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CENTRAL BANK OF NIGERIA COMMUNIQUÉ NO 119 OF THE MONETARY POLICY COMMITTEE MEETING OF MONDAY, 23RD AND TUESDAY, 24TH JULY, 2018 1.0 Background: The Monetary Policy Committee (MPC) held its 262nd meeting on Monday, 23rd, and Tuesday, 24th July 2018 amid fragile improvements in global growth and the domestic economic recovery. The Committee reviewed developments in the global and domestic economic and financial environments, as well as the outlook for the rest of the year. The MPC also assessed the risks to price stability, credit growth, employment creation and financial system stability, in the short-to-medium term. Ten (10) members of the Committee were in attendance. Global Economic Developments : Global growth momentum remained promising despite rising trade tensions, uncertainties in BREXIT negotiations and skepticism over North Korea’s commitment to the denuclearise the Korean Peninsula. Global growth was projected at 3.9 percent in 2018, compared with 3.7 percent in...

The International Accounting Standards Board (IASB) is seeking comment on proposed guidance that seeks to clarify when a financial instrument should be classified as a liability or as equity. The distinction between liabilities and equity is an important consideration in how companies and other entities present financial information. That’s because the classification of these financial instruments affects how an entity’s financial position and performance are depicted. An IFRS Standards  Discussion Paper  published Thursday is designed to address diversity in accounting practices related to International Accounting Standard (IAS) No. 32,  Financial Instruments: Presentation , which currently outlines how a company that issues financial instruments should distinguish financial liabilities from equity instruments. While IAS 32 has worked well for most financial instruments, some companies have found it difficult to classify some complex financial instruments that co...

The AICPA’s Tax Executive Committee sent a  letter  to the IRS on Thursday, urging the Service to simplify the proposed draft 2019 Form W-4,  Employee’s Withholding Allowance Certificate,  to reduce administrative burdens by not requiring an annual Form W-4 calculation, protect employees’ privacy by omitting personal information from the form, and avoid shifting the onus onto employers to determine employees’ correct withholding . The letter, from Tax Executive Committee chair, Annette Nellen, said that the form should be simplified, so that it does not include nonwage income, itemized and other deductions, tax credits, and amounts of income from lower-paying jobs. Requesting this personal information requires employees to essentially calculate their tax liability, the letter noted. It also is potentially an invasion of privacy because the employer will see the employee’s personal information. The AICPA recommends these alternatives to the Form W-4: Allow the...

Two FASB staff memos issued last month provide insight to private company financial statement preparers on how to overcome implementation challenges that some have encountered with the new revenue recognition standard. The memos address concerns raised in a  letter  sent to FASB in January by the AICPA Technical Issues Committee (TIC). In the letter, TIC requested private company exceptions to certain elements of Accounting Standards Update No. 2014-09,  Revenue From Contracts With Customers (Topic 606) . FASB’s memos addressed some of the issues raised in the TIC letter. The memos addressed TIC’s statements that: FASB should consider a practical expedient to allow private companies to recognize revenue on out-of-pocket costs based on the amount to be reimbursed when the costs are incurred. The “enforceable rights and obligations” notion for recognizing revenue under Topic 606, described as a “matter of law” in the standard, may require legal expertise and could ...

FASB issued  16 minor amendments  to its new lease accounting standard Thursday, clarifying rules and correcting application of guidance that the board had not intended when it created the standard. The lease accounting standard (codified in Topic 842,  Leases ) was issued on Feb. 25, 2016, and takes effect for public companies and certain other entities in 2019. The amendments issued Thursday include issues brought to FASB's attention by stakeholders who were seeking help with implementation. The amendments affect narrow aspects of the guidance issued in the lease accounting standard. FASB does not expect the clarifications to significantly affect current accounting practice or create significant implementation costs for most entities. Issues addressed in the amendments are: Residual value guarantees. Rate implicit in the lease. Lessee reassessment of lease classification. Lessor reassessment of the lease term and purchase option. Variable lease pay...

The National Association of State Boards of Accountancy and the American Institute of CPAs’ U.S. International Qualifications Appraisal Board have signed a mutual recognition agreement with CPA Australia. NASBA's headquarters in Nashville, Tenn. The agreement will offer an abbreviated qualification pathway for eligible accounting professionals in the U.S., Australia and New Zealand to practice in the partner countries. Under the deal, qualified U.S. CPAs will be eligible to obtain the CPA Australia credential, which is a pathway to getting audit rights in Australia and New Zealand, if the holders meet specific eligibility requirements spelled out in the agreement’s appendices. Similarly, CPA Australia credential holders who are citizens or legal residents in Australia or New Zealand will be eligible to obtain the U.S. CPA credential if they meet the eligibility requirements outlined in the agreement’s appendices. Sharon A. Jensen, who chairs the NASBA/AICPA U.S. IQAB, ...

The International Federation of Accountants and the International Bar Association are partnering on an initiative to combat corruption, ahead of the gathering of global leaders at the G20 summit in Buenos Aires later this year. The two organizations have signed the IBA and IFAC Anti-Corruption Mandate to emphasize the role of business and government in safeguarding a fair and transparent future for all. They are also involved in the B20, a group of 20 business leaders from around the world in Buenos Aires ahead of the G20 summit. “Grounded in a strong ethical code, professional accountants across the globe play a critical role in the fight against corruption, bringing essential transparency, relevance and integrity to the systems that underpin vibrant economies,” said IFAC CEO Fayezul Choudhury in a statement. “We are proud to partner with the IBA to highlight and advance the role of our global professions in serving the public interest now and in the future.” Courte...