ICAN New Syllabus
ICAN New Syllabus
ICAN New Syllabus
THE INSTITUTE OF
CHARTERED
ACCOUNTANTS OF
NIGERIA
Established by Act of Parliament No. 15 of 1965
EFFECTIVE 2014
11/1/2014
FOREWORD
CONTENTS
INTRODUCTION
The forerunner of the Institute under the name The Association of Accountants
in Nigeria was established in 1960. This Association was absorbed by the
Institute created by an Act of Parliament No. 15 (The Act) which came into
effect on September 1, 1965. The Institute has, as at December 2013, over
thirty-eight thousand, one hundred and two (38,102) members and One
hundred and ninety-four thousand, two hundred and sixty nine (194,269)
students on its Register.
2.
(b)
(c)
3.
MEMBERSHIP
There are two main classes of membership of the Institute, namely; Chartered
Accountants and Registered Accountants.
4.
CHARTERED ACCOUNTANTS
A person shall be enrolled as a Chartered Accountant if:
He/she passes the qualifying examination for membership conducted by the
Council of the Institute and completes a prescribed practical training under
Section 8(1)(a).
5.
DESIGNATORY LETTERS
Members of the Institute are entitled to use the following designatory letters
after their names:
In the case of a Fellow, the letters FCA (Fellow of the Institute of Chartered
Accountants).
In the case of an Associate, the letters ACA (Associate of the Institute of
Chartered Accountants).
In the case of a Registered Accountant, the letters RA (Registered Accountant).
6.
7.
THE LIBRARY
The Institutes library provides services to both members and students. The library
at the Secretariat, Plot 16 Idowu Taylor Street, Victoria Island, Lagos caters for
the information needs of members, while the Students library is located at the
Institutes Secretariat Annexe at No. 82, Murtala Muhammed Way, Ebute-Metta,
Lagos. The library provides the following services: reference service;
reprographic service; readers service; systematic dissemination of information
(SDI) service in addition to the e-Library services. Enquiries should be directed to
the Librarian at the Victoria Island Office or email: [email protected].
Continuous effort is being made by Council to satisfy the diverse interests of the
members and students.
8.
DISTRICT SOCIETIES
As at January 31, 2014, there are 48 District Societies for members of the Institute
with headquarters in some principal towns throughout the country inclusive of UK
and USA. The District Societies assist students of the Institute to prepare and
succeed i n t h e q u a l i f y i n g e x a m i n a t i o n s o f the Institute.
9.
PUBLICATIONS
The Institute publishes the following (in print and/or electronic) for the benefit
of members, students and the general public:
a.
b.
c.
d.
e.
f.
g.
10.
TRAINING SCHEMES
(i)
Definition of Training
Training for the purpose of the Institutes membership means full time
assignments on a work of an approved accounting nature either in a
professional office, commerce, industry, government or a full time/part
time study in a recognised institution.
(ii)
(iii)
PRACTISING LICENCE
The licence to practise will be issued only to those members who have
been trained in professional offices and have acquired the minimum
practical training as stated in paragraph 6 above. However, for those who
SECRETARIAT
The Institutes Secretariat is located at:
Plot 16, Idowu Taylor Street
Victoria Island
P O Box 1580
Marina, Lagos
Nigeria
Tel: +234 1764 2294-5
e-mail: [email protected] Website: www.ican-ngr.org or www.icanig.org
For enquiries, please call our Secretariat Annexe:
(a)
(b)
Liaison offices or
(c)
District Societies.
PART TWO
13.
14.
application
refundable.
CONDITIONS TO BE SATISFIED
Every applicant for registration as a student must satisfy the Council that:
(a)
(b)
PART THREE
16.
PROFESSIONAL EXAMINATIONS
NEW SYLLABUS
FOUNDATION
1.
Fundamentals of Financial
Accounting
2.
Corporate and Business Law
3.
Economics and Business
Environment
KNOWLEDGE LEVEL
1.
Quantitative Techniques in
Business
2.
Financial Accounting
3.
Management Information
4.
Business Law
5.
Business and Finance
INTERMEDIATE
4.
Costing and Quantitative
Techniques
5.
Taxation
6.
Audit and Assurance
7.
Business Communication
and Research
Methodology
APPLICATION LEVEL
6.
Financial Reporting
7.
Audit and Assurance
8.
Taxation
9.
Performance Management
10.
Management, Governance and
Ethics
11.
Public Sector Accounting and
Finance
PROFESSIONAL EXAMINATION I
8.
Information Technology
9.
Management Accounting
10.
Financial Accounting
11.
Advanced Audit and
Assurance
PROFESSIONAL LEVEL
12.
Corporate Reporting
13.
Advanced Audit and Assurance
14.
Strategic Financial Management
15.
Advanced Taxation
16.
Case Study
PROFESSIONAL EXAMINATION II
12.
Public Sector Accounting
and Finance
13.
Financial Reporting and
Ethics
14.
Strategic Financial
Management
15.
Advanced Taxation
10
16.2
DATES OF EXAMINATIONS
The examinations are normally held twice each year in May and November
and at present, at the following centres: Aba, Abakaliki, Abeokuta, Abuja,
Ado-Ekiti, Akure, Asaba, Awka, Benin-City, Calabar, Enugu, Ibadan, Ikeja,
Ikorodu, Ilesa, Ilisan-Remo, Ilorin, Jos, Kaduna, Kano, Lagos-Amuwo,
L a g o s - U n i l a g , Lokoja, Maiduguri, Makurdi, Minna, Ogbomoso, Onitsha,
Owerri, Port Harcourt, Sokoto, Umuahia, Uyo, Warri, Yenagoa, Yola, Zaria,
Cameroun and London (U.K.).
Council reserves the right to approve new examination centres and close
existing ones as it deems fit.
16.3
1 6 . 4 EXAMINATION E N T R Y
No person may be allowed to sit for any of the Institutes examinations
unless he/she had been registered as a student of the Institute and had
paid the required annual subscription and applicable examination fees.
16.5
EXAMINATION RESULTS
The results of the examination will be communicated by post, sms, email
or the Institutes website, to candidates. Further correspondence
relating to individual results may not be entertained. However, a
candidate may ask for a review of his/her script, subject to
meeting the condition set out by the Institute.
Individual scores will be indicated on the candidate s result
slip.
16.6
CREDIT SYSTEM
1.
Candidates writing the examinations may register for any number of
papers at a level and shall be credited with each paper passed.
However, they are expected to complete the examination at a
level before attempting papers at a higher level.
2.
Candidates are not allowed to combine two levels of the
examinations.
3.
Candidates are mandatorily required to complete all parts of the
Institutes qualifying examination within a period of ten years from
the date of s i t t i n g t h e e x a m i n a t i o n f o r t h e first time. In
the event of a student not completing the examinations within the
period of ten years, he/she is deemed to have forfeited all the papers
passed and credited to him/her.
11
16.7
PASS MARK
The pass mark for each paper of the Institutes examination is 50%.
16.8
CONVERSION ARRANGEMENTS
Examinations on the basis of this new syllabus will commence in
November 2014. All candidates stand converted as stated in paragraph
16.8.1 below. No candidate may proceed to the next level of the
examination without successful completion of all the subjects in the
preceding level.
16.8.1 Conversion from the old to the new syllabus is as stated hereunder:
OLD SYLLABUS
NEW SYLLABUS
To write
Candidates who
A1. Quantitative
successfully completed
Techniques in Business
the old Foundation
A4. Management
Examination
Information
1.
A Fundamentals of
Financial
Accounting
2. Economics &
Business
Environment
3. Corporate and
Business Law
Candidates who
successfully completed
the Intermediate
Examination
1. Costing and
Quantitative
Techniques
2. Taxation
3 Audit and
Assurance
4. Business
Communication
and Research
Methodology
Credited with
12
Candidates who
successfully completed
the old PE 1
Examination
1. Information
Technology
2. Management
Accounting
3. Financial
Accounting
4. Advanced Audit &
Assurance
Candidates who
passed only
Fundamentals of
Financial Accounting in
Foundation
Candidates who
passed only Corporate
and Business Law in
Foundation
Candidates who
passed only Economics
and Business
Environment
A1. Quantitative
Techniques in
Business
A2. Business and
Finance
A4. Management
Information
A5. Business Law
A3. Financial
Accounting
A1. Quantitative
Techniques in
Business
A2. Business and
Finance
A3. Financial
Accounting
A4. Management
Information
A1. Quantitative
Techniques in
Business
A3. Financial
Accounting
A4. Management
Information
A5. Business Law
13
Candidates who
passed Fundamentals
of Financial Accounting
and Corporate and
Business Law
Candidates who
passed Fundamentals
of Financial Accounting
; Economics and
Business Environment
Candidates who
passed Corporate &
Business Law;
Economics and
Business Environment
Candidates who
passed Costing and
Quantitative
Techniques in old
Intermediate
Candidates who
passed only Taxation in
old Intermediate
A1. Quantitative
Techniques in
Business
A2. Business and
Finance
A4. Management
Information
A1. Quantitative
Techniques in
Business
A4. Management
Information
A5. Business Law
A1. Quantitative
Techniques in
Business
A3. Financial
Accounting
A4. Management
Information
A3. Financial
Accounting
A5. Business Law
Nil
B3. Taxation
14
Candidates who
passed only Audit and
Assurance in old
Intermediate
Candidates who
passed only Business
Communication and
Research Methodology
in old Intermediate
Candidates who
passed CQT; Taxation
in the old Intermediate
Candidates who
Candidates who
passed CQT ; BCRM in
the old Intermediate
Nil
B3. Taxation
Nil
15
Candidates who
passed Taxation; AA in
the old Intermediate
Candidates who
passed Taxation; BCRM
in the old Intermediate
Candidates who
passed AA; BCRM in
the old Intermediate
Candidates who
passed CQT; Taxation;
AA in the old
Intermediate
Management
B5. Public Sector
Accounting & Finance
B6. Management,
Governance & Ethics
B1. Financial Reporting
B4. Performance
Management
B5. Public Sector
Accounting & Finance
B6. Management,
Governance & Ethics
B3. Taxation
Management
B5. Public Sector
Accounting & Finance
B6. Management,
Governance & Ethics
16
Candidates who
passed CQT ; Taxation;
BCRM in the old
Intermediate
Candidates who
passed Taxation; AA;
BCRM in the old
Intermediate
Candidates who
Candidates who
passed Information
Technology in old PE 1
AA
Candidates who
passed only
Management
Accounting in old PE 1
Candidates who
passed only Financial
Accounting in old PE 1
B3. Taxation
Management
B5. Public Sector
Accounting & Finance
B6. Management,
Governance & Ethics
B1. Financial Reporting
B3. Taxation
B4. Performance
Management
B5. Public Sector
Accounting & Finance
B6. Management,
Governance & Ethics
B4. Performance
Management
B5. Public Sector
17
AB
Candidates who
passed only Advanced
Audit and Assurance
AC
Candidates who
passed only IT; MA
AD
Candidates who
passed only IT; FA
AE
Candidates who
passed only IT; AAA
AF
Candidates who
passed MA; FA
AG
Candidates who
passed only MA; AAA
Management
B4. Performance
Management
Management
18
AH
Candidates who
passed FA; AAA
AI
Candidates who
passed Information
Technology;
Management
Accounting
Financial Accounting
B4. Performance
Management
AJ
Candidates who
passed Information
Technology;
Management
Accounting; Advanced
Audit and Assurance
AK
Candidates who
passed Management
Accounting; Financial
Accounting; Advanced
Audit and Assurance
AL
Candidates who
passed Financial
Accounting; Advanced
Audit and Assurance;
Information Technology
B4. Performance
Management
AM
Candidates who
passed PSAF ; FRE
19
Taxation
C5. Case Study
AN
Candidates who
passed PSAF; SFM
C1. Corporate
Reporting
C4. Advanced
Taxation
C5. Case Study
AO
Candidates who
passed only PSAF;
Advanced Taxation
C1. Corporate
Reporting
C3. Strategic Financial
Management
C5. Case Study
AP
Candidates who
passed FRE; SFM
AQ
Candidates who
passed FRE; Advanced
Taxation
AR
Candidates who
B5. Public Sector
passed SFM; Advanced
Accounting & Finance
Taxation
C1. Corporate
Reporting
C5. Case Study
AS
Candidates who
passed PSAF; FRE; SFM
C4. Advanced
Taxation
C5. Case Study
AT
Candidates who
passed PSAF; FRE;
Advanced Taxation
20
Candidates who
passed FRE;SFM;
Advanced Taxation
AV
Candidates who
passed PSAF; SFM;
Advanced Taxation
C1. Corporate
Reporting
C5. Case Study
FINAL
CORPORATE
REPORTING
TUESDAY
WEDNESDAY
MANAGEMENT
INFORMATION
QUANTITATIVE
TECHNIQUES
IN BUSINESS
BUSINESS LAW
BUSINESS
&
FINANCE
TAXATION
PERFORMANCE
MANAGEMENT
MANAGEMENT
GOVERNANCE
&
ETHICS
AUDIT
&
ASSURANCE
ADVANCED
TAXATION
STRATEGIC
FINANCIAL
MANAGEMENT
ADVANCED
AUDIT
&
ASSURANCE
9.00 AM 1.00
PUBLIC SECTOR
PM &
ACCOUNTING CASE STUDY
2.00 P.M&
5.00 P.M
FINACNE
NOTE: CASE STUDY IS ON THURSDAY 9.00 AM 1.00 PM
21
18.
19.
20.
MISCONDUCT IN AN EXAMINATION
The examinations regulations prohibit a student from:
(a)
taking into the examination room or possessing, while in that
room, any book, note, programmable calculators, GSM handsets
or other materials except those which have been authorised in
the Examination Attendance Docket;
(b)
aiding or attempting to aid another candidate, or obtaining or
attempting to obtain aid from another candidate;
(c)
refusing to obey any instruction from the Examination Supervisor or
Invigilators; and
(d)
giving false or misleading information to the Examination Supervisor.
The Supervisor is empowered to stop any candidate suspected of misconduct and to require him/her to leave the examination hall.
Any student who fails to comply with the above regulations may be
liable to such penalties as the Council of the Institute may determine.
22
21
EXEMPTION GUIDELINES
21.1
Ref.
A.
ACADEMIC QUALIFICATIONS
Academic Qualification
B.Sc/HND (Accounting) obtained
under the Mutual Co-Operation
Agreement with Tertiary
Institutions
B.
C.
Exemptions
A1. Quantitative Techniques in
Business
A2. Business and Finance
A3. Financial Accounting
A4. Management Information
A5. Business Law
B1. Financial Reporting
B2. Audit and Assurance
B3. Taxation
B4. Performance Management
D.
E.
B.Sc./HND (Accounting)
obtained from ICAN accredited
Institutions in Nigeria.
B.Sc./HND (Accounting)
obtained from recognised
Institutions in Nigeria but not yet
accredited by ICAN.
23
F.
G.
H.
I.
J.
B.Sc./HND (Accounting)
obtained from foreign
recognised Institutions.
K.
B.Sc. Economics
24
L.
M.
B.Sc./HND Insurance
N.
B.Sc./HND/B.A Business
Admin/Management
O.
P.
B.Sc./HND Marketing
Q.
R.
S.
T.
B.Sc./B.A Commerce
U.
V.
LL.B
25
21.3
A.
Exemption
B.
C.
A1.Quantitative Techniques in
Business
A2. Business and Finance
A3. Financial Accounting
A5. Business Law
Quantitative Techniques in
Business
A2. Business and Finance
A3. Financial Accounting
A1.Quantitative Techniques in
26
E.
Associate Chartered
Secretaries and
Administrators
F.
G.
Certified National
Accountant of Nigeria
H.
I.
CIMA, UK
Business
A2. Business and Finance
A3. Financial Accounting
A5. Business Law
A1.Quantitative Techniques in
Business
A2. Business and Finance
A3. Financial Accounting
A5. Business Law
A1.Quantitative Techniques in
Business
A2. Business and Finance
A5. Business Law
A1.Quantitative Techniques in
Business
A2. Business and Finance
A3. Financial Accounting
A5. Business Law
B3. Taxation
A1. Quantitative Techniques in
Business
A2. Business and Finance
A3. Financial Accounting
A4. Management Information
A5. Business Law
B3. Taxation
B5. Public Sector Accounting &
Finance
A1. Quantitative Techniques in
Business
A2. Business and Finance
A3. Financial Accounting
A4. Management Information
A5. Business Law
B2. Audit and Assurance
B3.Taxation
A1. Quantitative Techniques in
Business
A2. Business and Finance
A3. Financial Accounting
27
J.
ACCA, UK
CPA, USA
CIPFA, UK
ICAS, UK
ICAI, UK
ICAEW
K.
L.
AAT (UK)
AIA (Pre-1994)
28
21.4
29
PART FOUR
22.
EXAMINATIONS SYLLABUS
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA
1.
Purpose
Accountants use a range of mathematical and statistical techniques in
accounting, performance management, financial decision-making, risk
analysis and financial management and this syllabus component
provides a foundation of the knowledge and skills that will be applied in
later studies. This syllabus component assesses the knowledge and skills in
a business and accounting context.
Content and Competences
A.
MATHEMATICS
30%
1.
2.
3.
30
(c)
(d)
(e)
4.
B.
C.
Annuities
Present value of annuities
Sinking funds and amortisation
Elements of calculus:
Apply accurately in simple business related situations the key
tools of basic calculus:
(a)
Uses of calculus
(b)
Differentiation
(c)
Integration
(d)
Identification and determination of stationary points
(e)
Techniques of optimisation (Maximum and minimum)
30%
1.
Data collection:
State, explain and apply methods of data collection and
presentation in simple business related situations:
(a)
Frequency distributions simple and cumulative
(b)
Histograms, frequency polygons and ogives
2.
3.
Measures of dispersion:
State, explain and apply key measures of central tendency in
business related situations:
(a)
The concept of dispersion
(b)
Range
(c)
Mean deviation
(d)
Quartile deviation
(e)
Standard deviation
(f)
Variance
STATISTICS
30%
(1)
Probability:
State, explain and apply key measures of central tendency in
business related situations:
(a)
Basic rules of probability
31
(b)
(c)
(d)
(e)
(2)
D.
Forecasting:
Apply accurately in simple business situations basic tools of
financial and operational forecasting:
(a)
Time series
(b)
Trend, seasonal variations, cyclical variations and
random variations
(c)
Moving average trend
(d)
Forecasting
(e)
Correlation Analysis
(f)
Simple Regression Analysis
OPERATIONS RESEARCH
10%
Operations Research:
This topic and the following sub topics were introduced:
(a)
Linear programming
(b)
Transportation model
(c)
Replacement theory
(d)
Inventory control
(e)
Simulation
(f)
Queing models
(g)
Network analysis
A2.
Purpose
An understanding of the business environment, markets, financial markets,
entities and organisations provides an underpinning for business
professionals as managers and accountants. Business and management
includes a basic understanding of the purpose and objectives of
businesses and the issues of business ethics, governance, corporate social
responsibility and sustainability. The business environment is seen globally,
internationally and locally. The subject matter includes a basic
introduction to business finance. The content also includes the basics of
individual and organisational behaviour and human resource issues.
Content and Competences
For all the content below students are required to be able to state and
explain the concepts and their business relevance.
32
A.
Types of Entity:
(a)
Sole trades
(b)
Partnership
(c)
Limited Companies
(d)
Public Limited Companies
(e)
Non-governmental entities
(f)
Public sector entities
(g)
Alliances
30%
Business planning:
(a)
Basics and relationships of strategic vision, mission, values and
objectives
(b)
The relationship between strategic, business and operational
plans
(c)
Basics of strategic plan development
33
B.
30%
1.
2.
3.
Investment decisions:
(a)
Identify, and explain appropriate investment appraisal
techniques using discounted and non discounted techniques
(b)
Identify, and explain appropriate data that may be used in
cash flow calculations
(c)
Explain the decision rule in each of the investment appraisal
techniques
(d)
Identify and explain the impact of non-financial factors on
making investment decision taking into account economic,
social and environmental issues
C.
10%
(b)
A3.
D.
30%
1.
2.
3.
Communications in Business
(a)
Basic Communication theory
(b)
Organisation Communication (formal & informal and internal
& external)
(c)
Basic elements of report writing
(d)
Electronics communication presentation
FINANCIAL ACCOUNTING
Purpose
Accounting is dealt with here primarily as a skill that supports the
compilation of reliable financial accounts for sole traders, partnerships,
companies and not for-profit entities. At this level accounting includes
knowledge of the essential framework of assumptions that underpin
reliable reporting.
Content and Competences
1
(e)
10%
Preface to IFRS
Conceptual Framework for Financial Reporting
IAS 1 Presentation of Financial Statements
IAS 7 Statement of Cash Flows
IAS 2 Inventories
IAS 16 Property, Plant and Equipment (PPE)
36
A4.
MANAGEMENT INFORMATION
Purpose
Accountants play a vital role in management and management
decision-making. Business information deals with the production of
accurate and useful information to support management and decisionmaking including costing, management accounting and the application
of quantitative methods in financial management. Business information
takes an integrated approach by developing an awareness of
information technology and systems support.
Content and Competences
1
Costing/Pricing:
30%
(a)
Classify costs for different purposes including identifying fixed
and variable, product and period, direct and indirect and
costs by nature, function and purpose
(b)
Identify and calculate the costs of products, services and
projects including process costs
(c)
Identify and calculate unit costs and the effect of different
costing methods on reported financial results using marginal
and absorption costing approaches
(d)
Select and explain the most appropriate costing approach
for a given product or service for reporting and decisionmaking purposes
(d)
(e)
37
(f)
(g)
Batch Processing
Online processing
Distributed processing
(i)
Hardware components
Software
Privacy Issues
Secrecy issues
Data transfer practices
Use of USB and other removable devices
Virus and worms
Access to social networking sites using company time
and resources
Explain, describe or discuss how IT is managed within an
organisation, with a focus on:
Accounting systems
(j)
(k)
A5.
BUSINESS LAW
Purpose
Business finance professionals are expected to have a sound foundation
in law that is relevant to businesses and their operations. Professional
accountants need a strong background in company law and law
relevant to public sector entities. All business professionals also need
knowledge of how laws affect them personally and in their own
employment and business activities
Content and Competences
A
1
Company law
(a)
Identify state and explain the nature of and differences
between a legal partnership and a company
(b)
State and explain the way in which a company or
partnership may be formed including the creation of
effective memorandum and articles of association and
agreements in partnership
(c)
State and explain the consequences of incorporation
including practical considerations of record keeping and
filing
(d)
State and explain the procedures for the issue of shares.
39
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
3.
Law of Insolvency
(a)
Identify and state the differences between the types of
insolvency, liquidation and receivership including the rights of
creditors and the shareholders and the procedures for
winding up
(b)
Identify and explain the consequences of insolvency
(c)
Identify and explain the nature of and difference between
fixed and floating charge
CRIMINAL LAW
25%
40
(f)
(g)
(h)
C.
CIVIL LAW
1.
2.
2.
B1.
FINANCIAL REPORTING
35%
Purpose
In this element the accounting from the knowledge and skills level is taken
up a level into financial accounting in the context of more complex
events and transactions with a greater emphasis on compliance with
regulations including local and International Accounting Standards and
generally accepted accounting practices in the public and private
41
Preface to IFRS
IAS 2 Inventories
IAS 17 Leases
IAS 18 Revenue
B2.
30%
Accepting an engagement
Appointment
Scope of work
Different approaches
44
Planning
Performance
Evaluating results
Reporting
(g)
(h)
(i)
(j)
(k)
B.
Internal Control
20%
45
(i)
C
Gathering Evidence
30%
Ethics
20%
46
B3.
TAXATION
Purpose
Professional accountants need to understand tax to support both
compliance and effective basic professional advice. The emphasis is on a
basic knowledge and application of tax legislation relating to employees,
employers, trading and operating and local business activities in
straightforward situations. Students will be expected to be able to analyse
the tax consequences of personal and corporate actions and activities.
Content and Competences
A.
30%
1.
Introduction to Taxation
(a)
Define, list and explain the objectives and Purposes of
Taxation
(b)
Enumerate and explain the types of taxes and tax system
(c)
Define and explain the Basic Concepts in taxation:
i.
Tax base, tax yield, tax rate, tax incidence
ii
Tax burden, tax impact, tax shift, tax effect
(d)
Distinguish between tax and other levies
(e)
Define and explain the Principles/Canons of Taxation
(f)
Distinguish, list and explain the following in relation to taxation
in Nigeria
47
i
ii
iii
Types of taxes
Enabling Acts
Sources of the tax laws
2.
3.
(c)
Outline the basis for Registration and Filing of Returns with the
FIRS, covering the following:
i.
Time within which to register
ii.
Registration requirements and process
iii.
Constituents of a tax returns
iv.
Due date for filing of tax returns
v.
Time within which to pay tax assessed
(d)
Clearance
clearance
clearance
Clearance
48
B.
Personal Income
30%
1.
2.
3.
49
Business Income
1.
30%
Partnerships
Determine the taxable income of Partners
Compute assessable profit of a partnership business
Identify and explain Allowable and Non-allowable
expenses
Assess the Tax treatment under admission and
resignation of a partner
Limited Liability Companies
Identify the Types of Companies and Chargeable
Profits
Identify Persons liable
Compute Assessable Profit
iv.
v.
vi.
vii.
Total profit
Minimum tax
Dividend distribution
CIT rate
2.
3.
Tertiary Education
(a)
Outline the objectives and basis of computation of tertiary
education tax as provided in the enabling act
(b)
Explain the Imposition, assessment and collection of the tax
i.
State the Management and administration of the
Tertiary Education Tax Fund
ii.
State the Composition and functions of the Board of
Trustees
51
iii.
iv.
D
TRANSACTIONS
10%
Transaction Taxes
(a)
Withholding Tax
i.
Define and explain the nature, objectives and
administration of WHT
ii.
Outline the Transactions/income subject to withholding
taxes and rates
iii.
State the Relevant tax authority for collection
iv.
Explain the filing of WHT Returns and list the Contents
and time frame
v.
Outline the provisions relating to WHT Refunds, Grounds
and Procedures
vi.
Explain the Remittance of WHT to Tax Authorities
vii.
What are the Administrative bottlenecks and problems
of WHT
viii.
What are the benefits of the withholding tax scheme
(b)
(c)
Stamp Duties:
i.
Define the nature and objectives of stamp duties
ii.
Outline the Instruments Chargeable
iii.
State the Relevant Tax Authority for Collection
52
iv.
v.
vi.
vii.
viii.
ix.
B4.
PERFORMANCE MANAGEMENT
Purpose
Performance management develops and deepens students capability
to provide information and decision support to management in
operational and strategic contexts with a focus on linking costing,
management accounting and quantitative methods to critical success
factors and operational strategic objectives whether financial,
operational or with a social purpose. Students will be expected to be
capable of analysing financial and non-financial data and information to
support management decisions.
Content and Competences
A.
25%
1.
53
2.
3.
A.
Variance Analysis
(i)
Calculate and present using absorption or marginal
costing techniques performance management reports
that reconcile actual and budgeted results.
(ii)
Apply flexed budgeting techniques to a given
scenario.
(iii)
Calculate using given information and advise
management of the implications of and actions
required based on variances including:
DECISION MAKING
25%
54
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
C
(c)
B5.
25%
1.
2.
Systems implementation
56
1.
iv.
v.
vi.
vii.
20%
57
20%
Programme Performance
Budgeting System
(PBS)
(b)
(c)
(d)
58
C.
1.
2.
30%
(a)
(b)
Due process
(c)
59
(c )
3.
D.
FINANCE
30%
(a)
The economic environment and role of the public sector.
i.
Assess and evaluate the performance of the Nigerian
Economy.
ii.
Describe the role of the public sector in the economy
iii.
Describe the objectives of fiscal responsibilities.
60
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
Standard
IFRS
Presentation of
Financial Statements
IAS1
61
IPSAS 2
Cash Flow
Statements
IAS 7
IPSAS 3
Accounting Policies,
Changes in
Accounting
Estimates and Errors
IAS 8
IPSAS 4
The Effects of
Changes in Foreign
Exchange Rates
IAS 21
IPSAS 5
Borrowing Costs
IAS 23
IPSAS 6
Consolidated and
Separate Financial
Statements
IAS 27
IPSAS 7
Investments in
Associates
IAS 28
IPSAS
Standard
IFRS
IPSAS 8
Interests in Joint
Ventures
IAS 31
IPSAS 9
Revenue from
Exchange
Transactions
IAS 18
IPSAS 10
Financial Reporting
in Hyperinflationary
Economies
IAS 29
IPSAS 11
Construction
Contracts
IAS 11
IPSAS 12
Inventories
IAS 2
IPSAS 13
Leases
IAS 17
IPSAS 14
IAS 10
IPSAS 15
Financial
Instruments:
Disclosure and
IAS 32
62
IPSAS
Standard
IFRS
IPSAS 16
Investment Property
IAS 40
IPSAS 17
IAS 16
IPSAS 18
Segment Reporting
IAS 14
IPSAS 19
Provisions,
Contingent Liabilities
& Contingent Assets
IAS 37
IPSAS 20
Related Party
Disclosures
IAS 24
IPSAS 25
Employee Benefits
IAS 19
IPSAS
Standard
IFRS
IPSAS 26
IAS 36
IPSAS 27
Agriculture
IAS 41
IPSAS 28
Financial
Instruments:
Presentation
IAS 32
IPSAS 29
Financial
Instruments:
Recognition and
Measurement
IAS 39
IPSAS 30
Financial
Instruments:
Disclosures
IFRS 7
IPSAS 31
Intangible Assets
IAS 38
IPSAS 32
Service Concession
Arrangements:
Grantor
IFRIC 12
63
IPSAS 22
IPSAS 23
IPSAS 24
Cash Basis
All new standards and laws may be examined after six months from the
date of issue.
B6.
STRATEGIC MANAGEMENT
30%
1.
Analysis:
(a)
Analyse a business and its strategy given its purpose, mission,
vision and objectives from a shareholder and stakeholder
perspective.
(b) Analyse the opportunities and threats arising from events or
potential events in the environment of a business at a global,
national, market, product and competitive level.
(c)
Analyse the current position of a business in terms of its
competitive strategy, plans and current markets drawing
64
(d)
(e)
2.
Choice:
(a)
Analyse the appropriate choices of strategy that a company
may adopt with explanation based on a given scenario.
(b)
Identify from an analysis undertaken of choices of strategy,
with explanation, the impact on commercial, ethical,
corporate responsibility and sustainability objectives.
(c)
Evaluate appropriate strategies based on a given scenario
that support a businesss objectives taking into account
constraints, conflicts and other issues.
(d)
Draft conclusions based on market and product analyses
that support a business strategy concerning the pricing,
positioning, placing and product decisions in a strategic
marketing plan.
3.
Implementation:
(a)
Analyse the alternative appropriate functional strategies that
may be appropriate to deliver a chosen strategy set out in a
given scenario.
(b)
Analyse the alternative appropriate organisational structures
and related activities that may be appropriate to deliver a
chosen strategy set out in a given scenario.
(c)
Analyse a chosen business strategy in a given scenario so that
an evaluation may be undertaken leading to the drafting of
a simple business plan.
(d)
Evaluate a given business plan from a shareholder or
stakeholder perspective drawing conclusions and judgments
as to whether it can meet the businesss objectives in the
context of its environment.
(e)
Evaluate and explain how information technology and
information
systems
can
support
the
effective
implementation of a business strategy including issues of
competitive advantage.
(f)
Evaluate and explain the potential issues of change arising
from a chosen or given business strategic implementation
plan.
65
RISK MANAGEMENT:
(a)
(b)
(c)
(d)
(e)
(f)
C.
20%
25%
(j)
(k)
D.
ETHICS:
(a)
(b)
(c)
(d)
(e)
(f)
25%
3.
PROFESSIONAL LEVEL
C1.
CORPORATE REPORTING
Purpose
This syllabus component, in the context of both the private extends
students coverage of generally accepted accounting practices but also
deepens their understanding of reporting and their ability to apply
practices to more complex situations. Assessments will test their ability to
evaluate the acceptability of alternatives from a compliance perspective
and an understanding as to how reporting alternatives affect the results,
position and risks disclosed by entities. Assessments will also include
considerations relating to the use of complex financial instruments.
Students may be assessed on their understanding of earnings
management,
creative
accounting
and
aggressive
earnings
management. Students may also be assessed on their competences in
financial statement analysis and analysis of other reports as a basis for
understanding the position, performance and risks of businesses.
Reporting extends to sustainability and corporate social responsibility
reports and business reviews management commentaries or similar
reports.
67
10%
1.
2.
30%
68
30%
30%
69
E.
Preface to IFRS
IAS 2 Inventories
IAS 17 Leases
IAS 18 Revenue
IAS 41 Agriculture
C2.
20%
(g)
(h)
B.
15%
40%
1.
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
Materiality decisions
73
2.
3.
25%
74
(h)
(i)
(j)
76
ISQC1 Quality Control for Firms that Perform Audits and Reviews of
Financial Statements, and Other Assurance and Related Services.
Insurance Act
Joint Audits.
Investigations
Distinction between auditing and investigation.
Nature, classes and methods of investigation.
Auditors involvement with prospectuses and other offer
documents.
Examination of financial forecasts and projections.
The report appropriate to each type of investigation.
77
a.
b.
C3.
B.
BUSINESS ANALYSIS
25%
Evaluate and assess the value of businesses and share holder value
giving advice based on business scenarios using:
78
(a)
(b)
(c)
Payback.
Profitability index
ii.
Inflation and specific price variation
iii.
Taxation including capital allowances
iv.
Single period and multi-period capital rationing. Multiperiod capital rationing to include the formulation of
linear programming technique
v.
Specific investment decisions (lease or buy; asset
replacement, capital rationing)
vi.
Adjusting for risk and uncertainty in investment
appraisal.
vii.
Analyse and evaluate the potential economic return
(using internal rate of return (IRR) and modified internal
79
FINANCIAL ANALYSIS
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
25%
Dividend policy.
Evaluate and apply on the effect of capital gearing on
investors perception of financial risk and return.
Evaluate and apply on how group reconstructions, purchase
of own shares and distributions using distributable profits may
support financing decisions.
Evaluate and apply the cost of capital, portfolio analysis and
bond evaluation based on business scenarios including the
use of:
i.
Cost of capital techniques including the cost of equity,
debt, preference shares, bank finance, the weighted
average cost of capital, convertibles and public sector
discount rates.
ii.
Portfolio theory, the capital asset pricing model, the
cost of capital and the international cost of capital.
iii.
Bond pricing using net present values.
iv.
Understanding of yields, yields to maturity, duration
and price volatility, term interest rates, corporate
borrowing and default risk.
Develop proposals on long-term business plans from
prescribed information.
Evaluate a business plan from the perspective of an equity
investor or provider of debt funding.
Compare and evaluate the financial management of an
organisation with that of competitors and industry norms.
Prepare, evaluate and discuss key financial management
indicators based on the published financial statements of an
organisation.
80
(j)
D.
E.
(d)
15%
81
(e)
C4.
Forward contracts.
Currency options.
Currency swaps.
iii.
Option values: in Capitalization
ADVANCED TAXATION
Purpose
Candidates will be tested on deeper and advanced aspects of all the
topics treated at the Taxation in Intermediate Level B3. In addition, the
following will be tested:
Content and competences:
1.
20%
Thin Capitalisation
Tax Havens
2.
15%
(e)
3.
COMPANIES TAX
A.
(b)
(c)
(d)
(a)
(b)
(c)
(d)
(e)
35%
iv.
(f)
B.
Active DTAs
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
Transfer Pricing
(a)
Introduction to transfer pricing
i.
Define of transfer pricing by reference to the OECD,
UN, PATA guidelines
ii.
Outlined the use of transfer pricing by multinationals
and justify the introduction of transfer pricing
regulations by developing countries.
(b)
Describe the provisions of the Nigerian Transfer Pricing
Regulations, covering:
i.
Purpose, objectives and commencement date
ii.
Outline the Scope of the Nigerian TP regulations
iii.
Define connected taxable persons
iv.
Explain the recommended transfer pricing methods
(Traditional, transactional and any other method)
v.
Explain the provisions relating to Advance pricing
agreement
vi.
Explain and illustrate Functional analysis
vii.
Outline and explain the basic comparability factors in
the process of TP benchmarking
viii.
Outline the basic documentation requirements for
transfer pricing benchmarking
4.
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
C5.
Compare
and
contrast
the
Fiscal/Operating
Arrangement/regimes in the Upstream sector, with
emphasis on the following:
i.
Joint Venture
ii.
Production Sharing Contract
iii.
Risk Service Arrangement
iv.
Oil and Gas Free Trade Zones
v.
Marginal Field Operators
With respect to Petroleum Profit Tax, explain the basis
of assessment and what constitute Accounting period
for tax purposes.
Ascertain the basic sources of income accruing to
petroleum companies and compute the adjusted
profit, assessable profit, chargeable profit and the
petroleum profit tax
Outline the expenses allowable and those not allowed
as a deduction in computing adjusted profit
Explain the treatment of Losses for petroleum
companies
Identify and describe qualifying capital expenditure for
capital allowance purpose and compute capital
allowance claimable by petroleum companies
Compute PPT under JV, PSC, Marginal Filed Operators,
Companies within the first five years
Explain and compute tax based on the incentives
available to companies that signed PSC agreement
with the Federal government of Nigeria
Describe the basic tax regime applicable to sole risk
operators and marginal field operators
Outline the offences and penalties applicable to
petroleum companies
Describe the registration requirements and returns fling
for petroleum companies (Estimated tax returns and
final returns).
The Approach
The case study approach is based on a vision of a newly qualified
ICAN member as:
86
The above diagram is indicative of how the case study draws upon
a range of knowledge and skills across the whole balance of exam
papers. However, the case study is non-technical and focuses on
87
The Competences
The competences that will be assessed under the proposal
includes:
88
b)
3.
The Tools
The tools are the basic underlying process elements of knowledge
and skills that students will apply in the case study examination to
support the content of the report they produce as an output.
(i)
(ii)
(iii)
(iv)
(v)
4.
Detailed Syllabus
The case study assesses the capability of a student who has
completed all other ICAN examination papers to understand issues
in a relatively unstructured scenario enabling the production of a
professional report that informs based on the use of financial and
business knowledge and skills acquires in earlier examination
modules.
It requires the use of underpinning tools that support both financial
and business analysis. The case study does not repeat the
assessment of technical knowledge and skills previously examined.
It will consist of a single scenario, which students will receive on the
day of the examination. No advance information is provided. The
scenario is a complete and highly realistic scenario based on a
private, public or charitable sector entity or entities in a current
business environment that is stated and explained. The scenario will
not exceed 15 pages.
4.1
(i)
(ii)
I.
II.
III.
IV.
5.
Ethics Components
Ethics is a component of this case study. It will be assessed in a
contextual and broad way using case study exams. Ethics will be
about 10% to 15% of the content.
90
However, students will not be asked about ethics directly they will
have to recognise and include ethical matters and concerns in
their output as part of the case study.
Ethical issues may relate to their own or their employers position and
may be within the client they are advising. They may include not
only professional issues but also matters of how business is
conducted, social impact, environmental impact and sustainability.
Ethics may be seen in the context of regulations, regulatory
oversight, professional duties, public interest and reputation
6.
6.1
91
The case study requirements are relatively open and there is no single solution or model
answer that students are required to achieve
92