ICAN Professional Level Syllabus

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About Professional Level Exams

The Professsional level of the ICAN (Institute of Chartered Accountants of Nigeria) is the third and final level in the ICAN-ACA professional examination. The professional level examinations are taken by individuals who aspire to become chartered accountants and have successfully completed the foundation and skills level.

 

The Professional level syllabus aims to equip accounting professionals with the knowledge required to make professional judgments and evaluations based on more complex business situations. It links the diverse competencies acquired at the Foundation and Skills levels, and there are five courses at this level. Graduates of Accounting are not exempted from taking professional-level examinations.

 

The chartered accountancy qualification – the ACA, of the Institute of Chartered Accountants of Nigeria (ICAN), with its integrated components, is one of the most advanced professional accountancy qualifications globally. The requirements for ICAN – ACA qualification are set out in this updated syllabus in the form of learning outcomes and competencies.

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Professional Level in ICAN

The Professional level consists of five subjects including Strategic Business Reporting, Advanced Audit and Assurance, Strategic Financial Management, Advanced Taxation, and Case Study. This professional level takes candidates to the point where they have to make professional judgments and evaluations based on more complex business situations by linking competencies acquired at the Foundation and Skills levels.

Case Study, at this level, develops students’ ability to discuss, analyse and evaluate different business scenarios with a view to proffering solutions which are articulated in the form of business reports.

Course 1 : Strategic Business Reporting

About Strategic Business Reporting

Strategic Business Reporting, the first subject in the final stage of your journey to becoming a Chartered Accountant. This course builds on the foundation you established in Financial Reporting during the Skills level, taking your knowledge to a more advanced and practical level.

 

Strategic Business Reporting is a newly introduced course in the Professional Level by the Institute of Chartered Accountants of Nigeria (ICAN), replacing the former Corporate Reporting course. This change will take effect from November 2025. Candidates who scored below 50% in Corporate Reporting are required to study and sit for the Strategic Business Reporting course instead.

 

The new syllabus is designed to deepen your understanding of financial reporting principles and how to apply them to complex business scenarios. It incorporates the latest developments, regulations, and standards in corporate reporting, ensuring you stay current with industry best practices.

Aim & Competencies

Aim 

The aim of this course is to develop candidates’ knowledge of generally accepted accounting principles (GAAP), strengthen their understanding and application of accounting standards related to financial and sustainability reporting, and improve their ability to apply and critically evaluate principles and practices in preparing and interpreting corporate disclosures and reports, especially within complex group structures.

Main competencies

Upon successful completion of this paper, candidates will be able to:

 

  • Prepare financial statements, accompanying notes, and sustainability disclosures for complex single entities, groups (including subsidiaries and associates), and various types of business combinations;

  • Assess the suitability of accounting and other policies applied in the preparation of financial statements and related reports;

  • Prepare and analyze financial statements to reflect the financial position, performance, prospects, and risks of a business entity;

  • Interpret financial statements, sustainability disclosures, non-financial information, and other related reports;

  • Understand current developments and challenges in the reporting framework and business reporting environment; and

  • Apply ethical and professional principles to resolve ethical dilemmas and evaluate the implications of practices such as creative accounting, window dressing, and aggressive earnings management.

C1 Strategic Business Reporting

 Syllabus for ICAN Professional Level 
 LevelProfessional 
 Course nameC1. STRATEGIC BUSINESS REPORTING 
 AbbreviationSBR 
 A. ETHICAL ISSUES IN, AND REGULATORY FRAMEWORK OF STRATEGIC BUSINESS REPORTING 
 TopicBreakdownMarking guide
1Ethical 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		5%
2Regulatory 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 STAKEHOLDERS15%
1Performance 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.		 
2Non-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.		 
3Non-financial liabilities(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.		 
4Financial 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.		 
5Segment 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 STATEMENTS30%
1Introduction 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		 
2Preparation 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 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 REPORTS20%
1Suitability 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.		 
2Analyses, 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		 
3Limitations 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 REPORTING10%
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 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 S 1 and S 2 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) GAPAnalysis 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 t raining 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		 
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 REGULATIONS5%
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 
 G. OTHER CURRENT DEVELOPMENTS IN AND BEYOND FINANCIAL REPORTING15%
1Global 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		 
2Technology 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.		 
 Applicable Accounting Standards 
   Preface to IFRS
 The 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 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 Hyper inflationary Economies
 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 for SMEs
 NGAAP-SAS 32- Statement for Not-for-profit		 
 Notes– Candidates are required to understand interpretations of the relevant standards.
– New standards may be examined six months after dates of issue, even if the effective date is in the future.
– Applicable laws may be examined six months after dates of amendment or enactment.		 

Course 2 : Advanced Audit & Assurance

About AAA

Advanced Audit and Assurance(AAA) is an extension of Audit and Assurance studied in the skills level. It provides a better understanding of the critical aspects of managing audit and assurance engagements which is essential for you as an aspiring chartered accountant.


The AAA examinations are carefully curated using the updated ICAN syllabus, so studying this syllabus will ensure that you are adequately prepared for the examinations. The updated syllabus will take effect from November 2025.  Advanced Audit and Assurance  is one of the courses that remains unchanged in the updated syllabus.


Studying for this examination using the updated ICAN AAA syllabus prepares you for the ICAN-ACA professional examination, and helps enhance your professional knowledge and skills in the business world. This will help you excel as an expert auditor in your field.

Aim & Competencies

Aim

The candidate is expected to understand the critical aspects of managing audit and assurance engagements: acceptance; planning; concluding; and reporting.

Main Competencies

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

  • Explain and advise on professional, ethical and legal issues arising during assurance engagements;

  • Advise on various planning procedures involved in carrying out assurance engagements;

  • Advise on risks associated with assurance engagements and various types of business and relevant control measures to mitigate those risks; and

 

  • Identify features of assurance engagement reports and also be able to write relevant reports after concluding the assignment on assurance engagements.

Advanced Audit & Assurance Syllabus

 Syllabus for ICAN Professional Level 
 LevelProfessional 
 Course nameC2 -Advanced Audit and Assurance 
 AbbreviationAAA 
 A. LAWS AND REGULATIONS ON AUDIT AND ASSURANCE ENGAGEMENTS 
 TopicBreakdownMarking guide
1Laws, 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.		20%
2Professional 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 ENGAGEMENTS15%
1Accepting 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.
(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.		 
2Practice 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 WORK30%
1Overall audit strategy(a) Analyse, evaluate and explain the key areas of a business that areimportant 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 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.		 
2Assessment 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.		 
3Evaluation of accounting treatmentsEvaluate 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 
4Specialised 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

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.

(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 REPORTING20%
1Drawing 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 and considerations relating to the identification of subsequent events that may require adjustments or disclosures.
(c) Identify, explain and apply procedures that may be used and 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.		 
2Audit 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 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 the nature of report that may be given relating to risk management, internal controls and governance.		 
 E. APPLICATION OF INFORMATION TECHNOLOGY (IT) IN AUDITING10%
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
  
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 
1International standards on auditing (ISA)• 200 – Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing.
– Agreeing the Terms of Audit Engagements
– Quality Control for an Audit of Financial Statements Audit Documentation
The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
A Consideration of Laws and Regulations in an Audit of Financial Statements
Communication with Those Charged with Governance Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
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
• 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		 
2International 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		 
3International 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		 
4International 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		 
5IAASB 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		 
6Other 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.		 

Course 3 : Strategic Financial Management

About Strategic Financial Managment

Are you aiming for excellence in your ICAN Strategic Financial Management exams or you simply want to broaden your knowledge in a quest for career advancement? Then you need to study intensively to achieve that.

 

The updated ICAN syllabus on Strategic Financial Management offers you an opportunity to advance your career and gain expertise in strategic financial management. The updated syllabus will take effect from November 2025.  Strategic Financial Management  is one of the courses that remains unchanged in the updated syllabus.

 

It covers topics on risk management, investment alternatives, and the value of business equipping you with the tools and strategies needed to excel in the dynamic business world.

 

Studying intensively using the updated ICAN syllabus allows you access to the topics you would meet in the exams, and this will ensure your success in the forthcoming ICAN-ACA professional examinations.

 

Aim & Competencies

Aim

Strategic Financial Management supports management in making informed decisions. Candidates are expected to apply relevant knowledge, and skills and exercise professional judgement in recommending appropriate options for financing a business, recognising and managing financial risks, dividend decisions and investments.

Main competencies

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

  • Explain the purpose of financial management and evaluate the impact of macroeconomic environment on it;

  • Assess and advise on dividend decisions;

  • Evaluate and assess investment alternatives and the value of business;

  • Evaluate alternative sources of finance;

  • Assess and plan alternative growth strategies and corporate re-organisation strategies; and

  • Evaluate and apply alternative treasury and risk management techniques.

Strategic Financial Management Syllabus

 Syllabus for ICAN Professional Level 
 LevelProfessional 
 Course nameC3. STRATEGIC FINANCIAL MANAGEMENT 
 AbbreviationSFM 
 A. INTRODUCTION TO BUSINESS STRATEGY AND FINANCIAL MANAGEMENT 
 TopicBreakdownMarking guide
1The 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)		10%
2Financial 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.		 
3Corporate 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.
(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.		 
4Management 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 organisation		 
5Dividend 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		 
6Financial 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 aris		 
 B. STRATEGIC MANAGEMENT20%
1Strategic 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 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		 
2Strategic 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,

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.		 
3Strategic 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 strategic partners.		 
 C. RISK MANAGEMENT5%
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 
  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 
  Discuss alternative risk management approaches: risk diversification; risk transfer; risk sharing; and risk hedging 
  Evaluate the limitations of risk management processes and approaches and discuss risk monitoring and auditing 
  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. GOVERNANCE5%
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 
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 APPRAISAL30%
1Discounted 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		 
2Application 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, 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.		 
3Impact 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.		 
4Valuation 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		 
5International investment and financing decisions(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- ORGANISATION25%
1Acquisitions 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		 
2Valuation 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.		 
3Regulatory 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.		 
4Financing 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.
(c) Evaluate the impact of a given financial offer on the reported financial position and performance of the acquirer		 
5Financial 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		 
6Business 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.		 
 ADVANCED RISK MANAGEMENT TECHNIQUES15%
1The 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.		 
2The 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		 
3The 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)		 

Course 4: Advanced Taxation

About Advanced Taxation

Whether you are an aspiring chartered accountant preparing for your ICAN-ACA professional exams, a tax professional seeking to hone your skills, or both, this ICAN Advanced Taxation(AT) course is for you.

 

The ICAN Advanced Taxation course covers topics on the regulations and practices in taxation and affords you an in depth understanding of their application to resolve tax and ethical issues.

 

Studying for the ICAN AT course using the updated ICAN syllabus is your sure bet to passing your forthcoming ICAN exams and becoming a certified tax professional. The updated syllabus will take effect from November 2025.  Advance Taxation  is one of the courses that remains unchanged in the updated syllabus.

Aim & Competencies

Aim

Candidates are expected to apply technical knowledge, professional skills and exercise professional judgement to resolve tax and ethical issues that may arise in given taxation scenarios and to advise on tax planning and mitigation strategies for individuals and businesses.

Main competencies

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

  • Apply and advise on specific provisions of the tax laws in computing the tax liabilities of companies;

  • Recognize and explain ethical and legal issues arising in taxation scenarios;

  • Gain knowledge of how to run and manage a tax practice firm;

  • Advise on tax planning including alternative tax treatments to defer or minimize

tax liabilities; Understand tax dispute resolution mechanisms;

  • Discuss tax policy formulation and apply the principles of the National Tax Policy to contextual scenarios;

  • Understand taxation of the digital economy and other contemporary issues in international taxation;

 

  • Prepare petroleum profits tax computation by the relevant provisions of the Petroleum Profits Tax Act; and

  • Liaise with tax officials, clients and other professionals suitably.

Advanced Taxation Syllabus

 Syllabus for ICAN Professional Level 
 LevelProfessional 
 Course nameC4 -Advanced Taxation 
 AbbreviationAT 
 A. TAX ADMINISTRATION 
 TopicBreakdownMarking guide
1Review 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: Concept of multiple taxation; Causes of multiplicity of taxes; Impact of multiplicity of taxes on tax compliance and revenue yield; and 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		5%
 B. TAXATION OF COMPANIES AND INVESTMENT INCOME35%
1Companies’ 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:
(i) 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		 
2Taxation 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.		 
3Taxation 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:
(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		 
4Capital 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.		 
5Taxation 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
• 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 TAXATION20%
1Non-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		 
2Taxation 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		 
3Tax 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;
• 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		 
4Transfer 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: Organisation for Economic Cooperation and Development (OECD); United Nations (UN); and 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		 
5Actions 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		 
6Regional integration and trade blocs(a) Discuss the formation and fiscal policy objectives of the Economic Community of West African States (ECOWAS).
(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)		 
7International 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 TRENDS10%
1Current 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		 
2Emerging trends(a) Taxation and sustainable development goals (SDGs)
(i) Discuss the following:
• Core goals of sustainable development;
• 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: Objectives of the programme; and ü Outcomes of programme.
(b) Explain the various disruptive technologies affecting tax administration		 
 E. TAX MANAGEMENT AND PLANNING10%
1Mergers 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		 
2Tax 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		 
3Tax 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.		 
4Tax 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.
(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		 
5Ethics 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		 
6Tax accounting and reporting(a) Discuss the treatment of income tax in financial statements.
(b) Discuss the computation and accounting for deferred taxes.
(c) Advise on potential risks of wrong or misleading tax disclosures in the financial statement		 
 F. TAXATION OF INCOMES OF EXTRACTIVE INDUSTRIES20%
1Oil 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 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 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		 
2Mining 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		 
3Environmental, 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 

Course 5: Case Study

About Case Study

To ensure that candidates can provide advice in respect of complex business issues in the form of a written report. The objective of Case Study is to assess candidates’ understanding of complex business issues and their ability to analyse financial and nonfinancial data, exercise professional and ethical judgements, draw conclusions and make recommendations.

 

Studying for the ICAN Case Study course using the updated ICAN syllabus is your best strategy to pass your upcoming ICAN exams. The updated syllabus will take effect from November 2025.  Case Study  is one of the courses that remains unchanged in the updated syllabus.

Aim & Competencies

To ensure that candidates can provide advice in respect of complex business issues in the form of a written report. The objective of Case Study is to assess candidates’ understanding of complex business issues and their ability to analyse financial and nonfinancial data, exercise professional and ethical judgements, draw conclusions and make recommendations.

Aim

To ensure that candidates can provide advice in respect of complex business issues in the form of a written report. The objective of Case Study is to assess candidates’ understanding of complex business issues and their ability to analyse financial and nonfinancial data, exercise professional and ethical judgements, draw conclusions and make recommendations.

Main competencies

The competencies 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 from the Professional level; and
3. The advisory, judgmental and communication skills acquired through practical work experience.

Case Study Syllabus

Syllabus for ICAN Professional Level
LevelProfessional
Course nameC5 – Case Study
AbbreviationCS
A. THE CASE STUDY APPROACH
TopicBreakdownMarking guide
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.

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. 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 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.
C. Scenario requirements
1The 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.
2The 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;
(i) Emotional intelligence;
(j) Social thinking;
(k) Project management; and
(l) Technology design, strategy and business modelling
D. 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

ICAN Syllabus For Others Level

ICAN Foundation Level Syllabus
ICAN Skills Level Syllabus
ICAN Professional Level Syllabus

Academic Exemption for Some Courses

Exemption Guidelines
SNAcademic QualificationExemptions
APhD (Accounting) with M.Sc. (Accounting) and B.Sc.(Accounting)All subjects in Foundation and Skills levels
BM.Sc. (Accounting) obtained from ICAN accredited institutions in addition to B.Sc. in Accounting. All subjects in Foundation level
 B1.Financial Reporting
 B2. Audit and Assurance
CM.Sc. (Accounting) obtained from ICAN accredited institutions but
without B.Sc. in Accounting.		 A1. Business Environment
 A2. Financial Accounting
 A3. Management Accounting
DM.Sc. (Accounting) obtained from non-accredited institutions in addition
to B.Sc. in any accounting related discipline.		 A1. Business Environment
 A2. Financial Accounting
 A4. Business Law
EB.Sc/HND (Accounting) obtained under the Mutual Co-operation
Agreement with Tertiary Institutions (MCATI)		 All subjects in Foundation and Skills Levels
FATSWA ( from year 2010) All subjects in Foundation Level
 B2. Audit Assurance and Forensics
 B3. Taxation
GATS II (pre-2010) A1. Business Environment
 A2. Financial Accounting
 A3. Management Accounting
HB.Sc./HND (Accounting) obtained from ICAN accredited Institutions in Nigeria. All subjects in Foundation Level
 B2. Audit, Assurance and Forensics
IB.Sc./HND (Accounting) obtained from recognised institutions in Nigeria but not accredited by ICAN. A1. Business Environment
 A2. Financial Accounting
 A4. Business Law
JB.Sc./HND (Accounting) obtained from foreign recognised institutions. A1. Business Environment
 A2. Financial Accounting
KB.Sc./HND (Accounting)/ Masters in Accounting & Finance (MAF) obtained from foreign recognised institutions. A1. Business Environment
 A2. Financial Accounting
 A3. Management Accounting
LB.Sc./HND (Accounting) obtained from recognised institutions in Nigeria and MBA Finance . All subjects in Foundation Level
 B2. Audit, Assurance and Forensics
MB.Sc./HND (Accounting) obtained from recognised institutions in Nigeria but not accredited yet by ICAN plus MBA Finance . A1. Business Environment
 A2. Financial Accounting
 A4. Business Law
NB.Sc. (Economics) A1. Business Environment
OB.Sc. (Economics/Statistics) B.Sc. (Economics/Computer Science) A1. Business Environment
PB.Sc. Actuarial Science A1. Business Environment
 A4. Corporate and Business Law
QB.Sc./HND Insurance A1. Business Environment
 A4. Corporate and Business Law
RB.Sc./HND/B.A Business Admin/Management/Public
Administration		 A1. Business Environment
 A4. Corporate and Business Law
SB.Sc./HND Banking and Finance A1. Business Environment
 A4. Corporate and Business Law
TB.Sc./HND Marketing A1. Business Environment
 A4. Corporate and Business Law
UMBA/MBF in addition to B.Sc./HND in non- accounting discipline A1. Business Environment
 A4. Corporate and Business Law
VB.Sc. (Ed.) Accounting or B.Ed. Business Education (Accounting option) A1. Business Environment
 A3. Financial Accounting
 A4. Corporate and Business Law
WB.Ed. Education Management (Accounting Option) A1. Business Environment
 A3. Financial Accounting
 A4. Corporate and Business Law
XB.Ed. Business Education A1. Business Environment
YB.Sc./B.A Commerce A1. Business Environment
 A4. Corporate and Business Law
ZB.Sc./HND Cooperative and Rural Development A1. Business Environment
 A4. Corporate and Business Law
AALL.B/LL.M/LL.D A4. Corporate and Business Law

Professional Exemption

Professional qualifications
SNQualificationsExemptions
AAssociate Chartered Institute of
Bankers of Nigeria (ACIBN)		 All subjects in Foundation level except Taxation  B2. Audit, Assurance and Forensics
BAssociate Institute of Financial
Services, UK (Formerly Chartered
Institute of Bankers, London)		 A1. Business Environment
 A2. Financial Accounting
CAssociate Chartered Institute of
Stockbrokers of Nigeria (ACIS)		 A1. Business Environment
 A2. Financial Accounting
 A4. Corporate and Business Law
DAssociate Institute of Chartered
Secretaries and Administrators
(AICSA)		 A1. Business Environment
 A2. Financial Accounting
 A4. Corporate and Business Law
EAssociate Chartered Institute of
Insurance of Nigeria (ACIIN)		 A1. Business Environment
 A4. Corporate and Business Law
FAssociate Chartered Institute of
Taxation of Nigeria (ACITN)		 All subjects in Foundation level except
Management Information  B3. Taxation
GCertified National Accountant of
Nigeria (CNA)		 All subjects in Foundation and Skills
levels
HNigeria Institute of Management (Chartered) A1. Business Environment
IExecutive Management In Accounting (EMA) obtained from Federal Treasury Academy with effect from 1987 (Formerly Federal Treasury Training School) All subjects in Foundation Level
 B2. Audit, Assurance and Forensics
J*ICAEW All subjects at all levels but to write examination of experience
K*CIPFA, UKAll levels except the following subjects in each of the levels:
 AA. Corporate and Business Law
 C4. Advanced Taxation
L*CIMA, UKAll levels except the following subjects in each of the level:
 C2. Advanced Audit and Assurance
M*ACCA, UK
CPA, USA
ICAS, UK
ICAI, UK		All levels except the following subjects in
each of the levels:
 A4. Corporate and Business Law
 B5. Public Sector Accounting & Finance
 C4. Advanced Taxation
NACCA, UK
CPA, USA
ICAS, UK
ICAI, UK, in addition to BSc/HND (Accounting) obtained from Nigeria		All levels except the following subjects in
each of the levels:
 B5. Public Sector Accounting & Finance
 C4. Advanced Taxation
OAIA (Final) with effect from 1994
AAT (UK)		 A1. Business Environment
 A2. Financial Accounting
 A3. Management Accounting
 B2. Audit, Assurance and Forensics
PAIA (Pre-1994) A1. Business Environment
 A2. Financial Accounting
 A3. Management Accounting

Frequent Asked Questions About ICAN Professional Level

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ICAN Syllabus For Others Level

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