian sovereign bonds and other classes of bonds with price discovery, transparency and market integrity. Bonds listed and admitted on FMDQ are traded by its Dealing Members some of which act as primary dealers to the sovereign domestic bonds. FMDQ Dealing Members act as market makers to the Nigerian sovereign bonds and some other classes of bonds thereby providing trading liquidity to the Nigerian bond market. The OTC securities exchange is responsible for circa 100% of bonds traded in Nigeria. As part of its mandate to provide exceptional levels of information transparency, FMDQ provides continuous disclosure of relevant information on fixed income issues listed on its platform. This information includes amongst others – issue siz...

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IASB consults on the accounting for financial instruments with characteristics of equity

The International Accounting Standards Board (Board) today has published for public comment a Discussion Paper on how companies issuing financial instruments should classify them in their financial statements. IAS 32 Financial Instruments: Presentation currently sets out how a company that issues financial instruments should distinguish financial liabilities from equity instruments. That distinction is important because the classification of the instruments affects how a company’s financial position and performance are depicted. IAS 32 works well for most financial instruments. However, continuing financial innovation means that some companies find it challenging to classify some complex financial instruments that combine some features of both debt—liabilities—and ordinary shares—equity instruments. Challenges in classifying these instruments can result in diverse accounting in practice, which in turn makes it difficult for investors to assess and...

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The Changing Face of the Accountancy Profession

By Rachel Grimes Rachel Grimes is the President of the International Federation of Accountants. Ms. Grimes was appointed President in November 2016 after serving as Deputy President since 2014 and IFAC Board member since 2011. She was nominated by CPA Australia and Institute of Chartered Accountants Australia (ICAA), now the Chartered Accountants Australia and New Zealand. She is also a member of the Nominating Committee. Ms. Grimes is currently Chief Financial Officer, Group Technology Finance at Westpac Group, a multinational financial services firm. Previous to this, Ms. Grimes was Director of Mergers and Acquisitions at Westpac. She has more than 25 years of experience across the financial services sector, working with Westpac and BT Financial Group as well as for PwC. Ms. Grimes joined the ICAA in Australia in 1994 and advanced to Fellowship in 2002, before being appointed as a Director in 2006. Ms. Grimes was appointed President of ICAA in 2011. She also held the offic...

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