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Published On: Wed, Oct 18th, 2017

NIESV brainstorms to unlocked wealth through IPSAS

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By Mashe Umaru Gwamna

Estate Surveyor gathered together in Abuja on Thursday to unlock the wealth of the nation through the International Public Sector Accounting Standard ( IPSAS ).
The professional came together to discuss on how to tap into the Potentials of IPSAS in order to benefit from 21st century way of improving financial accounting, valuation and financial statutory report for public sector.
Research has shown that IPSAS is introduced world – wide for preparation of financial statements of ensuring uniformity.
In Nigeria the Federal Executive Council ( FCE) approved the adoption of IPSAS since 2010 for the preparation of financial statements and has mandated federal ,state and local government council to adopt the IPSAS but the implementation did not start until 2016.
For Estate Surveyors the IPSAS came at a better time than , the experts are anxiously waiting to key in to the provisions of IPSAS which is Accrual basis of Accounting is built ( REAL) revenue, expenditure, and liabilities instead of cash flow only . Accrual basis stimulates better assets management effectiveness.
Accrual basis requires that all public assets be valued, appraised and assessed appropriately to Fair Value in order to have it recorded and reported in government financial statement ,also Fair Value – fair value is defined by international Accountants Standards Board as “ the amount at which an assets could be exchanged between knowledgeable and willing parties in an arm ‘s length transactions”.
The Fair Value of assets involves current revaluation of the assets. It is calculated based on the market information of the assets . There are 38 standards that have been issued by IPSAS boards .
The standard that can be used by Estate Surveyors has IPSAS 13 thats Leases,IPSAS 16 Investment Property, IPSAS 17, property, plant and equipment among others .
With this on their mind, the seminar was for continuous professional development of NIESV members to help surveyors acquire new ideologies to expand the scope of their fields.
The involvement of the Estate Surveyors in IPSAS cannot be ruled out in the implementation that lead to the organization of MCPD 2017 in Abuja .
The Seminar was in collaboration the NIESV National body , Estate Surveyors and Valuers Registration Board of Nigeria ( ESVARBON) in conjunction with Unity ( FCT) branch with the themes”IPSAS , A Tool for Unlocking the Wealth of a Nation” urging that it has become necessary to inform and create awareness on the implementation of MCDP to NIESV members all over the country.
The National President NIESV, ESV .Dr Ajayi Patunola in his keynote address apt that theme ‘IPSAS, A tool For Unlocking The Wealth of the Nation ‘ came at a right time this revealed the outcome of the visited to the Minister of Finance and the Accountants General of Federation . This means that government is recognizing the roles of Estate Surveyors and Valuers in valuation of public assets and ready to engage us .
“ All we need to do is more sensitization to the government on the indispensability of our involvement in public assets valuation “.
ESV.Dr. Patunola who give detailed on how IPSAS works, stated that the evolution of IPSAS came from International Federation of Accountants ( IFAC) under the auspices of the the United Nation “The board directs the Public Sector Entities (PSE) which prepares their financial statements on the basis of accounting and cash of accounting .
Currently countries that adopted IPSAS are Canada,Australia,Hong Kong ,Russia , France ,Japan among others, African countries that adopted Egypt , Kenya, Botswana, Uganda, South Africa and Nigeria among others , in Nigeria states like Lagos and recently Oyo state has adopted IPSAS.
He further pointed out some roles Estate Surveyors and Valuers have in IPSAS and Valuation implementation said the Estate Surveyors and Valuers is Regulated by ESVARBON which enabled ESVARBON Act ,Cap E13 LFN 2007 ( Formly Decree 24 of 1975 law) “ by virtue of our knowledge of the enabling law the established IPSAS Board , the global board is responsible for issuing Operates IPAS,the involvement of Estate Surveyors and Valuers is inevitable in the implementation of IPSAS. Among the 38 IPSAS 17 per scribe ‘ the principle for initial recognition and subsequent determination for carrying cost, amount and depreciation”.
“ it also provides assets like Cars ,furniture and fittings , building to be deprecated , shown in the financial statements of the Estate Surveyors and Valuers.
However, the Presidents listed the involvement of IPSAS such as Valuation of Public sector assets, creation of valuation templates, classification of Assets register and participating in the assets management .
“ There are challenges in the implementation of IPSAS especially when the valuation on public assets are unusual , some of these following are the major problem : location ,design, Exclusivity right , system and changes and people process”, ESV. Dr. Patunola emphasised.
However, the Chairman of ESVARBON, ESV . Olayinka Sonaike harped that the theme’ IPSAS , A Tool for Unlocking the Wealth of a Nation’ it is apt in the sense that ,as an Institution body we are looking for wide in the sense of Unlocking opportunities in more fields and potential. “ If we do not unlocked this great opportunity those that are in our field will unlock the treasure opportunity fir us”.
ESV. Sonaike reiterated that the role of body is to continuous having a mandatory programme for members while keying in to the roles of MCPDs.
“It is going to be a prerequisite for members registration and ,members must endeavor to attend all session of MCDP.Members will be trained and retrained.
He said the board deem it fit disseminate information where are there gaps in information “ Our youth NIESV needed to be carried long because they are the youth generation to represent us, we need to expose them to NIESV practices right from now that is the reason we carrying them along “.
The ESVARBON Chairman opined that “ the board in line with best global practices is looking at engaging estate firms in evaluation “ Clients are also versatile and becoming more aware of our right . The board will introduce IPSAS by building everyone, the National Assembly , Insurance skills and crab the advantages attached to IPSAS “, Sonaike said .
Also ,the Chairman of NIESV , Abuja branch ESV. Adamu Kasium in his welcoming speech said the idea to commence training in IPSAS from Abuja stems was from a unique position as critical branch of institutions. The branch is better placed to espouse the knowledge base IPSAS, discover opportunities it offers, create more awareness on the need for effective implementation by all ministries , departments and parastatals ( MDAs) , which will also serves as an opportunity for our members to develop capacity and competence and best offer opportunity of networking with critical stakeholders.
ESV. Kasium maintained that the theme of the seminar will be handled by best Estate Surveying and Valuations profession and both in accountancy and law.
He said the branch has acknowledged the approval by the Council of Lands to the Ministry of Power, Works and Housing as the implementation Agency for infrastructure, Assets valuation for IPSAS. The assignment requires is to strengthening the knowledge base of our members
In public sector .
He also appealed for the establishment of Department (Directorate) of pubic Assets Valuations in the Ministry pending the possible realization of having the office of Valuers General of the federation .
“ there is no better time than now for Estate Surveyors and Valuers to have a close rank with other professional bodies that are critical in the implementation of IPSAS being a public accounting policy regulated financial Reporting Council of Nigeria “.
He equally called on professionals in the field of Accountancy for more collaboration with the body not see it as a compete in the implementation of IPSAS.
Consequently, the Account General of the Federation Ahmed Idris who was represented by Emmanuel Shagaya , presented paper a tittle :IPSAS Framework and Concept in Emerging Economies “stated that, the federal government has adopted IPSAS since 2010 and Nigeria has 924 ,36 states including Abuja and 774 local government council that have integrity of assets, date and figure which can be valued .
Idris who explained that accountability must be transparent in governance ,legacy assets has it all infrastructure which we have to look into the book of account. “ as accounts we cannot give evaluation, measurement ,disclosure, investment property , property plan and equipment this is very challenging for us that is why IPSAS 16 which talks on investment property needs the engagement of professional and evaluators and networking has become major key”.
He averts that NIESV was already on point in the context of IPSAS in government. “developing this framework will ensure reliable data cost and effectiveness and government sole aim is concerned about integrity of value given.
“We have a valve that is standard for evaluation and NIESV needs to help Nigeria to ensure legacy assets by professional valves”,Idris said .
Similarly, ESV . David Maseli , presented a paper on “Valuation of Investment and Infrastructure Assets under IPSAS “ said the effective implementation of IPSAS with every stakeholders performing their roles will maximise the objectives of IPSAS. Efficiency in managing our resources, reducing waste, putting property, plant and equipment assets at best use .
“ this is a tool for unlocking the wealth of our nation, the intent of fulfilling this ludicrous objective does not lie in a single profession but in the multiplicity of skill of which Estate Valuers are critical “.
Maseli added that “ Public Sector Entities who are currently migrating into IPSAS regime are now required to recognised their assets on the cost or revaluation model. In most cases , record , of such assets are not available and there is a need to provide cost of ascribed to such assets “.
He assured that “ this is support to be good news for Valuers as our relationship with public Institutions which in the past has been limited to Valuation for insurance purposes is now being extended elaborated to cover financial reporting for all PSE’s.
Meanwhile,Adekunle Awolaja in his paper delivery on Valuation Standard in implementation of International Public Sector Accounting Standard, affirmed that IPSAS implementation is a chain of comprehensive , multi professional activities which are interconnected and diverse.
“ It is important to stress that without the input of estate surveyors and Valuers , there can be no proper and adequate implementation to accrual basis,IPSAS standards such as IPSAS 12,13,16,17,22,24 among others “.
Awolaja emphasised on the need for “public sector assets “to be valued for accounting purposes. The dire need for estate surveyors and Valuers both in the public and private sector to be actively involved in the implementation process and its sustainability.
He said successful implementation is reliant on valuation standard and accountability are upheld which should be in tune with international beat practices.
Ealier , National Chairman MCDP committee and Associate Professor of Estate Management and Valuation ESV. Dr. Muhammde Nuhu , explained that theme IPSAS A , Tool for unlocking the wealth of the Nation” is going with the global dynamics and the need for professional to respond to the global change . It is necessary for professional bodies to meet , brain storm and generate new ideas regularly in order to tackle the emanating challenge in the area of assets management, infrastructure and urban development ,environment and housing.
ESV. Dr. Nuhu opined that the noble initiative to hold this MCPD is to share knowledgeable experiences and brainstorm on possible way to reposition and update estate surveying and Valuation knowledge base on contemporary issues.
“ I hope at the end of this MCPD to see a vibrant and well articulated estate surveying and Valuation discipline that will focus on the chalk of 21st century towards enhancing capacity building effectiveness of productivity “.

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