the institute of chartered accountants of nigeria annual

The Institute Of Chartered Accountants Of NigeriaAnnual Report and Financial Statements31 December 2017

The Institute Of Chartered Accountants Of NigeriaAnnual Report and Financial StatementsFor Year Ended 31 December 2017Contents

Independent auditor's report 1 - 3

Statement of total comprehensive income 4

Statement of financial position 5

Statement of changes in members' funds 6

Statement of cash flows 7

Notes to the financial statements 8 - 32

Other national disclosures:

Statement of value added 33

Five year financial summary 34

The Institute Of Chartered Accountants Of NigeriaAnnual Report and Financial StatementsFor Year Ended 31 December 2017Statement of total comprehensive income

31 December 31 DecemberNotes 2017 2016

N'000 N'000IncomeFees and subscriptions 4 1,016,995 943,506 Operating activities 5(a) 2,969,350 2,620,244

3,986,345 3,563,750 Operational expenditure 5(b) (1,766,778) (1,568,365) Surplus of income over expenditure 2,219,567 1,995,385

Investment income 6(a) 141,620 99,847 Other income 6(b) 45,347 76,490 Total income 2,406,534 2,171,722

ExpenditureInternational affiliation cost 7 173,899 178,233 Depreciation and amortisation 8 208,022 171,933 General and administrative expenses 9 935,183 691,085 Personnel cost 10 889,603 864,293 Other expenditure 11(a) 254,544 192,324 Impairment charges 11(b) - 14,181 Total Expenditure (2,461,251) (2,112,049)

Loss/Surplus for the year (54,717) 59,673

Other comprehensive incomeGain/(loss) in fair value of available-for-sale investments 16 66,880 (9,239)

Total comprehensive loss/ income for the year 12,163 50,434

The notes on pages 8 to 32 are an integral part of these financial statements.

The Institute Of Chartered Accountants Of Nigeria Annual Report and Financial Statements For Year Ended 31 December 2017 Statement of financial position

31 December Notes 2017

N'ooo Assets Non-current assets Property, plant and equipment 13 937,778 Intangible assets 14 24,744 Investment property 15a 1,638,000 Available-for-sale investments 16 138,757 Loans and receivables 17(b) 16,793 Total non-current assets 2,756,072

Current assets Loans and receivables 17(b) 20,236 Inventories 18 228,064 Subscription and other receivable 19 108,330 Prepayment 20 84.473 Deferred expense 21 5,178 Cash and cash equivalents 22 77~:J:,188 Total current assets 1,220,469

Total assets 3 ,976,541

Funds and reserve Accumulated fund 26(a) 1,167,571 Other charitable and trust funds 26(b) 2,279,552 Available-for-sale reserve 56,087 Total funds and reserve 3,503,210

Non-current liabilities Deferred income 25 49,907 Total non-current liabilities 42.907

Current liabilities Accounts payable 24 423,424 Total current liabilities 423,424

Total liabilities 473,331

Total reserves and liabilities 3,976,541

The notes on pages 8 to 32 are an integral part of these financial statements.

Registrar /Chief Executive FRC/2014/ICAN/00000005915

31 December 2016

N'ooo

985,943 37,114

1,638,000 71,877 21,957

2,754,891

24,744 81,095 94,072 35,093 5,240

815,916 1!056,160

3,811,051

1,382,879 2,118,961

(10,793) 3,491,047

32,504 32,504

287,500 287,500

320,004

3,811,051

April 26,2018

The Institute Of Chartered Accountants Of NigeriaAnnual Report and Financial StatementsFor Year Ended 31 December 2017Statement of changes in members' funds

Avaliable-for-sale

investments

Accumulated fund

Development fund

Prizes fund Benevolent fund

Library fund Professorial chair

Accountancy reseach fund

Study text revolving

fund

Student development

& support fund

Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000

Balance at 1 January 2016 (1,554) 1,021,910 1,563,316 16,420 113,194 380,730 119,403 145,469 52,045 29,680 3,440,613 Surplus for the year - 59,673 - - - - - - - - 59,673 Utilisation from fund - 438,133 - - - (318,730) (119,403) - - - - Transfer to fund - (136,837) - (1,649) 37,451 (11,855) - - 114,769 (1,879) - Movement in funds - - - - - - - - - - - Available-for-sale investments (9,239) - - - - - - - - - (9,239) Total comprehensive income (9,239) 360,969 - (1,649) 37,451 (330,585) (119,403) - 114,769 (1,879) 50,434

Balance at 31 December 2016 (10,793) 1,382,879 1,563,316 14,771 150,645 50,145 - 145,469 166,814 27,801 3,491,047

Surplus for the year - (54,717) - - - 0 - - - - (54,717) Utilisation from fund - 90,408 - (1,349) - (15,006) - - (21,359) (52,694) - (Transfer from)/receipt into fund - (250,999) - - 20,736 0 - - 172,046 58,217 - Available-for-sale investments 66,880 - - - - 0 - - - - 66,880 Total comprehensive income 66,880 (215,308) - (1,349) 20,736 -15006 - - 150,687 5,523 12,163

At 31 December 2017 56,087 1,167,571 1,563,316 13,422 171,381 35,139 - 145,469 317,501 33,324 3,503,210

The analysis of reserves is presented in Note 26

<--------------------------------------------------- Other Charitable and Trust Funds ------------------------------------------------>

The Institute Of Chartered Accountants Of NigeriaAnnual Report and Financial StatementsFor Year Ended 31 December 2017Statement of cash flows

31 December 31 DecemberNotes 2017 2016

N'000 N'000Cash flows from operating activities

Cash (utilised in)/generated from operating and fund activities 29(a) (139,782) 150,648 Cash generated from funding activities 29(b) 160,591 136,837

Net cash generated from operating activities 20,809 287,485

Cash flows from investing activitiesAcquisition of property, plant and equipment 13 (147,487) (281,703) Proceed from disposal of property, plant and equipment 6(b) 1,155 4,902 Acquisition of available-for-sale investments 16 - (16,666) Interest received 6(a) 83,795 59,495 Net cash used in investing activities (62,536) (233,972)

Cash flows from financing activities - - Net cash generated from financing activities - -

Net (decrease)/increase in cash and cash equivalents (41,727) 53,513 Cash and cash equivalents at the beginning of the year 815,915 762,402

Cash and cash equivalents at the end of the year 774,188 815,915

The Institute Of Chartered Accountants Of NigeriaAnnual Report and Financial StatementsFor Year Ended 31 December 2017Notes to the financial statements

1 General Information

HEAD OFFICEPlot 16, Idowu Taylor Street,Victoria Island, Lagos, NigeriaP.O. Box 1580, Lagos.e-mail: [email protected]:www.ican-ngr.org

VISION

MISSION STATEMENT

MOTTO

FRC/2013/0000000017

JOINT AUDITORSPricewaterhouseCoopers (PwC)Chartered AccountantsLandmark Towers5B Water Corporation Road

FINANCIAL REPORTING REGISTRATION NO:

To produce world class Chartered Accountants, regulate and continually enhance their ethical standards and technical competence in the public interest.

The Institute of Chartered Accountants of Nigeria (ICAN) is a body established by Act of Parliament No.15 of 1965 to:

iii) perform, through the Council of the Institute, all other functions conferred on it by the Act.

i) determine what standards of knowledge and skill are to be attained by persons seeking to become member of the accountancy profession and to raise those standards from time to time as circumstances may permit;

ii) secure in accordance with the provisions of the Act, the establishment and maintenence of the regist

The Institute is an accountancy body in Nigeria recognised by the International Federation of Accountan

To be a leading global professional body.

Accuracy and Integrity

Victoria Island Lagos

UHY Maaji & Co Chartered Accountants22 Town Planning WayIlupeju

Lagos


2 Summary of significant accounting policies

2.1 Introduction to summary of significant accounting policies

2.2

2.2.1 Going concern

2.2.2 Changes in accounting policies and disclosures

(i)

(ii)

2.2.3 Critical accounting estimates and judgements

The principal accounting policies applied in the preparation of these financial statements are set out below. Thes

Basis of preparation

The financial statements of the Institute of Chartered Accountants of Nigeria have been prepared in accordance w

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting esti

The financial statements comprise the statement of profit or loss and other comprehensive income, the statemen

The financial statements have been prepared in accordance with the going concern principle under the historical

The Institute has consistently been generating funds through its members' subscriptions and students' exams fee

Standards, amendments and interpretations effective on or after 1 January 2017.

A number of new standards and amendments to standards and interpretations are effective for annual periods be

Amendments to IAS 1, "Presentation of financial statements" gives clarification on materiality and aggregation, p

IFRS 9, ‘Financial instruments’, addresses the classification, measurement and recognition of financial assets and

New Standards, amendments, interpretations adopted by the Institute

There were no new standards adopted by the Institute for the first time for the financial year beginning on or afte

The preparation of the financial statements requires the Institute to make certain accounting estimates and judge

There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a mate


3 Significant accounting policies

3.1 Income recognition

3.2 Dividend income

3.3 Investment income

3.4 Rental income

3.5a Donations to the Institute

3.5b Donations by the Institute to institutions & others

3.6 Inventories

Inventories are stated at the lower of cost and net realisable value after making adequate provision for obsolesce

Members’ and students’ fees and subscriptions are accounted for as income in the period to which they relate. In

Note 17 Loans and receivablesNote 19 Subscription and other receivablesNote 24 Trade and other payab

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates a

Investment income is recognised in the statement of comprehensive income as it accrues by using the effective in

Rental income relates to income from the use of Amuwo Odofin building for social activities and rent collected fro

The Institute from time to time as a way to increase it's awareness among Nigerian students which in turn would

The Institute receives donations from its members and other stakeholders, which are generally non-reciprocal tra

Dividend income from investment is recognised when the Institute's right to receive payment is established.


Significant accounting policies (cont'd)

3.7

3.8 Available-for-sale investments

3.9

3.10 Depreciation

• Freehold property - Not depreciated• Buildings - 2%• Lecture theatres - 25%• Motor vehicles - 33%• Office furniture and fittings - 25%• Computer hardware equipment - 25%• Plant and machinery - 25%• Library books - 25%

3.11 Impairment of financial assets

Investment properties

Investment property are property held to earn rentals and/or for capital appreciation (including propert

Available for sale financial assets are non-derivative financial assets that designated in this category or n

Available-for-sale financial assets are intended to be held for an indefinite period of time, which may be

Available-for-sale financial assets are initially recognised at fair value, which is the cash consideration in

Depreciation of assets commences when assets are available for use. Depreciation is provided on all pro

Property, plant and equipment

All categories of property plant and equipment are stated initially at historical cost less depreciation. His

An investment property is derecognised upon disposal or when the investment property is permanently


3.12 Intangible assets and impairment

Impairment of non-financial assets

Impairment losses recognised in the separate consolidated statement of comprehensive income on equ

At each balance sheet date, the Institute reviews the carrying amounts of its financial assets to determin

In respect of available-for-sale financial assets, at the balance sheet date the Institute assesses whether

Intangible assets which are subject to amortisation are reviewed for impairment whenever events or ch

Financial assets are grouped on the basis of similar credit risk characteristics that are indicative of the de

Expenditure on research activities is recognised as an expense in the period in which it is incurred. A sep

Where no separately acquired intangible asset can be recognised, development expenditure is recognise



3.13

3.14 Defined contribution plan

3.15 Provisions

3.16 Financial instruments

Effective interest method

The Institute operates a defined contribution based retirement benefit scheme for its staff, in accordance wi

Financial assets are classified into the following specified categories: Financial assets at 'fair value through pr

Income is recognized on an effective interest rate basis for debt instruments other than those financial asset

Provisions are recognised when the Institute has a present obligation (legal or constructive) as a result of a p

The amount recognised as a provision is the best estimate of the consideration required to settle present ob

Foreign currency translation

When some or all of the economic benefits required to settle a provision are expected to be recovered from

The effective interest method is a method of calculating the amortized cost of a debt instument and of alloca

For the purpose of these financial statements, the results and financial position of the Institute are expresse

In preparing the financial statements, transactions in currencies other than the Institue’s functional currency



3.17 Financial assets at fair value through profit or loss (FVTPL)

3.18 Loans and receivables

3.19 Subscription and other receivables

3.20 Cash and cash equivalents

Financial assets are classified as fair value through profit or loss' (FVTPL) when the financial asset is either held A financial asset is classified as held for trading if:

It has been acquired principally for the purpose of selling it in the near term; or

Financial assets at fair value through profit or loss (FVTPL) are stated at fair value, with any gains or losses arisi

On initial recognition it is part of a portfolio of identified financial instruments that the Institute manages to

A financial asset other than a financial asset held for trading may be designated as fair value through profit or

Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would o

The financial asset form part of the the Institute's financial assets or financial liabilities or both, which is manag

It forms part of a contract containing one or more embeded derivatives, and IAS 39 Financial instruments: Rec

It is a derivative that is not designated and effective as a hedging instrument.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not qu

Cash and cash equivalents comprise cash on hand, demand and short-term deposits with banks and similar ins

Interest income is recognised by applying the effective interest rate, except for short-term receivables when th

Subscription and other receivables are stated at amortised cost based on the original invoice amount less an a



3.21 Available-for-sale financial assets ( AFS financial assets)

3.22

3.23 Derecognition of financial liabilities

If the Institute retains substantially all the risk and rewards of ownership of a transferred financial asse

On derecognition of a financial asset in its entirety, the difference between the assets's carrying amoun

On derecognition of a financial asset other than in its entirety (e.g. when the Institute retains an option

The Institute derecognizes financial liabilities when, and only when, the Institute's obligations are disch

AFS financial assets are non-derivatives that are either designated as AFS or are not classified as (a) loa

Derecognition of financial assets

Listed redeemable notes held by the Insitute that are traded in an active market are classified as AFS an

Other changes in the carrying amounts of available-for-sale financial assets are recognized in other com

Dividends on AFS equity instruments are recognized in the statement of comprehensive income when t

The fair value of AFS monetary financial assets denominated in a foreign currency is determined in that

The Institute derecognizes a financial asset when the contractual rights to the cashflows from the asset



3.24 Trade payables

3.25 Financial risk management

3.25.1 Credit risk management

3.25.2 Liquidity risk

3.25.3 Market risk

The credit risk is that one party to a financial instrument fails to discharge its obligation in respect of the instrum

Liquidity risk arises from Institute’s management of working capital. It is the risk that the Institute will encounte

Trade payables classified as financial liabilities are initially measured at fair value, and are subsequently measure

The main financial risks arising from the Institute’s activities are credit risk, liquidity risk, investment risk and ma

Credit risk arises principally from cash and cash equivalents, deposits with banks and financial institutions, equit

Currency risk relates to the risk that the fair value of future cash flows of financial instruments will fluctuate bec

Market risk arises from Institute’s use of interest bearing, tradable and financial instruments. It is the risk that t

Interest rate risk relates to the risk of loss due to fluctuations in both cash flows and the fair value of financial as

Other price risk relates to the risk of changes in market prices of the available-for-sale investments. The Institut



3.25.4 Investment risk

3.26 Capital

Budgets are prepared on a prudent basis and income from investments is not relied on for ICAN’s ongoing

The Institute considers its capital to be its accumulated and charitable and trust funds and fair value reser


31 December 31 December2017 2016

N'000 N'000

4 Fees and subscriptions4.1 Members:

Admission fees 24,990 11,310

Annual subscriptions 404,690 414,011

Practicing licence and renewal 29,105 36,585

Faculty registration and subscription 51,154 53,076

Re-admission fees 1,348 2,478

Development levy 15,184 7,681

Graduate membership subscription 745 334

527,216 525,475

4.2 Professional students:Subscriptions 86,525 69,037

Registrations 63,638 51,370

Exemption fees 292,502 247,227

442,665 367,634

4.3 ATS students:Subscriptions 9,566 11,217 Registrations 21,114 21,800 Exemption fees 16,434 17,380

47,114 50,397

Total fees and subscriptions 1,016,995 943,506



N'000 N'0005(a) Operating activities

Qualifications and fellowshipProfessional examinations 1,427,796 1,274,516

ATS examinations 172,723 165,840

Fellowship award conferment 119,719 75,758

New members’ induction 149,257 70,486

1,869,495 1,586,600

Regulation, education and discipline Faculties 56,877 103,895

MCPE 210,761 239,282

267,638 343,177 Conferences and courses Annual Accountants’ conference 691,203 557,824

Annual dinner and Institute merit award 31,731 15,045

UK-USA-CANADA conference 5,521 12,448

728,455 585,317

Publications and stampsInstitute members’ seal and stamps 103,053 104,538

Students’ study text 709 612

103,762 105,150

Total operating activities 2,969,350 2,620,244

5(b) Operational expenditureQualifications and fellowshipProfessional examinations 885,555 771,640

ATS examinations 183,636 166,312

Fellowship award conferment 23,862 11,207

New members’ induction 55,136 27,441

1,148,189 976,600

Regulation, education and discipline Faculties 51,429 75,012

MCPE 105,956 127,396

157,385 202,408

Conferences and courses Annual Accountants’ conference 423,972 341,505

Annual dinner and Institute merit award 20,888 17,147

UK-USA-CANADA conference 11,162 23,724

456,022 382,376 Publications and stampsInstitute members’ seal and stamps 5,183 6,981

5,183 6,981

Total operational expenditure 1,766,778 1,568,365

5(c) Analysis of operational activitiesGROSS

INCOMEGROSS

EXPENDITURENET INCOME /

EXPENDITURE

Period ended December 31, 2017 N'000 N'000 N'000


Qualifications and fellowshipProfessional examination 1,427,796 885,555 542,242

ATS examinations 172,723 183,636 (10,914)

Fellowship award conferment 119,719 23,862 95,857

New members’ induction 149,257 55,136 94,121 1,869,495 1,148,189 721,305

Regulation, education and discipline Faculties 56,877 51,429 5,448

MCPE 210,761 105,956 104,805 267,638 157,385 110,253

Conferences and courses Annual Accountants’ conference 691,203 423,972 267,231

Annual dinner and Institute merit award 31,731 20,888 10,843

UK-USA-CANADA conference 5,521 11,162 (5,641) 728,455 456,022 272,433

Publications and stampsInstitute members’ seal and stamps 103,053 5,183 97,870

Students’ study text 709 - 709 103,762 5,183 98,579

Total net surplus from operational activities 2,969,350 1,766,778 1,202,572

5(d) Analysis of operational activitiesGROSS

INCOMEGROSS

EXPENDITURE

NET INCOME / (EXPENDITURE

)Year ended December 31, 2016 N'000 N'000 N'000Qualifications and fellowshipProfessional examinations 1,274,516 771,640 502,876 ATS examinations 165,840 166,312 (472) Fellowship award conferment 75,758 11,207 64,551 New members’ induction 70,486 27,441 43,045

1,586,600 976,600 610,000

Regulation, education and discipline Faculties 103,895 75,012 28,883 MCPE 239,282 127,396 111,886

343,177 202,408 140,769 Conferences and courses Annual Accountants’ Conference 557,824 341,505 216,319 Annual dinner and Institute merit award 15,045 17,147 (2,102) UK-USA-CANADA conference 12,448 23,724 (11,276)

585,317 382,376 202,941

Publications and stampsInstitute members’ seal and stamps 104,538 6,981 97,557 Students’ study text 612 - 612

105,150 6,981 98,169

Total net surplus from operational activities 2,620,244 1,568,365 1,051,879



6(a) Investment income N'000 N'000Bank deposit interest 83,795 59,495 Investment income 13,409 530 Rental income 44,416 39,822

141,620 99,847

6(b) Other incomeIncome from sale of store items 2,284 2,282

Accreditation fees 5,060 6,471

Contractors' registration fees 1,980 5,584

Loss on currency translation 1,741 16,476

Insurance commission 1,749 1,772

Advertisement income 1,928 3,666

Insurance claims 6,668 5,311

Profit on disposal of property, plant and equipment 1,155 4,902

Fed Treasury Academy examinations - 760

Transcripts fees 6,972 6,181

E-Library 27 247

SSPC management fee 1,672 3,008

University of Lagos-endowment fund 1,453 14,530

Reissue of Certificate 551 432

Research Seminar 4,742 2,325

Commission on Advert 340 1,498

Hire of Vehicles 110 220

Examination Results/Scripts 572 229

Change of Name 326 164

Group Internet 185 410

Replacement of ID Cards 4 22

Entrepreneur seminar 5,828 - 45,347 76,490

7 International affiliation costsIFAC:Subscription 27,045 14,347

Travelling and other meeting expenses 53,134 65,452

80,179 79,799

ABWA:Subscription 19,201 18,672


39,859 22,988

PAFA:Subscription 39,037 37,301


53,861 75,446

Total International affiliation costs 173,899 178,233

8 Depreciation and amortizationDepreciation on property, plant and equipment 195,652 159,563

Amortisation of intangible asset 12,370 12,370 208,022 171,933



N'000 N'0009 General and administrative expenses

General repairs and maintenance 95,867 86,864

Council and committee meeting expenses 199,140 143,992

Annual general meeting expenses 28,794 32,075

Insurance 27,563 25,343

Local and overseas tours and other activities 176,794 124,245

Co - ordination of district societies 96,510 31,396

Subscription and donations 35,416 16,167

Advertisements and publicity 12,293 5,140

Printing, photocopy and stationery 22,938 21,201

Telephone and postages 50,463 44,318

Vehicle running costs 59,028 52,304

Travelling expenses 60,079 59,952

Library expenses 8,875 3,797

Refreshment at meetings 16,491 11,734

Computer expenses 14,763 4,872

Audit fees 13,000 10,000

Bank charges 9,587 9,585

Other expenses 7,581 8,100 935,183 691,085

10 Personnel costBasic salary 379,963 335,184

Defined contribution costs 57,989 56,691

Other allowances & related costs 451,651 472,418

889,603 864,293 11a Other expenditure

Contribution to students special project (SSP) 15,088 15,639

Institute members' welfare scheme 19,799 19,648

Professional charges 19,019 11,354

Accreditation and visitation expenses 20,956 9,101

Catch them young awareness programme 26,723 23,946

Scholarship scheme 25,971 12,221

Education and training expenses 38,627 42,755

Practice monitoring activities - 2,735

The Nigerian Accountant journal 8,447 23,099

Research grants and expenses 23,462 9,296

Subscription to professional bodies 4,420 3,972

Research journal 7,612 4,781

ICAN students' journal 7,057 3,286

PAFA conference - Uganda 20,232 -

Syllabus review 15,782 3,661

Entrepreneur Scheme - 5,181

Prizes - Students 1,349 1,649 254,544 192,324

11b Impairment chargesImpairment allowance for doubtful Ilorin District Society debt - 14,181

- 14,181



N'000 N'00012 Activities result

The activities result includes the following:a Salaries and related costs

The costs of employing staff during the year were as follows:Staff costs 379,963 335,184 Defined contribution costs 57,989 56,691 Other allowances 451,651 472,418

889,603 864,293

The average number of employees was 191 ( 2016: 192)

b Depreciation and amortisationDepreciation of property, plant and equipment 195,652 159,563

Amortisation of intangible asset 12,370 12,370 208,022 171,933

c Auditors’ remunerationFee payable to joint auditors 13,000 10,000


13 Property, plant and equipmentLand Buildings Motor vehicles Plant and

machineryFurniture and

equipmentLibrary books Lecture

theatresWork-In-Progress

Total

Cost N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'001 N'000Balance at 1 January 2016 26,203 739,436 322,727 75,556 363,015 22,206 130,555 53,284 1,732,982 Additions - 1,096 41,423 - 71,240 1,566 56,898 125,976 298,199 Disposals - - (47,684) - - - - - (47,684) Write-offs - - - - (27,668) - - (16,496) (44,164) Reclassification - - - - - 25,572 19,874 (45,446) - Balance at 31 December 2016 26,203 740,532 316,466 75,556 406,587 49,344 207,327 117,318 1,939,333

Balance at 1 January 2017 26,203 740,532 316,466 75,556 406,587 49,344 207,327 117,318 1,939,333 Additions - - - - 31,037 4,214 112,237 - 147,487 Disposals - - (20,948) - - - - - (20,948) Reclassification - - - - 116,918 - 400 (117,318) - Balance at 31 December 2017 26,203 740,532 295,519 75,556 554,542 53,558 319,964 - 2,065,874

Accumulated depreciation Balance at 1 January 2016 - 140,574 269,924 73,759 332,064 20,219 32,639 - 869,179 Depreciation charge for the year - 14,811 56,002 1,790 27,070 8,058 51,832 - 159,563 Write-offs - - - - (27,668) - - - (27,668)Disposals - - (47,684) - - - - - (47,684)Balance at 31 December 2016 - 155,385 278,242 75,549 331,466 28,277 84,471 - 953,390

Balance at 1 January 2017Depreciation charge for the year - 14,811 20,912 - 71,746 8,193 79,991 - 195,652 Disposals - - (20,948) - - - - - (20,948)Balance at 31 December 2017 - 170,195 278,207 75,549 403,212 36,470 164,462 - 1,128,095

Net carrying amountAt 31 December 2016 26,203 585,147 38,224 7 75,121 21,067 122,856 117,318 985,943

At 31 December 2017 26,203 570,337 17,312 7 151,330 17,088 155,502 - 937,778



14 Intangible assets N'000 N'000CostBalance at 1 January 2017 78,667 78,667 Addition in the year - - Balance at 31 December 2017 78,667 78,667

Balance at 1 January 2017 41,553 29,183 Amortisation for the year 12,370 12,370 Balance at 31 December 2017 53,923 41,553

Net carrying Amount:Balance at 31 December 2017 24,744 37,114

15a Investment propertyAkintola Williams building, Abuja 831,000 831,000 Awuwo-Odofin building, Lagos 807,000 807,000

1,638,000 1,638,000

15b Gain on fair valuation of investment property

Balance at 1 January 2017 1,638,000 1,638,000

Gain in the year - - Balance at 31 December 2017 1,638,000 1,638,000

16 Available-for-sale investmentsQuoted investments:At 1 January 71,877 64,450 Additions - 16,666 Fair value gain/(loss) charged to other comprehensive income 66,880 (9,239) At 31 December 138,757 71,877 Historical cost of tradable investments 105,116 105,116

17(a) Loans and receivables31,630 40,408

Staff advances 3,559 4,453 Owerri district society 840 840 Minna district society 1,000 1,000 Ilorin district society 2,739 2,739 Impairment allowance for doubtful Ilorin district society (2,739) (2,739)

37,029 46,701

Staff loans

Investment properties were not valued as at 31 December 2017 in accordance with the Institute's po

Accumulated amortisation and impairment

All available-for-sale investments are denominated in Naira. The Institute monitors its exposures by w

Intangible assets relate to separately incurred development costs on student study text.

Available-for-sale investments funds are fair valued annually at the close of business on the date of th



17(b) Loans and receivables N'000 N'000Non Current 16,793 21,957 Current 20,236 24,744

37,029 46,701

18 InventoriesStationery 19,741 18,112 Electrical parts 605 530 Diesel 4,195 3,605 Students' study text 157,112 23,115 Others sellable items 28,919 9,520 Annual Accountants conference materials 134 5,302 50th Anniversary Book 17,358 20,911

228,064 81,095

19 Other receivablesBayelsa ICAN Students' Special Project (SSP) 12,218 12,218 NNDC/ICAN Students' Special Project (SSP) 35,133 33,548 Cross River/ICAN Students' Special Project (SSP) 9,703 9,703 Gombe State/ICAN Students' Special Project (SSP) 29,263 28,697 Mutual Alliance Investment & Securities Ltd 1,671 1,671 Deposit with Aero,Azman and Arik airlines 1,419 2,764 MCPE recievables 10,380 7,240 Federal Treasury Academy 10,255 10,255 Heritage Capital 5 5 University of Lagos-endowment fund 15,983 14,530 ABWA - 650 Other debtors (Gold Link, Premier Hotel & Transcorp) 9,509 - Impairment allowance for doubtful receivables (27,209) (27,209)

108,330 94,072

19.1 Movement in impairment allowance:At 1 January (27,209) (13,029) Charge for the year - (14,180) At 31 December (27,209) (27,209)

20 Prepayment Group life insurance - ICAN members 13,808 7,407 Group life insurance - ICAN staff 11,898 11,661 Motor vehicle, fire and burglary insurance 3,034 3,182 Printing of members' stamp - 5,334 Annual Dinner-hall 5,000 - ABWA 3,000 - Subscriptions prepaid 8,146 - ATS pool setting/harmonisation 39,587 7,509

84,473 35,093

The non-current loan and receivables represents the long term portion of the car loans granted

Impairment allowance of N27.2 million includes full provision for Federal Treasury Academy, Cro


31 December 31 December21 Deferred expense 2017 2016

N’000 N’000At 1 January 5,240 5,894 Additions - - Charge for the year (62) (654) At 31 December 5,178 5,240

22 Cash and cash equivalents

Treasury bills 503,372 656,868 Dedicated funds - Bank deposit 163,152 3,055 Other short term bank deposit 107,664 155,993

774,188 815,916

23. Employees


Number NumberSenior managers and directors 35 33Managers and junior staff 156 159

191 192

Staff cost 31 December 31 December2017 2016

N’000 N’000Wages and salaries 831,614 807,602 Pension costs 57,989 56,691

889,603 864,293

Remuneration of key management personnel (KMP)

Registrar/Chief Executive:Short-term employee benefits 22,340 22,340

22,340 22,340


The number of employees of the Institute whose total earnings were more than N300,000 in the yea

Deferred charges represent deferred interest expense on car loans to staff using effective interest ra

The Registrar/Chief Executive is the key management personnel (KMP) of the Institute. He has respo

The average number of persons employed by the Institute during the period was as follows:

The effective interest rate on short term bank deposits was 16% (2016: 16%)


Number NumberN300,000 - N900,000 15 11

N900,001 - N1,000,000 2 5N1,000,001 - N1,100,000 6 -N1,100,001 - N1,200,000 4 6N1,200,001 - N1,400,000 2 8N1,400,001 - N1,600,000 10 9N1,600,001 - N2,000,000 15 21N2,000,001 - N2,100,000 5 2N2,100,001 - N2,200,000 4 3N2,200,001 - N2,500,000 9 8N2,500,001 - N2,600,000 2 7N2,700,001 - N2,800,000 4 2N2,800,001 - N2,900,000 0 - N2,900,001 - N4,000,000 67 69N4,000,001 - N4,600,000 20 19N4,600,001 - N5,200,000 8 6N5,200,001 - N6,100,000 5 1N6,000,001 - N6,400,000 0 - N6,400,001 - N7,300,000 0 1N7,300,001 - N7,800,000 1 3N7,800,001 - N8,100,000 0 5N8,100,001 - N8,300,000 3 - N8,300,001 - N9,400,000 5 2N9,400,001 - N9,500,000 0 - N9,500,001 - N10,100,000 0 1N10,600,001 - N10,700,000 0 - N10,900,001 - N11,600,000 1 1N11,600,001 - N12,900,000 2 - N12,900,001 and above 1 2

191 192

24 Accounts payables 31 December 31 December2017 2016

N'000 N'000Sundry payables 69,854 61,609 AAT account balance 41,634 43,137 Accrued expenses 311,936 182,754

423,424 287,500

24.(a) Sundry payablesICAN staff pension fund 14,491 - Withholding tax (FIRS)/LIRS 25,222 44,615 Board of Internal Revenue/NASU 5,266 - National Housing Fund 24,875 16,994

69,854 61,609



24(b) Accrued expenses N'000 N'000AAT outstanding bills 6,686 2,402 Examination processes 167,440 89,291 Audit fees 13,000 10,000 Students' & Nigerian Accountant journal - 6,630 MCPE expenses - 9,554 Insurance claims 24,525 7,450 Accountant conference - 1,697 PAFA subscription 39,037 11,508 Presidential travels - 7,731 Lecture Theatres - 9,504 Staff Promotion arrears 19,402 12,493 Refunds due to members-Canada Conference 14,599 - Sundry accrual 27,247 14,494

311,936 182,754

25 Deferred incomeSubscription income 11,416 5,687 Interest income 38,491 25,496 Rental income - 1,321

49,907 32,504

26a Accumulated fund 1,167,571 1,382,879

b Other charitable and trust funds: 1,563,316 1,563,316 145,469 145,469 171,381 150,645 13,422 14,771

Student development & support fund 33,324 27,801 317,501 166,814

Library fund 35,139 50,145 2,279,552 2,118,961

27 The analysis of funds and other reserves

(a) Library Fund

Deferred income relates to: subscriptions in advance received from members, unearned interest inco

The contribution to Library fund is to obtain all the resources needed for the use of the Institute's me

Funds

Benevolent fund

Study text revolving fund

Accountancy research fundDevelopment fund

Prizes fund


The analysis of funds and other reserves cont'd

(b) Benevolent Fund

(c) Accountancy Research Fund

(d) Developmental Fund

(e) Prizes Fund

(f) Study Text Revolving Fund

(g) Students Development & Support Fund

(h)

(i)

The ICAN members' Benevolent and Educational Trust Fund was established by Council of the Institute

Transfers to this fund is based on council's resolutions . The fund is made available to meet expenditure

This is to be funded by surplus realised from the sale of study text and is to be applied to the developm

Avaliable-for-sale reserve

Accumulated Fund

This is funded by donors of each prize. The fund is made available to meet expenditure on the award of

This is to be funded by a portion of the amount realised from the sale of study text to students. The fu

The available-for-sale investments fair value reserve represents the excess of unrealised gains and losse

Transfers to this fund is based on Council's resolutions. The fund is made available to meet expenditure

The accumulated fund represent the excess of income over expenditure which have been accumulated


28 Related party transactions

Council members as office bearers

Isma'ila Muhammadu Zakari (President)Razak Jaiyeola ( Vice President)Okwuadigbo Anthony Nnamdi (1st Deputy Vice President)Adewuyi Onome Joy (Mrs)(2nd Vice President)Titus Alao Soetan (Immediate Past President)Akinsulire Oyemolu Olugbenga (Chief)

Other Council membersDavidson Chizuoke Stephen ALARIBE (Chief),Deji AWOBOTU (Hon.Dr) Obaje Godwin (Navy cat), Oluwole Solomon ADELEKE,Adaku Chilaka CHIDUME-OKORO (HRM), Titilayo Ariyike Nurat AKIBAYO (Alhaja)Comfort Olujumoke EYITAYO (Mrs.), Tijani Musa ISA (Mallam), B Nasiru MUHAMMAD (Hon.)Ngozi Monica OKONKWO (Lady), Tajudeen Olawale OLAYINKA, Etofolam Felix OSUJI (Dr.), Innocent OKWUOSA, Abiola Ayodele OLUWATOBI, Aina Felicia BAMGBOSE Tajudeen Olawale OLAYINKA, Sam Olutola OGUNDIPE, Ghadaffi Peter EKHORAGBON Hilda Ofure OZOH (Mrs.), Chibuzor Noel ANYANECHI, Ahmed Modu KUMSHE (Dr),Queensley Sofuratu SEGHOSIME (Alhaja), Sunday Jude EGBO, Haruna Nma YAHAYA (Alhaji)

Note 31 December 31 December29 Cash flow statement 2017 2016

a. Cash generated from activities: N'000 N'000

Surplus for the year (54,717) 59,673 Adjustments for:Interest received 6a (83,795) (59,495) Movement in accumulated fund (160,591) (136,837) Depreciation on property, plant and equipment 13 195,652 159,563 Amortisation of intangible asset 14 12,370 12,370 Profit on disposal of property, plant and equipment 6b (1,155) (4,902)

(Increase)/decrease in inventory (146,969) 13,733 Decrease/(increase) in loans and receivables 9,672 (4,531) (Increase)/decrease in prepayments (49,380) 28,859 (Increase)/decrease in other receivables (14,258) 13,344 Increase in deferred expense 62 654 Increase in trade and other payables 135,924 42,099 Decrease in deferred income 17,403 26,118 Cash (utilised in)/generated from operating activities (139,782) 150,648

b. Cash from/(utilised in) funding activities:

(Decrease)/increase in prizes fund (1,349) (1,649) Increase in benevolent fund 20,736 37,451 Decrease in library fund (15,006) (11,855) Increase in study text revolving fund 150,687 114,769 Increase/(decrease) in student development and support fund 5,523 (1,879)

160,591 136,837

No member of the Council receives payment in respect of services to ICAN. In line with Council travel and expenses policy, Council

Changes in working capital (excluding the effects of exchange differences):


30 Contingent liabilities and commitments

31 Events after statement of financial position date

There are no significant subsequent events, which could have had a material effect on the state of affa

Contingent liabilities exist in a number of legal suits instituted by different parties against the Institute

The capital commitments of the Institute not included in these financial statements amounted to N4.3

The Institute Of Chartered Accountants Of NigeriaAnnual Report and Financial StatementsFor Year Ended 31 December 2017Statement of value added


N '000 % N '000 %

Operating income 3,986,345 3,563,750 Other income 186,967 176,337

4,173,312 3,740,087

Purchase of services-Local (3,063,525) (2,653,427)

VALUE ADDED 1,109,787 100 1,086,660 100

DISTRIBUTION:

EMPLOYEESSalaries and benefits 889,603 80 864,293 80

THE FUTUREAssets replacement 208,021 19 171,933 16

Surplus in the year 12,163 1 50,434 5

VALUE ADDED 1,109,787 100 1,086,660 100

The Institute Of Chartered Accountants Of NigeriaAnnual Report and Financial StatementsFor Year Ended 31 December 2017Five year financial summary

31 December 31 December 31 December 31 December 31 December2017 2016 2015 2014 2013

N'000 N'000 N'000 N'000 N'000ASSETS EMPLOYED

Property, plant and equipment 937,778 985,943 863,804 806,237 671,533 Intangible assets 24,744 37,114 49,484 5 5 Investment property 1,638,000 1,638,000 1,638,000 1,458,000 1,370,000 Available- for- sales investments 138,757 71,877 64,450 85,545 83,592 Loans and receivables 16,793 21,957 11,435 9,770 6,726 Net current assets 797,046 768,660 819,826 1,020,552 1,851,843

3,553,118 3,523,551 3,446,999 3,380,109 3,983,699

FINANCED BY

Non-current liabilities 49,908 32,504 6,386 12,606 611,537 Funds and reserve 3,503,210 3,491,047 3,440,613 3,367,503 3,372,162

3,553,118 3,523,551 3,446,999 3,380,109 3,983,699

COMPREHENSIVE INCOME

Income 3,986,345 3,563,750 3,111,957 3,252,171 3,022,132 Surplus of income over expenditure 2,219,567 1,995,385 1,667,702 1,554,711 1,803,979 Surplus/(deficit) for the year (54,717) 59,673 100,127 (13,597) 303,066

Other comprehensive income:

- - - - 51,103

66,880 (9,239) (34,773) 1,722 9,868 Total comprehensive income for the year 12,163 50,434 65,354 (11,875) 364,037

<----------------------------------------IFRS ----------------------------------------->

Change in fair value of available-for-sale inve

Items that will not be reclassified to profit o

Re-measurements of post-employment ben

the institute of chartered accountants of nigeria annual

Documents