REGULATION OF FINANCIAL REPORTING

1. NGONIE DOMA (BSCAC)(PCA)

2.  By the end of this presentation, you must be
able to express adequate knowledge on
statutory requirements.
 The basic knowledge on corporate
governance.
 Principle and mere valuation of corporate
governance frameworks.

3. BRIEFY REASONS FOR REGULATION
 protection from fraudulent organisations
producing misleading information
 For uniformity in terms of same classes of
transactions
 For comparative purposes
 protects investors from relying on
unregulated financial information.
 provide credibility to the accounting
profession

4.  DEFINITION
 STATUE
 A Legislative body. e.g IASC
 STATUTORY REQUIREMENTS
 is a requirement written into a law passed
by a legislative body, while
regulatory requirements are
those requirements made by a government
agency in accordance with the law

5.  There are certain requirements which must
be adhered to recommended by the statue
i.e Companies Acts
 Basically , there are certain standards such
as IAS.IFRS and Generally Accepted
Accounting Practice(GAAP) which are used as
a guideline in financial reporting

6.  compliance means conforming to a rule, such
as a specification, policy, standard or
law.
Regulatory compliance describes the goal
that organizations aspire to achieve in their
efforts to ensure that they are aware of and
take steps to comply with relevant laws and
regulations.

7. 1. To maintain financial records
 According to the Companies Act Sec
140,the entity entitled to prepare and
present financial statements pertaining to a
certain trade period with all disclosure
made.
 IAS 1 also , provides a guideline for the
presentation of those financial statements

8. 2. To have financial report audited
 The entity is required by the companies Act
to have the financial reports audited and the
auditor has to provide an opinion regarding
the financial statements.
 International Standards for Auditing requires
that financial statements be reported after
acknowledgements from auditor.

9. 3. To prepare an annual report and a directors
report
 IAS 34,must be adhered to when it comes
to financial reporting
 The Companies Act sec 146;1,147 under
corporations Act requires that there must
be an annual directors report which has to
be there for presentation attached to the
Balance sheet

10. 4.To send the financial reports ,directors
reports and auditors report to members.
Stakeholders are interested in business
information and also have a right to access
and as such reports are obliged to be given
to them.
5.To have a half year report audited or
reviewed by the auditor

11. 6.The accounts must comply with the
accounting standard
 Enables users to interpret financial
information since they will be presented in
constistency.

12. “Corporate governance” refers to the
way in which entities are directed
and controlled[governed].
“Corporate governance frameworks
“simply refer to set of rules and
practices by which directors ensures
accountability, fairness and
transparency in a company’s
relationship with its stakeholders.

13.  Within that overall framework, the
specifically financial aspects of corporate
governance (the Committee’s remit) are
the way in which boards set financial
policy and oversee its implementation,
including the use of financial controls,
and the process: whereby they report on
the activities and progress of the
company to the shareholders

14.  Corporate governance frameworks standards
brings about harmonisation in the way
entities are governed and in the preparation
of financial statements by entities around
the world in order to provide information
that is useful for economic decision making
for variety of users

15. 2 ELEMENTS
GENERAL
 Creating a relationship between the holders
of equity and others through greater
cooperation and promotion of financial
independency.
OPERATIONAL
 Compliance with a range of statutory
obligations in financial reporting.

16.  The only way in which production can be
increased is through imposing corporate
governance
CORPORATE GOVERNANCE FRAMEWORKS
 Proper reporting structure
-The management tries to create a structure
specifically under the finance department so
that there is proper implimentation of
appropriate acconting policies
 Internal departmental controls
 Cordination of Activities

17.  Financial Policy-

18. THANK YOU
GOD BLESS YOU