requires financial statements of be cumbersome Hyperinflationary entities which operate in such and difficult. A Economies economies to be restated. lot of assumption and value judgment may cause subjectivity. 11 Defines construction contracts, Due to establishes requirements for the inflationary Construction recognition of revenues and forces full Contracts expenses arising from such application may contracts and identifies certain be difficult. disclosure requirements. Likewise, abandoned projects and lack of enforcement rules could be a factor to successful application. 12 Defines inventories, establishes Currently Inventories measurement requirements for government inventories inventories are (Including inventories which not fully are held for distribution at no or accounted for, nominal charge) under the data on them is historical cost system and includes also scarce. It disclosure requirements. will take long time before such can be achieved. IPSAS 13 Establishes requirements for the Improper Leases accounting treatment of operating documentations and finance leasing transactions by of agreements lessees and lessors. may hamper application of this provision IPSAS 14 Establishes requirements for the Budget delays Events treatment of certain events that and variations After the Reporting occur after the reporting date, and are major Date distinguishes between adjusting and challenges. non-adjusting events. IPSAS 15 Establishes requirements for the Stocks in Nigeria Financial presentation of on-balance-sheet are highly Instruments: financial instruments and identifies volatile and Disclosure and the information that should be some are Presentation disclosed about both stagnant. (recognized) and Volatility factor (unrecognized) financial could be a instruments. potential problem in fair
Hyperinflationary Economies requires financial statements of entities which operate in such economies to be restated. be cumbersome and difficult. A lot of assumption and value judgment may cause subjectivity. 11 Construction Contracts Defines construction contracts, establishes requirements for the recognition of revenues and expenses arising from such contracts and identifies certain disclosure requirements. Due to inflationary forces full application may be difficult. Likewise, abandoned projects and lack of enforcement rules could be a factor to successful application. 12 Inventories Defines inventories, establishes measurement requirements for inventories (Including inventories which are held for distribution at no or nominal charge) under the historical cost system and includes disclosure requirements. Currently government inventories are not fully accounted for, data on them is also scarce. It will take long time before such can be achieved. IPSAS 13 Leases Establishes requirements for the accounting treatment of operating and finance leasing transactions by lessees and lessors. Improper documentations of agreements may hamper application of this provision IPSAS 14 Events After the Reporting Date Establishes requirements for the treatment of certain events that occur after the reporting date, and distinguishes between adjusting and non-adjusting events. Budget delays and variations are major challenges. IPSAS 15 Financial Instruments: Disclosure and Presentation Establishes requirements for the presentation of on-balance-sheet financial instruments and identifies the information that should be disclosed about both (recognized) and (unrecognized) financial instruments. Stocks in Nigeria are highly volatile and some are stagnant. Volatility factor could be a potential problem in fair