PROFESSIONAL

EXAMINATIONS
SYLLABUS
&
REGULATIONS FOR THE TRAINING
OF CHARTERED ACCOUNTANTS
IN NIGERIA

EFFECTIVE NOVEMBER 2025

REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

FOREWORD
The chartered accountancy qualification - ACA, of the Institute of Chartered Accountants of
Nigeria (ICAN), is one of the most advanced professional accountancy qualifications globally.
Its integrated components of professional development, ethics and professionalism, practical
work experience, and professional examinations taken together build well-rounded chartered
accountants. It also develops technical knowledge, professional competence, ethical
considerations, and practical experience, which modern accountants need to function in the
business environment. It is specifically designed to produce future-ready accountants in line
with the aspirations of the global accountancy profession. These complimentary components
enable accountants to apply theory to practice in their everyday work.

Professional development
Through professional development, students acquire abilities in key performance areas of
technical competence, teamwork, problem-solving and communication, which aid their
decision-making capabilities by employing ethics and professionalism, to add value in their
workplaces.

Ethics and professionalism

Professional values, ethics and attitudes are core to ICAN – ACA qualification and have been
incorporated into each of the fifteen (15) subjects of the professional examination, including
practical work experience. The focus is on students' ethical awareness, consciousness, ability
to identify and understand the implications of ethical dilemmas, and make appropriate
decisions.

Students will be required to write and pass a computer-based test (CBT) on professional
values, ethics and attitudes which can be written at any time during their studentship.

Practical work experience

A student studying to obtain ICAN–ACA needs to complete at least thirty-six (36) months of
practical work experience. The practical work experience is gained through a training
agreement with one of ICAN's authorised training employers. Such practical work experience
may include experience gained before registration. However, prior experience to be approved
by ICAN shall be limited to a maximum of twelve (12) months, while the student must obtain
the remaining twenty-four (24) months of acceptable practical work experience post-
registration.

Students in employment will be required to complete an online practical work experience form
to record their work experience, covering the following key areas:
a. Professional skills development
i. Professional values, ethics, and attitudes
Ÿ Professional Code of Conduct and ethics
Ÿ Business ethics
ii. Leadership
iii. Emotional intelligence
iv. Negotiation
v. Communication
vi. Conflict resolution
vii. Teamwork
viii. Strategy, governance, and risk management
ix. Problem solving
x. Technical competence

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

b. Practical experience development

i. Accounting and business reporting
ii. Audit, assurance and forensics.
iii. Financial management
iv. Information technology
v. Insolvency
vi. Advisory and consultancy
vii. Taxation
viii. Public finance

The professional examination

The professional examination comprises fifteen subjects with ethics embedded in each
subject. Effective November 2025 examination, this syllabus aims to equip the newly qualified
ICAN - ACA with essential technical knowledge and skills to address, analyse, and provide
solutions for complex business cases in unpredictable environments. Additionally, it enhances
their abilities to exercise professional judgements and effectively communicate solutions.
The newly qualified ACA would have developed the necessary business and professional
ethical values to deal with and make informed judgements on complex, ethical and
professional issues.

The requirements for ICAN-ACA qualification are set out in this syllabus in the form of learning
outcomes and competences. The fifteen subjects are grouped into three levels: Foundation;
Skills; and Professional.

The contents of the Foundation level subjects provide for simple learning outcomes that form
the building blocks for the higher-level subjects. There are four subjects at this level which may
be taken in any order. The examination at this level may be paper-based or computer-based.

The Skills level builds on the foundation knowledge and takes students to a higher-level
knowledge, developing further, their skills and competences. The emphasis is on application
of skills to business situations. There are six subjects at this level and candidates are at liberty
to attempt them in any order.

The Professional level, consisting of five subjects, takes candidates to the level where they
have to make professional judgements and evaluations based on more complex business
situations linking competences acquired at the Foundation and Skills levels. Case Study, at
this level, develops students' abilities to discuss, analyse and evaluate different business
scenarios with a view to proffering solutions which are articulated in form of business reports.

All students must satisfy each of the four components of ICAN - ACA professional
accountancy qualification before being admitted into membership.

The Institute of Chartered Accountants of Nigeria is a founding member of the International

Federation of Accountants (IFAC). This syllabus has drawn input from and complies with the
International Education Standards and Guidelines issued by the International Panel on
Accounting Education (IPAE)

Chief Chibuzo Noel Anyanechi, FCA

Chairman, Syllabus Review Committee

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025
Table of Contents

FOREWORD 2
PROFESSIONAL DEVELOPMENT 2
ETHICS AND PROFESSIONALISM 2
PRACTICAL WORK EXPERIENCE 2
THE PROFESSIONAL EXAMINATION 3
CONTENTS 4

PREAMBLE TO THE SYLLABUS 11

STRUCTURE OF THE SYLLABUS 11
a. Linkage with other subjects 11
b. Aim of the syllabus 11
c. Main Competencies 11
d. Ethical considerations and professional judgement 11
e. Soft skills 11

PART ONE 12
STUDENTS’ REGULATIONS AND EXAMINATION SYLLABUS 12
1. INTRODUCTION 12
2. OBJECTS AND DUTIES 12
3. MEMBERSHIP 12
4. CHARTERED ACCOUNTANTS 12
5. DESIGNATORY LETTERS 12
6. THE PRACTICE OF ACCOUNTANCY IN NIGERIA 12
7. THE LIBRARY 12
8. DISTRICT SOCIETIES 13
9. PUBLICATIONS AND VIRTUAL RESOURCES 13
10. TRAINING AGREEMENT 13
11. TRAINING AVENUES PROVIDED BY APPROVED EMPLOYERS 13
12. PRACTISING LICENCE 14
13. INSTITUTE’S SECRETARIAT 14

PART TWO 16
14. STUDENTS’ REGISTRATION AND TRAINING 16
15. APPLICATION FOR REGISTRATION 16
16. CONDITIONS TO BE SATISFIED 17
17. REGISTRATION AND EXEMPTION PROCEDURES 17

PART THREE 18
17. PROFESSIONAL EXAMINATION 18
17.1 Structure of the Syllabus 18
17.2 Educational Recognition 18
17.3 Examination Centres 18
17.4 Closing dates of entries 19
17.5 Examination entry 19
17.6 Examination diets 19
17.7 Examination results 19
17.8 Credit system 19
17.9 Pass mark 19
17.10 Conversion arrangements 19

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

17.10.1 Conversion from the old to the new syllabus is as stated hereunder: 20
17.10.2 Conversion table 20
18. PROFESSIONAL EXAMINATION TIMETABLE 21
19. EXAMINATION STRUCTURE 22
20. ABSENCE FROM AN EXAMINATION 22
21. MISCONDUCT IN AN EXAMINATION 23
22. EXEMPTION GUIDELINES 23
22.1. Academic qualifications 23
22.2. Subject by subject exemption 25
22.3. Professional qualifications 25
22.4. Lecturer in higher institutions 27

DETAILED SYLLABUS 28
FOUNDATION LEVEL 28
A1. FINANCIAL ACCOUNTING 28
Aim 28
Main competences 28
Ethics 29
Method of assessment 29
Ethics and professional skepticism 29
Specification grid 29
Linkage with other subjects 30
Detailed Contents 30
A. Accounting framework - 10% 30
B. Recording financial transactions - 15% 31
C. Reconciliation in financial accounting - 15% 31
D. Accounting for transactions in financial statements - 20% 32
E. Accounting for partnership, not-for-profit entities and incomplete records - 15% 33
F. Financial statements - 15% 33
G. Computerised and Virtual Accounting Systems - 10 % 34
Applicable regulatory Frameworks and IFRS accounting standards 34
Applicable Regulatory Frameworks and Laws 34
IFRS accounting standards 35
Guide to examination assessment 35

A2. MANAGEMENT ACCOUNTING 35

Aim 35
Linkage with other subjects 35
Main competences 36
Ethics 36
Method of assessment 36
Ethics and professional skepticism 36
Specification grid 36
Detailed Contents 37
A. MANAGEMENT INFORMATION - 15% 37
B. ACCOUNTING FOR COST ELEMENTS - 10% 38
C. COSTING METHODS AND TECHNIQUES - 20% 38
D. FORECASTING, BUDGETING AND BUDGETARY CONTROL - 20% 39
E. STANDARD COSTING AND BASIC VARIANCE ANALYSIS - 15% 39
F. DECISION MAKING TECHNIQUES - 20% 40

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

A3. BUSINESS ENVIRONMENT 41

AIM 41
Linkage with other Subjects 41
Main competences 41
Ethics 42
Method of assessment 42
Ethics and professional skepticism 42
Specification grid 42
Detailed contents 43
A. Business processes and environment - 25% 43
B. The role of accountancy in business and society - 15% 44
C. Management and organisational behaviour - 20% 45
D. Elements of microeconomics and macroeconomics - 20% 46
E. Technology and data analysis - 20% 47

A4. CORPORATE AND BUSINESS LAW 48

Aim 48
Linkage with other related subjects 48
Main competences 48
Ethics 48
Method of assessment 49
Ethics and professional skepticism 49
Specification grid 49
Detailed Syllabus 49
A. THE NIGERIAN LEGAL AND COURT SYSTEMS - 5% 49
B PARTNERSHIP AND BUSINESS NAME, AND COMPANY AND INSOLVENCY LAW - 35 49
C. CRIMINAL LAW - 10% 52
D. LAWS OF COMMERCIAL TRANSACTIONS - 35% 52
E. EMPLOYMENT LAW - 5% 53
F. LAW OF TRUSTS AND ADMINISTRATION OF ESTATE - 5% 53
G. ALTERNATIVE DISPUTE RESOLUTION MECHANISMS - 5% 53
Guide to examination assessment 53

SKILLS LEVEL 54
B1. FINANCIAL REPORTING 54
Aim 54
Linkage with other related subjects 54
Main competencies 54
Prior knowledge 55
Ethics 55
Method of assessment 55
Ethics and professional skepticism 55
Specification grid 55
Detailed contents 56
A. CONCEPTUAL AND LEGAL FRAMEWORKS FOR FINANCIAL REPORTING - 10% 56
B. IFRS ACCOUNTING STANDARDS AND POLICIES RELATING TO SPECIFIC TRANSACTIONS
IN FINANCIAL STATEMENTS - 15% 57
C. PREPARATION AND PRESENTATION OF SINGLE ENTITY GENERAL PURPOSE FINANCIAL
STATEMENTS - 20% 58
D. PREPARING AND PRESENTING FINANCIAL STATEMENTS OF SIMPLE GROUP (PARENT, A
SUBSIDIARY AND AN ASSOCIATE) - 20% 59
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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

E. ANALYSES AND INTERPRETATION OF FINANCIAL STATEMENTS - 15% 59

F. SUSTAINABILITY REPORTING FRAMEWORK - 10% 60
G. ETHICS, CURRENT AND TECHNOLOGICAL DEVELOPMENTS IN FINANCIAL REPORTING - 10% 61
Applicable Accounting Standards 62
Guide to examination assessment 62

B2. AUDIT, ASSURANCE AND FORENSICS 63

Aim 63
Linkages with other related subjects 63
Main competencies 63
Prior Knowledge 64
Ethics 64
Method of assessment 64
Ethics and professional skepticism 64
Specification grid 64
Detailed contents 65
A. INTRODUCTION TO LEGAL AND REGULATORY FRAMEWORKS OF AUDIT __AND
ASSURANCE - 20% 65
B. THE NATURE AND USE OF INTERNAL CONTROL (ISA 315 REVISED) - 20% 66
C. GATHERING EVIDENCE AND AUDIT REPORT - 25% 66
D. FORENSIC ACCOUNTING SERVICES - 15% 67
E. PROFESSIONAL ETHICS AND PUBLIC INTEREST - 15% 67
F. APPLICATION OF TECHNOLOGY IN AUDIT, ASSURANCE AND FORENSIC - 5% 68
Applicable Standards 68
Guide to examination assessment 68

B3. TAXATION 69
Aim 69
Linkage with other related subjects 69
Main competences 69
Ethics 69
Method of assessment 70
Ethics and professional skepticism 70
Specification grid 70
Detailed Contents 70
A. INTRODUCTION TO TAXATION, TAX ADMINISTRATION, AND ETHICS - 20% 70
B. TRANSACTIONS TAXES - 20% 72
C. PERSONAL INCOME TAX - 25% 74
D. COMPANIES INCOME TAX - 30% 76
E. APPLICATION OF INFORMATION TECHNOLOGY IN TAXATION - 5% 78
Guide to examination assessment 78

B4. PERFORMANCE MANAGEMENT 79

Aim 79
Linkage with other related subjects 79
Main competences 79
Prior knowledge 80
Ethics 80
Method of assessment 80
Ethics and professional skepticism 80
Specification grid 80
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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Detailed contents 81
A. MANAGEMENT INFORMATION SYSTEMS AND DATA ANALYTICS - 10% 81
B. ADVANCED COSTING TECHNIQUES - 15% 81
C. DECISION MAKING TECHNIQUES - 25% 82
D. BUDGETING AND CONTROL - 20% 83
E. PERFORMANCE MEASUREMENT, CONTROL AND MANAGEMENT SYSTEM - 15% 85
F. PERFORMANCE EVALUATION AND CORPORATE FAILURE - 10% 85
G. EMERGING ISSUES IN PERFORMANCE MANAGEMENT - 5% 86

B5. FINANCIAL MANAGEMENT

Aim 87
Linkage with other related subjects 87
Main competences 87
Ethics 87
Method of assessment 87
Ethics and professional skepticism 88
Specification grid 88
Detailed contents 88
A. FINANCIAL MANAGEMENT FUNCTION AND ENVIRONMENT - 10% 88
B. WORKING CAPITAL MANAGEMENT - 15% 89
C. INVESTMENT APPRAISAL - 25% 90
D. BUSINESS FINANCE - 20% 91
E. BUSINESS VALUATIONS - 15% 93
F. RISK MANAGEMENT - 15% 93

B6. PUBLIC SECTOR ACCOUNTING AND FINANCE 95

Aim 95
Linkage with other related subjects 95
Main competences 95
Prior knowledge 96
Ethics 96
Method of assessment 96
Ethics and professional skepticism 96
Specification grid 96
Detailed Contents 97
A. REGULATORY AND CONCEPTUAL FRAMEWORKS OF PUBLIC SECTOR ACCOUNTING -20% 97
B. PLANNING AND BUDGETING - 20% 98
C. REPORT AND AUDIT - 20% 98
D. PUBLIC FINANCE - 20% 100
E. PUBLIC FINANCE MANAGEMENT AND ACCOUNTABILITY - 10% 101
F. SUSTAINABILITY AND SUSTAINABLE DEVELOPMENT - 10% 101
Applicable IPSAS – Standards 102
Guide to examination assessment 102

PROFESSIONAL LEVEL 103

C1. STRATEGIC BUSINESS REPORTING 103
Aim 103
Linkage with other related subjects 103
Main competences 103
Prior knowledge 103

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Ethics 104
Method of assessment 104
Ethics and professional skepticism 104
Specification grid 104
Detailed contents 105
A. ETHICAL ISSUES IN, AND REGULATORY FRAMEWORK OF STRATEGIC 105
BUSINESS REPORTING - 5% 105
B. REPORTING OF ENTITY’S PERFORMANCE TO STAKEHOLDERS - 25% 105
C. GROUP FINANCIAL STATEMENTS - 30% 106
D. INTERPRET FINANCIAL STATEMENTS, SUSTAINABILITY DISCLOSURES,
NON FINANCIAL DATA AND INFORMATION, AND OTHER RELATED DISCLOSURES
AND REPORTS - 20% 107
E. SUSTAINABILITY AND INTEGRATED REPORTING - 10% 107
F. THE IMPACT OF CHANGES AND POTENTIAL CHANGES IN ACCOUNTING REGULATIONS - 5% 109
G. OTHER CURRENT DEVELOPMENTS IN AND BEYOND FINANCIAL REPORTING 5% 109
Applicable Accounting Standards: 110

C2. ADVANCED AUDIT AND ASSURANCE 111

Aim 111
Linkage with other related subjects 111
Main competences 111
Prior knowledge 111
Ethics 112
Method of assessment 112
Ethics and professional skepticism 112
Specification grid 112
Detailed contents 113
A. LAWS AND REGULATIONS ON AUDIT AND ASSURANCE ENGAGEMENTS - 20% 138 113
B. QUALITY MANAGEMENT FOR PROFESSIONAL FIRMS AND ENGAGEMENTS - 15% 113
C. PLANNING AND UNDERTAKING AUDIT WORK - 30% 114
D. DRAWING CONCLUSIONS AND REPORTING - 20% 118
E. APPLICATION OF INFORMATION TECHNOLOGY (IT) IN AUDITING - 10% 119
F. CURRENT ISSUES AND DEVELOPMENT IN AUDIT AND ASSURANCE - 5% 119
Guide to examination assessment 119

C3. STRATEGIC FINANCIAL MANAGEMENT 122

Aim 122
Linkage with other related subjects 122
Main competences 122
Prior Knowledge 123
Ethics 123
Method of assessment 123
Ethics and professional skepticism 123
Specification grid 123
Detailed contents 124
A. INTRODUCTION TO BUSINESS STRATEGY AND FINANCIAL MANAGEMENT - 10% 124
B. STRATEGIC MANAGEMENT - 10% 125
C. RISK MANAGEMENT - 5% 128
D. GOVERNANCE - 5% 128
E. ADVANCED INVESTMENT APPRAISAL - 30% 129
F. ACQUISITIONS, MERGERS, CORPORATE RECONSTRUCTION 131
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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

AND RE- ORGANISATION - 25% 131

G. ADVANCED RISK MANAGEMENT TECHNIQUES - 15% 132

C4. ADVANCED TAXATION 133

Aim 133
Linkage with other related subjects 133
Main competencies 133
On successful completion of this paper, candidates should be able to: 134
Prior knowledge 134
Ethics 134
Method of assessment 134
Ethics and professional skepticism 134
Specification grid 134
Detailed contents 135
A. TAX ADMINISTRATION - 5% 135
B. TAXATION OF COMPANIES AND INVESTMENT INCOME - 35% 136
C. INTERNATIONAL TAXATION - 20% 138
D. CURRENT ISSUES AND EMERGING TRENDS - 10% 140
E. TAX MANAGEMENT AND PLANNING - 10% 141
F. TAXATION OF INCOMES OF EXTRACTIVE INDUSTRIES - 20% 142
3. Environmental, social and governance (ESG) compliance in the extractive industry 144
(a) Discuss the benefits and challenges for companies adopting sustainable practices. 144
(b) Discuss ESG compliance in the extractive industry. 144
Guide to examination assessment 144

C5. CASE STUDY 145

Aim 145
Linkage with other related subjects 145
A. THE CASE STUDY APPROACH 145
B. MAIN COMPETENCES 146
C. PRIOR KNOWLEDGE 146
D. ASSESSMENT PROCEDURE 146
E. ETHICAL AND PROFESSIONAL SKEPTICISM CONSIDERATION 147
Specification Grid 147
G. SCENARIO REQUIREMENTS 148
H. ANALYTICAL TOOLS 149

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Preamble to the syllabus

This syllabus is designed to help students plan their studies and provide detailed information
on the topics that could be assessed in any examination diet.

Structure of the syllabus

a. Linkage with other subjects
Each diagram depicts the relationship between one subject and related subjects.
Some subjects are pre-requisites while some are follow-ups to other subjects.

b. Aim of the syllabus

It illustrates the overall objective of each subject and shows the competences to be
acquired.

c. Main competences
The aim of each subject is broken down into main competences which divide the
syllabus into distinct sections.

d. Ethical considerations and professional judgement

A professional accountant is expected to demonstrate integrity, objectivity, professional
competence and due care, confidentiality, and professional behaviour. Therefore, this
syllabus incorporates ethical considerations into all aspects of the training of ICAN
chartered accountants. Students are expected to apply the fundamental principles of
ethics and exercise judgement to their day-to-day activities.

e. Soft skills
A future-ready professional accountant is expected to demonstrate soft skills that are
required to achieve optimal results in an organisation. Therefore, this syllabus includes
soft skills such as leadership, emotional intelligence, negotiation, communication,
conflict resolution, teamwork, and problem-solving skills. Candidates will be required to
write and pass a computer-based test which will be conducted together with
professional values, ethics, and attitudes at any point during their studentship.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Part One
Students' Regulations And Examination Syllabus
1. Introduction
The Institute of Chartered Accountants of Nigeria was initially formed under the name
of “The Association of Accountants in Nigeria” which was established in 1960. The
association was later absorbed into the Institute which was created by an Act of
Parliament No.15 (The Act), which came into effect on September 1, 1965. The
Institute had, as at December 31, 2024, sixty-six thousand, and thirty one (66031)
members, and two hundred and eighty-five thousand, three hundred and seventy one
(285,371) on the students' list as at December 31, 2024.

2. Objects and duties

The objects and duties of the Institute, as laid down in section 1 (1) of the Act, are:
(a) “Determining what standards of knowledge and skills are to be attained by persons
seeking to become members of the accountancy profession and raising those
standards from time to time as circumstances may permit;
(b) Securing in accordance with the provisions of the Act, the establishment and
maintenance of registers of Fellows, Associates and Registered Accountants entitled
to practise as accountants and auditors and publishing same from time to time the list of
those persons; and
(c) Performing through the Council under this Act the functions conferred on it by the Act.”

3. Membership
There are three main classes of membership of the Institute, namely; Chartered
Accountants; Registered Accountants and Students.

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
the prescribed practical training under Section 8(1) (a) or through other pathways as
approved by the Council.

5. Designatory letters
Members of the Institute are entitled to use the following designatory letters after their
names:
Ÿ In the case of a Fellow, the letters “FCA” (Fellow of the Institute of Chartered
Accountants);
Ÿ In the case of an Associate, the letters “ACA” (Associate of the Institute of Chartered
Accountants); and
Ÿ In the case of a Registered Accountant, the letters “RA” (Registered Accountant).

6. The practice of accountancy in Nigeria

A member of the Institute is not allowed to set up a public practice as an accountant until
he/she has applied for and has been granted a licence to practise by the Council.

7. The library
The Institute's library provides services to both members and registered students. The
library at the secretariat situated at Plot 16, Idowu Taylor Street, Victoria Island, Lagos,
caters for the information needs of members, while the students' library located at the
Institute's secretariat annexe, No. 82, Murtala Muhammed Way, Ebute-Meta, Lagos.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

An ultra-modern library is also located at the ICAN liaison office in Abuja to cater for the
needs of both students and members.
The libraries provide the following: reference services; reprographic services; reading
and borrowing services; and systematic dissemination of information (SDI) services in
addition to the e-library. Enquiries should be directed to the Librarian at the Victoria
Island office or email: [email protected].

8. District societies
As at December 31, 2024, there were seventy-seven (77) District Societies and ten
(10) Chapters for members of the Institute in major cities and towns in Nigeria,
including United Kingdom, Canada, the United States of America, Malaysia,
Cameroon and Southern Africa. The District Societies assist in disseminating
information to students and prepare them for the qualifying examinations of the
Institute.

9. Publications and Virtual Resources

The Institute publishes the following, in print and electronic formats, for the benefits of
its members, students and the general public:
a. Membership Year Book, containing lists of members and other general
information about the Institute;
b. The Nigerian Accountant, a quarterly journal of the Institute, containing
authoritative articles on accountancy and related fields;
c. ICAN Accountability Index;
d. ICAN News, a quarterly journal for students of the Institute;
e. Pathfinder, published after each examination, containing suggested solutions
to the examination questions;
f. Members' Handbook, a compendium of the Institute's enabling Act,
professional code of conduct and guide for members, ethical and other legal
provisions.
g. ICAN Study Texts in soft copies;
h. International Journal of Accounting and Finance (IJAF), the foremost research
journal covering accounting and finance related issues;
i. ICAN on Air, where contemporary issues relating to the profession are
discussed; and
j. ICAN e-learning platforms.

10. Training agreement

ICAN training agreement is a joint agreement between the professional examination
student and ICAN approved training partner (employer). This represents opportunity to
relate students' training towards obtaining the ICAN – ACA certification to the demands
of the work environment and International Education Standards (IES). ICAN training
agreement towards the certification of a prospective member of the Institute, must
contain the training commencement date, duration and examination support, amongst
others.

11. Training avenues provided by approved employers

The Institute attaches considerable importance to practical training. Students are
required to acquire their practical experience in training opportunities provided by
approved employers. The approved training employer, may either be (i) Accredited
Training Employer (ATE) or (ii) Qualified Person Responsible for Training (QPRT).

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

12. 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 qualify outside professional
offices/firms, such practising experience could be acquired after qualifying as
chartered accountants and the required period of post-qualification attachment will
be thirty-six (36) months for those with accounting degrees/diplomas, whilst those
with non-accounting degrees/diplomas will be forty-two (42) months.
13. Institute's Secretariat

The Institute's Secretariat address:

Plot 16, Idowu Taylor Street
Victoria Island.
P O Box 1580, Marina, Lagos
Nigeria.
Tel: +234 9053847510, +234 9053847511
e-mail: [email protected];
Website: www.icanig.org

Contact Centre
Tel: 07007004226 (0700700ICAN), 016309354, 017100311 & 015200430
WhatsApp: 07037646360
Email: [email protected]

ICAN CHATBOT
m.me/ICANngr

Students' Affairs Directorate

82, Murtala Mohammed Way
Ebute-meta
Lagos, Nigeria.
Tel: +234 9053847525, +2349053847532
e-mail: [email protected]
linkedIn: www.linkedin.com
facebook: www.facebook/ICAN1965.com
youTube:
X:
Instagram:

Liaison Offices

(a) Abuja Liaison Office

Akintola Williams House
Plot 2048, Michael Okpara Way
Wuse Zone 7
Abuja, FCT.
Tel: +234 0807 636 9788
Email: [email protected]

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(b) Kaduna Liaison Office

3, Kanta Road
Ali Turaki House
Kaduna.
Tel: +234 0705 368 7707
Email: [email protected]

(c) Kano Liaison Office

Murtala Mohammed Library Complex
Ahmadu Bello Way
Kano.
Tel: +234 0705 368 0508
Email: [email protected]

(d) Enugu Liaison Office

Block C 38/39, C to C Plaza
Nkpokiti by Presidential Road
Enugu.
Tel: +234 0811 269 4193
Email: [email protected]

All enquiries should be directed to the Registrar/Chief Executive.

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Part Two
Students' registration and training

A. Approved qualifications for registration

In order to register as a student with the Institute, an applicant must hold an acceptable
qualification. The Council has approved the following qualifications as entry
requirements:

(a) Recognised degree of any University or Higher National Diploma of any Polytechnic in
Nigeria; and

(b) Any other qualification for the time being approved by the Council. These include:
(i) Membership of Accounting Technicians Scheme, West Africa;
(ii) Membership of the Institute of Chartered Accountants of England and Wales;
(iii) Membership of the Association of Certified Chartered Accountants, UK;
(iv) Membership of the Association of International Certified Professional
Accountants (AICPA & CIMA);
(v) Membership of the Chartered Institute of Public Finance and Accountancy, UK;
(vi) Membership of the Institute of Chartered Accountants of Ghana;
(vii) Membership of the South Africa Institute of Chartered Accountants;
(viii) Membership of the Institute of Chartered Secretaries and Administrators, UK;
(ix) Membership of the Institute of Chartered Secretaries and Administrators of
Nigeria (ICSAN),
(x) Membership of the Association of International Accountants, UK;
(xi) Membership of the Association of National Accountants of Nigeria;
(xii) Membership of the Chartered Institute of Taxation of Nigeria;
(xiii) Membership of the Chartered Institute of Bankers of Nigeria;
(xiv) Membership of the Chartered Institute of Stockbrokers;
(xv) Membership of the Institute of Chartered Economists of Nigeria;
(xvi) Membership of Chartered Institute of Insurance of Nigeria;
(xvii) Membership of Nigerian Institute of Management;
(xviii) Membership of the Association of Accounting Technicians, U.K;
(xix) Executive Management Accountancy of the Federal Treasury Academy, Stage
III Certificate; and
(xx) Membership of other professional bodies under PAFA and IFAC.

(c) The foreign recognised degree of any University or Colleges or Higher learning (or its
equivalent) of any Institution is that granted by the Federal Ministry of Education and
the qualification is evaluated as being equivalent to the degree/Higher National
Diploma of a Nigerian University/Polytechnic.

(d) A certificate of completion, exemption or exclusion from the National Youth Service
Corps (NYSC) scheme must be presented by Nigerians who obtained the necessary
qualification, whether within or outside Nigeria.

15. Application for registration

Application for registration as a student must be made online, which requires an
undertaking on the part of the applicant of the requirement to abide by the rules and
regulations laid down by the Council from time to time.

Every applicant will be required to submit satisfactory evidence of his/her name and

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

age, together with certified photocopies of educational certificates, one certified

passport-size photograph and a current means of identification (such as National
Identification card, International Passport, Driver's Licence and Permanent Voter's
Card)

The Council reserves the right to grant or refuse any application or to terminate the
registration of a student. Applicants must comply with the conditions and pay the
applicable registration fee. If the application to register is unsuccessful, the
registration fee is not refundable. The annual subscription for a successful applicant
becomes payable immediately upon registration for the year of registration and
thereafter on 1st January of each year of studentship.

16. Conditions to be satisfied

Every applicant for registration as a student must satisfy the Council that he/she:
(a) Possesses the basic educational qualifications set out above; and
(b) Is a fit and proper person to be registered.

17. Registration and Exemption Procedures

Go to https://icanportal.org/professional

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Part Three
Professional Examination
17.1 Structure of the Syllabus
With effect from November 2025 diet, the professional examination of the Institute
under this syllabus consists of the following three levels: Foundation; Skills; and
Professional.

Foundation
Code Subject Abbreviation
A1. Business Environment BE
A2. Financial Accounting FA
A3. Management Accounting MA
A4. Corporate and Business Law CBL

Skills
Code Subject Abbreviation
B1. Financial Reporting FR
B2. Audit, Assurance and Forensics AAF
B3. Taxation TAX
B4. Performance Management PM
B5. Financial Management FM
B6 Public Sector Accounting and Finance PSAF

Professional
Code Subject Abbreviation
C1. Strategic Business Reporting SBR
C2. Advanced Audit and Assurance AAA
C3. Strategic Financial Management SFM
C4. Advanced Taxation ATAX
C5. Case Study CS

17.2 Educational Recognition

ICAN is a founding member of IFAC, so this syllabus complies with the
International Panel on Accounting Education's (IPAE) International Educational
Standards and Guidelines.
The Institute seeks to enhance the academic recognition of its qualifications at
both national and international levels. In doing so, ICAN aims to produce future-
ready accountants and ensure that its qualifications are recognised and valued
by governments, regulatory authorities and employers across all jurisdictions
and sectors.

17.3 Examination Centres

The Institute currently has examination centres in the following locations:
Aba; Abakaliki; Abeokuta; Abuja (4 centres); Ado-Ekiti; Akure; Asaba; Auchi;
Awka; Benin-City; Calabar; Cameroon; Enugu; Gombe; Ibadan; Ilesa; Ilisan-
Remo; Ilorin; Jalingo; Jos; Kaduna; Kano; Keffi; Lafia; Lagos (9 centres);
Lokoja; London; Maiduguri; Makurdi; Minna; Mowe; Ogbomoso; Onitsha;
Osogbo; Ota; Owerri; Oyo town; Port Harcourt; Sokoto; Umuahia; Uyo; Warri;
Yenagoa; Yola; and Zaria.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Council reserves the right to approve new examination centres and close
existing ones as it deems fit.
17.4 Closing dates of entries
Entries for examinations would close one week before the examination dates.

17.5 Examination entry

No person may be allowed to sit any of the Institute's examinations unless
he/she is a registered student of the Institute, has paid the required annual
subscription and applicable examination fees. In addition, the student must
have registered for the examination.

17.6 Examination diets

The Institute's professional examination will be held two times a year – May and
November.

17.7 Examination results

The results of the examination will be communicated to candidates by post or
SMS or e-mail and hosted on the Institute's website. Further correspondence
relating to individual results may not be entertained. However, a candidate may
request for a review of his/her script, subject to meeting the conditions set out by
the Council of the Institute.

Candidate's score in each subject will be indicated on the result slip.

17.8 Credit system

a. Students writing the examination 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.

b. Candidates are not allowed to combine two levels of the examinations, except
when designated as special candidate (see note below).
c. Candidates are required to complete the Professional Level of the Institute's
qualifying examination within a period of ten diets. In the event of a student not
completing the Professional level examination within the period of ten diets,
he/she is deemed to have forfeited all the papers passed and credited to
him/her at this level.

Note:
Special candidates are members of professional accountancy organisations
(PAOs) which are members of IFAC and approved by the Council to combine
examinations across levels.

17.9 Pass mark

The pass mark for each paper of the Institute's examination is 50%.

17.10 Conversion arrangements

Examination on the basis of this syllabus will commence in November 2025. All
candidates shall be converted as stated in paragraph 17.10.2 below. No
candidate may proceed to the next level of the examination without successfully
completing all the subjects in the preceding level.

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17.10.1 Conversion from the old to the new syllabus is as stated hereunder:

2021 Syllabus (15 Papers) 2025 Syllabus (15 Papers)

Foundation Level Foundation Level

-
A1. Business, Management and Finance A1 Business Environment
A2. Financial Accounting A2. Financial Accounting
A3. Management Information A3. Management Accounting
A4. Business Law A4. Corporate and Business Law

Skills Level Skills Level

B1. Financial Reporting B1. Financial Reporting
B2. Audit and Assurance B2. Audit, Assurance and orensics
B3. Taxation B3 Taxation
B4. Performance Management B4. Performance Management
B5. Public Sector Accounting and Finance B6. Public Sector Accounting and
Finance
B6 Corporate Strategic Management and Ethics -
B5 Financial Management

Professional Level Professional Level

C1. Corporate Reporting C1. Strategic Business Reporting
C2. Advanced Audit and Assurance C2. Advanced Audit and Assurance
C3. Strategic Financial Management C3. Strategic Financial
Management
C4. Advanced Taxation C4. Advanced Taxation
C5. Case Study C5. Case Study

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Note:
Candidates are expected to migrate to 2025 syllabus, effective November 2025, in line
with the above conversion arrangement.

18. Professional examination timetable

Note: *Case study examination starts from 9.00am to 1.00pm.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

19. Examination Structure

The examination structure is as stated below:

Foundation level

Each paper in Foundation level shall consist of two sections A and B:

Section A: Shall comprise twenty (20) compulsory multiple-choice questions (MCQs) which shall
cover the entire contents of the syllabus. This section shall make up 20% of the total marks.

Section B: Shall comprise six (6) open-ended questions (essay, computational or scenario-based)
carrying 20 marks each of which candidates will be required to attempt any four (4).

Skills and Professional levels

Examination at these levels will be in three (3) sections:

Section A. A 30-mark compulsory scenario-based question on the core areas of the subject.

Section B. Three (3) questions of 20 marks each and candidates will be required to attempt any two
(2).

Section C. Three (3) questions of 15 marks each and candidates will be required to attempt any two
(2).

Case Study.This will be a scenario-based paper, consisting of pre-seen and unseen parts, which will
require candidates to write a report based on two requirements from the case.

Duration: Each paper will be for three hours with additional fifteen minutes reading time, except Case
Study which will be for four (4) hours, including reading time.

Pass mark: The pass mark for each ICAN examination subject is 50%.

Skills and competences

The following are the skills and competences required at the different levels of the examination:

Level competences
Foundation: Knowledge and understanding
Skills: Analysis, interpretation and application
Professional: Evaluation and exercise of professional judgement

Guide to examination assessment

ICAN reserves the right to examine any topic in the syllabus at any examination diet. New standards and
laws may be examined after six months from the date of issue, even if the effective dates are in the future.

20. Absence from an Examination

Examination entries cannot be withdrawn in any circumstance. If a candidate is unable to sit an
examination, for whatever reason, the fees paid will not be refunded nor transferred to subsequent
examinations.

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21. Misconduct in an examination

The examination regulations prohibit a candidate from:
(a) Taking into the examination hall or possessing, any book, note, programmable
calculator/devices, wristwatches, any form of wristbands, iPod, earpiece, GSM handsets and
other communication gadgets 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, chief invigilator or
invigilators;
(d) Giving false or misleading information to examination officials;
(e) Writing anything on the question paper, except the candidate's examination number;
(f) Writing anything on the candidate's examination docket;
(g) Impersonating another candidate;and
(h) Writing another candidate's examination or registration number on his or her answer script.

Examination officials are empowered to stop any candidate suspected of misconduct from continuing or
writing the examination and might require him/her to leave the examination hall.

Any candidate who fails to comply with the above regulations may be liable to such penalties as the
Council of the Institute may determine.

22 Exemption guidelines

22.1 Academic qualifications

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22.2. Subject by subject exemption

Subject by subject exemption will be granted to students based on transcripts for
qualifications not listed above.

22.3. Professional qualifications

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

* Exemption for partly qualified students from approved foreign professional institutes.

Subject for subject exemption will be granted to partly qualified students of approved
foreign professional institutes based on transcripts as listed above.

Notes:
1. No candidate who has failed subject(s) in the professional examination
(Foundation, Skills and Professional) will be exempted from the same subject(s).
This rule will only be waived in individual cases, where the candidate provides
evidence of having attained the requisite skills/competences being tested in the
subject, through the additional qualification/certificate that might have qualified
such a candidate for an exemption from the subject(s).
2. Professional membership eligible for exemption stipulated in (14A) above must
have been attained through qualifying examinations, and not through any
reciprocity or other arrangements.

22.4 Lecturers in higher institutions

Lecturers in accounting departments of ICAN-accredited institutions holding
B.Sc./HND (Accounting) qualifications shall be given not less than the same level of
exemptions/concession granted to graduates of those institutions.

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DETAILED SYLLABUS

FOUNDATION LEVEL

A1. FINANCIAL ACCOUNTING

Aim
To equip students with the essential framework and assumptions necessary for
recording and summarising financial transactions that will enable them compile
financial statements for sole traders, partnerships, companies, and not-for-profit
entities.

Main competences
On successful completion of this paper, students should be able to:
Ÿ Explain the scope and purposes of accounting;
Ÿ Identify the users of accounting information and their needs;
Ÿ Understand the fundamental accounting concepts and demonstrate the bases of
accounting;
Ÿ Record financial transactions, articulate procedures for banking money received
and associated documentation; Record and account for transactions and events
related to revenue, expenses, assets, liabilities, and equity in accordance with the
relevant IFRS Accounting Standards and generally accepted accounting
principles (GAAP);
Ÿ Demonstrate the understanding and application of double-entry principles;
Ÿ Discuss the usefulness and limitations of a trial balance;
Ÿ Identify and correct errors;
Ÿ Explain the use of control accounts and reconciliations;
Ÿ Understand the accounting treatment for bad and doubtful debts;
Ÿ State the accounting treatment for accruals and prepayments;
Ÿ Explain ethical considerations for preparers of financial statements;
Ÿ State accountants' roles in business, and recognise the duties and responsibilities of
those in governance;
Ÿ Understand the regulatory environment and the IASB Conceptual Framework for
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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Financial Reporting;
Ÿ Record and account for property, plant and equipment (PPE), intangible assets and
impairment of asset:
Ÿ Explain management and accounting for inventory:
Ÿ Compile financial accounts for partnerships, not-for-profit entities, and in cases of
incomplete records, demonstrate the ability to generate precise financial
statements:
Ÿ Prepare basic financial statements of companies according to IFRS accounting
standards, document the issue of shares, record income tax (including under/over-
estimates from the prior year) in the statements of comprehensive income, changes
in equity, cash flows and financial position;
Ÿ Explain the interrelationship between the components of financial statements, and
offer a clear interpretation of the financial statements; and
Ÿ Explain computerised accounting systems, demonstrate knowledge of digitisation in
financial accounting, and explain the application of key concepts relating to virtual
accounting.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Financial Accounting paper is for three (3) hours with additional fifteen (15) minutes
reading time. The paper is in two (2) sections. Section A comprises twenty (20) Multiple Choice
Questions (MCQs) that cover all areas of the syllabus. Section B comprises six (6) questions
of which candidates are required to attempt four (4). Questions in Section B will focus on
specific areas of the syllabus.

Ethics and professional skepticism

Candidates taking the financial accounting paper must adhere to principles, such as integrity,
objectivity, professional competence, confidentiality, and professional behaviour.
Furthermore, they are encouraged to cultivate a questioning mindset, bias for figures, and
apply critical thinking when providing answers to questions.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and
should guide the study time spent on each. Over time, the marks available in the assessment
will be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Linkage with other subjects

The diagram below depicts the relationship between this subject and other related subjects.

Detailed Contents

A. Accounting framework - 10%

1. Scope and purposes of accounting
(a) Define accounting and state the objectives of accounting.
(b) Differentiate between accounting and book-keeping.
(c) Explain the different types of accounting.
2. Identify users of accounting information and their information needs.
3. Explain IASB Conceptual Framework for Financial Reporting in relation to:
(a) Objectives of general purpose financial reporting;
(b) Qualitative characteristics of useful financial information;
(c) Financial statements and the reporting entity; and
(d) Elements of financial statements, including:
(i) Recognition and derecognition;
(ii) Measurement; and
(iii) Presentation and disclosure.
4. Explain the following accounting concepts and conventions:
(a) Going concern;
(b) Accruals;
(c) Duality;
(d) Historical cost and current cost conventions;
(e) Materiality and aggregation;
(f) Substance over form;
(g) Business entity;
(h) Fair presentation;
(i) Offsetting;
(j) Consistency of presentation; and
(k) Prudence.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

5. Bases of accounting
Explain accrual and cash bases of accounting.

6. The regulatory environment of accounting:

(a) Explain the need for regulation of accounting practice; and
(b) Identify the regulator of accounting practice in Nigeria – Financial
Reporting Council (FRC) of Nigeria.
7. Explain the ethical considerations for preparers of financial statements.
8. State the roles of accountants in business and the economy.
9. State the duties and responsibilities of those charged with governance.

B. Recording financial transactions - 15%

1. Identify source documents of accounting data and information, such as
invoices, receipts, credit notes, debit notes, purchase orders, goods received
notes, cheque counterfoils, deposit slips, bank statements and payment
vouchers.
2. Procedures and documentation for banking of monies received
(a) Explain the methods of funds transfer, including handling, storing and
security of monies.
(b) Explain the uses of debit and credit cards.
3. Record and account for transactions and events relating to revenue/incomes,
expenses, assets, liabilities and equity in accordance with generally accepted
accounting principles (GAAP), using:
(a) Books of prime entry; and
(b) Cash books, including internal control over cash.
4. The double entry principle
(a) Explain the double entry principle.
(b) Explain the accounting equation.
(c) Explain the basic classifications of the ledger.
(d) Post transactions into the ledger, using, the double entry principle.
(e) Explain the general principles of the operations of the value added tax.
(f) Calculate value added tax and post to the ledger, transactions with
elements of VAT.
(g) Balance ledger accounts and extract trial balance.
5. State the usefulness and limitations of trial balance.

C. Reconciliation in financial accounting - 15%

1. Errors
(a) Identify errors in the double entry system.
(b) Identify errors not detected by the extraction of the trial balance.
(c) Correct book-keeping errors for given transactions.
(d) Determine the effect of errors on profit or loss/surplus or deficit.
(e) Explain the use of suspense account.
2. Control accounts and reconciliations
(a) Explain control account and its uses.
(b) Prepare receivables control account and explain its uses.
(c) Prepare payables control account and explain its uses.
(d) Explain the purpose of suppliers' statements and their reconciliation with
the ledgers.
3. Bank reconciliation
(a) State the purpose of bank reconciliation statement.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(b) Identify the causes of differences between cash book and bank
statement balances.
(c) Prepare bank reconciliation statement.
(d) Identify and correct cash book errors.
(e) Explain the use of adjusted cash book to determine the cash position in
the financial statements.
4. Accounting treatment for bad and doubtful debts
(a) Account for the write-off of bad debts.
(b) Account for the recovery of bad debts.
(c) Determine the balance on the allowance for doubtful debts accounts.
(d) Account for the movement on the allowance for doubtful debts
accounts.
(e) Account for movements in receivables.
5. Accounting treatment for accruals and prepayments
(a) Explain the meaning of an accrual.
(b) Account for accruals.
(c) Explain the meaning of a prepayment.
(d) Account for prepayments.
(e) Explain the meaning of accrued and unearned incomes.
(f) Account for accrued and unearned incomes.

D. Accounting for transactions in financial statements - 20%

1. Accounting for property, plant and equipment (PPE) in accordance with IAS 16
(a) Identify the elements of PPE cost.
(b) Explain the differences between capital and revenue expenditure.
(c) Code assets.
(d) Explain the functions and purposes of assets register.
(e) State how cost of non-current assets is initially recorded and measured.
(f) Compute, explain and record depreciation, using the straight line and
reducing balance methods.
(g) Account for depreciation in the statement of profit or loss and other
comprehensive income.
(h) Account for disposal of PPE.
(i) Calculate depreciation on an item of PPE that is revalued.
(j) Calculate and adjust for gain or loss on revaluation of PPE in the financial
statements.
(k) Prepare simple schedules to account for movements in PPE.
2. Accounting for intangible assets (IAS 38)
(a) State the difference between PPE and intangible assets.
(b) State the different types of intangible assets.
(c) Explain the difference between research and development
expenditure.
(d) Determine the amount of research and development expenditure to be
expensed or capitalised.
(e) Calculate and account for amortisation in financial statements.
3. Accounting for impairment of assets (IAS 36) - excluding impairment of assets in
a cash generating unit
(a) Define impairment loss, recoverable amount, fair value and value in use.
(b) Explain indicators of impairment.
4. Accounting for inventories (IAS 2)
(a) Explain the requirements of IAS 2 for valuation of inventories.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(b) Explain the elements of cost of inventories.

(c) Explain the valuation and recognition of inventories.
(d) Measure inventories at cost, and lower of cost and net realisable value.
(e) Determine the cost of inventory using first-in-first-out (FIFO) and
weighted average cost (WAC).
(f) Explain the impact of various valuation methods on the profit or loss for a
period.
(g) Explain the nature of inventories.
(h) Reconcile inventories and pass appropriate adjustments to opening and
closing values of inventories in the financial statements.
(i) Explain the use of periodic and perpetual inventory methods.
5. Accounting for Provisions, Contingent Liabilities and Contingent Assets (IAS
37)
(a) Define provisions, contingent liabilities and contingent assets.
(b) Explain the recognition criteria for provisions, contingent liabilities and
contingent assets.
(c) Discuss the measurement basis.
(d) Explain the disclosure requirements.

E. Accounting for partnership, not-for-profit entities and incomplete records -

15%
1. Partnership accounts
(a) Discuss partnership business.
(b) Prepare partners' current and capital accounts.
(c) Determine partners' shares of profits.
(d) Account for changes in partnership (excluding amalgamation and
piecemeal realisation).
2. Not-for-profit entities' accounts
(a) Prepare receipts and payments account.
(b) Prepare statement of income and expenditure.
(c) Prepare statement of financial position.
3. Incomplete records
(a) State the need for preparation of accounts from incomplete records.
(b) Determine profit from the opening and closing capital balances.
(c) Explain the use of the accounting equation, gross profit percentage, cash
book summaries, memoranda and control accounts to determine
missing figures in financial statements.

F. Financial statements - 15%

1. State and explain the purpose, nature and relationships among the main
components of financial statements.
2. Accounting policies, change in accounting estimates and errors (IAS 8)
(a) Define accounting policies.
(b) Explain the guidance on the selection of accounting policies.
(c) Account for changes in accounting policies.
(d) Differentiate between accounting policies and accounting estimates.
(e) Explain how to account for changes in estimates.
(f) Identify and correct prior year errors.
3. Account for current income tax in the financial statements in relation to:
(a) Adjusting for prior year tax over-estimate and under-estimate; and
(b) Calculating the amount of tax expense and income tax payable.
4. Accounting for issue of shares and borrowing in a limited liability company
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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(a) Describe the capital structure of a limited liability company including:

i) Ordinary shares and Preference shares (redeemable and
irredeemable)
Ÿ Explain share premium and state its uses.
Ÿ Account for issue of shares, fully subscribed for, at
application.
Ÿ Account for the effect of bonus issue in the financial
statements.
Ÿ Describe the nature of equity, including retained earnings
and other components of equity.
Ÿ Identify and record the other components of equity which may
appear in the statement of financial position.

ii) Borrowings
(b) Account for dividends and finance costs in the financial statements.
5. Preparation of simple financial statements and basic supporting notes
(a) Prepare statement of profit or loss and other comprehensive income in
accordance with IAS 1.
(b) Prepare statement of financial position in accordance with IAS 1.
(c) Prepare simple statement of cash flows in accordance with IAS 7.
(d) Prepare simple statement of changes in equity.
6. Interpretation of simple financial statements
(a) Explain the importance and purpose of analysis of financial
statements.
(b) Compute profitability, efficiency, short-term liquidity and long-term
solvency ratios.
(c) Explain whether the ratios calculated show a better or worse position
than the benchmark.

G. Computerised and Virtual Accounting Systems - 10 %

1. Computerised accounting systems
(a) State forms and explain functions of accounting records in a
computerised accounting system.
(b) State types of accounting package and their uses.
(c) Explain the use of computer tools to process business transactions,
including entering and editing accounting information.
(d) State the advantages and disadvantages of the computerised
accounting system.
2. Explain digitisation in financial accounting.
3. Explain the uses of the following in relation to financial accounting:
(a) Data structure;
(b) Block chain technology (distributed ledger);
(c) Artificial Intelligence (AI);
(d) Virtual accounting principles and practices; and
(e) Fraud opportunities arising from working remotely.

Applicable regulatory Frameworks and IFRS accounting standards

Applicable Regulatory Frameworks and Laws
· Conceptual Framework for Financial Reporting
· Financial Reporting Council of Nigeria, Act 2023

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

IFRS accounting standards

· IAS 1 - Presentation of Financial Statements
· IAS 2 - Inventories
· IAS 7 - Statement of Cash Flows
· IAS 8 - Accounting Policies, Changes in Accounting Estimates, and Errors
· IAS 12 – Income Taxes
· IAS 16 - Property, Plant and Equipment (PPE)
· IAS 36 - Impairment of Assets
· IAS 37 - Provisions, Contingent Liabilities and Contingent Assets
· IAS 38 - Intangible Assets

Notes:
New applicable IFRS accounting standards may be examined after six months from the dates
of issue, even if the effective date is in the future.
Applicable laws may be examined after six months from dates of amendment or enactment.

Guide to examination assessment

ICAN reserves the right to examine any topic in the syllabus at any examination diet.
New standards and laws may be examined after six months from the dates of issue, even if the
effective date is in the future.

A2. MANAGEMENT ACCOUNTING

Aim
To develop candidates' knowledge and understanding of costing and management
accounting techniques to support management in planning, controlling and monitoring
performance under various organisational contexts.

Linkage with other subjects

The diagram below depicts the relationship between this subject and other related subjects.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Main competences
On successful completion of this paper, candidates should be able to:
· Explain the nature, source and purpose of management information;
· Explain and analyse data for cost elements;
· Explain, ascertain and apply cost accounting methods and techniques;
· Explain, analyse, forecast and prepare budgets for planning and control;
· Compare actual costs with standard costs and analyse any variances arising therefrom; and
· Explain and apply decision making techniques in facilitating business performance in situations of scarce
resources.
Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for Accountants (IESBA) and
ICAN. These ethical considerations will be at both the organisational level and for individuals, particularly with
respect to the accountant in business.

Method of assessment
The Management Accounting paper is for three (3) hours with additional fifteen (15) minutes reading time. The
paper is in two (2) sections. Section A comprises twenty (20) Multiple Choice Questions (MCQs) that cover all areas
of the syllabus. Section B comprises six (6) questions of which candidates are required to attempt four (4).
Questions in Section B will focus on specific areas of the syllabus.

Ethics and professional skepticism

Candidates should note that underlying ethical thinking is required in sourcing and collecting information and in
taking management decisions. Candidates will also be expected to apply professional skepticism and critical
thinking on the job.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and should guide the study
time spent on each. Over time, the marks available in the assessment will be within the ranges of weightings below,
while slight variations may occur in individual assessments to enable suitably rigorous questions to be set.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

DETAILED CONTENTS

A. MANAGEMENT INFORMATION - 15%

1. Nature and purposes of management accounting
(a) Identify the differences amongst financial, cost and management
accounting.
(b) State the roles of the management accountant.
(c) Explain the importance of management information for planning,
control and decision making.
2. Management information systems (MIS)
(a) Explain the role of information systems in organisations.
(b) Differentiate between data and information.
(c) Identify and explain the attributes of good information.
(d) Explain the limitations of management information in providing
guidance for managerial decision making.
(e) Describe the sources of information from within and outside an
organisation.
(f) Explain the uses and limitations of published information/data,
including information from the internet.
3. Spreadsheets
(a) Identify the features and uses of spreadsheets.
(b) Explain the use of spreadsheets in data analysis, cost and management
accounting.
4. Big data and data analytics
(a) Explain big data and describe the characteristics (volume, velocity,
veracity and value).
(b) Explain the purposes of big data pyramid (data, information, knowledge,
wisdom).
(c) List and explain the benefits and uses of data mining and data analytics.
(d) State the risks an organisation faces when applying data mining and
analytics.
5. Cost classifications, codification, segregation and estimation
(a) Cost classifications
(i) Explain the meaning of cost classification.
(ii) Explain the different classifications of cost.
(iii) Describe different types of cost behaviour using graphical
illustrations.
(b) Cost codification
(i) Define cost codification.
(ii) Explain the principles of coding system.
(iii) Explain and illustrate the use of codes in categorising
transactions.
(c) Cost segregation and estimation
(i) Explain the meaning of cost segregation and cost estimation.
(ii) Explain the structure of linear functions and equations.
(iii) Demonstrate the use of the following cost segregation
techniques:
· High/low analysis; and
· Least squares/regression analysis.
(iv) Calculate and explain simple correlation coefficient.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

B. ACCOUNTING FOR COST ELEMENTS - 10%

1. Accounting for inventory
(a) Describe the different procedures and documents necessary for the
following material management actions:
(i) Ordering;
(ii) Purchasing;
(iii) Receiving;
(iv) Storing; and
(v) Issuing.
(b) Explain inventory management and control procedures.
(c) Identify, explain and calculate relevant inventory costs.
(d) Compute optimal re-order quantities (involving quantity discounts).
(e) Explain and calculate the value of closing inventory and materials issued
to production, using Last-In-First-Out (LIFO), First-In-First-Out (FIFO)
and average methods.
(f) Explain Just-In-Time (JIT).
2. Accounting for labour
(a) Explain labour recording and monitoring procedures.
(b) Determine direct and indirect costs of labour.
(c) Describe different remuneration methods: time-based systems,
piecework systems, and individual and group incentive schemes.
(d) Determine the level, the causes and costs of labour turnover.
(e) Prepare and explain the entries in payroll accounting.
3. Accounting for overheads
(a) Explain the components of overheads.
(b) Distinguish amongst allocation, apportionment and absorption of
overheads.
(c) Describe the bases of overheads apportionment.
(d) Apportion and re-apportion overhead costs between production and
service centres, using the reciprocal method (where service cost centres
work for one another) and simultaneous equations method.
(e) Describe the bases and procedures involved in determining production
overhead absorption rates.
(f) Explain and calculate under-absorption and over-absorption of
overheads.
(g) Explain activity-based costing.

C. COSTING METHODS AND TECHNIQUES - 20%

1. Costing methods
(a) Explain types of costing methods and compile costs under each of the
following methods:
(i) Specific order using:
· Job costing; and
· Batch costing.
(ii) Process costing
· Determine the cost of a unit of output where there is normal
loss, abnormal loss or abnormal gain.
· Prepare process accounts (including accounting for normal
loss, abnormal loss and abnormal gain).
· Explain the concept of equivalent units.
· Determine the value of complete units and work-in-progress

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(WIP), using weighted average and FIFO methods.

· Differentiate between by-products and joint products.
· Estimate the value of by-products and joint products at split off
point (the point of separation).
(iii) Service costing
· Identify situations where the use of service/operation
costing is appropriate.
· Illustrate suitable unit cost measures that may be used in
different service/operation situations.
· Carry out service cost analysis in simple service industry
situations.
2. Costing techniques
(a) Explain the various types of costing technique.
(b) Prepare an income statement and determine the profit or loss under
absorption and marginal costing.
(c) Describe the advantages and disadvantages of absorption and marginal
costing.
(d) Reconcile the profits or losses computed under absorption and marginal
costing.
3. Introduction to cost control and cost reduction
(a) Explain the meaning of cost control.
(b) Explain the meaning of cost reduction.
(c) Distinguish between cost control and cost reduction.
(d) Explain the following processes of cost reduction:
(i) Improving efficiency and standards;
(ii) Reducing the labour costs;
(iii) Applying work study;
(iv) Using organisation and methods (O & M); and
(v) Applying value analysis and value engineering.

D. FORECASTING, BUDGETING AND BUDGETARY CONTROL - 20%

1. Forecasting techniques
(a) Explain the principles of time series analysis (cyclical, trend and
seasonal variations and random elements).
(b) Explain the advantages and disadvantages of time series analysis.
(c) Calculate moving averages; use trend and seasonal variation (additive
and multiplicative) to make budget forecasts.
2. Budgeting
(a) Explain the importance of budgeting system.
(b) Describe the stages in the budgeting process.
(c) Explain the importance of principal budget factor.
(d) Prepare simple functional budgets:
(i) Sales budget;
(ii) Production budget;
(iii) Material usage and purchase budget without losses; and
(iv) Labour budget.
(e) Prepare simple cash budget without cash discount.
(f) Prepare simple master budget.

E. STANDARD COSTING AND BASIC VARIANCE ANALYSIS - 15%

1. Purpose and principles of standard costing

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(a) Explain standard costing system.

(b) State the purposes of standard costing.
(c) Describe the operation of a standard costing system.
(d) Prepare cost standards card.
(e) State the types of cost standards.
2. Calculate basic variances and their analyses
(a) Material cost variance
(i) Price variance
(ii) Usage variance
(b) Labour cost variance
(i) Rate variance
(ii) Idle time variance
(iii) Efficiency variance
(c) Variable overhead cost variance
(i) Expenditure (rate) variance
(ii) Efficiency variance
(d) Fixed overhead cost variance
(i) Expenditure variance
(ii) Capacity variance
(iii) Efficiency variance
(e) Sales variance
(i) Selling price variance
(ii) Sales quantity variance
3. Interpret the various variances.
4. State the causes and remedies for the variances.
5. Reconcile the budgeted and actual profits under standard, marginal and
absorption costing methods.

F. DECISION MAKING TECHNIQUES - 20%

1. Cost volume profit (CVP) analysis
(a) Explain the concept of CVP.
(b) Calculate breakeven point, margin of safety and target profit for a
single product.
(c) Prepare and explain breakeven chart (traditional approach.
contribution approach and profit volume approach) for single product.
(d) Explain the limitations of CVP analysis.
2. Relevant cost analysis
(a) Explain the concept of relevant cost and revenue.
(b) Identify and calculate relevant cost for specific decision situations from
given data.
(c) Explain and apply the concept of opportunity costs.
3. Limiting factors
(a) Identify limiting factors in a scarce resource situation and select an
appropriate technique.
(b) Determine the optimal production plan, where an organisation is
restricted by a single limiting factor within the context of make-or-buy
decisions.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

A3. BUSINESS ENVIRONMENT

AIM
To enable students gain an understanding of business environment (global and national). A
sound knowledge of markets, financial markets, entities and organisations to provide a
foundation for business professionals. This subject revolves around a basic understanding of
economics,management of businesses; business ethics, governance, corporate social
responsibility, management information and sustainability.

Linkage with other Subjects

The diagram below depicts the relationship between this subject and other subjects.

Main competences
On successful completion of this paper, candidates should be able to:
· Explain the underlining principles of management theory in the context of concepts,
functions, ethical considerations and recent developments in business management
process;
· Explain behavioural aspects of management control and the importance of
organisational structure and design;
· Understand the basic concepts of leadership and requirements for effective
communication within and outside a business organisation;
· Understand issues associated with building, leading and managing effective teams
and organisational conflict;
· Explain strategy, alternative approaches to strategy development, and sustainable
competitive advantage; and

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

· Understand the applications of basic economic theories and business planning to

solving business environmental problems locally and globally for competitive edge.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Business Environment paper is for three (3) hours with additional fifteen (15) minutes
reading time. The paper is in two (2) sections. Section A comprises twenty (20) Multiple Choice
Questions (MCQs) that cover all areas of the syllabus. Section B comprises six (6) questions
of which candidates are required to attempt four (4). Questions in Section B will focus on
specific areas of the syllabus.

Ethics and professional skepticism

Students should note that underlying ethical thinking is required in all business processes and
procedures, relationships and guiding management in decision making. Students will also be
expected to apply professional skepticism and critical thinking on the job.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and
should guide the study time spent on each. Over time, the marks available in the assessment
will be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Detailed contents

A. Business processes and environment - 25%

1. Nature of business, types and objectives
(a) Explain the nature, types and objectives of business organisation.
(b) Explain the basic characteristics, purposes, merits and demerits of the
following types of business organisation:
(i) Sole proprietorship;
(ii) Partnership:
· General partnership;
· Limited partnership; and
· Limited liability partnership
(iii) Limited liability and unlimited companies:
· Private
· Limited by shares
· Limited by guarantee
· Unlimited
· Public
(iv) Non-governmental organisations (NGOs);
(v) Public sector organisations;
(vi) Alliances;
(vii) Cooperative societies; and
(viii) Joint Ventures.
(c) Identify and explain the various business functions;
(d) Explain the importance of business to its stakeholders;
(e) Explain the different classifications of economic activities based on the
following occupations:
(i) Profession/Vocation;
(ii) Employment; and
(iii) Business.
(f) State the merits and demerits of each of the occupations listed above.

2. Business and organisational structures and choices

(a) Explain the basic characteristics and purposes of the following
organisational structures:
(i) Centralised;
(ii) Decentralised;
(iii) Matrix and mixed;
(iv) Networks; and
(v) Virtual arrangements.
(b) Explain the advantages and disadvantages of each of the organisational
structures listed above.
(c) Identify the factors that may influence management choice of
organisational structure.
(d) List and explain the consequences of poorly designed organisational
structure.
(e ) Describe organisational chart
(f) Explain the usefulness and limitations of organisational chart.
(g) Explain the purposes of committees in the organisational structures of
a business organisation.
(h) State the advantages and disadvantages of committees.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(i) Explain the functions of the following board committees:

(i) Audit committee; and
(ii) Remuneration committee.
(j) State and explain the roles of the following board members:
(i) Chairman;
(ii) Secretary;
(iii) Managing Director;
(iv) Executive Director;
(v) Non Executive Director; and
(vi) Independent Non Executive Director.
3. The business environment
(a) State the characteristics of business environment.
(b) Explain the impact of government policies on business.
(c) State the legal and regulatory frameworks that affect business
operations.
(d) State and explain the two major models for analysing business
environment.
(e) Identify and explain how firms can adapt to their environments.
(f) Explain the meaning and importance of the following:
(i) Globalisation/international business;
(ii) Macroeconomic/national environment;
(iii) Microeconomic/markets and industries; and
(iv) Stakeholders.
(g) Explain the concept of environmental scanning, its methods and
importance.
(h) Explain the various sources of information for environmental scanning.
(i) Identify and explain the steps involved in conducting a SWOT analysis.
(j) Explain the benefits of SWOT analysis to business firms.
(k) State the pitfalls of using SWOT analysis by firms.
(l) Describe the context environment in which an organisation operates,
including the primary political, economic, sociocultural, technological,
environmental, legal and regulatory aspects (PESTEL).
(m) Identify and explain the steps involved in conducting a PESTEL analysis.
(n) Explain the benefits of PESTEL analysis to business firms.
(o) State the pitfalls of using PESTEL analysis by firms.
(p) Define and explain the importance of corporate social responsibility
(CSR) and sustainability practices by firms.
(q) List and describe ways that businesses can adopt in affecting their
environment for the benefits of all stakeholders.

B. The role of accountancy in business and society - 15%

1. Finance function
(a) List the roles and accounting functions within an organisation
including:
(i) Financial reporting;
(ii) Management accounting; and
(iii) Treasury management.
(b) Explain internal checks and internal controls.
(c) Explain internal audit functions within and organisation.
(d) Explain the role statutory audit and assurance play in the performance of
an organisation.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

2. Ethics and code of corporate governance

(a) Define ethics and explain its importance to the professional accountant.
(b) Describe the roles of professional bodies and regulators in promoting
ethical awareness and discipline.
(c) State the fundamental principles of ethics.
(d) Explain the code of conduct as established by ICAN and IFAC for
professional accountants.
(e) Describe organisational values that promote ethical behaviours.
(f) Explain the concept of “acting in public interest”.
(g) Explain actions that could create ethical conflicts in a business.

C. Management and organisational behaviour - 20%

1. Basic management functions
(a) Give various definitions of management.
(b) Identify and explain types of management skill.
(c) Explain the following basic management functions, their importance and
application in the field of accounting:
(i) Planning;
(ii) Organising;
(iii) Controlling;
(iv) Coordinating;
(v) Directing; and
(vi) Supervising.
(d) Identify and explain the various management roles.
2. Management, individual and organisational behaviour
(a) Explain the nature and significance of formal and informal organisation.
(b) Explain the role and importance of organisational culture.
(c) Explain the relationship between leadership and management.
(d) State the roles of individual and group behaviour in organisations.
(e) Identify and explain conflict management and various resolution
mechanisms.
(f) Explain the nature and significance of team formation, development and
management.
(g) Explain the concept of employee motivation and its relationship with
productivity.
(h) State and explain the various management theories with emphases on
scientific, administrative and other modern management theories; such
as Frank and Lillian Gilbreth's motion theory, Hertzberg's Hygiene,
Motivation factor theory and other related theories.
(i) Explain the uses of technology business modelling.
(j) Explain project management.
(k) Explain emotional intelligence.
(l) Explain social thinking.
3. Communications in business
(a) Explain the basic elements of communication.
(b) Explain verbal and non-verbal communication.
(c) State the principles of effective listening.
(d) Explain organisational communication:
(i) Formal and informal; and
(ii) Internal and external.
(e) Explain methods of business communication.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(f) State the barriers to effective communication.

(g) State the different communication patterns.
(h) Explain the process and conduct of meetings.
(i) Explain the basic elements of report writing.
(j) Explain the process of electronic communication.
4. Digital Communication
Explain:
(a) Email systems and its utilisation;
(b) Website platforms and their utilisation;
(c) Uses and management of social media accounts;
(d) Uses and management of social media pages; and
(e) Digital marketing.

D. Elements of microeconomics and macroeconomics - 20%

1. Introduction to economics and the market
(a) Explain basic economic concepts.
(b) Explain microeconomics and macroeconomics.
(c) Identify and explain basic economic problems.
2. Demand and supply, and price mechanism
Explain:
(a) Concepts of demand and supply;
(b) Application of demand and supply; and
(c) Market determination of equilibrium price and quantity.
3. Costs, revenue and productivity
Identify and explain cost, revenue and profit concepts
4. Market structures
Identify and explain:
(a) Perfect competition (shut-down point for a perfect competitive firm);
(b) Pure monopoly; and
(c) Monopolistic competition.
5. Market failure, externalities and interventions
Identify and explain market failure, types of externalities and
interventions.
6. National income accounting
Explain:
(a) Basic concepts of national income;
(b) Methods of computing national income;
(c) Problems of measuring national income; and
(d) Uses of national income estimates.
7. Financial institutions
Explain the following:
(a) Central banking;
(b) Universal/commercial banking;
(c) Development banking;
(d) Other financial institutions;
(e) Money and capital markets; and
(f) Foreign exchange markets (NAFEM, NAFEX, interbank rates, etc).
8. Issues in monetary and fiscal policy
Identify and explain:
(a) Monetary policy variables; and
(b) Fiscal policy variables.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

9. Issues of inflation and unemployment

Identify and explain:
(a) Inflation – types and causes;
(b) Unemployment – types and causes; and
(c) Phillips curve.
10. Issues of economic growth and development
Explain:
(a) Economic growth and development;
(b) Sources of economic growth; and
(c) Economic planning.

E. Technology and data analysis - 20%

1. Business uses of computers and information technology (IT)
(a) Explain the following:
(i) Database systems;
(ii) Accounting software;
(iii) Spread sheet applications;
(iv) Enterprise resource planning (ERP);
(v) Artificial intelligence (AI); and
(vi) Customer relationship management (CRM).
(b) Describe how the application of big data and data analytics can improve
business operations.
(c) Define cybersecurity.
(d) List the key risks to data that can occur through cyber attacks.
(e) List and explain actions that can be put in place to mitigate cyber attacks.
2. E-commerce and electronic businesses
(a) Explain:
(i) Business case scenarios for firms' e-commerce proposition;
(ii) IT policies as stepping stone to e-commerce and e-business;
(iii) Making choices for e-commerce and e-business deployment;
(iv) Benefits and challenges of e-commerce and e-business;
(v) Business operations outsourcing methodologies; and
(vi) Data centre disaster recovery, contingency plans and recovery
alternatives.
(b) Discuss the following concepts in relation to e-commerce:
(i) IT infrastructure requirements for e-commerce and e-business;
(ii) The internet as the backbone for e-commerce;
(iii) Social media platforms;
(iv) E-commerce models;
(v) Payment systems including mobile payment platforms; and
(vi) Digitisation of the middleman with examples such as Amazon,
eBay, Konga, JiJi, etc.
3. Emerging technologies and the accountancy profession
Explain the following emerging technologies and how they affect
business operations:
(a) Cloud computing;
(b) Block chain;
(c) Fintech;
(d) Statistical Modelling;
(e) Internet of things (IoT);

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

A4. CORPORATE AND BUSINESS LAW

Aim
To equip candidates with understanding and knowledge of law relevant to business and its
operations. As professional accountants, there is need for a strong background in corporate
and business law, particularly, the laws that regulate business organisations, commercial
activities, employment relations, as well as those that are relevant to public sector entities.

Linkage with other related subjects

This diagram depicts the relationship between this subject and other related subjects.

Main competences
On successful completion of this paper, candidates should be able to:
v Understand the nature, components and sources of Nigerian law, as well as the court system in
hierarchical order;
v Understand the law on the nature, formation and management of partnerships and companies;
v Compare and contrast law and ethics;
v Explain law of contracts, including e-contract.
v Explain law of agency: types, duties and rights, negligence and vicarious liability in professional practice,
as well as types of goods, duties and rights of sellers and buyers of goods, formation of hire purchase
contracts and the duties of parties thereto;

v Understand the key principles of insurance contract, negotiable instruments and the legal position of the
parties to them;
v Explain the basic law on banking, including the functions and duties of the Central Bank of Nigeria, other
banks and financial institutions under the Central Bank Act 2023 (as amended) and Banks and Other
Financial Institutions Act 2020 (as amended); and
v Understand alternative dispute resolution (ADR) mechanisms.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for Accountants (IESBA) and
ICAN. These ethical considerations will be at both the organisational level and for individuals, particularly with
respect to the accountant in business.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Method of assessment
The Corporate and Business Law paper is for three (3) hours with additional fifteen (15) minutes reading time. The
paper is in two (2) sections. Section A comprises twenty (20) Multiple Choice Questions (MCQs) that cover all areas
of the syllabus. Section B comprises six (6) questions of which candidates are required to attempt four (4).
Questions in Section B will focus on specific areas of the syllabus.

Ethics and professional skepticism

Candidates should recognise that ethics is not law, but ethics form the basis of law in every society and profession.
This will ensure that laws are just and fair. Candidates are therefore expected to demonstrate professional
skepticism and consideration for ethics in addressing any issues raised in any question in Corporate and Business
Law. Critical thinking is essential to meet this requirement.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and should guide the study
time spent on each. Over time, the marks available in the assessment will be within the ranges of weightings below,
while slight variations may occur in individual assessments to enable suitably rigorous questions to be set.

Detailed Syllabus
A. THE NIGERIAN LEGAL AND COURT SYSTEMS - 5%
1. Identify and explain sources of Nigerian law, excluding customary law.
2. Outline the distinction between civil law and criminal law.
3. Differentiate between case law and statutes.
4. Explain the hierarchy of courts in Nigeria.
5. Explain the application of virtual evidence in the Nigerian judicial system.
6. Explain the requirements of the Nigerian Cyber Crime (Prohibition, Protection,
etc) Amendment Act, 2024.
7. Explain the governing principles of the Nigerian Data Protection Regulations
(NDPR), 2023 (as amended).

B PARTNERSHIP AND BUSINESS NAME, AND COMPANY AND INSOLVENCY

LAW - 35%
1. Partnership law and business name registration

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(a) Explain the nature and types of partnership.

(b) Differentiate between each type of partnership and a company.
(c) Describe the process by which each type of partnership may be formed,
including the preparation of relevant documents.
(d) Explain eligibility to be a partner of each type of partnership, liability of the
partners and limitations, (if any) thereto, relationship of the partners as
well as changes in partners, and partnership business.
(e) Identify the procedure for management of each type of partnership,
including the rights and duties of partners, their relationship inter se and
with third parties.
(f) Explain limited partnership (LP) and limited liability partnership (LLP)
accounts and audit, annual returns as well as assignability of partners'
interest.
(g) Explain investigation and litigation in relation to limited partnership, and
limited liability partnership, as well as criminal proceedings by the
Attorney-General of the Federation.
(h) Explain foreign limited partnership.
(i) Explain the reasons and procedure for winding up and dissolution of
each type of partnership.
(j) Explain the law and procedure of business name registration as well as
the effects of business name registration.
2. Company Law
(a) Outline the composition and functions of the Corporate Affairs
Commission.
(b) Explain the functions and procedures of Administrative Committee of the
Corporate Affairs Commission.
(c) Describe the types of company, including single shareholder company
and small company, and their implications.
(d) Explain the procedure for incorporation of a company, documents of
incorporation and replacement of statutory declaration with statement of
compliance, pre-incorporation contracts, promoters and their duties.
(e) Explain the consequences of incorporation and lifting of the veil of
incorporation.
(f) Describe the contents and effects of the memorandum and articles of
association (including the ultra vires rule and its effect) and how each
could be amended.
(g) Explain modes of raising capital for the company, the procedures for
issue of shares, redeemable preference shares, and debentures
(corporate bonds).
(h) Identify and explain ways in which the capital of a company is raised and
maintained or preserved, including laws relating to acquisition of own
share by a company and distribution of profits.
(i) Explain the securities of a company and creation (including types) of
charges over its properties.
(j) Explain giving of assistance by the company to shareholders to acquire
its own shares, and pre-emptive right of a shareholder of a private
company to be allotted more shares.
(k) Identify types of director.
(l) State how directors may be appointed (including appointment of a single
director and minimum of one-third independent (non-executive directors
in applicable situations), re-appointed, removed, including on grounds of

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

fraud, dishonesty, or unethical practice or in any other way cease to hold

office, and restriction of multiple directorship.
(m) Outline the duties of directors, including fiduciary and other duties and
the powers of directors.
(n) Explain proceedings of directors' meetings and their entitlement to
remuneration.
(o) State the consequences of a breach of duty by a director.
(p) State the requirements for share transfer, transmission of shares and
disclosure of ownership.
(q) Explain how shareholders could influence the composition of the board,
strategies or decisions of a company.
(r) Discuss meetings of shareholders and procedure for requisitioning
meetings.
(s) Identify the rights of shareholders to challenge the management of a
company.
(t) Explain issues of appointment, powers, functions, removal and
resignation of a company secretary, including dispensation with
appointment of company secretary by single shareholder company and
small company.
(u) Describe types of company meeting (statutory meeting, annual general
meeting, extraordinary general meeting).
(v) Explain the notices required, including electronic notices by e-mail,
WhatsApp and text messages, and resolutions, right to receive notice,
right to attend and requisition meeting, voting at meetings (including
electronic voting), companies that need not hold annual general meeting,
authority of companies to hold virtual meetings.
(w) Differentiate between ordinary resolutions, special resolutions, and
resolutions requiring special notice.
(x) Describe statutory books and practical issues that relate to record
keeping and filing.
(y) Explain the duties, powers and responsibilities of a company auditor,
outlining the basic steps of appointment, removal and resignation, small
company exempted from audit (including the advantages and
disadvantages), composition and functions of audit committee, and
certification of audit report by management.
(z) Explain the law on administration of companies, appointment of
administrator and joint administrators, the roles of the court and directors
in appointment of administrators, who may apply for appointment of
administrator, functions of administrator, and effect of administration.
(aa) Explain the modes and procedure for winding up of companies,
committee of inspection, treatment of contributories and creditors,
and effect of winding up (in outline).
(bb) Explain arrangements, compromises and netting.
(cc) State the highlights of the Business Facilitation (Miscellaneous
Provisions) Act 2023 that amended CAMA 2020.
3. Law of Insolvency
(a) Describe types of insolvency (including the rule on cash flow insolvency),
power to appoint receivers and managers by the court and outside the
court.
(b) Explain the duties, powers and liabilities of receivers and managers,
procedure after appointment, and enforcement of duty of receivers and

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

managers.
(c) Outline the consequences of insolvency.
(d) Explain nature of insolvency practice and the role of practitioners.

C. CRIMINAL LAW - 10%

1. Criminal law regulating businesses and professional accountancy practice
(a) Distinguish among laws, ethics and ethical codes.
(b) State the basic laws relating to theft, fraud and deception.
(c) State the basic laws relating to bribery.
(d) State the basic laws relating to money laundering.
(e) Explain the basic criminal laws relating to negotiable instruments.
(f) Identify situations relating to data protection and computer misuse.
(g) Outline electronic evidence.
(h) Explain the role of an accountant as an expert witness in fraud cases,
including computer fraud.

D. LAWS OF COMMERCIAL TRANSACTIONS - 35%

1. Law of contract
(a) Explain the nature, framework and types of contract.
(b) Describe how a contract may be made, emphasising the elements of a
valid contract and how it can be enforced.
(c) Explain vitiating elements and how a contract may be terminated as well
as the remedies for breach of contract.
(d) Describe the nature of e-contracts and their enforcement and explain
artificial intelligence (AI) and smart contracting.
2. Agency
(a) Explain the nature of an agency relationship.
(b) Identify situations where agency exist.
(c) Explain the duties, rights and legal capacity of an agent.
3. Law of torts
(a) Explain the tort of negligence and damages for negligence, including
professional negligence and its consequences.
(b) Explain vicarious liability and passing off.
4. Sale of goods
(a) Define goods.
(b) Explain passing of property.
(c) State the duties, rights and remedies of a seller and buyer.
(d) Explain the duties and rights of a seller and buyer, as well as elements of
passing off in sale of property.
5. Hire purchase
(a) Distinguish hire purchase from similar contracts.
(b) State the mandatory contents of a Memorandum of hire purchase.
(c) Explain the rights, duties and remedies of parties to a hire purchase
contract.
6. Insurance
Explain the nature of insurance contract, indemnity, insurable interest,
subrogation and contribution, as well as assignment of policy.
7. Banking and negotiable instruments
(a) Explain the duties of banks and other financial institutions.
(b) Describe the powers and duties of the Central Bank of Nigeria [reference
to Central Bank Act, 2024(as amended) as well as Banks and Other

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Financial Institutions Act, 2020 (as amended)].

(c) Explain types of negotiable instrument, and the duties and liabilities of
parties to a bill of exchange.
(d) Define bill of lading and explain its nature and operation.
(e) Describe letter of credit and letter of comfort.

E. EMPLOYMENT LAW - 5%
1. Identify situations that give rise to employment contracts.
2. State the law relating to employment, including employment contracts.
3. Explain the duties and rights of employer and employee, dismissal, unfair
dismissal, as well as remedies and other claims of the employee.
4. State requirements for employment bond, non-compete, confidentiality, and
data protection provisions in employment contracts.

F. LAW OF TRUSTS AND ADMINISTRATION OF ESTATE - 5%

1. Explain creation of trusts, the duties, powers, rights and accounts of trustees, as
well as the rights of beneficiaries.
2. Explain the investments authorised by the Trustee Investment Act, 2004 (as
amended).
3. Differentiate between executors and administrators, and explain their duties.
4. Explain differences between probate and letter of administration.
5. State the regulations of trustees by Securities and Exchange Commission
(SEC).

G. ALTERNATIVE DISPUTE RESOLUTION MECHANISMS - 5%

1. Describe alternative dispute resolution (ADR) mechanisms.
2. Explain the nature, operation, advantages and disadvantages of alternative
dispute resolution mechanisms as against court-adjudicated disputes.
3. Explain briefly, arbitration and arbitral awards, as well as other types of ADR.

Guide to examination assessment

ICAN reserves the right to examine any topic in the syllabus at any examination diet.
New laws may be examined after six months from the dates of issue, even if the effective date
is in the future.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

SKILLS LEVEL
B1. FINANCIAL REPORTING

Aim
To enable candidates' develop their knowledge of Financial Accounting to a higher level of
skills and ability to prepare financial statements, including consolidated financial statements
and sustainability disclosures, in accordance with IFRS accounting standards and IFRS
Sustainability Disclosure Standards issued by the International Accounting Standards Board
(IASB).

Candidates are also expected to demonstrate an understanding of and competence in

financial statements analyses, interpretation and knowledge of sustainability reporting.

Linkage with other related subjects

This diagram depicts the relationship between this subject and other related subjects.
Financial accounting is a pre-requisite to this subject.

Main competences
On successful completion of this paper, candidates are expected to be able to:
· Explain the importance of regulatory frameworks for accounting and reporting;
· Identify and state the circumstances in which private sector entities are required to
prepare and present statutory financial statements in line with IFRS accounting
standards;
· Identify and state the laws, regulations, accounting standards and other
requirements that govern the preparation of financial statements by public and
private sector entities;
· Account for specific transactions in accordance with relevant IFRS accounting
standards;
· Draft and present general purpose financial statements, or extract therefrom, of an
entity and simple groups in accordance with relevant accounting policies and in line
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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

with IFRS accounting standards and local laws;

· Assess the circumstances in which the use of IFRS accounting standards may not be
required for companies;
· Analyse and interpret financial statements of entities and simple groups;
· Explain the basis of sustainability reporting using IFRS sustainability disclosure
standards; and
· Explain recent developments and ethical issues in the area of financial reporting.

Prior knowledge
Financial Reporting assumes and develops on the knowledge and skills acquired in Financial
Accounting. Background knowledge in Management Accounting, and Corporate and
Business Law will be needed by candidates.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Financial Reporting paper is for three (3) hours with fifteen (15) minutes reading time. The
paper is in three (3) sections, consisting seven (7) questions in all. Section A comprises one (1)
compulsory question, while sections B and C comprise three (3) questions each and
candidates are required to attempt any two (2) questions from each section. The compulsory
question could be an integrated question combining two (2) or more areas of the syllabus.

Ethics and professional skepticism

Candidates should note that underlying ethical thinking is required in financial reporting and
sustainability reporting processes.

Candidates will also be required to demonstrate professional skepticism, substance over form
and critical thinking when making all judgements.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and
should guide the study time spent on each. Over time, the marks available in the assessment
will be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Detailed contents

A. CONCEPTUAL AND LEGAL FRAMEWORKS FOR FINANCIAL REPORTING - 10%

1. Discuss the need for regulatory frameworks in financial reporting.
2. Conceptual framework
(a) Explain the meaning and purpose of conceptual framework of financial
reporting.
(b) Explain the objectives, qualitative characteristics and limitations of
financial statements.
(c) Discuss the underlying assumptions in preparing financial statements
and how they are applied to financial reporting.
(d) Identify users of financial statements and their information needs.
(e) Identify and discuss the elements of financial statements.
(f) Discuss recognition and measure of elements of financial statements.
(g) Explain the concept of capital maintenance.
(h) Differentiate between principle-based and rule-based financial reporting

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

frameworks.
(i) Discuss accrual and cash bases of accounting.
(j) Discuss financial statements in relation to reporting entities under the
conceptual framework.
(k) Explain the standard setting process of International Accounting
Standards Board (IASB) and the relationship with national standard
setters.
(l) Discuss the due process for revision of standards.
(m) Discuss the process of adoption of IFRS accounting standards and
application of local standards.
(n) Explain the peculiar nature and relevant frameworks of specialised, not-
for-profit and public sector entities including IFRS accounting standards,
national standards and International Public Sector Accounting
Standards (IPSAS).
(o) Discuss the need and role of the International Sustainability Standards
Board (ISSB)
2. Legal framework
(a) Identify and discuss laws and regulations that govern the preparation of
financial statements.
(b) Identify and discuss relevant provisions of Companies and Allied Matters
Act 2020 (as amended), Financial Reporting Counting of Nigeria
(amendments) Act, 2023 and special pronouncements by regulatory
authorities, including:
(i) Central Bank of Nigeria (CBN);
(ii) Nigeria Deposit Insurance Corporation (NDIC);
(iii) Financial Reporting Council of Nigeria (FRC);
(iv) National Insurance Commission (NAICOM);
(v) Nigerian Exchange Group (NGX);
(vi) Securities and Exchange Commission (SEC); and
(vii) Pension Commission (PENCOM) etc.

B. IFRS ACCOUNTING STANDARDS AND POLICIES RELATING TO SPECIFIC

TRANSACTIONS IN FINANCIAL STATEMENTS - 15%
1. Tangible non-current assets
Calculate, discuss and account for tangible non-current assets in accordance
with the provisions of relevant accounting standards (IAS 16, IAS 20, IAS 23,
IAS 40, IFRS 5, and IFRS 16).
2. Intangible non-current assets (IAS 38)

Calculate, discuss and account for intangible non-current assets in accordance

with the provisions of IAS 38.
3. Impairment of assets (IAS 36)

Calculate, discuss and account for impairment of tangible and intangible non-
current assets (excluding financial assets and liabilities) in accordance with the
provisions of IAS 36.
4. Financial instruments: financial assets and liabilities
(a) Differentiate between debt and equity financial instruments.
(b) Calculate, discuss and account for financial instruments using amortised
cost, fair value through profit or loss and fair value through other
comprehensive income in accordance with the provisions of relevant

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

accounting standards (IAS 32, IFRS 7, IFRS 9 and IFRS 13) with respect
to measurement (including fair value and amortised cost), recognition,
de-recognition and disclosures, excluding hedging and derivatives but
including expected credit losses using simplified approach.
5. Inventories and revenue from contracts with customers (IAS 2, IFRS 15)

Calculate, discuss and account for inventories and revenue from contracts with
customers in accordance with the provisions of relevant accounting standards
(IAS 2 and IFRS 15).
6. Provisions, contingent liabilities and assets, and events after the reporting
period (IAS 10, IAS 37)
Calculate, discuss and account for provisions, contingent liabilities and assets
as well as events after the reporting period in accordance with the provisions of
relevant accounting standards (IAS 10, IAS 37).
7. Income taxes (IAS 12)

Calculate, discuss and account for income tax, including current and deferred
tax in accordance with the provisions of IAS 12.
8. Earnings per share (IAS 33)

Calculate, discuss and disclose earnings per share (EPS) in accordance with
provisions of IAS 33.
9. Effects of changes in foreign exchange rates (IAS 21)
(a) Accounts for foreign currency transactions
(b) Translate financial statements
(c) Report exchange rate changes

C. PREPARATION AND PRESENTATION OF SINGLE ENTITY GENERAL

PURPOSE FINANCIAL STATEMENTS - 20%
1. Preparation of financial statements

(a) Discuss accounting policies in accordance with the provisions of IAS 8, in

relation to:
(i) Selection of accounting policies;
(ii) Consistency in the application of accounting policies;
(iii) Changes in accounting policies;
(iv) Disclosure of material accounting policy information; and
(v) Changes in accounting estimates and accounting for material
errors in prior period.
(b) Prepare and present single entity general purpose financial statements
including statement of financial position, statement of profit or loss and
other comprehensive income, statement of changes in equity and
relevant notes in accordance with IAS 1 and other relevant IFRS
accounting standards.
(c) Explain changes introduced by IFRS 18 to IAS1.
(d) Prepare and present statement of cash flows for single entities in
accordance with IAS 7, using direct and indirect methods.
(e) Discuss the objectives, limitations and features of general purpose
financial reporting.
(f) Other national disclosures in accordance with Companies and Allied
Matters Act 2020 (as amended):

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(i) Prepare value added statement; and

(ii) Prepare five-year financial summary.

D. PREPARING AND PRESENTING FINANCIAL STATEMENTS OF SIMPLE GROUP

(PARENT, A SUBSIDIARY AND AN ASSOCIATE) - 20%
1. Understanding a simple group
(a) Explain the concept of group and the objectives of preparing group
financial statements.
(b) Discuss the provisions of the relevant accounting standards for the
preparation and presentation of financial statements of simple group –
(IAS 27, IAS 28, IFRS 3 and IFRS 10), including the use of fair value for
non-controlling interest.
(c) Calculate non-controlling interest, using alternative methods and effect
necessary adjustments required to prepare the financial statements of
simple group.
2. Preparation and presentation of simple group financial statements
(a) Prepare and present statement of financial position of a simple group (a
subsidiary and an associate in accordance with its accounting policies
and the provisions of relevant international financial reporting standards
(IAS 1, IAS 27, IAS 28, IFRS 3 and IFRS 10).
(b) Prepare and present statement of profit or loss and other comprehensive
income of a simple group (a subsidiary and an associate), in accordance
with its accounting policies and the provisions of relevant international
financial reporting standards (IAS 1, IAS 27, IAS 28, IFRS 3 and IFRS
10).
(c) Explain changes introduced by IFRS 18 to IAS 1.
(d) Prepare and present statement of cash flows of a simple group (a
subsidiary and an associate), in accordance with the provisions of IAS 7.
(e) Discuss management disclosures, analyses and commentaries on
simple group financial statements.
(f) Explain the application of IFRS accounting standards to specified simple
group scenarios.

E. ANALYSES AND INTERPRETATION OF FINANCIAL STATEMENTS - 15%

1. Analyses of financial statements
(a) Identify and discuss types of analysis and interpretation of financial
statements.
(b) Discuss various aspects of financial position and performance that may
be assessed (profitability, efficiency, liquidity, solvency, investors'
returns) through the analyses and interpretation of financial statements.
(c) Define ratio, identify and calculate various types of ratio used in the
assessment of financial position and performance of a business entity.
(d) Analyse and interpret computed ratios and assess the current period
financial position and performance of a business entity in comparison
with:
(i) Its prior period;
(ii) Another given entity for the same period; and
(iii) Industry average for the same period.
(e) Analyse and interpret computed ratios and assess the current period
financial position and performance of a simple group (a subsidiary and an
associate) in comparison with:

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(i) Its prior period;

(ii) Another given simple group entity for the same period; and
(iii) Industry average for the same period.
(f) Discuss the use of statement of cash flows in assessing liquidity and
compare its usefulness with that of a statement of profit or loss and other
comprehensive income when assessing liquidity and going concern of a
business entity.
(g) Identify and assess non-financial information relevant to the assessment
of the performance and financial position of an entity.
(h) Explain the use of earnings per share (EPS) in assessing the
performance of corporate entities in the capital market, especially capital
market reaction to earnings announcement.
(i) Write reports as may be required when analysing and interpreting the
financial position and performance of a business entity and simple group,
drawing conclusions, making recommendations and giving advice from
the perspectives of different stakeholders.
3. Limitations of analyses and interpretation of financial statements
(a) Discuss the limitations of historic financial information in the analyses
and interpretation of financial statements.
(b) Explain how financial statements may be manipulated and discuss the
impact of window dressing and creative accounting on calculated ratios
and how they can distort analyses and interpretation of financial
statements.
(c) Explain how analyses and interpretation of financial statements of
specialised and not-for-profit organisations differ from those of profit-
oriented organisations.
(d) Explain why earnings per share (EPS) trend may be a better indicator of
performance, when compared with a company's profit trend and discuss
the limitations of using EPS as a performance measure.
(e) Explain why and how the use of consolidated financial statements might
limit analyses and the use of interpretation techniques.
(f) Discuss the use of other information, including non-financial information
relevant to the assessment of an entity's performance.

F. SUSTAINABILITY REPORTING FRAMEWORK - 10%

1. Discuss the movement from social and environmental accounting to
sustainability reporting.
2. Discuss sustainability reporting and methods of reflecting its impacts in financial
statements and narratives for investors.
3. Discuss factors responsible for the increasing demand for sustainability
reporting – internationally and locally.
4. Evaluate the problems and limitations of sustainability reporting.
5. Discuss the principles and content elements of Global Reporting Initiative (GRI)
and United States (US) Sustainability Accounting Standards Board (SASB)
frameworks for sustainability reporting and Nigeria Exchange Group's
guidelines on sustainability reporting.
6. Evaluate the impact of sustainability reporting on corporate performance
measures.
7. Discuss the emergence of International Sustainability Standards Board (ISSB).
8. Discuss international sustainability standard issued by ISSB:
IFRS S1 – General Requirements for Disclosure of Sustainability-related

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Financial Information.
9. Explain the roadmap for adopting IFRS S1 and S2 issued by the Financial
Reporting Council (FRC) of Nigeria for the implementation of S1 and S2:
(a) Early adopters for accounting period ending on or before December 31,
2023;
(b) Voluntary adopters for accounting period ending or before December
31, 2026;
(c) Mandatory adopters for accounting period beginning on or after
January 1, 2027; and
(d) Public sector entities - to be communicated later.
10. List and explain, including the timeline for submission, documents to be
submitted by entities adopting IFRS S1 and S2 to Financial Reporting Council of
Nigeria for readiness test assessment, including:
(a) To be submitted at least three (3) months before the beginning of the
reporting date:
i) Board resolution approving the adoption of IFRS sustainability
Disclosure standards;
ii) GAP Analysis Report; and
iii) Implementation plan.
(b) To be submitted not more than three (3) months after the beginning of
the reporting date:
i) IFRS Sustainability Disclosure Policies;
ii) Identification and application of transitional reliefs;
iii) Enterprise Risk Management and Sustainability Framework;
iv) Evidence of Board Approval of the IFRS Sustainability Disclosure
Policies;
v) Evidence of Board-Approval of Enterprise Risk Management and
Sustainability Framework; and
vi) Evidence of Sustainability and ESG-specific training for Board
Members, Management, and Preparers by reputable training
providers acceptable by the FRC.
(c) To be submitted not more than six (6) months after the beginning of the
reporting date:
i. Evidence of registration of the entity and professionals engaged in
the sustainability reporting process with FRC;
ii. Description of Models used for scenario analysis;
iii. Identification of sustainability and climate-related risks and
opportunities;
iv. Evidence of the establishment of a governance structure for
sustainability reporting;
v. Targets and metrics set to manage and measure identified risks
and opportunities;
vi. Identification of aspects of financial reports requiring updates;
vii. Identification of current and anticipated effects of sustainability-
related risks and opportunities on the entity's business model and
value chain; and
viii. Internal control over sustainability reporting.

G. ETHICS, CURRENT AND TECHNOLOGICAL DEVELOPMENTS IN FINANCIAL

REPORTING - 10%
1. Discuss and apply ethical and professional issues in financial reporting and

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

identify appropriate actions.

2. Discuss new accounting standards in issue as may be specified from time to

time.

3. Identify and explain current and emerging issues in financial reporting.

4. Identify and discuss the uses and application of cloud accounting, digital assets,
blockchain, distributed ledger technologies, fintech, etc;

5. Discuss the effect of technological developments in financial reporting, relating

to artificial intelligence, machine learning, etc.

Applicable Accounting Standards

· Preface to IFRS
· Conceptual Framework for Financial Reporting
· IAS 1 - Presentation of Financial Statements
· IAS 2 - Inventories
· IAS 7 - Statement of Cash Flows
· IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
· IAS 10 - Events after the Reporting Period
· IAS 12 - Income Taxes
· IAS 16 - Property, Plant and Equipment
· IAS 20 - Accounting for Government Grants and Disclosure of Government
Assistance
· IAS 21 - The Effects of Changes In Foreign Exchange Rates
· IAS 23 - Borrowing Costs
· IAS 27 - Separate Financial Statements
· IAS 28 - Investments in Associates
· IAS 32 - Financial Instruments: Presentation
· IAS 33 - Earnings Per Share
· IAS 36 - Impairment of Assets
· IAS 37 - Provisions, Contingent Liabilities and Contingent Assets
· IAS 38 - Intangible Assets
· IAS 40 - Investment Property
· IFRS 3 - Business Combinations
· IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations
· IFRS 7 - Financial Instruments: Disclosures
· IFRS 9 - Financial Instruments
· IFRS 10 - Consolidated Financial Statements
· IFRS 13 - Fair Value Measurement
· IFRS 15 - Revenue from Contracts with Customers
· IFRS 16 – Leases
· IFRS 18 - Presentation and Disclosure in Financial Statements
· IFRS S1 – General Requirements for Disclosure of Sustainability-related
Financial Information

Guide to examination assessment

New standards may be examined after six months from the dates of issue, even if the effective
date is in the future.
Applicable laws may be examined after six months from dates of amendment or enactment,
even if the effective date is in the future.
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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

B2. AUDIT, ASSURANCE AND FORENSICS

Aim
To equip the candidates with the knowledge, skills, and abilities required to effectively plan,
gather appropriate and sufficient evidence, analyse and evaluate the evidence to enable them
form opinion and report on audited financial statements and assurance engagements. It will
also equip them with skills to carry out forensics engagements as expert witnesses in court.

Linkages with other related subjects

The diagram below depicts the relationship between this subject and other related subjects in
the syllabus.

Main competences
On successful completion of this paper, candidates should be able to:
· Appreciate the objectives, processes and need for external audit and assurance;
· Recognise and explain ethical and legal issues arising from audit and assurance
assignments;
· Apply core audit and assurance principles and provide advice on the specific
provisions of the applicable laws and regulations in carrying out the audit of companies;
· Explain how an auditor obtains an understanding of the entity and its environment;
· Assess the risk of material misstatements (whether arising from fraud or other
irregularities) and plan an audit of financial statements;
· Explain how an auditor will gather relevant and sufficient evidence on an audit
assignment;
· Describe the various forensic audit services and their procedures;
· Illustrate how technology is used in the audit and assurance process;
· Describe and evaluate internal control system;
· Discuss audit evidence and evaluate ts sufficiency and appropriateness as basis for
audit opinion; and
· Prepare audit report and submit to those that are charged with the governance of
companies, in line with regulations and standards.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Prior Knowledge
This subject requires candidates to have background knowledge and skills in Corporate and
Business Law, Taxation, Financial Accounting and Financial Reporting.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Audit, Assurance and Forensics paper is for three (3) hours with fifteen (15) minutes
reading time. The paper is in three (3) sections, consisting of seven (7) questions in all. Section
A comprises one (1) compulsory question, while sections B and C comprise three (3)
questions each and candidates are required to attempt any two (2) questions from each
section. The compulsory question could be an integrated question combining two (2) or more
areas of the syllabus.

Ethics and professional skepticism

Audit, Assurance and Forensics requires ethical thinking which must be at the forefront of the
skills candidates are expected to demonstrate. Candidates will be required to consider ethical
issues involved in audit, assurance and forensics engagements, procedures or processes in
line with the professional code of conduct and ethics. In addition, candidates will be required
to take into consideration the fundamental principle of “true and fairness”. This is guided by
specific focus across a range of considerations from client's management responsibility and
the auditor's responsibility. Professional skepticism will need to be evidenced in each stage of
the audit, assurance and forensics processes, recognising bias and gaps in evidence.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and
should guide the study time spent on each. Over time, the marks available in the assessment
will be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Detailed contents

A. INTRODUCTION TO LEGAL AND REGULATORY FRAMEWORKS OF AUDIT

AND ASSURANCE - 20%
1. Objectives and need for audit, assurance and forensics
(a) Discuss the concepts of audit, assurance and forensics attestation
services, and relationship among these concepts.
(b) Discuss the concept of forensics and its objectives.
(c) Identify and explain the reasons for audit and assurance.
(d) Explain the benefits of different types of audit and assurance
assignments.
(e) Discuss the objectives of external audit.
(f) Identify the parties in audit and assurance engagements, including the
members of the audit and assurance team, and discuss their roles, duties
and rights.
(g) Compare and contrast the different levels of assurance that may be
obtained from audit and assurance assignments.
(h) Discuss audit expectation gap, including reasonableness gap and
performance gap.
(i) Discuss the role of the internal audit department in maintaining an
effective internal control system.
(j) Compare internal and external audits.
(k) Discuss the peculiarities of public sector audit.
2. The legal and regulatory framework for audit and other assurance
engagements
(a) Discuss the legal and regulatory frameworks for statutory audit and
assurance in line with the provisions of:
(i) Companies and Allied Matters Act 2020 (as amended);
(ii) Financial Reporting Council (FRC) of Nigeria (amendment) Act,
2023;
(iii) International standards on auditing (ISAs); and
(iv) International standards on assurance engagement (ISAEs).
3. Process of audit and assurance
(a) Explain the basic steps of audit and assurance process in relation to:
(i) Nomination;
(ii) Acceptance;
(iii) Engagement;
(iv) Planning (ISA 300, ISA 320);
(v) Execution:
· Evaluation of internal control;
· Obtaining evidence (ISA 500);
· Records and working papers;
· Testing and other works; and
· Evaluating results (ISA 450);
(vi) Conclusion;
(vii) Reporting (ISA 700); and
(viii) Determination and disclosure requirements for key audit matters
(ISA 701).
(b) Explain public interest and the need for professional skepticism in
carrying out audit and assurance engagements.
(c) Discuss the concept of materiality (ISA 320).

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(d) Explain reasonable assurance.

(e) Describe the elements, objectives, and phases of assurance
engagements, including assurance on sustainability information.
(f) Explain international standards on assurance or other relevant
assurance standards, laws and regulations, including those applicable to
assurance on sustainability information.
(g) Explain types of audit opinion and assurance report including
circumstances under which each can be issued.
(h) Discuss the concept of misstatement and material misstatement.
(i) Discuss the different type of misstatements.
(j) Discuss the procedures for evaluating and concluding on material
misstatement.

B. THE NATURE AND USE OF INTERNAL CONTROL (ISA 315 REVISED) - 20%
1. Discuss the meaning, objectives and nature of internal control system.
2. Discuss effective internal control system.
3. Discuss the different types of internal control system.
4. Discuss responsibilities for instituting and evaluating the effectiveness of
internal control system.
5. Discuss the main components of internal control system.
6. Explain how accounting systems and related internal controls may be identified,
recorded and analysed.
7. Discuss the techniques required for evaluating internal controls - walk-through,
spot check, compliance test, substantive test (ISA 530).
8. Evaluate internal controls in a given scenario.
9. Discuss the limitations of internal control.
10. Discuss the contents of a management letter.
11. Discuss internal controls in a computerised accounting environment (ISA 315).
12. Discuss the different frameworks for implementing systems of internal control.
13. Discuss the concept of risk and control matrix.
14. Discuss the methods and techniques for gathering information required to build
an effective system of internal control.
15. Discuss the management responsibility on Internal Control in Financial
Reporting (ICFR) reporting.
16. Discuss information security measures.

C. GATHERING EVIDENCE AND AUDIT REPORT - 25%

1. Gathering evidence
The nature of audit evidence and the selection of sufficient and appropriate audit
evidence (ISA 500 and ISA 570 revised)
(a) Justify the need to maintain and keep working papers and other
documentations.
(b) Evaluate the different sources and quality of evidence and the methods
of obtaining evidence.
(c) Document appropriate procedures for gathering evidence based on a
given scenario (ISA 505, ISA 520).
(d) Identify the circumstances where written representations may be
required (ISA 580).
(e) Evaluate the circumstances requiring discussion with senior assurance
team members (ISA 450) and advise on how this should be
communicated and documented.

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(f) Identify relevant assurance evidence, including contradictory evidence,

to form judgements, make decisions and reach informed conclusions.
2. Audit report
(a) Discuss the various types of audit report.
(b) Explain the basic contents of the auditor's report in a given circumstance.
(c) Differentiate the unmodified from the modified audit report.
(d) Discuss the matters an auditor is required to evaluate before reaching an
opinion.
(e) Assess the correctness of the contents of an unmodified auditor's report.
(f) Specify circumstances leading to the inclusion of the “Material
Uncertainty Related to Going Concern” paragraph in the audit report.
(g) Justify the inclusion of Key Audit Matters (KAM) in the audit report.
(h) Justify when an “Emphasis of Matter” paragraph is to be included in the
auditor's report.
(i) Explain the responsibilities of directors and auditors in respect of the
financial statements.
(j) Explain how the auditor's report is signed.
(k) Identify and explain the matters that must be expressly stated in the audit
report, in compliance with CAMA 2020, (as amended).
(l) State and evaluate the factors to be considered when forming an audit
opinion.
(m) Justify the appropriateness of audit opinions considering the results of
the audit procedures carried out.
(n) Draft auditor's reports suitable for given circumstances.
(o) Advise on the actions auditor may take when a modified opinion is
considered.
(p) Explain the contents of reports to management and directors.

D. FORENSIC ACCOUNTING SERVICES - 15%

1. Discuss the meaning, objectives and nature of forensic engagements.
2. Identify the types of forensic accounting services.
3. Explain how economic damage (through contract or tort) is calculated.
4. Discuss the need for electronic discovery of frauds (computer forensics).
5. Document the process of getting litigation support.
6. Explain the process of investigating different types of frauds (business,
financial, securities, employee, etc.).
7. Explain the process of discovering hidden assets.
8. Discuss how the incidence of professional negligence can occur when
conducting forensic investigation.
9. Explain the contents of the expert report.

E. PROFESSIONAL ETHICS AND PUBLIC INTEREST - 15%

1. Discuss the importance of professional ethics.
2. Differentiate between rule-based and principle-based approaches to
professional ethics.
3. Explain the meaning of public interest in the context of audit and assurance.
4. Discuss ethical issues under IFAC code and ICAN Professional Code of Ethics
and Guide for Members.
5. Compare ethical issues in the governance of private and public entities.
6. Discuss actions required to deal with ethical dilemmas.
7. Assess the ethical threats to independence and safeguards.

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8. Assess the ethical conflicts an accountant faces as an employee in a private or

public entity.
9. Assess the ethical conflicts facing an accountant when charged with
governance in a private or public entity.
10. Discuss the concept of whistle blowing in relation to audit and assurance, and
non-compliance with laws and regulations (NOCLAR).

F. APPLICATION OF TECHNOLOGY IN AUDIT, ASSURANCE AND FORENSIC - 5%

1. Explain the use of statistical analysis in identifying outliers in a client's records.
2. Discuss the need to interrogate client's accounting software systems and the
procedures to be followed.
3. Explain the role of blockchain in aiding the audit process.
4. Discuss how algorithm review will help in the examination of blockchain.
5. Explain how artificial intelligence (AI) tools - robotic process automation (RPA),
and natural language processing (NLP) - assist in auditing clients.
6. Discuss the different types of generative AI in organisational process.
7. Discuss the different risks generative AI poses to auditing.
8. Discuss the types of Cyber, technological and other risks associated with
Information technology.
9. Discuss how drones and optical code recognition tools help in inventory count.
10. Explain the procedures involved in using revenue assurance tools.

Applicable Standards

International Standards on Auditing (ISA):

· 200 – Overall objectives of the Independent Auditor and the conduct of an Audit in
Accordance with the International Standards on Auditing.
· 230 – Audit documentation
· 300 – Planning an Audit of Financial Statements
· 315 - Identifying and Assessing the Risks of Material Misstatement Through
Understanding the Entity and its Environment
· 320 - Materiality in Planning and Performing an Audit
· 450 - Evaluation of Misstatements Identified during the Audit
· 500 - Audit Evidence
· 505 - External Confirmations
· 520 - Analytical Procedures
· 530 - Audit Sampling
· 540- Auditing Accounting Estimates, Including Fair Value Accounting
Estimates and Related Disclosures
· 580 - Written Representations
· 700 - The Auditor's Report on Financial Statements
· International standards on assurance engagement (ISAEs)

Note: Approved and released standards may be examined after six months from dates of
issue, even if the effective date is in the future.

Guide to examination assessment

New standards may be examined after six months from the dates of issue, even if the effective
date is in the future.
Applicable laws may be examined after six months from dates of amendment or enactment.

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B3. TAXATION

Aim
To enable candidates' understand principles of taxation and laws and apply them to individuals
and corporate entities in simple situations to be able to support compliance and provide
effective professional advice. They are also expected to be able to explain tax consequences
of activities of individuals and corporate entities.

Linkage with other related subjects

This diagram depicts the relationship between this subject and other related subjects.

Main competences

On successful completion of this paper, candidates should be able to:

· Explain the structure of the tax system, including the roles, duties and powers of
various organs of tax administration in Nigeria;
· Explain the guiding principles of the revised National tax policy (NTP), 2017;
· Explain and apply the five fundamental principles of ethics as specified by the
International Ethics Standards Board for Accountants (IESBA) and ICAN to any given
scenario;
· Identify the applicable rates of transactions taxes, compute the tax liabilities and know
payment and returns timelines (including offences and penalties);
· Apply basic knowledge of tax legislations in computing income tax liabilities relating to
individuals and corporate entities in simple situations;
· Explain the application of information technology in taxation; and
· Attend to queries from relevant tax authorities.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Method of assessment
The Taxation paper is for three (3) hours with fifteen (15) minutes reading time. The paper is in
three (3) sections, consisting of seven (7) questions in all. Section A comprises one (1)
compulsory question, while sections B and C comprise three (3) questions each and
candidates are required to attempt any two (2) questions from each section. The compulsory
question could be an integrated question combining two (2) or more areas of the syllabus.

Ethics and professional skepticism

Candidates should note that underlying ethical thinking is required in arriving at appropriate
tax liabilities and relationship with tax authorities and clients. Candidates will also be
expected to apply professional skepticism and critical thinking when making appropriate
judgements.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and
should guide the study time spent on each. Over time, the marks available in the assessment
will be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

Detailed Contents
A. INTRODUCTION TO TAXATION, TAX ADMINISTRATION, AND ETHICS - 20%
1. Introduction to taxation
(a) Explain the concept and objectives of taxation.
(b) Explain the types of tax and tax system.
(c) Explain the basic concepts in taxation:
(i) Tax base, tax yield, tax rate, tax incidence; and
(ii) Tax burden, tax impact, tax shift, tax effect.
(d) Differentiate between tax and levies.
(e) Explain the principles/canons of taxation.
(f) Explain and differentiate between tax avoidance and tax evasion.
(g) Explain the following in relation to taxation in Nigeria:
(i) Enabling Acts; and

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(ii) Sources of the tax laws.

(h) Explain the objectives of tax identification number (TIN).
(i) Explain the process involved in generating a TIN and its uses.
2. Tax administration in Nigeria
Discuss the roles, functions, compositions and powers of:
(a) Joint Tax Board;
(b) Federal Inland Revenue Service and its management board;
(c) State Board of Internal Revenue;
(d) Joint State Revenue Committee;
(e) Local Government Revenue Committee;
(f) Taxes and Levies (Approved List for Collection) Act, T2 Law of
Federation of Nigeria, 2004 (as amended); and
(g) Tax Appeal Tribunal.
3. Discuss the role and relationship between Fiscal Policy, Tax legislation and
Administration
4. Revised National Tax Policy (NTP), 2017
(a) Explain the objectives of this policy.
(b) Explain the policy guidelines as they relate to:
(i) Guiding principles of Nigerian Tax System; and
(ii) Taxation as a tool for economic management and development,
including:
v Wealth creation and employment;
v Taxation and diversification;
v Focus on indirect taxation;
v Convergence of tax rates;
v Special arrangements and other incentives;
v Creating a competitive edge; and
v International and regional treaties.
(c) Explain the responsibilities of the following stakeholders:
(i) The government;
(ii) The taxpayer;
(iii) Revenue agencies;
(iv) Professional bodies, tax practitioners, consultants and agents;
and
(v) Media and advocacy groups.
(d) Explain the administration of the mandates of the three-tiers of
government in accordance with the following:
(i) Registration of taxable persons;
(ii) Tax compliance;
(iii) Efficiency of administration;
(iv) Technology and tax intelligence; and
(v) Dispute resolution.
(e) Explain the implementation measures by:
(i) The President and Governors;
(ii) Legislature;
(iii) Ministry of Finance;
(iv) Ministries, departments and agencies (MDAs);
(v) Tax authorities; and
(vi) Independent National Electoral Commission (INEC).
5 Basic ethical issues in taxation
(a) Explain the following five fundamental principles of ethics as specified by

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the International Ethics Standards Board for Accountants (IESBA):

(i) Integrity;
(ii) Objectivity;
(iii) Professional competence and due care;
(iv) Confidentiality; and
(v) Professional behaviour.
(b) Discuss the conditions when information on taxpayers may be disclosed
to a third party by a tax practitioner.
(c) Explain what a tax practitioner should do when there is a conflict of
interest.
6. Assessments, objections, appeals and remittances

(a) Explain the basis for registration and filing of returns with the revenue
authorities covering the following:
(i) The need for tax registration and the display of tax identification
number (TIN) on all documents;
(ii) Time within which to register;
(iii) Registration requirements and process;
(iv) Contents of a tax return;
(v) Due date for filing of tax returns;
(vi) Time within which to pay tax assessed; and
(vii) Explain the penalties for non-compliance with filing and
remittance obligations.
(b) Explain the following types of assessment:
(i) Self assessment;
(ii) Additional assessment;
(iii) Best of judgement (BOJ)/administrative assessment; and
(iv) Back duty assessment.
(c) Explain the procedures for tax objections and appeals, covering the
following:
(i) Time limit for objection and appeal;
(ii) Contents of a notice of objection and appeal;
(iii) Amendment of assessment and refusal to amend; and
(iv) Appeal procedures and processes (Tax Appeal Tribunal
Federal High Court, Court of Appeal and Supreme Court).
(d) Explain the following in respect of a tax clearance certificate (TCC):
(i) Definition and contents;
(ii) The conditions for granting a TCC;
(iii) The transactions for which a TCC is required; and
(iv) The procedure for processing TCC.

B. TRANSACTIONS TAXES - 20%

1. Withholding tax (WHT)
(a) Explain the nature, objectives and administration of WHT.
(b) Explain persons required to make deductions at source.
(c) Explain the eligible transactions subject to WHT and applicable rates.
(d) Explain the exemptions from withholding tax.
(e) Identify the relevant tax authority for collection of WHT.
(e) Explain the obligation to deduct at source.
(f) Discuss the requirement that deductions shall be receipted.

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(g) Explain the procedure for filing WHT returns; list its contents and time
frame for compliance.
(h) Discuss the procedures and provisions relating to WHT refunds and
grounds for objection.
(i) Explain the procedure for remittance of WHT to tax authorities.
(j) Discuss the administrative bottlenecks and other problems of WHT.
(k) Discuss the merits and demerits of WHT scheme.
(l) Explain penalties for non-compliance with withholding tax obligations.
2. Value added tax (VAT)
(a) Explain the nature, objectives and administration of VAT.
(b) Explain the following:
(i) Goods (tangible and intangible);
(ii) Services;
(iii) Taxable persons;
(iv) Taxable supplies of goods and services; and
(v) When goods and services shall be deemed to be supplied in
Nigeria in accordance with the provisions of the relevant Finance
Act(s).
(c) Explain the following in relation to VAT:
(i) Input tax;
(ii) Output tax;
(iii) Exemptions;
(iv) Zero-rated supplies and services;
(v) VAT reverse charge;
(vi) Basic tax point;
(vii) Actual tax point; and
(viii) Standard rate in line with provisions of the relevant Finance Act(s).
(d) Explain registration and deregistration of value added tax (VAT) for the
following:
(i) Residents; and
(ii) Non-residents.
(e) Compute VAT liability, including the treatment of opening and closing
inventories.
(f) Explain the obligations for registration, records and accounts keeping,
and valid VAT Invoice.
(g) Explain the requirements for filing of VAT returns and remittance of VAT
liability.
(h) Explain the self-account provision for all supplies for which VAT was not
charged.
(i) Explain the treatment of VAT on imported and exported goods and
services.
(j) Explain the treatment of input VAT under exempt and zero-rated VAT.
(k) Explain sale and transfer of assets amongst related parties in
business reorganisation and restructuring in accordance with the
provisions of the relevant Finance Act(s).
(l) Explain vatable services rendered by financial institutions and their
VAT exempt income.
(m) Explain the provision on VAT recovery.
(n) Explain the provision of tax compliance threshold.
(o) State the offences and penalties associated with VAT.
3. Stamp Duties

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(a) Explain the nature and objectives in relation to stamp duties.

(b) Discuss the various terms relating to stamp duties in line with the
provisions of the relevant Finance Act(s).
(c) Explain the instruments and receipts liable to stamp duties.
(d) Explain the instruments exempted from stamp duties.
(e) Identify the relevant tax authority for collection of stamp duties.
(f) Explain the following in connection with stamp duties:
(i) The administration of stamp duties;
(ii) Electronic documents received in Nigeria in accordance with
IFRS information circular Number 2020/05 dated April 29, 2020;
(iii) Modes of denoting stamp duties; and
(iv) The functions of the Commissioner for Stamp
Duties.
(g) Explain the time limit for stamping and implications of non-stamping.
(h) Explain the recoverability of outstanding duties.
(i) Discuss the stamp duties on loans and credit facilities.
(j) Explain the process of adjudication, the limits and appeals procedure.
(k) Explain lost instruments and treatment under stamp duty in accordance
with the provisions of the relevant Finance Act(s).
(l) Explain instruments which are not properly stamped.
(m) Explain mode of calculating ad-valorem duty.
(n) Explain the stamping of instruments after execution.
(o) Explain electronic money transfer.
(p) Explain duty upon receipts.
(q) Explain duty on contracts.
(r) Discuss the consequences for non-compliance with the
provisions of the Stamp Duties Act.
1. Customs and excise duties
(a) Explain the nature, objectives and administration of customs and excise
duties in accordance with the provisions of Nigeria Customs Service Act,
2023 .
(b) Discuss post clearance audit.
(c) Discuss the use of consultants.
(d) Discuss the determination of duties and customs duties on imported and
exported goods.
(e) Explain the collection and remittance of customs duty.
(f) Identify excisable goods and discuss the valuation.
(g) Discuss the imposition, collection, and remittance of excise customs
duties.
(h) Discuss the provision of information for customs formalities and controls.
(i) Discuss provisions relating to the furnishing of information by
manufacturers and keeping of books.
(j) Explain the offences and penalties.

C. PERSONAL INCOME TAX - 25%

1. Taxation of employment income
(a) Explain contract of service and contract for service.
(b) Explain the following types of employment:
(i) Nigerian employment; and
(ii) Foreign employment.
(c) Distinguish among employment, vocation and profession.

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(d) Explain an itinerant worker.

(e) Explain the following terminologies in employment income:
(i) Cash emolument;
(ii) Benefits-in-Kind; and
(iii) Taxable and tax-exempt incomes.
(f) Explain the conditions for taxation of income from employment.
(g) Explain allowable and non-allowable deductions.
(h) Explain the following:
(i) Registration for Pay-As-You-Earn (PAYE);
(ii) Basis of assessment;
(iii) Computation of consolidated relief allowance;
(iv) Computation of personal income tax; and
(v) Filing of returns (employees and employers).
(i) Identify relevant tax authority.
(j) Explain the term “residency” for personal income tax purposes.
(k) Discuss offences and penalties.
2. Taxation of trusts, settlements and estates
(a) Discuss trusts, settlements and estates.
(b) Explain allowable and non-allowable expenses.
(c) Compute income from trusts, settlements and estates.
(d) Compute taxable income.
(e) Compute tax liability in the hands of beneficiaries and trustees.
(f) Identify relevant tax authority.
(g) Explain offences and penalties.
3. Taxation of sole proprietorship
(a) Explain the meaning of a trade or profession and badges of trade.
(b) Computation of assessable profit of a trade or profession
(i) Identify taxable and non-taxable income.
(ii) Identify and explain allowable and non-allowable expenses.
(c) Basis period for assessment
(i) Define basis period and state types.
(ii) State the rules for commencement, change of accounting date
and cessation of business.
(d) Loss relief
(i) Identify and explain types of loss reliefs and their
treatments.
(ii) Explain the treatments of losses under commencement and
cessation of business.
(e) Computation of capital allowances
(i) Define qualifying capital expenditure and capital allowance.
(ii) Explain the types of capital allowance and qualifying capital
expenditure.
(iii) Discuss the conditions for granting capital allowance.
(iv) Explain the treatment of capital allowances for small companies.
(v) Identify capital allowance rates and restrictions.
(vi) Compute balancing adjustments on disposal of qualifying capital
expenditure.
(f) Compute personal income tax liability.
(4) Taxation of partnerships
(a) Explain partnership.
(b) Explain allowable and non-allowable expenses.

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(c) Compute the income of a partnership business.

(d) Identify the taxable income of partners.
(e) Explain the tax treatment under admission and resignation of a partner.
(5) Taxation of investment income
(a) Explain investment income.
(b) Compute rental income chargeable to tax on property, including
contractor-financed projects.
(c) Explain the tax implications of dividends, royalties and interests in the
hand of the beneficiary.
(d) Explain the bases of assessments and payment of taxes on investment
incomes.
(e) Explain franked investment income.

D. COMPANIES INCOME TAX - 30%

1. Taxation of non-specialised businesses
(a) Identify persons chargeable to companies income tax.
(b) Identify and explain profit exempted from companies income tax.
(c) Identify and explain allowable and non-allowable expenses, including
the changes introduced by the relevant Finance Act(s).
(d) Explain types of company based on turnover and applicable income tax
rates.
(e) Basis period for assessment
(i) Explain the types of basis period.
(ii) Explain the rules for commencement, change of
accounting date and cessation of business in accordance with the
provisions of the relevant Finance Act(s).
(f) Compute assessable profit.
(g) Loss relief
(i) Explain loss relief principles.
(ii) Explain the treatment of losses under commencement, change
of accounting date and cessation of business in accordance with
the provisions of the relevant Finance Act(s).
(h) Capital allowance computation
(i) Explain types of capital allowance.
(ii) Explain types of qualifying capital expenditure.
(iii) Explain the conditions for granting capital allowances.
(iv) Identify and apply the capital allowance rates and restrictions.
(v) Compute balancing adjustments on disposal of qualifying capital
expenditure.
(i) Compute companies income tax liability in accordance with the
provisions of the relevant Finance Act(s), taking the following into
consideration:
(i) Total profit;
(ii) Minimum tax;
(iii) Dividend distribution;
(iv) Ascertain dividends paid out of retained earnings; and
(v) Gross revenue/turnover.
(j) Compute and explain the bases for computing deferred tax.
2. Taxation of specialised businesses
(a) Explain the terms relating to specialised businesses.
(b) Discuss the relevant tax provisions for real estate investment

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companies which are approved by the Securities and Exchange

Commission (SEC) under the relevant provisions of real estate
investment schemes (REIS).
(c) Discuss relevant tax provisions relating to agricultural business.
(d) Discuss the tax provisions and compute tax liability on income from
transportation, telecommunication, banks and insurance businesses.
(e) Discuss the modifications introduced by the relevant Finance Act(s) to the
tax rules for insurance companies and the presentation of accounts for
life assurance and non-life insurance companies.
(f) Explain the circumstances when the Revenue can assess a company
based on its turnover.
(g) Identify and explain criteria that must be met for exemption of profits of a
small company from companies income tax (CIT).
(h) Explain the basis for taxation of enterprises in free trade zones.
(i) Explain the criteria for tax exemption of the profits of a Nigerian company
in respect of goods exported from Nigeria.
(j) Explain the tax implications of the operation of the regulated securities
lending transactions in Nigeria.
(k) Explain the provisions of the Nigerian Information Technology
Development Agency Act (NITDA) 2007 (as amended) as they relate to
taxation.
(l) Explain the provisions of the Nigeria Police Trust Fund (Establishment)
Act, 2019 as they relate to the levy of 0.005% of the net profit of
companies operating in Nigeria.
(m) Explain the tax provisions of the National Agency for Science and
Engineering Infrastructure (NASENI) (Establishment) Act, Cap. N3 LFN,
2004 (as amended) and compute the levy.
(n) Explain the tax provisions of non-governmental organisations (NGOs) in
Nigeria, other obligations, and exemptions as specified under the
relevant tax legislations.
(o) Explain the incentives that are granted to companies engaged in gas
utilisation (downstream operations).
(p) Discuss the taxation of institutions offering non-interest financial
products and services in Nigeria in line with the provisions of Non-
Interest Finance (Taxation) Regulations, 2022.
(q) Explain the tax and other incentives available to a labelled startup under
the Nigeria Startup Act, 2022.
(r) Explain digital taxation (including taxation on income from e-commerce
and e-business).
3. Tertiary education tax
(a) Explain tertiary education tax.
(b) Explain the objectives and basis of computation of tertiary education tax
as provided in the enabling Act.
(c) Explain why a small company should not pay tertiary education tax.
(d) Discuss the applicability of tertiary education tax to non- resident
companies.
(e) Explain the imposition, assessment, collection, and remittance of the tax.
(f) Discuss the management and administration of the tertiary education tax
fund (TET Fund).
(g) Explain the composition and functions of the board of trustees.
(h) Explain the allocation and distribution of the tax.

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(i) Explain the offences and penalties for non-compliance.

E. APPLICATION OF INFORMATION TECHNOLOGY IN TAXATION - 5%

(1) Explain the impact of information technology on tax practice and administration.
(2) Explain the operations of the FIRS TaxPro Max solution relating to filing
requirements and procedures.
(3) Discuss taxes applicable to technology based transactions.
(4) Discuss the challenges of technology on tax practice and administration.

Guide to examination assessment

ICAN reserves the right to examine any topic in the syllabus at any examination diet.
New laws, regulations and relevant tax circulars may be examined after six months from the
dates of issue, even if they take effect in the future.

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B4. PERFORMANCE MANAGEMENT

Aim
To develop candidates' knowledge and skills in the application of management accounting
techniques to prepare data, information and apply appropriate technology to support
management decision making on setting metrics and targets, planning and budgeting, cost
management, quality control, performance measurement and comparative analysis.

Linkage with other related subjects

The diagram below depicts the relationship between this subject and other related subjects.

Main competences
On successful completion of this paper, candidates should be able to:
· Identify and discuss requirements in management information systems (MIS) and
developments in technology essential for organisations to manage and measure
performance;
· Explain and apply cost accounting techniques;
· Select and apply appropriate decision-making techniques to setting metrics and
targets, and facilitate business decisions and promote efficient and effective use of
scarce business resources taking into consideration inherent risks and uncertainty in
such businesses and their control;
· Identify and apply appropriate budgeting techniques and methods for planning and
control;
· Use standard costing systems to measure and control business performance and
recommend remedial actions;
· Evaluate the performance of an organisation, products and business segments,
products and services against metrics and targets;
· Assess organisational performance from both financial and non-financial perspectives,
considering the problems associated with the control of divisions within an organisation
and the importance of allowing for external considerations;
· Advise clients and senior management on strategic business performance evaluation
and recognising vulnerability to corporate failure;
· Apply appropriate technology and techniques to support management decision
making, including product costing, variance analysis, inventory management,
budgeting and forecasting, and value chain analysis; and

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· Advise clients and top management of business organisation on emerging issues in

performance management.

Prior knowledge
Performance management assumes and develops on the knowledge and skills acquired in
Management Accounting. Background knowledge in Financial Accounting and Business
Environment will be needed by candidates.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Performance Management paper is for three (3) hours with fifteen (15) minutes reading
time. The paper is in three (3) sections, consisting of seven (7) questions in all. Section A
comprises one (1) compulsory question, while sections B and C comprise three (3) questions
each and candidates are required to attempt any two (2) questions from each section. The
compulsory question could be an integrated question combining two (2) or more areas of the
syllabus.

Ethics and professional skepticism

Candidates should note that underlying ethical thinking is required in the management
decision making process, performance evaluation and recognising business vulnerability.
Candidates will also be expected to apply professional skepticism and critical thinking when
making all judgements.
\
Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and
should guide the study time spent on each. Over time, the marks available in the assessment
will be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

Detailed contents

A. MANAGEMENT INFORMATION SYSTEMS AND DATA ANALYTICS - 10%

1. Management information systems
(a) Explain the role of information systems in organisations.
(b) Discuss the costs and benefits of information systems.
(c) Explain the uses of the internet, intranet, wireless technology and
networks.
(d) Identify the accounting information requirements and describe the
different types of information system used for strategic planning,
management and operational control and decision making.
(e) Define and discuss the main characteristics of transaction processing
systems (TPS); management information systems (MIS); executive
information systems (EIS); enterprise resource planning systems
(ERPS) and customer relationship management systems (CRMS).
(f) Identify and discuss the social and ethical issues that may impact on an
organisation's strategy formulation and assess the role of the
management accountant in data collection for measurement and
reporting of social and environmental factors, to demonstrate a wider
view in performance reporting.
2. Application of big data and data analytics
(a) Discuss and apply the principles of big data in management information
and decision making.
(b) Discuss the purposes and application of the big data pyramid.
(c) Discuss the uses and benefits of big data, data mining and data analytics.
(d) Discuss the challenges and risks associated with application of big data
and data analytics in an organisation.

B. ADVANCED COSTING TECHNIQUES - 15%

1. Activity based costing (ABC)
(a) Discuss ABC and its uses as a costing technique.
(b) Identify the suitable cost drivers under ABC.
(c) Calculate the cost per driver and per unit, using ABC.
(d) Compare ABC and the traditional method of overhead absorption.
2. Target costing
(a) Discuss the principles of target costing and its uses as a costing
technique.
(b) Evaluate the target cost in manufacturing and service industries.
(c) Discuss the challenges of applying target costing in service industries.
(d) Advise on how a target cost gap can be managed.
3. Life cycle costing
(a) Discuss the principles of life cycle costing and its uses as a costing
technique.
(b) Identify and discuss the various stages in the life cycle of a product and
the associated cost involved.
(c) Evaluate the life cycle cost or profit in manufacturing and service
industries.
(d) Explain the benefits of life cycle costing.
4. Throughput accounting
(a) Discuss the principles of throughput accounting and its uses as a costing
technique.

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(b) Assess and apply the theory of constraints [TOC].

(c) Evaluate and draw conclusions from the throughput accounting ratio
(TAR).
(d) Advise on ways in which the TAR could be improved.
(e) Discuss the application of throughput accounting in multi-product
decision making.
5. Accounting for environmental and sustainability factors
(a) Discuss the concept of environmental accounting and sustainability in
business.
(b) Discuss the issues involved in managing environmental costs.
(c) Evaluate the different methods of accounting for environmental costs.
(d) Discuss the challenges faced in accounting for environmental and
sustainability factors.
(e) Assess the principal roles of the management accountant in supporting
the business to develop sustainability practices and sustainability
reporting.

C. DECISION MAKING TECHNIQUES - 25%

1. Relevant cost analysis
(a) Explain the concept of relevant cost and revenue.
(b) Identify and calculate relevant costs for specific decision situations from
given data.
(c) Explain and apply the concept of opportunity costs.
2. Cost volume profit analysis (CVP)
(a) Explain the concept of CVP analysis.
(b) Calculate and interpret the break-even point and margin of safety.
(c) Calculate the contribution to sales ratio in single and multi-product
situations, and demonstrate an understanding of its uses.
(d) Calculate target profit and revenue in single and multi-product situations
and demonstrate an understanding of its uses.
(e) Interpret break-even charts and profit-volume charts and interpret the
information contained within each, including multi-product situations.
(f) Discuss the limitations of CVP analysis for planning and decision-
making.
3. Limiting factors
(a) Identify limiting factors in a scarce resource situation and select
appropriate technique for allocation of the scarce resource(s).
(b) Determine the optimal production plan where an organisation is
restricted by a single limiting factor, within the context of make-or-buy
decisions.
(c) Formulate and solve multiple scarce resource problems using, both
linear programming, graphs and simultaneous equations as appropriate
(excluding simplex and sensitivity to changes in objective functions).
(d) Explain and calculate shadow prices (dual prices) and discuss their
applications for decision making and performance management.
(e) Calculate slack and explain the implications of the existence of slack for
decision-making and performance management.
4. Pricing decisions
(a) Discuss the factors that influence the pricing of a product or service.
(b) Calculate and explain the price elasticity of demand.
(c) Derive and apply a straight-line demand equation and also an equation

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for the total cost function (including volume based discounts).

(d) Calculate the optimum selling price and quantity for a product, equating
marginal cost and marginal revenue.
(e) Evaluate a decision to increase production and sales levels, considering
incremental costs, incremental revenues and other factors.
(f) Determine prices and output levels for profit maximisation, using the
demand-based approach to pricing (both tabular and algebraic
methods).
(g) Discuss different pricing strategies, including:
(i) All forms of cost-plus;
(ii) Skimming;
(iii) Penetration;
(iv) Complementary products;
(v) Product-line;
(vi) Volume discounting;
(vii) Discrimination; and
(viii) Relevant cost.
(h) Calculate a price from a given strategy using cost-plus and relevant cost.
5. Make-or-buy and other short-term decisions
(a) Explain the issues surrounding make-or-buy and outsourcing decisions.
(b) Calculate and compare “make” costs with “buy-in” costs.
(c) Compare in-house costs and outsource costs of completing tasks and
consider other issues surrounding this decision.
(d) Apply relevant costing principles in situations involving shut down, one-
off contracts and further processing of joint products.
6. Dealing with risk and uncertainty in decision making
(a) Identify and evaluate research techniques to reduce uncertainty, for
example, focus groups, market research.
(b) Explain the use and application of simulation, expected values and
sensitivity to decision making.
(c) Explain the use and application of the following techniques: maximax,
maximin, and minimax regret to decision making, including the
production of profit tables.
(d) Interpret a decision tree and use it to solve a multi-stage decision
problem.
(e) Explain and calculate the value of perfect and imperfect information.

D. BUDGETING AND CONTROL - 20%

1. Budgetary systems and types of budget
(a) Select and explain appropriate budgetary system for an organisation,
including fixed, flexible, top-down, bottom-up, rolling, zero-based,
activity-based, incremental and feed-forward control.
(b) Discuss the usefulness and problems associated with different budget
types (including fixed, flexible, zero-based, activity based, incremental,
rolling, top-down and bottom-up).
(c) Prepare fixed budget, flexed budget, rolling budget and activity-based
budget including functional and master budgets.
(d) Explain the beyond budgeting model, including the benefits and
problems that may be faced if it is adopted in an organisation.
(e) Explain the benefits and difficulties of the participation of employees in
the budgeting process and negotiation of targets.

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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

(f) Discuss ethical and sustainability considerations when setting budgets.

2. Analytical techniques in budgeting and forecasting
(a) Analyse fixed and variable cost elements from total cost data, using
high/low method.
(b) Explain and apply analysis techniques including correlation, regression
and time series.
(c) Estimate the learning rate and learning effect.
(d) Apply the learning curve model to a budgetary problem, including
calculations on steady states.
(e) Discuss the benefits and limitations of correlation, regression and time
series techniques, and also the reservations with the learning curve
model.
3. Standard costing
(a) Explain the use of standard costs.
(b) Outline the methods used to derive standard costs and discuss the
different types of standard cost.
(c) Calculate basic variances, such as:
(i) Material price and usage variances;
(ii) Labour rate, efficiency and idle time variances; and
(iii) Labour mix and yield variances.
4. Material mix and yield variances
(a) Calculate, identify the cause of, and explain material mix and yield
variances.
(b) Explain the wider issues involved in changing material mix, for
example, cost, quality and performance measurement issues.
(c) Identify and explain the relationship of the material usage
variance with the material mix and yield variances.
5. Sales mix and quantity variances
(a) Explain, calculate and identify the causes of sales mix and
quantity variances.
(b) Identify and explain the relationship of the sales volume variances
with the sales mix and quantity variances.
6. Planning and operational variances
(a) Discuss the concept of planning and operational variances.
(b) Prepare a revised budget.
(c) Identify and explain those factors that could lead to revision of an
original budget.
(d) Explain, calculate and identify the causes of planning and
operational variances, for:
(i) Sales, including market size and market share;
(ii) Materials; and
(iii) Labour, including the effect of the learning curve.
7. Performance analysis
(a) Discuss the effects of variances on staff motivation and actions.
(b) Describe the dysfunctional nature of some variances in the
environment of JIT and TQM.
(c) Discuss the behavioural problems resulting from using standard
costs in rapidly changing environments.

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E. PERFORMANCE MEASUREMENT, CONTROL AND MANAGEMENT SYSTEM -

15%
1. Performance analysis for profit oriented organisations
(a) Select and calculate suitable financial performance measures for a
business from a given data and information.
(b) Evaluate the result of calculated financial performance measures based
on business objectives and advise management on appropriate actions.
(c) Select and calculate suitable non-financial performance measures for a
business from a given data and information.
(d) Evaluate the results of calculated non-financial performance measures,
based on business objectives and advise management on appropriate
actions.
(e) Explain the causes and problems associated with short-termism and
financial manipulation of results and suggest methods to encourage a
long term view.
(f) Discuss sustainability considerations in performance measurement of a
business.
(g) Select and explain stakeholder-based measures of performance that
may be used to evaluate environmental, social and governance (ESG)
performance of a business.
(h) Explain and interpret the balanced scorecard.
2. Performance analysis in not-for-profit organisations
(a) Discuss the problems of using non-quantifiable objectives in
performance management.
(b) Explain how performance may be measured in not-for-profit
organisations.
(c) Discuss the problems of having multiple objectives.
(d) Demonstrate value for money (VFM) as a public sector objective.
3. Divisional Performance and Transfer Pricing
(a) Discuss the various methods of setting transfer price and evaluate the
suitability of each method.
(b) Determine the optimal transfer price, using appropriate models.
(c) Explain the benefits and limitations of transfer pricing methods.
(d) Demonstrate and explain the impact of taxation and repatriation of funds
on international transfer pricing.
(e) Select and explain suitable divisional measures for a given business
using return on investment (ROI), residual income (RI) and economic
value added (EVA) approaches. Evaluate the results and advise
management.
4. Analyse and evaluate business objectives and strategies using value chain
analysis.
5. Analyse and evaluate suitable performance measures for profitability, liquidity
and solvency.

F. PERFORMANCE EVALUATION AND CORPORATE FAILURE - 10%

1. Strategic performance issues in complex business structures
(a) Evaluate the problems encountered in planning, controlling and
measuring performance level, including, productivity, quality, profitability
and service levels in complex business structure.
(b) Assess the impact of the use of business models, including business
alliances, complex supply chain structure, joint ventures, etc on

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performance management.
2. Alternative views of performance measurement and management
(a) Assess and evaluate the effectiveness of the performance pyramid in
linking strategy, operations, and performance.
(b) Assess and evaluate the use of balanced scorecard approach in
improving the range and linkage between performance measures.
(c) Evaluate and advise on the value-based management approaches to
performance management.
3. Predicting and preventing corporate failure
(a) Assess how long-term survival brings about the necessity of considering
life cycle issues.
(b) Calculate and advise on the potential likelihood of corporate failure
utilising qualitative and quantitative performance measures and models,
including Z-score and Argenti.
(c) Identify the advantages and disadvantages of each of quantitative and
qualitative corporate failure prediction models.
(d) Identify and advise on performance management strategies that may be
adopted to prevent corporate failure.
(e) Evaluate the operational changes in organisational performance
management system required to implement performance improvement
strategies.

G. EMERGING ISSUES IN PERFORMANCE MANAGEMENT - 5%

1. Current developments in management accounting
(a) Identify and evaluate the various ways in which new techniques are
made available to management accounting practitioners.
(b) Evaluate the use of benchmarking in public sector performance (league
tables) and its effect on operational and strategic management and client
behaviour.
(c) Identify the challenges of setting targets in public sector organisations.
2. Current issues and trends in performance management
(a) Assess the changing role of the management accountant in modern
business environment.
(b) Evaluate contemporary issues in performance management.

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B5. FINANCIAL MANAGEMENT

Aim
To enable candidates understand the role and purpose of the finance function, recommend
relevant options for financing a business, manage working capital, make appropriate
investment decisions, carry out business valuation, and recognise and manage financial risks.

Linkage with other related subjects

The diagram below depicts the relationship between this subject and other related subjects.

Main competences

On successful completion of this paper, candidates should be able to:

· Discuss the role and purpose of the financial management function;
· Understand and apply working capital management techniques;
· Carry out effective investment appraisal;
· Identify and evaluate alternative sources of business finance;
· Discuss and apply principles of business valuation; and
· Understand and apply risk management techniques in business.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Financial Management paper is for three (3) hours with fifteen (15) minutes reading time.
The paper is in three (3) sections, consisting of seven (7) questions in all. Section A comprises
one (1) compulsory question, while sections B and C comprise three (3) questions each and
candidates are required to attempt any two (2) questions from each section. The compulsory
question could be an integrated question combining two (2) or more areas of the syllabus.

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Ethics and professional skepticism

Candidates should note that underlying ethical thinking is required in identifying financing
options, arriving at appropriate investment decisions, managing working capital and financial
risks. The implications of financial strategy for all stakeholders must be considered and
evaluated, and any ethical dilemmas must be resolved. Candidates will also be expected to
apply professional skepticism and critical thinking when making all judgements.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and
should guide the study time spent on each. Over time, the marks available in the assessment
will be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

Detailed contents

A. FINANCIAL MANAGEMENT FUNCTION AND ENVIRONMENT - 10%

1. The nature and purpose of financial management
(a) Explain the nature and purpose of financial management.
(b) Explain the relationship between financial management, and each of
financial accounting and management accounting.
(c) Identify and describe various financial objectives, including:
(i) Stakeholders value creation;
(ii) Shareholder wealth maximisation;
(iii) Profit maximisation; and
(iii) Earnings per share growth.
2. Corporate objectives and the influence of stakeholders
(a) Discuss the key stakeholders of an organisation and advise on their
interests.
(b) Assess possible conflicts between stakeholder objectives.

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(c) Evaluate management's role in managing stakeholder objectives,

including the application of agency theory.
(d) Assess the various methods of achieving stakeholder objectives,
including:
(i) Regulatory requirements – corporate governance codes and
stock exchange listing regulations; and
(ii) Management reward schemes – share options and performance
related pay.
(e) Advise on the various ways of evaluating corporate objectives, including:
(i) Ratio analysis; and
(ii) Total shareholders' return changes.
3. Financial management in not-for-profit organisations
(a) Evaluate the various objectives of a not-for-profit organisation.
(b) Discuss the ways of measuring achievement of objectives in a not-for-
profit organisation.
4. The economic environment of business
(a) Evaluate major macroeconomic policy targets.
(b) Illustrate the role of fiscal, monetary, interest rate and exchange rate
policies in achieving macro-economic policy targets.
(c) Assess the influence of government economic policies on decision
making in business.
5. Financial markets and institutions
(a) Assess the role of money and capital markets both nationally and
internationally.
(b) Evaluate the functions of stock market and the corporate bond market.
(c) Evaluate the impact of technology on the changing role of financial markets
and institutions.
(d) Evaluate the role of money market in providing short term liquidity and short-
term trade finance.
(e) Compare and contrast money market and capital market operations.
(f) Evaluate the role of banks and other financial institutions in the operation of
the money markets.
(g) Evaluate the role of principal money market instruments, including:
(i) Interest bearing instruments;
(ii) Discount instruments; and
(iii) Derivative products.

B. WORKING CAPITAL MANAGEMENT - 15%

1. The nature, elements and importance of working capital
(a) Describe the nature of working capital and identify its elements.
(b) Identify the objectives of working capital management in terms of liquidity
and profitability, and discuss the conflict between them.
(c) Discuss the central role of working capital management in financial
management.
2. Management of inventories, accounts receivable, accounts payable and cash
(a) Explain and calculate the cash operating cycle.
(b) Explain and apply relevant accounting ratios, including:
(i) Current ratio and quick ratio;
(ii) Inventory turnover ratio, average collection period and average
payable period; and
(iii) Sales revenue/net working capital ratio.

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(c) Discuss, apply and evaluate the use of relevant techniques in managing
inventory, including the economic order quantity (EOQ) model and just-
in-time (JIT) techniques.
(d) Discuss, apply and evaluate the use of relevant techniques in managing
accounts receivables, including:
(i) Assessing credit worthiness;
(ii) Collecting amounts owing;
(iii) Offering early settlement discounts; and
(iv) Using factoring and invoice discounting.
(e) Discuss and apply the use of relevant techniques in managing accounts
payable, including:
(i) Using trade credit effectively; and
(ii) Evaluating the benefits of early settlement and bulk purchase
discounts.
(f) Explain the various reasons for holding cash, discuss and apply the use
of relevant techniques in managing cash, including:
(i) Preparing cash flow forecasts to determine future cash shortages
or surpluses;
(ii) Assessing the benefits of centralised treasury management and
cash control;
(iii) Cash management models, such as the Baumol model and the
Miller-Orr model; and
(iv) Short-term investment.
3. Determining working capital needs
(a) Calculate the level of working capital investment in current assets and
discuss the key factors determining this level, including:
(i) The length of the working capital cycle and terms of trade;
(ii) An organisation's policy on the level of investment in current
assets; and
(iii) The industry in which the organisation operates.
(b) Evaluate and discuss the key factors in determining working capital
funding strategies, including:
(i) The distinction between permanent and fluctuating current
assets;
(ii) The relative cost and risk of short-term and long-term finance;
(iii) The matching principle; and
(iv) The relative costs and benefits of aggressive, conservative and
matching funding policies.

C. INVESTMENT APPRAISAL - 25%

1. Investment appraisal methods
(a) Identify and calculate relevant cash flows for investment projects.
(b) Calculate and discuss the usefulness of each of the following investment
appraisal methods:
(i) Payback period;
(ii) Accounting rate of return (ARR);
(iii) Net present value (NPV); and
(iv) Internal rate of return (IRR).
(c) Evaluate capital investment decisions, using capital budgeting
techniques that incorporate strategic factors.
(d) Discuss the superiority of discounted cash flow (DCF) methods over non-

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DCF methods.
(e) Discuss the relative merits of NPV and IRR.
2. Inflation and taxation in DCF
(a) Apply and discuss the real-terms and nominal-terms approaches to
investment appraisal.
(b) Calculate the taxation effects of relevant cash flows, including tax
benefits of tax-allowable depreciation.
3. Risk and uncertainty in investment appraisal
(a) Describe and discuss the difference between risk and uncertainty in
relation to investment appraisal.
(b) Discuss and apply the following techniques of dealing with risk and
uncertainty in investment appraisal:
(i) Sensitivity analysis;
(ii) Expected value criterion, including, value of information;
(iii) Decision tree;
(iv) Simulation; and
(v) Risk-adjusted discount rates.
4. Specific investment decisions
(a) Evaluate leasing and borrowing-to-buy decisions, using Nigerian tax
rules.
(b) Evaluate asset replacement decisions, using equivalent annual
cost/value method and least cost method (LCM).
(c) Evaluate investment decisions under single-period capital rationing,
including:
(i) The calculation of profitability indices for divisible investment
projects;
(ii) The calculation of the NPV of combinations of non-divisible
investment projects; and
(iii) A discussion of the reasons for capital rationing.

D. BUSINESS FINANCE - 20%

1. Sources of finance
(a) Identify and discuss the range of short-term sources of finance available
to businesses, including overdraft, bank loan, trade credit, etc.
(b) Identify and discuss the range of long-term sources of finance available
to businesses, including equity, debt finance, finance lease and venture
capital.
(c) Identify and discuss methods of raising equity finance, including rights
issue, placing, public offer, introduction, etc.
(d) Discuss the major differences between islamic finance and the other
forms of business finance.
(e) Identify and discuss methods of raising short-term and long-term islamic
finance, including:
(i) The concept of riba (interest) and how returns are made by Islamic
financial securities.
(ii) Islamic financial instruments available to businesses including:
· Murabaha (trade credit);
· Ijara (lease finance);
· Mudaraba (equity finance);
· Sukuk (debt finance); and
· Musharaka (venture capital).

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(f) Identify and discuss internal sources of finance, including:

(i) Retained earnings;
(ii) Efficient management of working capital;
(iii) The relationship between dividend policy and the financing decision;
and
(iv) The theoretical approaches to, and the practical influences on, the
dividend decision (including legal constraints, liquidity,
shareholder expectations and alternatives to cash dividends).
2. Cost of capital
(a) Evaluate the cost of equity, including:
(i) Application of the dividend growth model (its assumptions,
advantages and disadvantages);
(ii) Explanation and discussion of systematic and unsystematic risk;
(iii) Relationship between portfolio theory and the capital asset pricing
model (CAPM); and
(iv) Application of the CAPM (its assumptions, advantages and
disadvantages).
(b) Evaluate the cost of debt relating to the following:
(i) Irredeemable debt;
(ii) Redeemable debt;
(iii) Convertible debt;
(iv) Preference shares; and
(v) Bank debt.
(c) Calculate the overall cost of capital, using weighted average cost of
capital (WACC).
3. Sources of finance and their relative costs
(a) Discuss the relative risk-return relationship and the relative costs of equity
and debt.
(b) Outline and discuss the problem of high gearing.
(c) Evaluate and discuss the impact of sources of finance on financial position,
financial risk and shareholder wealth using appropriate measures,
including:
(i) Ratio analysis using statement of financial position gearing,
operational and financial gearing, interest coverage ratio and
other relevant ratios; and
(ii) Cash flow forecasting.
(d) Discuss the effects of cost of capital on investments, including:
(i) The relationship between company value and cost of capital;
(ii) The circumstances under which WACC can be used in investment
appraisal;
(iii) The advantages of the CAPM over WACC in determining a
project-specific cost of capital; and
(iv) The application of the CAPM in calculating a project-specific
discount rate.
4. Capital structure theories and practical considerations
(a) Explain the traditional view of capital structure and its assumptions.
(b) Discuss the views of Miller and Modigliani (M&M) on capital structure,
both with and without corporate taxation, and their assumptions.
(c) Identify a range of capital market imperfections and describe their impact
on the views of M&M on capital structure.
(d) Discuss the relevance of pecking order theory to the selection of sources

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of finance.
5. Finance for micro, small and medium sized entities (MSMEs)
(a) Explain the nature of financing problems for small businesses in terms of the
funding gap, the maturity gap and inadequate security.
(b) Describe measures used to ease MSMEs financing problems.
(c) Outline and evaluate the effects of financing sources for MSMEs,
including:
(i) Business angel financing;
(ii) Government assistance;
(iii) Crowd funding; and
(iv) Supply chain financing.

E. BUSINESS VALUATIONS - 15%

1. Nature and purpose of the valuation of business and financial assets
(a) Outline and explain the rationale for businesses and financial assets
valuation.
(b) Explain the information required in carrying out valuation of businesses
and financial assets
2. Choice of assets valuation bases
(a) Discuss and apply asset valuation methods, including:
(i) Historical cost method;
(ii) Net realisable method; and
(iii) Replacement cost method.
(b) Discuss and apply income-based valuation method, including:
(i) Price/earnings ratio methods;
(ii) Earnings yield methods; and
(iii) Enterprise value/EBITDA multiple methods.
(c) Discuss and apply cash flow-based valuation methods, including:
(i) Discounted cash flow method; and
(ii) Dividend valuation method
3. The valuation of debt and other financial assets
(a) Explain and apply appropriate valuation methods to:
(i) Irredeemable bond;
(ii) Redeemable bond;
(iii) Convertible bond;
(iv) Irredeemable preference shares; and
(v) Redeemable preference shares.
4. Efficient Market Hypothesis (EMH) and practical considerations in the valuation
of shares
(a) Distinguish amongst and discuss weak form efficiency, semi-strong form
efficiency and strong form efficiency.
(b) Discuss practical considerations in the valuation of shares and
businesses, including:
(i) Marketability and liquidity of shares;
(ii) Availability and sources of information;
(iii) Market imperfections and pricing anomalies; and
(iv) Market capitalisation.

F. RISK MANAGEMENT - 15%

1. The nature and types of risk and approaches to risk management
(a) Discuss different types of foreign currency risk, including transaction
risk, translation risk and economic risk.
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2. Causes of exchange rate differences and interest rate fluctuations

(a) Explain the causes of exchange rate fluctuations, including:
(i) Balance of payments;
(ii) Purchasing power parity theory;
(iii) Interest rate parity theory; and
(iv) Four-way equivalence.
(b) Carry out a forecast of exchange rates, using:
(i) Purchasing power parity; and
(ii) Interest rate parity.
(c) Discuss and apply covered interest arbitrage.
3. Hedging techniques for foreign currency risk
(a) Explain and apply method of foreign currency risk management,
including traditional and basic methods.
(i) Currency of invoice;
(ii) Netting and matching;
(iii) Leading and lagging;
(iv) Forward exchange contracts; and
(v) Money market hedging.
(b) Discuss and apply the main types of foreign currency derivatives used to
hedge foreign currency risk and explain how they are used in hedging.
(Simple numerical questions will be required)
4. Hedging techniques for interest rate risk
(a) Explain and apply the following methods of hedging interest rate risk,
including both traditional and basic methods:
(i) Matching and smoothing;
(ii) Asset and liability management; and
(iii) Forward rate agreements.
(b) Outline and explain the main types of interest rate derivatives used to
hedge interest rate risk and explain their uses.
(Simple numerical questions will be required).

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B6. PUBLIC SECTOR ACCOUNTING AND FINANCE

Aim
To enable candidates have an understanding of the activities and services, legislative and
financial frameworks, as well as the accounting practices required to ensure accountability in
the public sector with a view to developing skills to optimally utilise government finances to
provide public goods.

Linkage with other related subjects

This diagram depicts the relationship between this subject and other related subjects

Main competences
On successful completion of this paper, candidates will be able to:
· Identify and analyse the concepts and frameworks of public sector accounting and
finance;
· Discuss the roles, duties and powers of officers and various organs in the public sector;
· Discuss the role of ethics in public finance management (PFM), and recommend
appropriate actions and safeguards to mitigate ethical threats in PFM;
· Prepare and interpret public sector management reporting information in evaluating
public sector performance;
· Evaluate the roles and limitations of public sector entities in delivering public goods and
services;
· Explain and evaluate factors affecting the selection and implementation of key public
sector management decisions, including acquisitions and strategic alliances;
· Understand and explain the role of audit and assurance in PFM;
· Assess and evaluate the economic environment and role of the public sector in the
economy;
· Understand the provisions of Fiscal Responsibility Act, 2010 (as amended) and Public
Procurement Act, 2007 (as amended);
· Evaluate the role of International Public Sector Accounting Standards (IPSAS) in
ensuring quality financial reports in the public sector;
· Discuss the role of planning and budgeting in PFM;
· Assess borrowing policies and public debts management;
· Discuss the role of the ICAN accountability index (ICAN AI) in PFM in Nigeria;
· Appraise and evaluate the achievements of the sustainable development goals
(SDGs) by the government; and
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· Appraise the current state of IPSASB's proposal for sustainability reporting framework
(Reporting sustainability program information – RPDs 1 and 3).

Prior knowledge
This subject assumes and develops on the knowledge and skills acquired in Financial
Accounting. Candidates will also be required to apply the knowledge and skills acquired in
Business Environment and Corporate and Business Law.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Public Sector Accounting and Finance paper is for three (3) hours with fifteen (15) minutes
reading time. The paper is in three (3) sections, consisting of seven (7) questions in all. Section
A comprises one (1) compulsory question, while sections B and C comprise three (3)
questions each and candidates are required to attempt any two (2) questions from each
section. The compulsory question could be an integrated question combining two (2) or more
areas of the syllabus.

Ethics and professional skepticism

Candidates should note that underlying ethical thinking is required in public sector accounting
and finance management. Candidates will also be expected to apply professional skepticism
and critical thinking when making decisions.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and
should guide the study time spent on each. Over time, the marks available in the assessment
will be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

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Detailed Contents

A. REGULATORY AND CONCEPTUAL FRAMEWORKS OF PUBLIC SECTOR ACCOUNTING - 20%

1. The constitutional and regulatory frameworks of public sector accounting
(a) Discuss the importance of the constitutional, legislative and regulatory contexts of public
sector accounting with specific emphases on:
(i) The constitutional provisions on revenue, revenue allocation and public
expenditure (federal, states and local governments);
(ii) The provisions of the Finance (Control and Management) Act of 1958 (as
amended); and
(iii) Financial regulations (instructions) for federal and state governments and
financial memoranda for local government councils.
(b) Discuss the provisions of:
(i) Fiscal Responsibility Act, 2010 in relation to:
v The medium-term expenditure framework (MTEF);
v The annual budget;
v Budget execution and achievement of targets;
v Savings and assets management;
v Transparency and accountability; and
v Enforcement.
(ii) Public Procurement Act, 2007 (as amended) in relation to:
v Fundamental principles of procurement;
v Organisation of procurement;
v Procurement methods (goods and services);
v Special and restricted methods of procurement;
v Procurement of consultants (services);
v Disposal of public property; and
v Offences.
(iii) IPSAS 11- Construction Contracts; and
(iv) IPSAS 12 - Inventories.
(c) Assess ethical issues in public sector accounting in respect of functions and powers
(offences and penalties) of the following bodies:
(i) Economic and Financial Crimes Commission (EFCC);
(ii) Independent Corrupt Practices and Other Related Offences Commission
(ICPC);
(iii) Code of Conduct Bureau (CCB);
(iv) Code of Conduct Tribunal (CCT);
(v) Public Accounts Committee (PAC); and
(vi) Courts.
2. Public sector accounting concepts and pronouncements
(a) Discuss:
(i) Accounting concepts, bases and principles relevant to public sector accounting;
(ii) Concept of funds, its relationship to the entity concept and its implications for
income measurement and valuation;
(iii) Professional pronouncements on public sector accounting by the United
Nations, the International Committee on Public Sector Financial Management
and International Federation of Accountants (IFAC) through IPSAS Board;
(iv) Pan African Federation of Accountants (PAFA) African Professionalisation
Initiatives (API) in the public sector; and
(v) Standardisation of federal, state and local governments reporting formats in
Nigeria.
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(b) Discuss Pension Reform Act, 2014 (as amended), in respect of:
(i) Objectives;
(ii) Rates of contribution to the scheme;
(iii) Exemption from the scheme;
(iv) Retirement benefits;
(v) Retirement savings account;
(vi) Transitional provisions for the public sector;
(vii) Pension fund administrators (PFA) and pension fund custodians (PFC);
(viii) Investment of pension fund; and
(ix) Offences, penalties and enforcement powers.
(c) Discuss IPSAS 39 - Employee Benefits
(d) Assess emerging issues in the Nigerian public sector in relation to:
(i) Government Integrated Financial Management Information System (GIFMIS);
(ii) Integrated Payroll and Personnel Information System (IPPIS);
(iii) University Transparency and Accountability Solution (UTAS);
(iv) Treasury Single Account (TSA);
(v) Accounting Transaction Recording and Reporting System (ATRRS); and
(vi) Open Treasury Portal
(e) Discuss Finance Acts, 2019, 2020, 2021 and 2023 in respect of:
(i) Objectives;
(ii) Ease of doing business;
(iii) Compensation for loss of employment;
(iv) Withdrawal of incentives;
(v) Enhancement of fiscal stability; and
(vi) Promotion of sustainable development.

B. PLANNING AND BUDGETING - 20%

1. Discuss the:
(a) Importance of planning and budgeting in the public sector; and
(b) Objectives and the use of annual budget in the public sector.
2. Evaluate types of budget:
(a) Line–item budgeting system;
(b) Traditional/incremental budgeting system;
(c) Planning programming budgeting system (PPBS);
(d) Programme performance budgeting system (PPBS); and
(e) Zero–base budgeting system (ZBB).
3. Distinguish amongst rolling, development and perspective plans.
4. Discuss the steps in the budgeting process and budgetary control.
5. Discuss IPSAS 24 - Presentation of Budget Information in Financial Statements.

C. REPORT AND AUDIT - 20%

1. Accounting and financial reporting
(a) Present and evaluate the public sector accounting processes in relation to:
(i) Treasury cash book and transcripts;
(ii) Cash management policies and borrowing guidelines;
(iii) Types of voucher and their uses;
(iv) Bank reconciliation statements;
(v) Subsidiary accounts - deposits, advances and imprest;
(vi) Journal entries for loss of public funds;
(vii) Vote book and expenditure control; and

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(viii) Revenue control procedures.

(b) Discuss the roles of the following bodies:

(i) Federation Accounts Allocation Committee (FAAC);
(ii) Joint Allocation Account Committee (JAAC);
(iii) Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC); and
(iv) Ministry of Finance Incorporated (MOFI).

(c) Prepare and explain the following:

(i) Federation Account;
(ii) Federal public sector independent revenue; and
(iii) Charges to the Consolidated Revenue Fund (CRF).

(d) Explain the roles of revenue collection agencies, such as:

(i) Federal Inland Revenue Service (FIRS);
(ii) State Internal Revenue Service (SIRS);
(iii) Local Government Revenue Authorities;
(iv) Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
(v) Nigerian Midstream and Downstream Petroleum Regulatory Authority
(NMDPRA);
(vi) Nigeria Customs Service (NCS); and
(vii) Nigerian National Petroleum Company Limited (NNPL) – (CBN as collecting
agent).
(e) Assess revenue collection and monitoring procedures.
(f) Discuss the International Public Sector Accounting Standards (IPSASs) on cash basis in
relation to its structure, objectives, responsibility, characteristics, and components.
(g) Prepare statutory financial statements for federal, state and local government treasury in
accordance with cash basis IPSAS, in respect of the following:
(i) Cash Flow Statement;
(ii) Statement of Consolidated Revenue Fund;
(iii) Statement of Capital Development Fund;
(iv) Notes to the accounts;
(v) Performance reports;
(vi) Statistical reports; and
(vii) Accounting policies.
(h) Discuss IPSAS 33 - First-time Adoption of Accrual Basis IPSAS.
(i) Discuss IPSAS 34 - Separate Financial Statements.
(j) Discuss the applicable International Public Sector Accounting Standards (IPSAS) on
accrual basis in relation to the definitions, applications, recognition, measurement and
disclosures:
(k) Prepare statutory financial statements for federal, state and local government treasury in
accordance with Accrual Basis IPSAS 33 in respect of the following:
(i) Cash Flow Statement;
(ii) Statement of financial performance (Consolidated Revenue Fund);
(iii) Statement of financial position (statement of assets and liabilities);
(iv) Statements of changes in net assets/equity;
(v) Comparison of budget and actual amounts; and
(vi) Notes to the accounts.
2. Accounting for public sector organisations and government business entities.
(a) Discuss the general nature of and differences among public sector organisations:
(i) Organisations without the features of a private company, such as Independent
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National Electoral Commission (INEC), Niger Delta Development Commission

(NDDC), etc; and
(ii) Government business entities (i.e. hybrid organisations that have features of
private companies and public organisations, such as Nigerian Ports Authority
(NPA), Central Bank of Nigeria (CBN), Nigerian Security Printing and Minting
Company (NSPMC) Ltd, Securities and Exchange Commission (SEC), etc.
(b) Discuss financial provisions of enabling laws for relevant utilities, authorities, parastatals,
boards, corporations, agencies and tertiary educational institutions.
(c) Prepare the financial statements of relevant utilities, authorities, parastatals, boards,
corporations, agencies and tertiary educational institutions in accordance with Accrual
Basis IPSAS, considering the following:
(i) Statement of financial position;
(ii) Statement of financial performance;
(iii) Statement of changes in net assets/equity;
(iv) Cash flow statement; and
(v) Notes to the accounts.
3. Public Sector Audit
(a) Discuss the following:
(i) Legal requirements for audit in the public sector and the roles of the Accountant-
General and Auditor-General;
(ii) Process of appointing auditors in the public sector;
(iii) Basic steps in the process of auditing public sector financial statements;
(iv) Concept of public accountability in the public sector;
(v) Financial guidelines for the operation of the public sector;
(vi) Financial responsibilities of public sector officers;
(vii) Nature and types of financial control in the public sector;
(viii) Financial control institutions within the public sector (including their functions
and procedures), in respect of:
· Ministry of Finance;
· Office of the Auditor-General for the Federation;
· Office of the Accountant-General of the Federation;
· Budget office;
· Expenditure control unit; and
· Fund section.
(ix) Roles of national and state assemblies, and local government councils in
financial management and control;
(x) Financial management and virement procedures;
(xi) Application of International Standards of Supreme Audit Institutions (ISSAI),
standards for assurance and audit and their relationship with International
Standards on Auditing (ISA's);
(xii) Performance audit or Value-for-money audit;
(xiii) Risk based audit; and
(xiv) Environmental audit.

D. PUBLIC FINANCE - 20%

1. Evaluate the roles of the public sector in relation to the:
(a) Performance of the Nigerian economy; and
(b) Objectives of fiscal responsibilities.
2. Discuss the main sources of revenue and capital finance.
3. Justify the importance of grants as a source of revenue to federal, state and local governments.
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4. Assess and evaluate the expenditure and revenue frameworks of public finance in relation to:
(a) Public expenditure:
(i) Efficient provision of public goods:
v Deriving the efficiency contribution; and
v Problems in achieving efficiency.
(b) Public goods:
(i) Justify government intervention in the provision of public goods; and
(ii) Evaluate how government spending creates positive externalities in provision of
public goods.
5. Discuss the National Privatisation Policy (NPP) with respect to:
(a) Public versus private provision;
(b) Public versus private production;
(c) Public goods and public choice; and
(d) Bureau of Public Enterprises (BPE).
6. Assess borrowing policy and public debts in the context of:
(a) Funded and unfunded debts;
(b) Debt burden;
(c) Deficit financing (to tax or to borrow?);
(d) External loans: multilateral, Paris Club, London Club, promissory notes and others; and
(e) Central Bank of Nigeria Ways and Means Financing.
7. Evaluate debt management strategies in relation to:
(a) Loans pooling and consolidation;
(b) Loan re-scheduling;
(c) Debt-equity swap; and
(d) Debt forgiveness.
8. Evaluate and discuss principles and practice of federalism (fiscal federalism, fiscal capacity and
needs in multi-level public sector structures).
9. Evaluate intra-public sectorial fiscal relations and Nigeria's experience with revenue allocation.
10. Appraise projects in the public sector, using:
(a) Cost-benefit analysis;
(b) Cost-outcome analysis; and
(c) Cost-effectiveness analysis.
11. Discuss the nature, causes and types of externalities.
12. Discuss emerging issues in Nigerian Public Finance Management.

E. PUBLIC FINANCE MANAGEMENT AND ACCOUNTABILITY - 10%

1. Discuss the role of ICAN Accountability Index (ICAN-AI) in public finance management and
accountability covering the following:
(a) Policy based fiscal strategy and budgeting;
(b) Budget credibility;
(c) Management of assets and debts;
(d) Probity, accountability, transparency and disclosures;
(e) Controls in budget execution, accounting and reporting; and
(f) External audit and legislative scrutiny.

F. SUSTAINABILITY AND SUSTAINABLE DEVELOPMENT - 10%

1. Discuss the United Nations Sustainable Development Goals (SDGs).
2. Discuss the Federal Government's Sustainable Development Goals.
3. Discuss sustainability reporting in the public sector.

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Applicable IPSAS – Standards

· IPSAS 1- Presentation of Financial Statements

· IPSAS 2 - Cash Flow Statements
· IPSAS 3 - Accounting Policies, Changes in Accounting Estimates and Errors
· IPSAS 4 - The Effects of Changes in Foreign Exchange Rates
· IPSAS 5 - Borrowing Costs
· IPSAS 9 - Revenue from Exchange Transactions
· IPSAS 10 - Financial Reporting in Hyperinflationary Economies
· IPSAS 13 - Leases
· IPSAS 14 - Events After the Reporting Date
· IPSAS 16 - Investment Property
· IPSAS 17- Property, Plant and Equipment
· IPSAS 18- Segment Reporting
· IPSAS 19- Provisions, Contingent Liabilities and Contingent Assets
· IPSAS 20- Related Party Disclosures
· IPSAS 21- Impairment of Non-Cash-Generating Assets
· IPSAS 22- Disclosure of Financial Information About the General Government Sector
· IPSAS 23 - Revenue from Non-Exchange Transactions (Taxes and Transfers)
· IPSAS 26 - Impairment of Cash-Generating Assets
· IPSAS 27 - Agriculture
· IPSAS 28 - Financial Instruments: Presentation
· IPSAS 29 - Financial Instruments: Recognition and Measurement
· IPSAS 30 - Financial Instruments: Disclosures
· IPSAS 31 - Intangible Assets
· IPSAS 32 - Service Concession Arrangements: Grantor
· IPSAS 35 - Consolidated Financial Statements
· IPSAS 36 - Investments in Associates and Joint Ventures
· IPSAS 37 - Joint Arrangements
· IPSAS 38 - Disclosure of Interests in Other Entities
· IPSAS 40 - Public Sector Combinations
· IPSAS 41 - Financial Instruments (replaced IPSAS 29)
· IPSAS 42- Social Benefits
· IPSAS 43 - Leases (replaced IPSAS 13 - effective date January 1, 2025)
· IPSAS 44 - Non-current Assets Held for Sale and Discontinued Operations - effective date January 1, 2025
· IPSAS 44- Non-current Assets Held for Sale and Discontinued Operations - effective date January 1,2025
· IPSAS 45 - Property, Plant and Equipment (Replaced IPSAS 17 - effective date January 1, 2025)
· IPSAS 46 - Measurement (effective date January 1, 2025)
· IPSAS 47 - Revenue (replaced IPSAS 9 and IPSAS 23 - effective date January 1, 2026
· IPSAS 48 - Transfer Expenses - effective date January 1, 2026)
· IPSAS 49 - Retirement Benefit Plans - effective date January 1, 2026)

Guide to examination assessment

ICAN reserves the right to examine any topic in the syllabus at any examination diet.
New standards and laws may be examined after six months from the dates of issue, even if the effective date is in
the future.

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PROFESSIONAL LEVEL
C1. STRATEGIC BUSINESS REPORTING

Aim
To develop candidates' knowledge of generally accepted accounting principles (GAAP),
deepen their understanding and application of accounting standards on financial reporting,
sustainability reporting and their ability to apply and evaluate principles and practices in the
preparation and interpretation of corporate disclosures and reports in the context of complex
groups.

Linkage with other related subjects

This diagram depicts the relationship between this subject and other related subjects.

Main competences
On successful completion of this paper, candidates should be able to:
· Prepare financial statements and notes, and sustainability disclosures on complex
single-entity, group (subsidiaries and associates) and all forms of business
combinations;
· Evaluate the appropriateness of accounting and other policies used in preparing
financial statements and other disclosures and reports;
· Prepare and analyse financial statements to show the position, performance, prospect
and risks of a business entity;
· Interpret financial statements, sustainability disclosures, non-financial data and
information, and other related disclosures and reports;
· Understand current issues in the reporting framework and business reporting; and
· Understand and apply ethical and professional principles to ethical dilemmas and
assess and discuss the consequences of creative accounting, window dressing and
aggressive earnings management.

Prior knowledge
Thorough knowledge of Financial Accounting and Financial Reporting is required for good
performance in this paper. Background knowledge in Management Accounting, Corporate
and Business Law, Taxation and Ethics will be required by candidates.

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Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Strategic Business Reporting paper is for three (3) hours with fifteen (15) minutes reading
time. The paper is in three (3) sections, consisting of seven (7) questions in all. Section A
comprises one (1) compulsory question, while sections B and C comprise three (3) questions
each and candidates are required to attempt any two (2) questions from each section. The
compulsory question could be an integrated question combining two (2) or more areas of the
syllabus.

Ethics and professional skepticism

Candidates should note that underlying ethical thinking is required in the financial reporting
process, sustainability reporting process and skepticism about business error and fraud.
Candidates will also be expected to apply professional skepticism, substance over form and
critical thinking when making all business reporting judgements.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and
should guide the study time spent on each. Over time, the marks available in the assessment
will be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

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Detailed contents

A. ETHICAL ISSUES IN, AND REGULATORY FRAMEWORK OF STRATEGIC

BUSINESS REPORTING - 5%
1. Ethical issues in strategic business reporting

(a) Discuss professional accountants' code of ethics as it relates to strategic

business reporting.
(b) Discuss and evaluate the ethical considerations that may arise in
strategic business reporting, including ethical dilemmas.
(c) Assess, recommend and justify actions to be taken where ethical issues
arise in given strategic business reporting scenarios.
2. Regulatory framework of strategic business reporting
(a) Discuss the need for convergence in international regulatory frameworks
of financial reporting standards.
(b) Evaluate the desirability, feasibility and implications of global financial
reporting convergence using IFRS accounting standards.
(c) Differentiate between rules-based and principles-based accounting
standards.
(d) Assess the applicable regulations as sources of Nigerian GAAP.
(e) Discuss the merits and demerits of international convergence of financial
reporting standards.
(f) Evaluate disclosures of corporate governance policies and chairman's
report as they relate to a company's annual report.
(g) Discuss the roles of Financial Reporting Council of Nigeria (FRC) in
financial reporting regulations and enforcement, including IFRS
accounting standards compliance.

B. REPORTING OF ENTITY'S PERFORMANCE TO STAKEHOLDERS - 25%

1. Performance reporting
(a) Evaluate how different bases of measurement and recognition of assets
and liabilities affect reported financial performance.
(b) Apply accounting standards relating to performance reporting such as
IFRS 5; IFRS 8; IFRS 15; IAS 33; and IAS 34 to the preparation of
financial statements.
(c) Formulate and evaluate entity's accounting policies (including group
entities) in accordance with the provisions of IAS 8.
(d) Prepare financial statements and sustainability disclosures, in
accordance with IFRS accounting standards and or other relevant
standards.
2. Non-financial assets
(a) Assess the effects of different recognition and measurement methods
and timing of recognition of non-financial assets on reported financial
position.
(b) Discuss and appraise accounting treatments of non-current assets, such
as: Property, Plant and Equipment – IAS 16; Intangible Assets - IAS 38;
Investment Properties - IAS 40; Leases - IFRS 16; Non-current Assets
Held for Sale - IFRS 5; Inventories -IAS 2; Agriculture – IAS 41;
Accounting for Government Grants and Disclosure of Government
Assistance - IAS 20; and Borrowing Costs - IAS 23.
3. Non-financial liabilities

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(a) Evaluate how different methods and timing of recognition and

measurement of non-financial liabilities affect reported financial position.
(b) Appraise accounting treatments of non-financial liabilities, such as:
Employees' Benefits – IAS 19; Share-based payment –IFRS 2; Income
Tax – IAS 12; Provisions, Contingent Liabilities and Contingent Assets –
IAS 37; and Leases - IFRS 16.
(c) Evaluate the effect of related parties' transactions and disclosures on
reported performance in line with relevant accounting standards.
4. Financial assets and liabilities
(a) Determine and assess how different bases for recognition, measurement
and classification of financial assets and financial liabilities impact on
reported performance and position.
(b) Discuss the accounting treatment of financial instruments (IFRS 7 and
IFRS 9), including impairment and hedge accounting under IFRS 9 for
financial assets and liabilities.
5. Segment reporting
(a) Determine and assess the nature and extent of reportable segments
(IFRS 8).
(b) Discuss the nature of segment information to be disclosed and its overall
impact on reported performance of the reporting entity.

C. GROUP FINANCIAL STATEMENTS - 30%

1. Introduction to consolidating complex group structure
(a) Identify and discuss complex group relationships, including the criteria
used to identify a subsidiary and an associate.
(b) Identify and discuss the circumstances in which a group is required to
prepare group financial statements and when an exemption can be
granted.
(c) Identify and discuss the criteria used to determine how different types of
investment are recognised and measured.
(d) Discuss and apply the treatment given to a subsidiary acquired
exclusively with a view to its subsequent disposal.
(e) Discuss why directors may not wish to consolidate a subsidiary and when
this will be permitted.
(f) Outline and apply the key definitions and accounting methods relating to
interests in associates and joint arrangements.
2. Preparation of financial statements of a complex group
(a) Apply the provisions of relevant standards in determining the cost of
acquisition in business combination under different scenarios.
(b) Determine and apply appropriate procedures to be used in preparing
group financial statements.
(c) Determine, apply and disclose from financial information or other data in
a given scenario, the amounts to be included in group financial
statements in respect of acquisitions achieved one time or in stages
involving subsidiaries, associates and joint ventures.
(d) Calculate, determine and disclose, from financial information and other
data in a given scenario, the amounts to be included in group financial
statements in respect of full or partial disposals involving subsidiaries,
associates and joint ventures.
(e) Discuss and appraise how foreign currency transactions of a single entity
or group entities are measured and accounted for in the financial

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statements.
(f) Discuss and appraise how the financial statements of overseas entities
are translated and consolidated.
(g) Calculate, determine and disclose, from financial information or other
data in a given scenario, the amounts to be included in group financial
statements relating to part of a group which activities have been
discontinued, or have been acquired or disposed of in the period.
(h) Prepare group financial statements and sustainability disclosures, in
accordance with IFRS accounting standards or other relevant standards.

D. INTERPRET FINANCIAL STATEMENTS, SUSTAINABILITY DISCLOSURES,

NON-FINANCIAL DATA AND INFORMATION, AND OTHER RELATED
DISCLOSURES AND REPORTS - 20%
1. Suitability of accounting policies and reported numbers
(a) Evaluate the appropriateness of accounting and other policies used to
prepare financial statements and other disclosures and reports.
(b) Assess accounting treatments adopted in financial statements and
assess their validity, suitability and acceptability.
(c) Appraise the nature and validity of information disclosed in annual
reports, including sustainability reporting and other voluntary
disclosures.
(d) Appraise the nature and validity of items included in published financial
statements.
2. Analyses, interpretation and appraisal of financial and other reports
(a) Evaluate relevant indicators of financial and non- financial performance.
(b) Analyse and evaluate the performance, including stock market
performance, liquidity, efficiency and solvency of an entity using different
techniques of analysis, such as: horizontal; vertical; ratios; trends; and
common size.
(c) Adjust reported earnings of an entity to make it comparable over time,
with similar entities and industry average.
(d) Assess the potential complex economic environment in which an entity
operates, and its strategies based on financial and operational
information contained within the annual report (such as Chairman and
MD/CEO/CFO business and performance reports, management
commentary, corporate governance disclosures, financial summaries
and highlights).
(e) Make inferences from the analyses of information taking into account the
limitations of the information, the analytical methods used and the
business environment in which the entity operates.
(f) Discuss and evaluate earnings management, window dressing and
creative accounting and assess their impact on the usefulness of ratios.
3. Limitations of financial analyses
(a) Appraise the limitations of financial analyses.
(b) Appraise the significance of inconsistencies and omissions in reported
information in evaluating performance.

E. SUSTAINABILITY AND INTEGRATED REPORTING - 10%

1. Discuss the progress from environmental, social and governance (ESG)
accounting to sustainability reporting.
2. Discuss sustainability reporting and methods of reflecting its impacts in financial

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statements and narratives for investors.

3. Discuss factors responsible for increasing demand for sustainability reporting -
internationally and locally.
4. Evaluate the problems and limitations of sustainability reporting.
5. Discuss the principles and content elements of Global Reporting Initiative (GRI)
and United States (US) Sustainability Accounting Standards Board (SASB)
frameworks for sustainability reporting.
6. Discuss the emergence of International Sustainability Standards Board (ISSB)
7. Discuss the key differences amongst the IFRS Sustainability Disclosure
Standards, Global Reporting Initiative (GRI) and United States (US)
Sustainability Accounting Standards Board (SASB) frameworks for
sustainability reporting.
8. Discuss the scope, conceptual foundations, objectives and core content of ISSB
standards.
9. Explain the roadmap for adopting IFRS S1 and S2 issued by the Financial
Reporting Council (FRC) of Nigeria for the implementation of S1 and S2:
(a) Early adopters for accounting period ending on or before December 31,
2023;
(b) Voluntary adopters for accounting period ending or before December
31, 2026;
(c) Mandatory adopters for accounting period beginning on or after
January 1, 2027; and
(d) Public sector entities - to be communicated later.
10. List and explain, including the timeline for submission, documents to be
submitted by entities adopting IFRS S1 and S2 to Financial
Reporting Council of Nigeria for readiness test assessment, including:
(a) To be submitted at least three (3) months before the beginning of the
reporting date:
(i) Board resolution approving the adoption of IFRS sustainability
Disclosure standards;
(ii) GAP Analysis Report; and
(iii) Implementation plan.
(b) To be submitted not more than three (3) months after the beginning of
the reporting date:
(i) IFRS Sustainability Disclosure Policies;
(ii) Identification and application of transitional reliefs;
(iii) Enterprise Risk Management and Sustainability Framework;
(iv) Evidence of Board Approval of the IFRS Sustainability
Disclosure Policies;
(v) Evidence of Board-Approval of Enterprise Risk Management
and Sustainability Framework; and
(vi) Evidence of Sustainability and ESG-specific training for Board
Members, Management, and Preparers by reputable training
providers acceptable by the FRC.
(c) To be submitted not more than six (6) months after the beginning of the
reporting date:
(i) Evidence of registration of the entity and professionals engaged
in the sustainability reporting process with FRC;
(ii) Description of Models used for scenario analysis;
(iii) Identification of sustainability and climate-related risks and
opportunities;

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(iv) Evidence of the establishment of a governance structure for

sustainability reporting;
(v) Targets and metrics set to manage and measure identified risks
and opportunities;
(vi) Identification of aspects of financial reports requiring updates;
(vii) Identification of current and anticipated effects of sustainability-
related risks and opportunities on the entity's business model
and value chain; and
(viii) Internal control over sustainability reporting
11. Evaluate the usefulness of corporate disclosures of climate-related risks and
opportunities.
12. Discuss, apply and prepare sustainability report in accordance with the
international sustainability standards issued by ISSB:
(a) IFRS S1 – General requirements for disclosure of sustainability-related
financial information' and
(b) IFRS S2 – Climate - related Disclosures.

F. THE IMPACT OF CHANGES AND POTENTIAL CHANGES IN ACCOUNTING

REGULATIONS - 5%
1. Discuss and apply the accounting implications of the first time adoption of new
accounting standards that are effective six (6) months to the examination date.
2. Identify issues and deficiencies which have led to proposed changes to an
accounting standard.
3. Discuss developments in devising a structure for business reporting that
addresses the needs of stakeholders.
4. Discuss the impact of current issues in business reporting.
5. Discuss and apply newly issued exposure drafts.

G. OTHER CURRENT DEVELOPMENTS IN AND BEYOND FINANCIAL REPORTING

5%
1. Global convergence of financial reporting and Nigerian Generally Accepted
Accounting Principles (NGAAP)

(a) Determine, discuss and apply the accounting treatment of issues arising
from the first-time transition to international accounting standards such
as IFRS accounting standards from NGAAP.
(b) Discuss accounting issues relating to applicable Nigerian accounting
standards after IFRS accounting standards adoption.
2. Technology and other employability skills
(a) Discuss the following in relation to business reporting:
(i) Multiple capitals;
(ii) Integrated thinking;
(iii) Distributed ledger and related technologies;
(iv) Cloud computing;
(v) Reporting in a virtual environment;
(vi) Artificial intelligence; and
(vii) Machine learning.

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Applicable Accounting Standards:

Ÿ Preface to IFRS
Ÿ The Conceptual Framework for Financial Reporting
Ÿ IAS 1 - Presentation of Financial Statements
Ÿ IAS 2 - Inventories
Ÿ IAS 7 - Statement of Cash Flows
Ÿ IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
Ÿ IAS 10 - Events after the Reporting Period
Ÿ IAS 12 - Income Taxes
Ÿ IAS 16 - Property, Plant and Equipment
Ÿ IAS 19 - Employee Benefits
Ÿ IAS 20 - Accounting for Government Grants and Disclosure of Government Assistance
Ÿ IAS 21 - The Effects of Changes in Foreign Exchange Rates
Ÿ IAS 23 - Borrowing Costs
Ÿ IAS 24 - Related Party Disclosures
Ÿ IAS 26 - Accounting and Reporting by Retirement Benefit Plans
Ÿ IAS 27 - Separate Financial Statements
Ÿ IAS 28 - Investments in Associates and Joint ventures
Ÿ IAS 29 - Financial Reporting in Hyper inflationary Economies
Ÿ IAS 33 - Earnings per Share
Ÿ IAS 34 - Interim Financial Reporting
Ÿ IAS 36 - Impairment of Assets
Ÿ IAS 37 - Provisions, Contingent Liabilities and Contingent Assets
Ÿ IAS 38 - Intangible Assets
Ÿ IAS 40 - Investment Property
Ÿ IAS 41 - Agriculture
Ÿ IFRS 1 - First-Time Adoption of IFRS
Ÿ IFRS 2 - Share-based Payment
Ÿ IFRS 3 - Business Combinations
Ÿ IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations
Ÿ IFRS 6 - Exploration for and Evaluation of Mineral Resources
Ÿ IFRS 7 - Financial Instruments: Disclosures
Ÿ IFRS 8 - Operating Segments
Ÿ IFRS 9 - Financial Instruments
Ÿ IFRS 10 - Consolidated Financial Statements
Ÿ IFRS 11 - Joint Arrangements
Ÿ IFRS 12 - Disclosure of Interest in other entities
Ÿ IFRS 13 - Fair Value Measurement
Ÿ IFRS 14 - Regulatory Deferral Accounts
Ÿ IFRS 15 - Revenue from Contract with Customers
Ÿ IFRS 16 – Leases
Ÿ IFRS for SMEs
Ÿ NGAAP-SAS 32- Statement for Not-for-profit

NOTES:
Ÿ Candidates are required to understand interpretations of the relevant standards.
Ÿ New standards may be examined six months after dates of issue, even if the effective
date is in the future.
Ÿ Applicable laws may be examined six months after dates of amendment or enactment.

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C2. ADVANCED AUDIT AND ASSURANCE

Aim
To enhance candidates' knowledge and skills in managing critical aspects of audit, review and
assurance engagements. It will also equip them with critical thinking and risk management
skills, and application of professional skepticism and judgement to audit engagement.

Candidates will also be equipped to produce reports to management and other stakeholders
of relevant organisations.

Linkage with other related subjects

This diagram depicts the relationship between this subject and other related subjects.

Main competences
On successful completion of this paper, candidates should be able to:
· Analyse and evaluate the legal and regulatory environments and their impact on audit
and assurance practice;
· Assess an audit and other related assignments and advise on how the assignment can
be carried out efficiently within professional and ethical frameworks;
· Develop a comprehensive plan on assurance engagement in accordance with the
terms of the engagements and appropriate standards;
· Assess and recommend effective management policies and procedures in practice
management and recognise the auditor's position in relation to the acceptance and
retention of professional appointments;
· Develop plans and formulate the work required to meet the objectives of audit
assignments and apply the relevant international Standards on Auditing;
· Evaluate findings and communicate the result of work performed and draft suitable
reports on assignments;
· Develop plans and formulate the work required to meet the objectives of non-audit
assignments, including sustainability reporting assurance; and
· Evaluate and communicate on current issues and development relating to the
provision of audit related and assurance services.

Prior knowledge
Advanced Audit and Assurance assumes and develops on the knowledge and skills acquired
in Audit, Assurance and Forensics. Background knowledge in Financial Reporting, Corporate
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and Business Law, Taxation and Business Environment will be required by candidates.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Advanced Audit and Assurance paper is for three (3) hours with fifteen (15) minutes
reading time. The paper is in three (3) sections, consisting of seven (7) questions in all. Section
A comprises one (1) compulsory question, while sections B and C comprise three (3)
questions each and candidates are required to attempt any two (2) questions from each
section. The compulsory question could be an integrated question combining two (2) or more
areas of the syllabus.

Ethics and professional skepticism

Ethical considerations are the bed rock of effective conduct of an audit engagement.
Candidates should be mindful of legal, professional regulations and ethical considerations in
accepting and managing audit and assurance engagements. Candidates will also be
required to demonstrate the crucial role of professional skepticism in the judgement they
apply.

Specification grid
The grid below shows the relative weightings of topics within this subject and should guide
the study time spent on each. Over time, the marks available in the assessment will be
within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

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Detailed contents

A. LAWS AND REGULATIONS ON AUDIT AND ASSURANCE ENGAGEMENTS -

20%
1. Laws and regulations
(a) Explain the need for laws, regulations, standards and codes in the
context of audit and assurance engagements.
(b) Discuss laws and regulations that guide conduct of audit in Nigeria, such
as CAMA 2020 (as amended), ICAN Act, FRC Act (as amended),
guidelines issued by FRC and other audit regulations.
(c) Evaluate and explain the process and issues involved in standards
setting at national and international levels.
(d) Explain the need for public oversight and corporate governance
principles in audit and assurance practice.
(e) Evaluate and communicate the interactions between national laws and
regulations and the requirements of an assurance engagement.
(f) Evaluate and communicate the differences between various jurisdictions
and how they deal with audit issues, including national and international
approaches such as the US Sarbanes-Oxley Act and related
requirements for audit.
(g) Explain the role of audit committee and its impact on audit and assurance
practice.
(h) Compare and contrast the respective responsibilities of management
and auditors concerning compliance with laws and regulations in an audit
of financial statements.
2. Professional and ethical issues
(a) Identify the fundamental principles guiding IFAC Code of Ethics and
ICAN Code of Professional conduct, and other ethical statements.
(b) Advise on technical, professional, and ethical issues that may arise
during audit and assurance engagements in the public and private
sectors, including evaluation and communication with any party to the
engagement.
(c) Evaluate and explain the extent of legal liabilities, including criminal and
civil law liabilities and professional negligence and how they can be
mitigated.
(d) Identify situations that may impair or threaten integrity, objectivity and
independence.
(e) Identify and make judgements on when it may be appropriate to refer a
matter to a senior colleague or for third party advice or consultation.
(f) Evaluate an organisation's internal audit and code of ethics.
(g) Discuss and appraise the principal causes of audit failure and other
factors that contribute to the 'expectation gap' (responsibilities for fraud
and error) and recommend ways in which that gap may be bridged.

B. QUALITY MANAGEMENT FOR PROFESSIONAL FIRMS AND ENGAGEMENTS -

15%
1. Accepting engagements
(a) Discuss the process that must be followed before acceptance of audit
engagements.
(b) Analyse and evaluate the issues that may arise during the process of
obtaining audit work.

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(c) Identify and explain the legal, professional and ethical issues that may
arise during the acceptance of assurance or audit assignments.
(d) Analyse and evaluate the potential issues that may determine the nature,
scope and extent of an assurance or audit engagement.
(e) Discuss the key elements of an engagement letter, including those
agreed with the client or those imposed by laws and regulations.
2. Practice management
(a) Evaluate and apply appropriate policies and procedures for
management of an assurance or audit engagement.
(b) Evaluate and apply appropriate quality control measures that may be
used by a firm during the course of an assurance or audit engagement.
(c) Identify and evaluate the extent to which assurance and a u d i t
functions within an entity can be used or relied upon.
(d) Evaluate and apply appropriate monitoring and review procedures to
effectively manage an audit or assurance engagement.
(e) Quality management (ISQM1 & ISQM2)
(i) Explain the principles and purpose of quality management of audit
and other assurance engagements.
(ii) Describe the elements of a system of quality management
relevant to a given firm.
(iii) Evaluate the quality management procedures in place in a given
firm and assess if they have been appropriately applied in a given
engagement.
(iv) Discuss the changes to ISA 220 as regards the responsibility of
the engagement partner.
(f) Identify and evaluate the considerations by an auditor of risk, prior
to accepting an engagement.
(g) Apply quantitative methods and appropriate automated tools and
techniques that are used in audit engagements.

C. PLANNING AND UNDERTAKING AUDIT WORK - 30%

1. Overall audit strategy
(a) Analyse, evaluate and explain the key areas of a business that are
important to understand in developing an effective strategy or plan,
based on a business scenario. (ISA 300 – Planning an audit of financial
statements).
(b) Analyse and evaluate the relevant techniques needed for an effective
understanding of the audit work.
(c) Analyse and evaluate the situations when third party expertise may be
required (ISA 620 - Using the Work of an Auditor's Expert).
(d) Evaluate and advise on elements of audit risk, including inherent and
control (risk of material misstatement), sampling and non-sampling
(detection risk) and their relationships with audit planning procedures
(ISA 315 – Identifying and Assessing the Risk of Material Misstatement
through Understanding the Entity and its Environment).
(e) Identify and evaluate the components of risk for any assurance
engagement.
(f) Sustainability assurance
(i) Discuss the need for and the process of sustainability reporting
and assurance.
(ii) Identify and evaluate the issues to be considered before

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accepting sustainability assurance, including ethical and

professional considerations.
(iii) Discuss the type of assurance an auditor can provide in
sustainability assurance, either as part of annual corporate report
or as a standalone report.
(iv) Discuss sustainability assurance in accordance with ISSA 5000.
(g) Evaluate and explain how business process effectiveness may affect an
audit assignment.
(h) Identify and evaluate the risks arising from accounting manipulation,
error, fraud or other irregularities in a business scenario.
(i) Identify and evaluate the risks arising from business and financial issues
in a business scenario.
(j) Evaluate and apply judgements and measures of materiality in carrying
out an audit or assurance engagement (ISA 320 – Materiality in Planning
and Performing an Audit).
(k) Evaluate and apply analytical procedures that may be used to plan an
audit or assurance engagement, including data analytics.
(l) Analyse and evaluate how risk and materiality judgements affect the
planning of an assurance or audit engagement, including the nature,
timing and extent of work.
(m) Develop an audit plan, justifying judgements made on an audit or
assurance engagement, based on a business scenario, including
considerations relating to:
(i) Materiality;
(ii) Internal control assessments, including information technology
(IT);
(iii) Reliance on internal audit, specialists and the work of other
auditors;
(iv) Use of client's generated data, information and reports;
(v) Tests of control, substantive and analytical procedures; and
(vi) Visits to locations, branches and departments.
(n) Describe the appropriate procedures for assurance engagements in
respect of corporate social responsibility and sustainability reports.
(o) Describe the differences between assurance engagements and audit
engagements, for profit and not-for-profit entities, including those in the
public sector.
(p) Discuss local and international frameworks for auditing and assurance
work in private and public sectors.
2. Assessment of risks, internal controls and internal financial controls
(a) Identify and assess reporting and compliance risks in the context of an
assurance or audit engagement in the public or private sector, based on a
given business scenario.
(b) Give an advice based on the assessment above.
(c) Analyse the role of information technology control framework in internal
control.
(d) Analyse technology risk management and cyber security.
3. Evaluation of accounting treatments
Evaluate and draw conclusions on the appropriateness of stated accounting
treatments in the context of a given scenario for public or private sector entities,
based on national and international standards on auditing and IFRS accounting
standards.

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Applicable IFRS Accounting Standards

· IAS1 - Presentation of Financial Statements
· IAS 2 - Inventories
· IAS 7 - Statement of Cash Flows
· IAS 8 - Accounting Policies, Changes in Accounting Estimates and
Errors
· IAS 10 - Events after the Reporting Period
· IAS 12 - Income Taxes
· IAS 16 - Property, Plant and Equipment
· IAS 19 - Employee Benefits
· IAS 20- Accounting for Government Grants and Disclosure of
Government Assistance
· IAS 21 - The Effects of Changes in Foreign Exchange Rates
· IAS 23 - Borrowing Costs
· IAS 24 - Related Party Disclosures
· IAS 26 - Accounting and Reporting by Retirement Benefit Plans
· IAS 27 - Separate Financial Statements
· IAS 28 - Investments in Associates and Joint ventures
· IAS 29 - Financial Reporting in Hyperinflationary Economies
· IAS 32 - Financial Instruments: Presentation
· IAS 33 - Earnings per Share
· IAS 34 - Interim Financial Reporting
· IAS 36 - Impairment of Assets
· IAS 37 - Provisions, Contingent Liabilities and Contingent Assets
· IAS 38 - Intangible Assets
· IAS 40 - Investment Property
· IAS 41 - Agriculture
· IFRS 1 - First-Time Adoption of IFRS
· IFRS 2 - Share-based Payment
· IFRS 3 - Business Combinations
· IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations
· IFRS 6 - Exploration for and Evaluation of Mineral Resources
· IFRS 7 - Financial Instruments: Disclosures
· IFRS 8 - Operating Segments
· IFRS 9 - Financial Instruments
· IFRS 10 - Consolidated Financial Statements
· IFRS 11 - Joint Arrangements
· IFRS 12 - Disclosure of Interest in other entities
· IFRS 13 – Fair Value Measurement
· IFRS 14 – Regulatory Deferral Accounts
· IFRS 15 - Revenue from Contract with customers
· IFRS 16 - Leases
· IFRS 17 - Insurance
4. Specialised audits and investigations
(a) Special features of certain types of audit and investigation
(i) Forensic investigation and reporting
· Describe the major applications of forensic auditing, such
as fraud, negligence, insurance claims and analyse the
role of a forensic auditor as an expert witness.
· Distinguish among forensic accounting, forensic

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investigation and forensic audit.

· Identify the various government agencies associated with
forensic auditing.
· Apply the fundamental ethical principles applicable to
forensic auditor's engagement.
· Describe the procedures to be adopted in forensic audit.
· Select investigative procedures and evaluate the evidence
appropriate to determine the amount of loss in specific
circumstances.
(ii) Not-for-profit organisations – charities, non-governmental
organisations (NGOs)
· Identify and explain various types and objectives of not-for-
profit organisation.
· Explain how the audit of a not-for-profit organisation differs
from the audit of a profit oriented organisation.
· Assess the audit risks associated with not-for-profit
organisations.
· Develop plans and procedures for the audit of not-for-profit
organisations.
· Suggest various control measures that can be applied by a
not-for-profit organisation in its operations.
· Determine the form and contents of audit report for a not-
for-profit organisation.
(b) Joint audits
(i) Explain the term joint audit.
(ii) Develop a plan for a joint audit.
(iii) Discuss circumstances under which a joint audit occurs.
(iv) Describe the factors to consider in sharing audit work in joint
audits.
(v) Advise management on the merits and demerits of joint audit.
(vi) Advise on matters to consider by firms engaging in joint audits.

(c) Group audit

(i) Discuss situations requiring group audit.
(ii) Discuss roles of group auditors and component auditors.
(iii) Discuss the concept and purpose of scoping in group audit,
including group risk assessment.
(iv) Discuss considerations for setting group and component
materiality.
(v) Discuss reports issued by component auditors, considering
communication of audit referral instructions – contents, purpose
and importance.
(vi) Discuss how to obtain sufficient and appropriate audit evidence in
a group audit scenario (ISA 600).
(vii) Identify and describe the matters to be considered and the
procedures to be performed at the planning stage, when a group
auditor considers the use of the work of component auditors.
(d) Investigations
(i) Identify and discuss various circumstances under which an
investigation may be conducted.
(ii) Differentiate between investigation and statutory audit.

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(iii) Analyse and evaluate various stages involved in conducting

investigations.
(iv) Write an appropriate report on each investigation.
(v) Discuss the nature and methods of investigation relating to
liquidation and bankruptcy.
(e) Due diligence reviews for mergers, acquisitions and business
combinations
(i) Explain the term due diligence.
(ii) Differentiate between due diligence and external audit.
(iii) Describe the procedures involved in carrying out due diligence.
(iv) Write a report on the outcome of a due diligence assignment.
(f) Discuss the need for and the process of sustainability reporting and
assurance.
(g) Discuss the guidelines issued by the Financial Reporting Council (FRC)
of Nigeria on assurance engagement, on internal control over financial
reporting.
(h) Discuss the guidelines issued by the Financial Reporting Council (FRC)
of Nigeria - guidance on management report on internal control over
financial reporting.
(i) Discuss the process and procedure for carrying out sustainability
reporting assurance, taking into consideration the provisions of ISSA
5000 – International Standard on Sustainability Assurance.

D. DRAWING CONCLUSIONS AND REPORTING - 20%

1. Drawing conclusions
(a) Analyse, evaluate and propose how issues identified during the course of
an assignment may be raised and dealt with in communication with
management, directors and those charged with governance, including
actions taken when issues cannot be resolved.
(b) Identify, explain and apply procedures that may be used a n d
considerations relating to the identification of subsequent events that
may require adjustments or disclosures.
(c) Identify, explain and apply procedures that may be used a n d
considerations relating to the identification of risk issues that
require disclosure.
(d) Evaluate and apply quantitative and qualitative judgements based on the
results of tests and evidence obtained.
2. Audit report
(a) Discuss the concept of key audit matters (KAM) and justify the basis for
reporting same.
(b) Explain the responsibilities of an auditor with respect to KAM.
(c) Explain the audit documentation requirements of ISA 701 with respect to
KAM.
(d) Identify the additional national requirements beyond those of ISA 701 for
entities that should be within the scope of ISA 701, per the requirements
of the Financial Reporting Council of Nigeria.
(e) Appraise the form and contents of the audit report under ISA 700
(revised), given a specific situation.
(f) Explain the responsibilities of auditors in respect of other information in
line with the requirements of ISA 720.
(g) Explain circumstances under which emphasis of matters or other matters

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paragraph may be appropriate to an audit report.

(h) Explain the various forms of audit report and circumstances under which
each can be issued.
(i) Draft extracts of suitable audit, assurance and management reports,
based on a given scenario in accordance with Nigerian laws and
International standards on auditing.
(j) Evaluate and apply suitable judgement on when it may be appropriate to
refer to a specialist in giving an opinion or preparing a report.
(k) Evaluate and apply suitable judgement on when it may be appropriate to
withhold an opinion, withdraw an opinion or take other such appropriate
actions on an audit or assurance engagement.
(l) Identify and explain the issues that may be relevant and t h e n a t u r e o f
report that may be given relating to risk management, internal controls
and governance.

E. APPLICATION OF INFORMATION TECHNOLOGY (IT) IN AUDITING - 10%

1. Discuss the impact of IT on an auditing environment.
2. Analyse the benefits of IT control frameworks in internal controls (example
COBIT Framework).
3. Discuss cyber security in relation to audit and investigation.
4. Discuss application and web trust assurance.
5. Evaluate application of algorithm reviews in business.
6. Discuss application of digital forensics.
7. Discuss data protection regulation compliance audit.
8. Discuss the utilisation of robotic process automation in audit.

F. CURRENT ISSUES AND DEVELOPMENT IN AUDIT AND ASSURANCE - 5%

1. Discuss audit in a blockchain environment.
2. Discuss the use of artificial intelligence (AI) in audit.
3. Discuss the deployment virtual reality in audit and assurance.
4. Discuss the use of cloud based audit tools.
5. Discuss the role of data analytic in auditing.
6. Discuss audit firm/partners' rotation.
7. Discuss transnational audit.

Applicable standards
1. International standards on auditing (ISA)
· 200 - Overall Objectives of the Independent Auditor and the
Conduct of an Audit in Accordance with International
Standards on Auditing.
· 210 - Agreeing the Terms of Audit Engagements
· 220 - Quality Control for an Audit of Financial Statements
· 230 - Audit Documentation
· 240 - The Auditor's Responsibilities Relating to Fraud in an
Audit of Financial Statements
· 250 - A Consideration of Laws and Regulations in an Audit of
Financial Statements
· 260 - Communication with Those Charged with Governance
· 265 - Communicating Deficiencies in Internal Control to Those
Charged with Governance and Management
· 300 - Planning an Audit of Financial Statements

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· 315 - Identifying and Assessing the Risks of Material

Misstatement through Understanding the Entity and Its
Environment
· 320 - Materiality in Planning and Performing an Audit
· 330 - The Auditor's Procedures in Response to Assessed
Risks Contents
· 402 - Audit Considerations Relating to an Entity Using a
Service Organisation
· 450 - Evaluations of Misstatements Identified during the Audit
· 500 - Audit evidence
· 501 - Audit Evidence - Specific Considerations for Selected
Items
· 505 - External Confirmations.
· 510 - Initial Audit Engagements - Opening Balances
· 520 - Analytical Procedures
· 530 - Audit Sampling
· 540 - Auditing Accounting Estimates, Including Fair Value
Accounting Estimates and Related Disclosures
· 550 - Related Parties
· 560 - Subsequent Events
· 570 - Revised Going Concern
· 580 - Written Representations
· 600 - Special Considerations – Audits of Group Financial
Statements (including the Work of Component Auditors)
· 610 - Using the Work of Internal Auditors
· 620 - Using the Work of an Auditor's Expert
· 700 (Revised) - Forming an Opinion and Reporting on Financial
Statements
· 701 - Communicating Key Audit Matters in the Independent
Auditor's Reports
· 705 - Modifications to the Opinion in the Independent Auditor's
Report
· 706 (Revised) - Emphasis of Matter Paragraphs and Other Matter
Paragraphs in the Independent Auditor's Report
· 710 - Comparative Information – Corresponding Figures and
Comparative Financial Statements
· 720 (Revised) - The Auditor's Responsibility Relating to Other
Information in Documents Containing Audited
Financial Statements
· 800 - Special Considerations – Audits of Financial Statements
prepared in Accordance with Special Purpose
Frameworks
· 805 - Special Considerations – Audits of Single Financial
Statements and Specific Elements, Accounts or items of a
Financial Statement
· 810 - Engagements to Report on Summary Financial
Statements
2. International Standards on Review Engagements (ISREs)
· 2400 - Engagements to Review Financial Statements
· 2410 - Review of Interim Financial Information Performed by the
Independent Auditor of the Entity

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3. International Standards on Assurance Engagements (ISAEs)

· 3000 - Assurance Engagements Other than Audits or Reviews
of Historical Financial Information
· 3400 - The Examination of Prospective Financial Information
· 3402 - Assurance Reports on Controls at a Service Organisation
4. International Standards on Related Services (ISRSs)
· 4400 - Engagements to Perform Agreed-upon Procedures regarding
Financial Information
· 4410 - Engagements to Compile Financial Statements
· ISSA 5000 – International Standard on Sustainability Assurance
5. IAASB Statements
· ISQM 1 - Quality Management For Firms that Perform Audits Or
Reviews of Financial Statements Or Other Assurance Or
Related Services Engagements
· ISQM 2 - Engagement Quality Reviews
· IFAC - IESBA Code of Ethics for Professional Accountants
6. Other relevant laws and pronouncements
(a) Insurance Act 2003 (as amended)
(b) BOFIA 2020, including prudential guidelines and other circulars issued
by CBN from time to time
(c) Money (Prohibition) Laundering Act 2011 (as amended)
(d) Corporate Governance Codes – FRC, SEC, CBN etc
(e) ICAN Professional Code of Ethics and Guide for Members
(f) IFRS accounting standards
(g) Companies and Allied Matters Act (CAMA) 2020 (as amended)

Guide to examination assessment

ICAN reserves the right to examine any topic in the syllabus at any examination diet.
New standards and laws may be examined after six months from the dates of issue, even if the
effective date is in the future.

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C3. STRATEGIC FINANCIAL MANAGEMENT

Aim
To enable candidates to develop relevant knowledge and technical skills, and apply
professional judgement to support management in making informed strategic decisions as
required of a senior finance manager or adviser, taking into consideration the overall strategic
management of an organisation.

Linkage with other related subjects

The diagram below depicts the relationship between this subject and other related subjects.

Main competences
On completion of this paper, candidates should be able to:
· Appreciate the place of financial strategy as a part of the overall corporate and
business strategies of an organisation;
· Understand the role of the financial management function in the development and
implementation of strategy;
· Use analytical tools and models to analyse the industry and the market in which an
· organisation operates;
· Use analytical tools and models to understand and measure the performance of the
· organisation;
· Use business information for decision making from an organisational perspective;
· Identify and explain the key challenges faced in the implementation of strategy;
· Apply critical thinking skills in formulating broad strategies for consideration and
application in the organisational environment;
· Analyse and evaluate organisational business risk management plan, processes and
procedures;
· Analyse and evaluate organisational governance principles and mechanisms and their
effects on stakeholders;
· Evaluate potential investment decisions and assess their financial and strategic
consequences, both domestically and internationally;
· Assess and plan acquisitions and mergers as an alternative growth strategy;
· Evaluate and advise on alternative corporate re-organisation strategies; and
· Apply and evaluate alternative advanced treasury and risk management techniques.
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Prior Knowledge
Strategic Financial Management assumes and develops on the core knowledge and technical
skills covered in Financial Management and Performance Management. Background
knowledge in Management Accounting, Financial Accounting, Financial Reporting, Business
Environment, Corporate and Business Law will be required by candidates.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Strategic Financial Management paper is for three (3) hours with fifteen (15) minutes
reading time. The paper is in three (3) sections, consisting of seven (7) questions in all. Section
A comprises one (1) compulsory question, while sections B and C comprise three (3)
questions each and candidates are required to attempt any two (2) questions from each
section. The compulsory question could be an integrated question combining two (2) or more
areas of the syllabus.

Ethics and professional skepticism

Candidates should note that underlying ethical thinking is required in arriving at appropriate
investment decisions, managing capital reconstructions, corporate reorganisation and
financial risk. The implications of financial strategy for all stakeholders must be considered
and evaluated, and any ethical dilemmas must be resolved. Candidates will also be expected
to apply professional skepticism and critical thinking when making all judgements.

Specification grid
The grid below shows the relative weightings of the main sections within this syllabus and
should guide the study time spent on each. Over time, the marks available in the assessment
will be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.

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Detailed contents

A. INTRODUCTION TO BUSINESS STRATEGY AND FINANCIAL MANAGEMENT -

10%
1. The role and responsibility of senior finance executive/adviser
(a) Formulate strategies for achievement of the organisational goals in line
with the organisation's agreed policy framework.
(b) Develop and recommend appropriate strategies for management of the
financial resources of the organisation to ensure effectiveness, efficiency
and transparency.
(c) Advise management and the board of directors of the organisation in
developing financial goals and organisational financial policies, taking
into considerations the following:
(i) Investment and capital resource allocation decisions;
(ii) Optimising the cost of capital;
(iii) Distribution and retention policy; and
(iv) Risk management.
(d) Discuss the emerging role of the Chief Financial Officer (CFO) as a
strategic partner to the CEO, contributing to the overall business success
by providing financial leadership, driving performance, managing risks,
optimising costs, embracing technology, fostering stakeholder
relationships and ensuring compliance with laws and regulations.
(e) Discuss the changing role of a company's head of finance from a CFO to
Chief Value Officer (CVO).
2. Financial strategy formulation
(a) Assess and evaluate organisational performance using ratios, trends
analysis, etc.
(b) Recommend an optimum capital mix and structure appropriate to
specified business organisation's capital asset structure.
(c) Advise an appropriate distribution and retention policy.
(d) Evaluate organisation's exposure to risks - business and financial risks
(strategic, operational, reputational, political, economic, regulatory and
fiscal risks).
(e) Advise an appropriate risk management framework, including risk
identification, risk mitigation, hedging and diversification strategies.
3. Corporate environmental, social, governance (ESG) and ethical issues
(a) Assess the impact on the physical environment and the sustainability of
natural resources arising from alternative organisational business,
financial and investment decisions.
(b) Examine how the organisation manages its stakeholder groups as part of
its social responsibility.
(c) Assess and advise on the impact of investment and financing strategies
and decisions on the organisation's stakeholders.
(d) Explore the areas within the ethical and governance framework of the
organisation which may be undermined by agency issues and/or
stakeholder conflicts and establish strategies for dealing with them.
(e) Recommend appropriate strategies for the resolution of stakeholder
conflict in specific situations and advise on alternative approaches that
may be adopted.
(f) Assess the impact of ethical and governance issues on the management
of an organisation's financial resources.

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(g) Recommend ethical and governance framework for the development of

an organisation's financial management policies, which is based on the
highest standards of probity and is fully aligned with the ethical principles
of ICAN.
4. Management of international trade and finance
(a) Discuss the theory and practice of free trade and the management of
barriers to trade.
(b) Evaluate and advise on the impacts of the actions of the World Trade
Organisation (WTO), the International Monetary Fund (IMF), The World
Bank (WB) and Central Banks on multinational organisations.
5. Dividend policy in multinationals and transfer pricing
(a) Determine a company's dividend capacity and its policy given:
(i) The company's short- and long term reinvestment strategy;
(ii) The companies income tax regime within the host jurisdiction; and
(iii) The organisational policy on the transfer pricing of goods and
services across international borders.
6. Financial management and ethical issues and emerging technologies
(a) Identify and assess the impact of emerging technologies on strategic
financial management. These include the changing landscape of
financial markets regulations, digitisation, Artificial Intelligence (AI),
blockchain; new asset classes, such as crypto currencies; newer
financing methods such responsible investment, sustainable
finance/green bond; emerging risks beyond currency and interest rate
risks.
(b) Evaluate the ethical implications of an organisation's financial strategy
(including those for the organisation, individuals and other stakeholders)
and recommend appropriate courses of action to resolve any ethical
dilemmas that may arise.

B. STRATEGIC MANAGEMENT - 10%

1. Strategic analysis
(a) Analyse and evaluate an organisation's purpose, in terms of its stated
mission, objectives and critical success factors, highlighting omissions,
inconsistencies and weaknesses, and considering the different
objectives of stakeholders.
(b) Analyse the external environmental factors which may impact upon an
organisation's performance and position, evaluating significant issues in
areas, such as natural capital and climate change; macroeconomic
forces; international trade, financial systems and global economic
factors; government policies; its industry and markets, including
competition; cultural environment; stakeholders, markets for finance,
labour and other resources; supply chain factors; technology
developments, and ecosystem and participant impact.
(c) Explain and evaluate the significance and impact of the internal
environmental factors which affect or may influence an organisation's
ability to achieve its chosen strategy, including its: current resources;
product/service portfolio; value chain and networks; organisational,
operational and technological capabilities (including core competences,
existing business processes, human capital and workforce flexibility).
(d) Analyse and evaluate an organisation's current position and
performance using both financial and non-financial data, presented in

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different formats, applying appropriate statistical and data analytical

tools.
(e) Discuss how business strategy and financial strategy can interrelate in a
given scenario.
(f) Explain and evaluate the ethical and business trust issues to be
considered in determining the scope and nature of an organisation's
objectives and its strategic analysis, considering the legitimate interests
of all stakeholder groups and the public interest.
(g) Evaluate the corporate strategy, business unit strategy and operational
level strategies.
(h) Analyse and evaluate current technology developments, including those
relating to big data, internet of things, digital assets, automation,
intelligent systems, the platform economy, distributed ledger technology,
such as blockchain, cryptocurrencies, etc. and explain how an
organisation can align its strategies with these technologies, using
Strategic Alignment Model.
(i) Explain, demonstrate and evaluate how data from multiple sources can
be selected, captured and analysed to provide management information,
recognising the causes and effects of different types of data bias, data
omissions, data limitations and data trends and applying an appropriate
degree of professional skepticism.
(j) Discuss techniques for conducting strategic analysis, such as
brainstorming, interview, questionnaire, elicitation method, mind
mapping, process design, business case development and scope
definition.
(k) Demonstrate how strategic analysis tools can be used in a given
scenario. Note: Models for analyses include PESTEL, SWOT, SOAR,
Porter's diamond, Porter's Five Forces, Life Cycle, Benchmarking,
Customer Relationship Management and BCG Matrix.
2. Strategic choice
(a) Assess, advise on and propose appropriate business strategies to meet
stated objectives, including sustainability targets.

(b) Explain and demonstrate how strategic business models can be used in
a given scenario, to identify factors that a business may consider in
choosing between competing strategies. This should include competitive
advantage, the strategic clock, cost leadership differentiation, lock-in
strategies, valuable, rare, inimitable and non-substitutable/value, rarity,
imitability and organisation (VRIN/VRIO) framework for analysing
sustainable competitive advantage (SCA) and collaboration.
(c) Identify and evaluate business unit strategies to achieve sustainable
competitive advantage.
(d) Explain and demonstrate how financial and non-financial data can be
analysed in order to select an optimal business strategy, including the
impact of big data on business models.
(e) Explain international strategies; appraise international value chains and
markets; including the concepts of globalisation and the borderless
business; and show the impact on individual and group financial
statements of changes in foreign exchange rates.
(f) Evaluate digital strategies, including the use of cloud accounting,
software selection, digital assets, automation, artificial intelligence,

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machine learning and robotic process automation.

(g) Explain and demonstrate how management information can be used to
select from proposed strategies, taking account of limitations of data,
including data bias.
(h) Evaluate the appropriateness of a chosen strategy that supports
business objectives, considering constraints, conflicts and other issues
based on a given scenario. The following models and tools may be
employed in carrying out the evaluation: Porter's generic competitive
strategies; Johnson, Scholes and Whittington (JSW) model of strategic
planning; Boston Consulting Group (BCG) model in strategic
management; Forecasting tools; Trend analysis; System modelling; and
Delphi technique.
(i) Draw conclusions based on market and product analyses that support a
business strategy concerning pricing, positioning, placing and other
product decisions in a strategic marketing plan.
(j) Determine the appropriate corporate growth strategy in a given scenario:
Internal development; diversification; forward and backward integration;
mergers and acquisitions; product portfolio management; Griener's
growth model; and other growth models; and select a strategic growth
direction of a company using Ansoff's matrix.
3. Strategic implementation
(a) Evaluate and explain the relationship between business strategy and
organisational structure.
(b) Evaluate, in a given scenario, the functional strategies necessary to
achieve a business's overall strategy.
(c) Develop business plans and proposals and advise on technical issues
relating to business and organisational plans, assessing the impact on
historic and projected corporate reporting information.
(d) Communicate chosen strategies and performance targets to operational
and tactical managers through annual budgets, monthly and weekly
targets, linking critical success factors (CSFs) to key performance
indicators (KPIs) and strategy.
(e) Demonstrate and explain the impact of acquisitions and strategic
alliances in implementing corporate strategy and evaluate the nature and
role of assurance procedures in selecting and monitoring such
strategies.
(f) Explain and evaluate the nature and methods of change management
and advise on the implementation of change in complex scenarios using
Strategic Change Models, including climate change transition.
(g) Demonstrate and explain the techniques that may be used in
implementing a strategy to reduce costs, for example, supply chain
management, business process re-engineering and outsourcing.
(h) Demonstrate and explain the interplay between business strategy,
technology strategy, innovation strategy, technological innovation, and
non-technological innovation for organisational performance.
(i) Identify and explain barriers to implementation of digital strategy,
including digital transformation, and make recommendations as to how
they may be overcome.
(j) Demonstrate an understanding of, and provide advice on, data security
issues, including cyber security issues, arising from c communications,
shared systems and data sharing throughout the supply chain and with

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strategic partners.

C. RISK MANAGEMENT - 5%
1. Analyse and evaluate key internal and external business risks and evaluate
their impacts on:
(a) Attainment of strategic objectives;
(b) Operational efficiency and effectiveness;
(c) Reliable reporting; and
(d) Legal, regulatory and ethical compliance.
2. Assess risks involved in business plans, discuss them and advice on risk
management to mitigate them to cover strategic, operational and financial risks,
including those arising from climate change,
3. Discuss the role of those in governance in risk management, and assess the
impact of risk on key stakeholders, considering both inherent and residual risks
after mitigation.
4. Discuss alternative risk management approaches: risk diversification; risk
transfer; risk sharing; and risk hedging.
5. Evaluate the limitations of risk management processes and approaches and
discuss risk monitoring and auditing.
6. Explain and evaluate appropriate mechanisms to monitor risk and risk
management processes, including information and communication systems
such as enterprise risk management and ISO 31000 framework on risk
management.

D. GOVERNANCE - 5%
1. Identify the issues and bases of decision making, employing theories and
philosophies of corporate governance in a given scenario. These include:
(a) Agency theory;
(b) Transaction cost theory;
(c) Stewardship theory;
(d) Resources dependency theory;
(e) Managerial and class hegemony theory;
(f) Psychological and organisational perspective theory;
(g) Stakeholders' theory; and
(h) Systems theory.
2. Explain the nature, significance and scope of enterprise governance and threats
to effective governance, including:
(a) Concept of good governance;
(b) Roles of internal and external auditors;
(c) Board structure; and
(d) Audit committee.
3. Discuss the roles and responsibilities of an effective board, including 'non-
compliance with laws and regulations' (NOCLAR) and IT governance.
4. Discuss the oversight functions and impact of a board and institutional
shareholders for determining strategic direction, monitoring corporate
performance and risk, and responsibilities to stakeholders for environmental,
social and governance (ESG) and sustainability policies. Advise on the
corporate disclosures relating to them.
5. Evaluate the suitability of corporate governance and organisational structures,
including assurance processes for implementing strategy and meeting
stakeholders' expectations.

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6. Discuss the importance of probity as a principle of governance and assess

transparency of an entity through the quality of its disclosures.
7. Assess the extent to which a board in the public sector focuses on the value of
sustainable long-term success, delivery of effective and appropriate public
services and acting in the public interest.
8. Discuss the impact of the legal and regulatory frameworks within which
businesses, assurance and governance systems operate, including company
law, laws against corruption (bribery, money laundering, embezzlement, theft,
fraud, extortion, and blackmail), Whistle Blower Act, Independent Corrupt
Practices and Other Related Offences Commission (ICPC) Act; and Economic
and Financial Crimes Commission (EFCC) Act, employment law, contract law,
tort and environmental laws on governance mechanisms and processes.
9. Discuss global developments in enterprise and corporate governance and
review the rules-based and principles-based approaches to corporate
governance. Also, evaluate relevant national and international codes of
corporate governance.
10. Discuss how an organisation can manage its stakeholder groups as part of its
social responsibilities.

E. ADVANCED INVESTMENT APPRAISAL - 30%

1. Discounted cash flow techniques
(a) Evaluate complex capital investment, using net present value (NPV) and
internal rate of return (IRR) methods, including:
(i) Specific and general inflation;
(ii) Taxation (including tax allowable depreciation);
(iii) Capital rationing (multi-period rationing, limited to discussion
only);
(iv) Probability analysis;
(v) Sensitivity analysis;
(vi) Certainty equivalent;
(vii) Risk adjusted discount rate;
(viii) Decision tree;
(ix) Value of perfect information and value of imperfect information;
(x) Project duration as a measure of risk; and
(xi) Simulation.
(b) Establish the potential economic return-modified internal rate of return.
Discuss the relative merits of NPV and IRR.
(c) Evaluate an organisation's commitment to ESG criteria when
undertaking business, financial and investment decisions, and explain
and proffer solutions on how conflicts between the criteria may be
resolved.
(d) Evaluate and discuss the impact on the physical environment and the
sustainability of natural resources arising from alternative organisational
business, financial and investment decisions.
(e) Evaluate capital investment decisions, using advanced capital
budgeting techniques that incorporate strategic factors.
2. Application of option pricing theory in investment decisions
(a) Utilise the Black-Scholes Option Pricing (BSOP) model to financial
product valuation and to asset valuation:
(i) Enumerate and discuss, using published data, the five principal
drivers of option value (value of the underlying, exercise price,

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time to expiry, volatility and the risk-free rate); and

(ii) Evaluate the underlying assumptions, applications and
limitations of the BSOP model.
(b) Calculate and advise on the value of options to delay, expand, redeploy
and withdraw, using the BSOP model.
3. Impact of financing on investment decisions and adjusted present values
(a) Identify and assess the appropriateness of the range of sources of
finance available to an organisation including equity, debt, hybrids,
venture capital, business angel finance, private equity, asset
securitisation and sale, Islamic finance and security token offerings.
(b) Evaluate and advise on the impact of investment and financing strategies
and decisions on the organisation's stakeholders.
(c) Discuss finance options, including green finance available for
organisations that have adopted environmental, social and governance
(ESG) into their business model.
(d) Determine the cost of capital of an organisation, including the cost of
equity and cost of debt, based on the range of equity and debt sources of
finance. Discuss the appropriateness of using the cost of capital to
establish project and organisational value, and discuss its relationship to
such value.
(e) Compute and evaluate project specific cost of equity and cost of capital,
including their impact on the overall cost of capital of an organisation.
Demonstrate detailed knowledge of business and financial risk, the
capital asset pricing model and the relationship between equity and
asset betas.
(f) Evaluate an organisation's debt exposure to interest rate changes using
the simple Macaulay duration and modified duration methods.
(g) Discuss the benefits and limitations of duration, including the impact of
convexity.
(h) Evaluate the impact of financing and capital structure upon the
organisation with respect to:
(i) Modigliani and Miller propositions, before and after tax;
(ii) Static trade-off theory;
(iii) Pecking order propositions; and
(iv) Agency effects.
(h) Utilise the adjusted present value technique to the appraisal of
investment decisions that entail significant alterations in the financial
structure of the organisation, including their fiscal and transactions cost
implications.
4. Valuation and the use of free cash flows
(a) Utilise asset based, income based and cash flow based models to value
equity. Utilise appropriate models, including term structure of interest
rates, the yield curve and credit spreads, to value corporate debt.
(b) Estimate an organisation's free cash flow and its free cash flow to equity
(pre and post capital reinvestment).
(c) Assess and advise on the value of an organisation using its free cash flow
and free cash flow to equity under alternative horizon and growth
assumptions.
(d) Discuss the role of option pricing models, such as the BSOP model, in the
assessment of the value of equity, the value of debt and of default risk.
5. International investment and financing decisions

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(a) Estimate project or organisation free cash flows in any specified currency
and determine the project's net present value or organisation value.
(b) Assess the significance of exchange controls for a given investment
decision and strategies for dealing with restricted remittance.

F. ACQUISITIONS, MERGERS, CORPORATE RECONSTRUCTION AND RE-

ORGANISATION - 25%
1. Acquisitions and mergers versus other growth strategies
(a) Discuss the arguments for and against the use of acquisitions and
mergers as a method of corporate expansion.
(b) Assess and advise upon the criteria for choosing an appropriate target
for acquisition.
(c) Discuss the reasons for the frequent failure of acquisitions to enhance
shareholder value as expected, including the problem of over valuation.
(d) Assess from a given context, the potential for synergy separately
classified as:
(i) Revenue synergy;
(ii) Cost synergy; and
(iii) Financial synergy;
2. Valuation for acquisitions and mergers
(a) Evaluate the potential near-term and continuing growth levels of a
corporation's earnings using both internal and external measures.
(b) Evaluate and advise on the value created from an acquisition or merger
of both quoted and unquoted entities using models such as:
'
(i) Book value-plus' models;
(ii) Market based models;
(iii) Cash flow models, including free cash flows; and
(iv) Residual income model – including economic value added (EVA)
and market value added (MVA).
(c) Utilise appropriate methods, such as: risk-adjusted cost of capital,
adjusted net present values and changing price earnings multipliers,
resulting from the acquisition or merger to the valuation process where
appropriate.
3. Regulatory framework and processes
(a) Discuss the key factors influencing the development of the regulatory
framework for mergers and acquisitions globally and, in particular, be
able to compare and contrast the shareholder versus the stakeholder
models of regulation.
(b) Enumerate and explain the main regulatory issues which are likely to
arise in the context of a given offer, and:
(i) Determine whether the offer is likely to be in the shareholders'
best interests; and
(ii) Assess and advise the directors of a target entity on the most
appropriate defence if a specific offer is to be treated as hostile.
4. Financing acquisitions and mergers
(a) Evaluate the various sources of financing available for a proposed cash
based acquisition.
(b) Assess the advantages and disadvantages of a financial offer for a given
acquisition proposal using pure or mixed mode financing and
recommend the most appropriate offer to be made.

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(c) Evaluate the impact of a given financial offer on the reported financial
position and performance of the acquirer.
5. Financial reconstruction
(a) Appraise an organisational situation and determine whether a financial
reconstruction is an appropriate strategy for a given business situation.
(b) Evaluate and communicate the likely response of the capital market
and/or individual suppliers of capital to any reconstruction scheme and
the impact their response is likely to have upon the value of the
organisation.
6. Business re-organisation
(a) Appraise and recommend, with reasons, strategies for unbundling parts
of a quoted company.
(b) Evaluate the likely financial and other benefits of unbundling a company.
(c) Discuss and advise on the financial issues relating to a management
buy-out and buy-in.

G. ADVANCED RISK MANAGEMENT TECHNIQUES - 15%

1. The role of the treasury function in large organisations
(a) Discuss the role of the treasury management function within:
(i) The short-term management of an organisation's financial
resources;
(ii) The longer-term maximisation of corporate value; and
(iii) The management of risk exposure.
(b) Discuss the operations of the derivatives market, including:
(i) The relative advantages and disadvantages of exchange traded
versus OTC agreements; and
(ii) Risks such as delta, gamma and theta, and how these can be
managed.
2. The use of financial derivatives to hedge against foreign exchange risk
(a) Analyse and evaluate the impact on an organisation to exposure in
translation, transaction and economic risks and how these can be
managed.
(b) Evaluate and apply, for a given hedging requirement, which of the
following is the most appropriate strategy, given the nature of the
underlying position and the risk exposure:
(i) The use of the forward exchange market and the creation of a
money market hedge;
(ii) Exchange-traded currency futures contracts;
(iii) Currency swaps; and
(iv) Currency options.
(c) Advise on the use of bilateral and multilateral netting and matching as
tools for minimising FOREX transactions costs.
3. The use of financial derivatives to hedge against interest rate risk
(a) Assess and advise, for a given hedging requirement, which of the
following is the most appropriate given the nature of the underlying
position and the risk exposure:
(i) Forward rate agreements (FRAs);
(ii) Interest rate futures;
(iii) Interest rate swaps; and
(iv) Interest rate options (including dollars)

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C4. ADVANCED TAXATION

Aim
To enable candidates, apply technical knowledge, professional skills, and exercise
professional judgement to resolve tax and ethical issues that may arise in given taxation
scenarios. They are also expected to advise on tax planning and mitigation strategies for
businesses.

Linkage with other related subjects

This diagram depicts the relationship between this subject and other related subjects.

Main competences
On successful completion of this paper, candidates should be able to:
· Discuss tax policy formulation and apply the principles of the National Tax Policy to
contextual scenarios;
· Apply and advise on specific provisions of the tax laws, such as Companies Income Tax
Act Cap. C21 LFN 2004 (as amended) and relevant Finance Acts, in computing the tax
liabilities of companies;
· Apply knowledge of tax legislations to the computation of income tax liabilities relating
to corporate entities in complex situations;
· Compute capital gains tax in accordance with the provisions of Capital Gains Ta x A c t
Cap. C1 LFN 2004 (as amended) and relevant Finance Acts;
· Understand taxation of the digital economy and other contemporary issues in
international taxation;
· Evaluate and advise petroleum companies on hydrocarbon tax and companies income
tax in accordance with the relevant provisions of the Petroleum Industry Act 2021 and
Companies Income Tax Act Cap. C21 LFN 2004 (as amended), and other
relevant taxes;
· Evaluate and advise mining companies on taxes payable in accordance with the
provisions of Companies Income Tax Act Cap. C21 LFN 2004 (as amended);
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· Understand tax dispute resolution mechanisms;

· Advise on tax planning, including alternative tax treatments to defer or minimise tax
liabilities;
· Gain knowledge of how to run and manage a tax practice; and
· Recognise and explain ethical and legal issues arising from real life taxation scenarios.

Prior knowledge
This subject assumes and develops the knowledge and skills acquired in Taxation.
Background knowledge of Corporate and Business Law, Financial Accounting and Financial
Reporting are required by candidates as pre-requisites for this paper.

Ethics
Applicable ethical codes will be those issued by International Ethics Standards Board for
Accountants (IESBA) and ICAN. These ethical considerations will be at both the
organisational level and for individuals, particularly with respect to the accountant in business.

Method of assessment
The Advanced Taxation paper is for three (3) hours with fifteen (15) minutes reading time. The
paper is in three (3) sections, consisting of seven (7) questions in all. Section A comprises one
(1) compulsory question, while sections B and C comprise three (3) questions each and
candidates are required to attempt any two (2) questions from each section. The compulsory
question could be an integrated question combining two (2) or more areas of the syllabus.

Ethics and professional skepticism

Candidates should note that underlying ethical thinking is required in arriving at appropriate
tax liabilities, tax planning and management and in the relationship with tax authorities and
clients. Candidates will also be expected to apply professional skepticism and critical thinking
when making all judgements.

Specification grid
The grid below shows the relative weightings of topics within this subject and should guide the
study time spent on each. Over time, the marks available in the assessment will be within the
ranges of weightings below, while slight variations may occur in individual assessments to
enable suitably rigorous questions to be set.

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Detailed contents

A. TAX ADMINISTRATION - 5%
1. Review of tax administration
(a) National tax policy
(i) Discuss key principles and canons of tax policy formulation.
(ii) Advise on the application of the key provisions of the National Tax
Policy (NTP), 2017 in Nigeria, covering:
· Objectives of the NTP;
· Guiding principles of NTP;
· Relevance of the tax system to wealth creation and
employment as provided for in the NTP;
· Responsibilities of the stakeholders under the NTP; and
· Mandates of the three-tiers of government under NTP.
(iii) Explain the interaction of fiscal policy, monetary policy and
trade policy.
(b) Introduction to tax administration
(i) Explain the Nigerian tax administration system with focus on:
· Constitutional provisions regarding fiscal federalism;
· Structure and taxing rights of different tiers of government;
· Roles of the three arms of government;
· Composition and functions of the various tax organs; and
· Challenges of multiplicity of taxes and possible solutions
covering:
ü Concept of multiple taxation;

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ü Causes of multiplicity of taxes;

ü Impact of multiplicity of taxes on tax compliance and
revenue yield; and
ü Possible solutions to the issue of multiple taxation.
(c) Objections and appeals
(i) Discuss the elements of a valid objection and appeal procedures,
covering:
· Time limit for objections and appeals;
· Contents of a notice of objection and appeal;
· Amendment of assessment and refusal to amend;
· Appeal procedures and processes (Tax Appeal Tribunal,
Federal High Court, Federal Court of Appeal and the
Supreme Court); and
· Alternative dispute resolution (ADR) mechanisms.
(ii) Draft a report to your client on the procedure for the presentation
of cases before a Tax Appeal Tribunal.

A. TAXATION OF COMPANIES AND INVESTMENT INCOME - 35%

1. Companies' income tax (CIT)
(a) Legal framework
Explain the legal framework for the imposition of taxes on companies and
investment income.
(b) Basis period
Determine, in line with the provisions of the relevant Finance Acts, the
basis period and explain the rules on:
(a) Commencement of business;
(ii) Change of accounting date; and
(iii) Cessation of business.
(c) Compute and advise on income tax liability of companies based on
Companies Income Tax Act Cap C.21 LFN 2004 (as amended) and
changes introduced by the relevant Finance Acts, covering:
(i) Assessable profit and total profit;
(ii) Minimum tax;
(iii) Dividend distribution; and
(iv)Gross Revenue/turnover.
2. Taxation of investment income
(a) Discuss the taxation of the following investment income of Nigerian and
non-Nigerian companies, in line with provisions of CITA 2004 (as
amended), Withholding Tax Regulations 2024, and other relevant laws:
(i) Dividend;
(ii) Interest;
(iii) Royalty; and
(iv) Rent.
(b) Discuss the taxation of real estate investment companies.
3. Taxation incentives
(a) Discuss the tax implications of the following pioneer legislations:
Industrial Development (Income Tax Relief) Act, Cap. 17 LFN 2004 (as
amended); pioneer status incentive regulations released by Nigerian
Investment Promotion Commission (NIPC) in 2014 and 2017; and
application guidelines for pioneer status incentive issued by Federal
Ministry of Trade and Industries on August 2017, on the:

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(i) Various pioneer industries and products on the pioneer list;

(ii) Procedure for applying and obtaining pioneer status and how
pioneer certificate can be amended;
(iii) Provisions relating to retrospective operations and the date of
production certification;
(iv)Conditions relating to qualifying capital expenditure for pioneer
industries. Circumstances for the cancellation of pioneer
certificates;
(v) Tax relief period and the conditions for extension of pioneer period;
(vi)Tax incentives available to pioneer industries;
(vii) Application of the commencement and cessation provisions to
pre- and post-pioneer period, together with the treatment of
losses and capital allowances of pioneer period;
(viii) Various restrictions applicable to pioneer industries;
(ix) Tax incentives for gas utilisation as specified by the CITA, Fiscal
Incentives for Downstream Gas Utilisation, 2024 and
relevant Finance Acts;
(x) Digital economy incentives, startups (Nigerian Start-up Act 2022;
and
(xi) Tax incentives for small businesses, manufacturing, agricultural
and exports business.
(b) Explain the tax implications of operations in the free trade zones.
4. Capital gains tax (CGT)
(a) Discuss the concept, scope and administration of capital gains tax.
(b) Identify allowable and disallowable expenses.
(c) Explain the exemptions from capital gains tax in line with the
provisions of relevant Finance Acts.
(d) Explain the disposal and acquisition of assets (full and partial).
(e) Evaluate and apply chargeable gains and capital gains tax.
(f) Discuss special situations under CGT, such as artificial or fictitious
transactions, location of assets, determination of market value, anti-tax
avoidance provision.
(g) Discuss planning and reliefs in respect to the provisions of the Capital
Gains Tax Act 2004 (as amended) and relevant Finance Acts in
relation to:
(i) Replacement of business assets (rollover relief); and
(ii) Delayed remittances
(iii) Capital losses carried forward
(h) Discuss restricted tax exemption on compensation for loss of office.
(i) Discuss capital gains tax in relation to business combination amongst
related parties.
(j) Identify and explain the offences and penalties.
5. Taxation of leases
(a) Discuss the following guidelines on the tax implications of leasing in line
with the provisions of IFRS 16:and the Federal Inland Revenue Service
(circular No. 2010/01) published in April 2010:
(i) Concept of leases;
(ii) Classes of leases, such as;
· Finance lease;
· Operating lease;
· Sub-leases; and

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· Sale and leaseback;

(b) Discuss the tax implications of lease arrangements, on both the lessee
and the lessor, covering:
(i) Companies income tax;
(ii) Value added tax; and
(iii) Capital gains tax.
(c) Explain capital allowances under lease arrangements.
(d) Explain leasing as a separate line of business.
(e) Explain recognition, measurement, presentation and disclosure of
leases by corporate entities.
(f) Discuss the treatment of COVID-19- related rent concessions (IFRS 16,
amended), 2020.
(g) Discuss the interest rate benchmark reform- Phase 2 relating to changes
in the bases for determining contractual cash flows of financial assets,
financial liabilities and lease liabilities.
(h) Explain lessor's forgiveness of lease payments.
(i) Explain lease term and useful life of leasehold improvements.
(j) Explain lease liability in a sale and leaseback (IFRS 16, amended),
September, 2022.

C. INTERNATIONAL TAXATION - 20%

1. Non-resident taxation
(a) Explain the various forms of tax presence of a non-resident company
doing business in Nigeria.
(b) Evaluate the tax implications of non-resident companies doing business
in Nigeria.
2. Taxation of the digital economy
(a) Explain the concept of digital economy.
(b) Evaluate the key challenges of taxing digital goods and services.
(c) Discuss the existing legal/administrative framework for taxing digital
transactions taking into consideration the provisions of the relevant
Finance Acts.
(d) Discuss the provisions of the relevant Finance Acts on digital services
and other services in relation to significant economic presence (SEP) of a
foreign entity and the SEP order signed by the Minister of Finance.
(e) Discuss global trends in digital taxation, such as the OECD's Pillar One
and Pillar Two initiatives.
3. Tax treaties
(a) Discuss the following:
(i) Unilateral relief;
(ii) Double taxation agreements; and
(iii) Multilateral treaties.
(b) Advise on the application of tax rules and reliefs available as follows:
(i) Administrative process of obtaining a relief issued by the FIRS;
(ii) Reliefs under the commonwealth tax relief;
(iii) Impact of double tax treaty;
(iv) Resolution of conflicts between double taxation agreements
(DTAs) and Nigerian tax laws; and
(v) Nigerian double tax agreements (DTAs) in respect of the
following:
· Permanent establishment;

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· Taxation of business profits and incomes from movable

and immovable properties;
· Taxation of investment incomes; and
· Dispute resolution mechanisms.
(c) Discuss the role of Vienna convention in application and interpretation of
tax treaties.
4. Transfer pricing
(a) Introduction to transfer pricing
(i) Discuss the following:
· Transfer price/pricing;
· The legal framework for transfer pricing in Nigeria;
· The significance of transfer pricing;
· The various tax convention Models, including:
ü Organisation for Economic Cooperation and
Development (OECD);
ü United Nations (UN); and
ü Pacific Association of Tax Administrators (PATA);
and
· Justifications for the application of transfer pricing
regulations by multinationals and developing countries.
(ii) Discuss the administrative framework and procedures for
conducting transfer pricing.
(iii) Explain benchmarking databases and technology in the
transfer pricing analysis.
(b) Nigerian transfer pricing regulations
(i) Evaluate and apply the provisions of the Income Tax (Transfer
Pricing) Regulations, 2018, in respect of:
· Objectives and scope of transfer pricing regulations;
· Commencement date;
· Connected taxable persons;
· Transfer pricing methods such as traditional transaction
methods and transactional profit methods or any other
method;
· Advance pricing agreements (APA);
· Functional analysis in transfer pricing;
· The basic comparability factors in the process of transfer
pricing benchmarking. The basic documentation
requirements for transfer pricing benchmarking;
· Dispute resolution mechanisms; and
· Offences and penalties as specified by the regulations.
(ii) Deductibilty of payment for intangibles to non-resident companies.
(iii) Explain types of transfer pricing returns and due dates for filing the
returns.
5. Actions against base erosion and profit shifting (BEPS)
(a) Explain the 13 BEPS action plans of the OECD.
(b) Advise on the provisions and application of the Income Tax (Country By
Country Reporting) Regulations, 2018, issued by the Federal Inland
Revenue Service.
6. Regional integration and trade blocs
(a) Discuss the formation and fiscal policy objectives of the Economic
Community of West African States (ECOWAS).

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(b) Explain the application of ECOWAS common external tariffs.

(c) Explain the objectives ,operations and challenges in implementing of the
African Continental Free Trade Area Agreement (AfCFTA).
(d) Discuss other regional trading blocs in Africa in comparison to the
European Union (EU) and North American Free Trade Agreement
(NAFTA).
7. International tax policy
(a) Discuss the concept and objectives of international tax policy.
(b) Explain jurisdiction as it relates to:
(i) Tax;
(ii) Limits;
(iii) Collection and enforcement of cross-border tax due;
(iv) Source and residence; and
(v) Controlled foreign companies.
(c) Evaluate the roles being played by inter-governmental and supranational
organisations that shape tax policy.
(d) Examine the roles of World Trade Organisation (WTO), General Agreement
on Tariffs and Trade (GATT) and their significance to international
taxation.
(e) Evaluate international cooperation between tax administrators in
different tax jurisdictions in respect of exchange of information, covering:
(i) Exchange of information on request;
(ii) Automatic exchange of information; and
(iii) Spontaneous exchange of information.
(f) Identify and explain practical aspects of Nigeria's exchange of
information framework, its effectiveness and challenges encountered
in enforcing cross-border compliance.
(g) Discuss the effectiveness of global cooperation and assistance on tax
matters.
(h) Evaluate the use of neutralities in international tax policy.

D. CURRENT ISSUES AND EMERGING TRENDS - 10%

1. Current tax issues
(a) Discuss the following:
(i) Tax inspectors without borders;
(ii) Cooperative compliance (with particular reference to FIRS
policies promoting taxpayer engagement and cooperative
compliance principles);
(iii) Simultaneous tax examination;
(iv) The common reporting standards;
(v) Foreign account tax compliance; and
(vi) Mutual agreement procedures (MAP).
(b) Disruptive technologies affecting tax administration
(I) Explain the use of artificial intelligence (AI) in data analysis and
fraud detection by tax authorities and other government agencies.
(II) Discuss the e-filing systems and mobile tax apps, such as the
FIRS e-tax, which simplifies compliance for taxpayers.
2. Emerging trends
(a) Taxation and sustainable development goals (SDGs)
(i) Discuss the following:
· Core goals of sustainable development;

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· Role of taxation in achievement of SDGs;

· Tax challenges in Africa and its impact on SDGs;
· United Nations Development Programme 2021 on tax for
SDGs, covering:
ü Objectives of the programme; and
ü Outcomes of programme.
(b) Explain the various disruptive technologies affecting tax administration.

E. TAX MANAGEMENT AND PLANNING - 10%

1. Mergers and acquisitions
(a) Discuss the concepts of mergers and acquisitions.
(b) Explain the regulatory landscape of mergers and acquisitions in Nigeria.
(c) Discuss the reporting requirements and statutory filings with the
Corporate Affairs Commission (CAC) and the Securities and
Exchange Commission (SEC).
(d) Advise on the bases periods for assessment relating to mergers and
acquisitions.
(e) Discuss tax considerations for mergers and acquisitions.
(f) Advise entities involved in business re-organisations and restructuring,
taking into consideration the specified tax concessions and conditions
to be met before qualifying for such concessions.
(g) Discuss practical successful merger and acquisitions deals in Nigeria,
Africa and other climes.
2. Tax practice management
(a) Explain the legal requirements for a professional accountant in tax
practice.
(b) Describe the process involved in client and engagement acceptance.
(c) Advise on the risks and benefits of running a professional tax practice.
(d) Discuss the risks mitigation strategies in tax practice.
(e) Discuss submission of objection letter via electronic and physical means.
(f) Discuss the role of technology in running a contemporary tax practice.
(g) Discuss the challenges encountered with using available digital
technology solutions for tax compliance.
3. Tax planning, avoidance and evasion
(a) Advise management on tax planning activities and strategies.
(b) Differentiate between tax avoidance and evasion.
(c) Evaluate the tax implications of the following:
(I) Thin capitalisation;
(ii) Tax havens;
(iii) Treaty shopping; and
(iv) Non-tax factors.
4. Tax audit and tax investigation
(a) Explain the difference between tax audit and tax investigation.
(b) Identify and discuss the different types of tax audit.
(c) Discuss the powers of tax authority to request for an audit.
(d) Advise management on tax audit procedures, covering:
(i) Pre-audit;
(ii) Field audit; and
(iii) Post-audit.
(e) Explain tax investigation (causes and procedures).
(f) Explain the benefits of tax health check to tax audit and investigation.

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(g) Discuss documentation in tax audit and investigation.

(h) Discuss the power of tax authority under the law to enforce collection of
unpaid tax liabilities.
(i) Advise on ethical issues in tax administration and practice
(confidentiality, conflict of interest, disclosure of information in tax
practice, etc).
(j) Advise on interpretation of tax laws using decided cases.
(k) Discuss the role of the tax practitioner on communication with clients,
tax authorities and other stakeholders.
5. Ethics and professionalism in tax management
(a) Apply the five fundamental principles and guidance in International
Ethics Standards Board for Accountants (IESBA) codes to resolve
ethical dilemmas that may arise.
(b) Discuss the various legal actions that may arise as a result of breach
of the provisions of laws arising from tax assignment.
(c) Design and evaluate appropriate ethical safeguards to mitigate threats
that could arise when professionals deal with employers, clients,
government agencies and other stakeholders.
(d) Explain the practical process to follow in addressing a tax violation under
the Non-compliance with Laws and Regulations (NOCLAR) framework
as a:
(i) Professional accountant in tax practice; and
(ii) Tax professional in business
(e) Explain ethical issues in data privacy, client confidentiality and data
handling, in line with the provisions of Nigerian Data Protection Act, 2023.
6. Tax accounting and reporting
(a) Discuss the treatment of income tax in financial statements.
(b) Discuss the computation and accounting for deferred taxes.
© Advise on potential risks of wrong or misleading tax disclosures in the
financial statements.

F. TAXATION OF INCOMES OF EXTRACTIVE INDUSTRIES - 20%

1. Oil and gas taxation
(a) Discuss the general overview of the oil and gas industry in Nigeria in
accordance with the Petroleum Industry Act (PIA), 2021.
(b) Discuss the objects, functions and powers of the regulators in the oil and
gas industry, such as:
(i) Nigerian Upstream Petroleum Regulatory Commission (The
Commission);
(ii) Nigerian Midstream and Downstream Petroleum Regulatory
Authority (The Authority); and
(iii) Nigerian National Petroleum Company Limited.

(c) Explain the under listed classes of licences which are granted by the
Commission:
(i) Petroleum exploration licence;
(ii) Petroleum prospecting licence; and
(iii) Petroleum mining licence;

(d) Advise on the fiscal/operating arrangement/regimes in the upstream

sector, taking into consideration the relevant provisions of the Petroleum

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Industry Act 2021:

(i) Joint Venture (JV);
(ii) Production sharing contract (PSC);
(iii) Risk service contracts;
(iv) Oil and gas free trade zones; and
(v) Marginal field operators.
(e) Advise on what constitutes accounting period for tax purposes.
(f) Discuss the fiscal provisions of the Petroleum Industry Act 2021
relating to conversion, transition and compliance matters;
(g) Discuss the tax implications of a company with converted and non-
converted licences/leases.
(h) Ascertain the sources of income accruing to petroleum companies.
(i) Advise on allowable and disallowable expenses and other deductions
taking into consideration the provisions of the Petroleum Industry Act
2021;
(j) Assess royalties based on production and price, using applicable rates;
(k) Discuss the treatment of losses in the computation of hydrocarbon tax
and companies income tax.
(l) Discuss how unabsorbed losses and unrecouped capital allowances of
transited companies will be treated in the computations of hydrocarbon
tax and companies income tax.
(m) Identify income chargeable to hydrocarbon tax.
(n) Discuss the exemptions from hydrocarbon tax.
(o) Identify and describe qualifying capital expenditure for capital allowance
purposes and compute capital allowances claimable by petroleum
companies.
(p) Compute the production allowance per crude oil produced and explain its
treatment in the determination of hydrocarbon tax and companies
income tax.
(q) Assess and advise on:
(i) Cost price ratio limit of 65% of gross revenue at the measurement
points for hydrocarbon tax deduction purposes;
(ii) Hydrocarbon tax;
(iii) Companies income tax; and
(iv) Tertiary education tax.
(r) Discuss tax payable based on the incentives available to companies
under production sharing agreements with the Federal Government of
Nigeria.
(s) Discuss the following in line with the Oil and Gas Companies (Tax
Incentives, Exemptions, Remissions, etc) Order, 2024:
(i) Tax credits for non-associated gas greenfield developments in
onshore and shallow water locations;
(ii) Mid-stream capital and gas utilisation investment allowance; and
(iii) Incentives to deep water oil and gas projects.
(t) Compute gas utilisation investment allowance.
(u) Compute gas tax credits and gas tax allowance.
(v) Discuss the funding of the Frontier Exploration Fund which shall be
maintained for the exploration of unassigned frontier acreages in Nigeria.
(w) Describe the tax regime applicable to sole risk and marginal field
operators.
(x) Explain the purposes for a decommissioning and abandonment fund to

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be set up by licence holders in midstream operations.

(y) Explain the establishment, funding, and utilisation of the host community
fund.
(z) Advise on the offences and penalties applicable to petroleum
companies.
(aa) Discuss the requirements for registration and filing of returns for
petroleum companies.
(bb) Explain the dispute resolution mechanisms provided in the Petroleum
Industry Act 2021.
2. Mining taxation
(a) Discuss the administrative structure of the mining industry, with
reference to the split of the Ministry of Mines and Steel Development
to form the Ministry of Solid Minerals Development and Ministry of
Steel Development
(b) Advise on the scope and administration of the Nigerian Minerals and
Mining Act, 2007 (as amended) and section 36 of the Companies
Income Tax Act, in respect of:
(i) Mining incentives;
(ii) Minerals titles;
(iii) Possession and purchase of minerals;
(iv) Environmental considerations and rights of host communities;
(v) Allowable and disallowable expenses;
(vi) Rates of capital allowances;
(vii) Computation of capital allowances;
(viii) Total profits;
(ix) Treatment of losses;
(x) Assessment of tax liabilities; and
(xi) Offences and penalties.
(c) Discuss the Nigerian Mineral Resources Decision Support System.

(d) Advise on the scope and administration of the Nigeria Extractive

Industries Transparency Initiative (NEITI) Act, 2007.
3. Environmental, social and governance (ESG) compliance in the
extractive industry
(a) Discuss the benefits and challenges for companies adopting sustainable
practices.
(b) Discuss ESG compliance in the extractive industry.

Guide to examination assessment

ICAN reserves the right to examine any topic in the syllabus at any examination diet.
New laws, regulations and relevant tax circulars may be examined after six months from the
dates of issue.

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C5. CASE STUDY

Aim
To ensure that candidates can provide advice in respect of complex business issues in the
form of written reports. The objective of Case Study is to assess candidates' understanding of
complex business issues, ability to analyse financial and non-financial data, exercise
professional and ethical judgements, draw conclusions and make recommendations.

Linkage with other related subjects

The diagram below depicts the relationship between this subject and other related subjects.

A. THE CASE STUDY APPROACH

The case study approach is based on a vision of a newly ICAN qualified accountant
as:
1. A well-rounded business professional, capable of contributing to real value
creation in business management;
2. A professional accountant with the core values that enable him to act in the
public interest as well as the interest of his employer and/or client; and
3. Someone possessing the competences that include sound knowledge and
higher value technical skills expected of a finance professional.

Case Study is an integrated approach to the subject matter, bringing together and
synthesising streams of knowledge and skills into an assessment approach. This
approach embraces competences that are not generally tested in individual
examination papers.
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REGULATIONS AND EXAMINATION SYLLABUS FOR PROFESSIONAL STUDENTS - EFFECTIVE NOVEMBER 2025

The case study will present candidates with more information than in a conventional
examination question and in an unstructured way that requires a process of
familiarisation, analyses and evaluation. It also requires events and issues to be put
into context in such a way that judgement would be made and communicated to a third
party or a more senior member of staff. Candidates will be required to apply
underpinning business and accounting knowledge and technical skills in the process of
creating an output.

B. MAIN COMPETENCES
The competences that will be assessed under the Case Study paper include:
1. The core technical knowledge, skills and practical application acquired at the
Foundation and Skills levels;
2. The technical, analytical, evaluative and integration skills acquired at the
Professional level; and
3. The advisory, judgemental and communication skills acquired through practical
work experience.

C. PRIOR KNOWLEDGE
Success at the Case Study requires an integration of the technical knowledge and
skills acquired from all subjects of the ICAN Professional examinations, namely:
1. The core technical knowledge and skills and practical application acquired at
the Knowledge, Skills and Professional levels;
2. The technical, analytical, evaluative and integration skills from Strategic
Business Reporting, Performance Management and Strategic Financial
Management; and
3. The advisory, judgemental and communication skills acquired through
practical work experience undertaken during the training programme.

D. ASSESSMENT PROCEDURE
The Case Study is a 4-hour examination. The Case Study requirements are relatively
open and there is no single solution or model. Candidates will not be required to carry
out detailed computations as in the other Professional level subjects, but will be
required to undertake some financial and non-financial data analyses.

Candidate's report will be assessed based on the content and in-depth analysis of
the scenario. The assessment will be based on the following factors:
1. Use of data and information provided in the case scenario and appendices
appropriately;
2. Use of professional tools and knowledge – those acquired in the other subjects
of the examination;
3. Use of analytical skills;
4. Identification of issues and options;
5. Application of professional skepticism and ethical judgement;
6. Evaluation of issues and options presented in each case scenario;
7. Arriving at appropriate conclusions; and
8. Proposing appropriate, reasonable and practical recommendations.

The candidate's overall report will be assessed based on the following factors:
1. Inclusion of appropriate appendices;
2. Good structure and presentation of report; and

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3. Appropriate style and language.

E. ETHICAL AND PROFESSIONAL SKEPTICISM CONSIDERATION

Ethics and business trust issues are components of Case Study. Candidates would be
required to identify and evaluate both professional and business ethics issues and
dimensions. These will be assessed in a contextual and broad way, using Case Study
approach. Ethics will not be more than 15% of the contents. However, candidates will
not be asked about ethics directly, they will have to recognise and include ethical
considerations and concerns in their output as part of the case study. They include
professional issues and how businesses are conducted, sustainability (environmental,
social and governance) impact. Ethics may be seen in the context of regulations,
regulatory oversight, professional duties, public interest and reputation. Professional
skepticism will be an underlying requirement within the complex scenarios that the
Case Study presents. It must be applied, being mindful of provenance and recognising
the potential for bias.

Specification Grid

F. DETAILED CONTENTS
The case study assesses the capability of a candidate who has covered all other ICAN
examination papers to have an wholistic understanding of issues in a relatively
unstructured scenario enabling the production of a professional report based on the
use of financial and business knowledge and skills acquired in earlier examination
subjects. It requires the use of underpinning tools that support both financial and
business analyses.

It will consist of a single scenario, comprising a pre-seen and an unseen segments.

Candidates will receive the pre-seen segment electronically, two (2) weeks before the

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examination date, while the unseen part will be given to them on the day of the
examination. The scenario is complete and highly realistic, based on a private, public or
charitable sector entity or entities in a current business environment that is stated and
explained.

The scenario will include two requirements:

The candidate will be required to write a report based on a given business scenario
from a brief. The purposes of the case study paper are:

The first purpose is to test the capability of the candidate to show evidence of his
understanding of specified issues in the scenario in a written report that may include the
presentation of some financial or non-financial information; and

The other purpose is to assess the capability of the candidate to produce a

professional report dealing with the two specific requirements based on a combination
of financial and business analyses of the information provided in the scenario. The
report produced should include:
1. An executive summary;
2. A main report; and
3. Appendices.

G. SCENARIO REQUIREMENTS
The scenario requirements may include any of the following:
1. Informed business judgement;
2. Managerial judgement;
3. Professional skepticism;
4. Professional ethics;
5. Business ethics;
6. Risk assessment;
7. Due diligence;
8. Corporate social responsibility;
9. Governance;
10. Social issues;
11. Efficiency, economy and effectiveness;
12. Managing shareholders' and other stakeholders' interests;
13. Globalisation issues;
14. Business sustainability issues, including sustainability reporting;
15. Responsible investments and Equator Principles;
16. Application of technology strategies, including:
(a) Block Chain;
(b) Artificial Intelligence; and
(c) Digital Communications.
17. Soft skills, including:
(a) Originality and initiative;
(b) Creative thinking;
(c) Critical thinking;
(d) Integrated thinking
(e) Persuasion and negotiation;
(f) Cognitive flexibility;
(g) Multiple capitals;
(h) Leadership;

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(i) Emotional intelligence;

(j) Social thinking;
(k) Project management; and
(l) Technology design, strategy and business modelling.

H. ANALYTICAL TOOLS
The following strategic management tools may be tested:
1. Strategic tools which include PESTEL, SWOT, Porter's five forces,
Benchmarking, Porter's value chain analysis, Porter's generic strategies,
Porter's diamond, Boston Consulting Group (BCG) model, Ansoff's matrix, gap
analysis, business capacity analysis, resource audit, and business process
model;
2. Performance management tools such as Critical success factors (CSF), key
performance indicators (KPIs), balanced scorecard, value for money, economic
value added (EVA);
3. Tools to analyse a set of financial statements consisting of statement of profit or
loss and other comprehensive income, statement of financial position,
statement of cash flows and supporting notes such as trend analysis, ratio
analysis and common size analysis;
4. Tools that can be used with management information, such as budgets and
forecasts;
5. Tools that can be used for management short term decisions, such as marginal
costing and contribution analysis;
6. Financial engineering assessment tools;
7. Business valuation tools;
8. Analyses and evaluation of key types of business risks and assessment of their
implications within a given scenario;
9. Appraisal and evaluation of financial reconstruction proposals in a given
scenario; and
10. Advise on investment proposals appropriate to the objectives of a given
business organisation.

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