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FINANCIAL ACCOUNTING AND REPORTING SKILL
Financial Accounting is a specialized branch of accounting that keeps track of a company’s
financial transactions’ using standardized guidelines. The transactions are recorded,
summarized and presented in a financial report or Financial Statement such as Income
statement or Statement of Financial Position.
However, the importance of financial accounting provides an organization’s stakeholder with
business statement allowing them to know if the organization is making or losing money.
It is equally very important to note that reporting skill is necessary for an Accountant to
report his financial statement. The report need to be arranged in such a way to be understood.
Therefore, a report is a systematic and well organised document which defines and analyses a
subject or problem, and which may include:-
- The record of a sequence of events.
- Interpretation of the significance of these events or facts.
- Evaluation of the facts or results of research presented.
- Discussion of the outcomes of a decision or course of action.
- Conclusion and
Report writing is essential to our roles as an Accountant because we communicate up and down
the office ladder except it is skillfully done, we might not be able to convey the right message.
2.0 OVERVIEW OF NATIONAL CHART OF ACCOUNTS
The National Chart of Account is an integrated budget and accounting classification system which primarily for implementation of system that is IPSAS compliant.
The Chart of Accounts (COA) may be defined as a complete list of budget and accounting items where each item is uniquely represented by a code and
grouped into tables of related data for the purposes of tracking, managing and reporting budgetary and accounting
items in an orderly, efficient and transparent manner.
- It is also a created list of codes which can be represented by numeric, alphabetic, or alpha-numeric symbols.
- The three tiers of government in the past had different building blocks of COA consisting majorly of two parameters (Administrative and Economic Segments).
- Consequently, the need for the unification of the COAs of the three tiers of government becomes imperative.
- The NCOA was designed after due consultations with all the Local Government Councils, States and Federal Government of Nigeria in consideration with their peculiar needs.
- The convergence of the COAs of the three tiers government to a unified COA will enhance the attainment of minimum reporting requirement that is in line with international best practices
2.1 Objective of COA
The NCOA is an effective reporting system with significant objectives which includes but not limited to the following:-
- To give ample opportunity for comparability;
- Unification and harmonization of coding, budgeting, and accounting system;
- To bring about global interpretation of Nigeria GPFS;
- Nationally consistent financial reporting;
- Improvement in transparency and accountability;
- To ease computerization of accounting system.
- Click this link to download the Financial Accounting and Reporting Skill