Expert Highlights Vital Skills Accountants Must Acquire
An expert in the accounting profession, Mr David Lyford-Smith, has advised accountants in Nigeria to acquire some certain skills if they intend to remain highly competitive in the future.
Mr Lyford-Smith, the Technical Manager in the Tech Faculty of the Institute of Chartered Accountants in England and Wales (ICAEW) said at the 49th Annual Accountants Conference organized by the Institute of Chartered Accountants in Nigeria (ICAN) that one of the skills is adaptability.
He said the adaptability skill was needed by accounting professionals considering how technology has taken over the profession, explaining that professionals need to adapt to changing standards in the industry, especially as it adjusts to emerging technology. He noted that the accounting profession was already reacting by creating exams and learning materials to produce knowledgeable newly-qualified accountants.
While presenting his paper at the plenary session titled Disruptive Innovations: Challenges and Opportunities in the Accounting Profession, Mr Lyford-Smith said, “Nigeria has a young and growing accountancy profession and this means there is a huge opportunity for students and current accountants to be trained today for the needs of the near future. In the very near future, the number one skill for accounting will be adaptability.
“Accountants won’t have to be technologists but must be able to talk to them; they need to be able to meet in the middle.
“These effects are already being felt. The Big 4 – KPMG, Ernst & Young (EY), Deloitte and PwC- are already struggling to keep their juniors occupied while teaching them the basics.”
At the conference held at the International Conference Centre, Abuja between September 9 and 13, 2019 and themed Building Nigeria for Sustainable Growth and Development, Mr Lyford-Smith said other skills to acquire were statistical thinking and understanding data.
“Understanding statistical thinking is a key skill for auditors interpreting analytics data. Software may be able to process huge amounts of information, but interpreting the results correctly means taking a sceptical interpretation and understanding concepts such as margins of error, outliers, sampling bias, and so on.
“Accountants still need to be able to prioritise useful tests above interesting ones and be able to tell the difference,” he added.
Speaking on the transformational trends in accounting aptly referred to as the ‘ABCDs of accounting technology’, Mr Lyford-Smith explained that these have been the focus of the ICAEW’s tech work over the last couple of years.
The ABCDs of accounting technology are artificial intelligence (AI), blockchain, cybersecurity and data, saying, “Once accountants adapt to changing trends, they will realise how much time and resources can be saved.”
For instance, AI involves automating even non-repetitive tasks, replicating accountants’ intuition and turbo-charging accountants’ judgment. With blockchain, there is no need to reconcile books, although the accountant will still need to assess the economic value of assets,” he added.
The Editor and Blogger, Mr Lyford-Smith on ICAEW’s Excel Community however noted that cyber risk was high but explained that there was a need for new controls around detection, response and resilience.
With the recent focus on Big Data, new sources of non-financial data are available to provide hard evidence for decisions, identify how data supports specific decisions and provides value, as well as check the integrity and quality of new sources of data.
The Excel specialist, who has strong interest in digitalization of taxes, emphasized that technology was important for audit and taxation, as it provided simplification and could be tailored according to each country’s specific circumstances.
He disclosed that the ICAEW’s Digital Tax report looked at how tax authorities in 12 countries – including Nigeria – are making use of the opportunities to improve efficiency and reduce compliance costs.
Currency in Circulation in Nigeria Drops to N982.09bn in February
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has revealed that the currency in circulation further dropped to N982.09 billion in February 2022.
This can be attributed to the Naira redesign policy of the apex bank, which was announced last October when total circulation was put at N3.29 trillion.
These figures revealed that N2.3 trillion or 235 per cent of the cash was mopped up from circulation during the period under review.
According to the CBN, the currency in circulation had moved from N3.16 trillion in November 2022 to N3.29 trillion in December 2022 but dropped heavily to N1.38 trillion in January 2023 and further to N982.09 billion in February 2023.
Last year, the central bank, as part of efforts to drive digital payment acceptance and cut down the currency outside the banking system, announced plans to roll out redesigned Naira notes of N200, N500, and N1,000 and phase out of the old Naira notes.
The Governor of the CBN, Mr Godwin Emefiele, said statistics showed that over 80 per cent of currency-in-circulation was outside the vaults of commercial banks.
He highlighted the need to reduce the significant amount of cash outside the banking system to ensure monetary policy effectiveness, curtail criminal activities, and ensure financial inclusion.
However, many complained about the 90-day window from the announcement to the execution of the policy.
What ensued for many was the unavailability of the new notes, with citizens unable to get cash which hindered their day-day activities. Many opted for digital transactions, which put a strain on a nascent infrastructure, with payment taking longer than expected with many services experiencing downtime.
Although the opportunities opened to the likes of OPay, PalmPay, and MoniePoint to tap into Nigeria’s micro-retail sector, on some days, it was a hassle for these channels to work, leading to increased failure and frustrations in online transactions.
The hardship spurred Kaduna, Kogi and Zamfara to sue the federal government over the naira redesign policy and joined on February 15 by Cross River, Sokoto, Lagos, Ogun, Katsina, Ondo and Ekiti states. Later, Nasarawa, Niger, Kano, Jigawa, Rivers and Abia states joined the suit.
Rivers and Abia states had filed separate suits that were consolidated with the main one.
However, Edo and Bayelsa had joined the side of the federal government in opposing the suit.
Succour came on March 3 when the Supreme Court extended the validity of the notes to December and faulted the ill-timed naira redesign policy.
It wasn’t until 10 days (March 13) after the ruling that the CBN, in a circular signed by Mr Isa AbdulMumin, the CBN’s acting director of corporate communications, directed all deposit money banks to comply with the Supreme Court ruling, further instructing all concerned parties to conform accordingly.
A day before that, President Buhari had distanced himself from the CBN governor and the Attorney General of the Federation (AGF)’s inability to obey the Supreme Court’s ruling.
He said that “at no time did he instruct the Attorney General and the CBN Governor to disobey any court orders involving the government and other parties.”
Analysts expect that as the CBN begin to recirculate the old notes till December, it will gradually ease the hardships of Nigerians and ensure economic activities return to normal in the country.
NASD Exchange Drops 0.05% Amid Losses in Three Stocks
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange returned to the bearish zone on Monday, March 20 as it depreciated by 0.05 per cent, driven by the negative price movements in three companies.
The price losers were led by Central Securities Clearing System (CSCS) Plc, which depreciated by 15 Kobo to close at N14.05 per share versus N14.20 per share, First Trust Microfinance Bank Plc lost 5 Kobo to trade at 47 Kobo per unit compared with the previous session’s 52 Kobo per unit, while Industrial and General Insurance (IGI) Plc fell by 1 Kobo to quote at 8 Kobo per unit compared with last Friday’s 9 Kobo per unit.
The trio weakened the impact of the 14 Kobo price appreciation achieved by Geo-Fluids Plc, which closed at N1.50 per share, in contrast to the preceding session’s N1.36 per share.
At the close of business, the market capitalisation of the NASD exchange shrank by N460 million to close the day at N960.66 billion versus the N961.12 billion it ended in the previous trading session.
Similarly, the NASD Unlisted Securities Index (NSI) went down by 0.35 points to finish at 731.09 points compared with 731.44 points in the previous session.
During the session, there was a surge of 7,753.9 per cent in the volume of securities traded at the bourse as investors exchanged 58.1 million units of securities compared with the previous trading day’s 739,755 units of securities.
Likewise, the value of shares traded at the session ballooned by 64.2 per cent to N50.3 million from the N30.6 million posted last Friday, while the number of deals increased by 20 per cent to 12 deals from the 10 deals executed in the preceding session.
At the close of trades, Geo-Fluids Plc remained the most traded stock by volume (year-to-date) with the sale of 455.3 million units valued at N493.6 million, followed by UBN Property Plc with 365.8 units worth N309.5 million, and IGI Plc with 25.1 million units worth N1.9 million.
The most active stock by value (year-to-date) was VFD Group Plc for exchanging 7.3 million units worth N1.7 billion, Geo-Fluids Plc was in second place with 455.3 million units valued at N493.6 million, while UBN Property Plc was in third place with 365.8 million units valued at N309.5 million.
Naira Trades N740/$1 at Black Market, N461.50/$1 at I&E
By Adedapo Adesanya
The Naira opened the week stronger against the US Dollar in the black market, the Peer-2-Peer (P2P), and the Investors and Exporters (I&E) segments of the foreign exchange (forex) market on Monday, March 20.
In the parallel market window, the Nigerian Naira gained N7 against the greenback to quote at N740/$1 compared with last Friday’s exchange rate of N747/$1.
In the P2P segment, the value of the local currency appreciated by N6 against the American currency to sell for N748/$1, in contrast to the preceding session’s N754/$1.
Similarly, the domestic currency improved against the US Dollar in the official market window by 33 Kobo or 0.07 per cent to trade at N461.50/$1 compared with N461.83/$1.
The local currency was strengthened in the spot market yesterday amid an FX demand pressure, which pushed the turnover for the day higher by 43.1 per cent or $37.85 million to $125.66 million from $87.81 million.
However, in the interbank segment of the market, the Naira lost N2.70 against the Pound Sterling to quote at N559.15/£1, in contrast to the previous session’s N556.45/£1 and against the Euro, it depreciated by N2.12 to close at N490.11/€1 versus last Friday’s N487.99/€1.
Meanwhile, the cryptocurrency market turned red on Monday as the Federal Reserve and other major central banks made coordinated moves to enhance market liquidity.
Litecoin (LTC) went southwards by 3.9 per cent to trade at $78.91, Dogecoin (DOGE) fell by 2.8 per cent to $0.0718, Ethereum (ETH) declined by 1.0 per cent to $1,743.47, Cardano (ADA) dipped by 0.7 per cent to $0.3382, and Binance Coin (BNB) lost 0.3 per cent to sell for $334.40.
However, Bitcoin (BTC) gained 1.2 per cent to quote $27,849.66 as markets responded to the deepening global banking crisis, amid the decision of UBS to buy Credit Suisse, a move engineered by Swiss authorities.
Also, Ripple (XRP) rose by 0.07 per cent to trade at $0.3836, Solana (SOL) grew by 0.06 per cent to sell at $22.43, as the US Dollar Tether (USDT) and Binance USD (BUSD) traded flat at $1.00 each.
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