Regulatory Alerts2008-05-16 | TED-FEM-FPC-GEN-01-048-08Circular To All Banks and Discount Houses on Common Accounting Year End
In light of banking sector reforms, all banks and discount houses in Nigeria have been advised to adopt a common accounting year-end of December 31. As per the Companies and Allied Matters Act (CAMA), directors must pass resolutions and inform relevant agencies regarding this change. Banks with varying fiscal year-ends need to submit their accounts accordingly, either for full-year approval or pro-rated period approval by March 31 of the following year, failing which appropriate sanctions will be enforced.
09-61636401 09-61636418 May 15, 2008
Ref: BSD/DIR/GEN/CIR/VOL.2/004 CIRCULAR TO ALL BANKS AND DISCOUNT HOUSES ON COMMON ACCOUNTING YEAR END In order to further enhance the level playing field, post banking sector reforms, it has become necessary to adopt a uniform accounting year end in the industry. As agreed at the Bankers' Committee meeting of January 2008, December 31, has been adopted as a common accounting year end, which should take effect from 2008.
Consequently, the directors of all banks and discount houses are hereby advised, as a first step, to pass a resolution to that effect and inform the relevant agencies in line with S.
334 (4) of Companies and Allied Matters Act (CAMA) 1990, as amended. Directors of bank and discount houses are furthermore reminded to streamline the year ends of their subsidiaries in line with S. 334 (5) of CAMA, 1990, as amended. Banks and discount houses are to note that internationally accepted accounting practice provides for a maximum accounting period of eighteen (18) months. In the circumstance, banks whose year ends coincide with December 31, should forward their full year's accounts for the CBN approval not later than three months after the year end.
Those whose year ends fall between January - May, 2008 are advised to submit the normal audited accounts (12 months) for the CBN approval and thereafter, submit the pro-rated period to December 31, 2008 as follows:-
| S/N | Current year end dates | Period to December 31, 2008 |
|---|---|---|
| 1 | January 31, 2008 | 11 Months |
| 2 | February 29, 2008 | 10 Months |
| 3 | March 31, 2008 | 9 Months |
| 4 | April 30, 2008 | 8 Months |
| 5 | May 31, 2008 | 7 Months |
| 6 | June 30, 2008 | Option of 12 Months or 18 Months. |
| 7 | July 31 to November 30 2008 | Elongate to December 31, 2008 |
The audited accounts for the pro-rated period should be submitted not later than three months after the year end for the CBN appraisal and approval for publication in line with S. 27 & 28 of BOFIA, 1991, as amended.
The accounts for December 31, 2008 should be submitted latest by March 31, 2009, while failure to comply with the deadline will attract appropriate sanctions. O. I. IMALA DIRECTOR OF BANKING SUPERVISION