FINANCIAL REPORTING ACT
SETTING UP OF A STANDARDS REVIEW PANEL
The Financial Reporting Council (FRC), pursuant to the Financial Reporting Act (“FRA”) is responsible for, inter alia, -
(a) ensuring the adoption of an compliance with international accounting and auditing standards; and
(b) monitoring compliance with the reporting requirements specified in the Code of Corporate Governance and in any other guidelines issued by the National Committee on Corporate Governance.
2.0 Panel of Experts
(a) Section 17 of the FRA provides for the establishment by the FRC of the following panels of experts –
(i) a Standards Review Panel;
(ii) a Financial Reporting Monitoring Panel;
(iii) an Audit Practice Review Panel; and
(iv) an Enforcement Panel.
(b) The panels shall consist of employees of the FRC and such other suitable and qualified persons as may be appointed by the FRC.
3.0 Standards Review Panel
The Standards Review Panel (SRP) shall be responsible for developing, renewing, improving, and adopting financial reporting, accounting and auditing standards, and for making appropriate recommendations to the FRC on the standards.
Part VI of the FRA deals with the setting and monitoring of accounting and auditing standards. Section 72 – 74 provide, inter-alia, as follows –
72 Financial reporting and accounting standards
The Council shall develop, issue and keep up-to-date financial reporting and accounting standards, and ensure consistency between the standards issued and the International Financial Reporting Standards
73 Auditing standards
(1) The Council (FRC) may issue rules and guidelines for the purposes of implementing –
(a) the financial reporting and accounting standards referred to in section 72; and
(b) the auditing standards.
(2) Every licensed auditor shall, in the exercise of his profession, comply with –
(a) such minimum requirements as shall be specified by the Council (FRC) in the auditing standards;
(b) any rule and guideline issued under this Act (the “FRA”).
74 Publication of standards, rules and guidelines,
(1) Where the Council intends to publish or amend any financial reporting and accounting standards referred to in section 72 or any rules and guidelines referred to in section 73, it shall cause a notice to be published in –
(a) the Gazette; and
(b) not less than 2 daily newspapers for 3 consecutive days,
inviting comments from all interested persons.
(2) Any person who wishes to submit any comment shall, within 21 days of the last date of the publication specified in subsection (1), submit his comments in writing to the Council (FRC).
(3) The Council (FRC) may, in deciding whether to approve the financial reporting and accounting standards referred to in section 72 or any rules and guidelines referred to in section 73 or their amendments, have regard to any comment submitted under subsection (2).
4.0 Powers of FRC in relation to standards development and review
The powers of the FRC, as set out in section 6 of the FRA, in so far as they relate to standard development and review, include the power to –
(a) do all things necessary or convenient to be done, for or in connection with the performance of its functions;
(b) without prejudice to the generality of the powers in paragraph (a) but subject to the FRA-
(i) Cooperate with, or become a member or an affiliate of, any international body, the objects or functions of which are similar to or connected with those of the FRC; and
(ii) issue rules, codes, guidelines and standards relating to the financial reporting, accounting, and auditing.
5.0 Adoption of the Charter
This Charter is adopted by the SRP of the FRC on the effective date.
6.0 Effective Date
This Charter is effective from 18 September 2013