4 with accounting for foreign The exchange The Effects currency transactions and foreign of Changes in operations. IPSAS 4 sets out the rate regime in Foreign Exchange requirements for determining Rates Which exchange rate to use for the Nigeria is highly recognition of certain transactions and balances and how to recognize volatile and in the financial statements the financial effect of changes in adopting this exchange rates. standard may creates a lot of flexibility in governance of govt. IPSAS 5 Prescribes the accounting treatment Vast resources Borrowing for borrowing costs and requires Costs either the immediate expensing of accruing to PS in borrowing costs or, as an allowed alternative treatment, the Nigeria come capitalization of borrowing costs that are directly attributable to the from statutory acquisition, construction or production of a qualifying asset. allocation; any standard that will aloe borrowings to be expensed may jeopardize the reports. It’s going to IPSAS 6 Requires all controlling entities to prepare consolidated financial Consolidated statements, consolidate all Financial Statements be difficult controlled entities on a line by line and Accounting for basis. The Standard also contains a Controlled Entities looking at detailed discussion of the concept of control as it applies in the public sector and guidance on determining existing whether control
4 The Effects of Changes in Foreign Exchange Rates with accounting for foreign currency transactions and foreign operations. IPSAS 4 sets out the requirements for determining Which exchange rate to use for the recognition of certain transactions and balances and how to recognize in the financial statements the financial effect of changes in exchange rates. The exchange rate regime in Nigeria is highly volatile and adopting this standard may creates a lot of flexibility in governance of govt. IPSAS 5 Borrowing Costs Prescribes the accounting treatment for borrowing costs and requires either the immediate expensing of borrowing costs or, as an allowed alternative treatment, the capitalization of borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset. Vast resources accruing to PS in Nigeria come from statutory allocation; any standard that will aloe borrowings to be expensed may jeopardize the reports. IPSAS 6 Consolidated Financial Statements and Accounting for Controlled Entities Requires all controlling entities to prepare consolidated financial statements, consolidate all controlled entities on a line by line basis. The Standard also contains a detailed discussion of the concept of control as it applies in the public sector and guidance on determining whether control It’s going to be difficult looking at existing