Nigeria to Begin Implementation of IFRS Jan 2012
- By Simeon Ogoegbulem
- Published September 6th, 2010
- News
- Unrated
NIGERIA is to begin the implementation of International Financial Reporting Standards (IFRS) with effect from January, 2012. To this effect, Senator Jubril Martins-Kuye, minister of commerce and industry, has directed the Nigerian Accounting Standards Board (NASB) to ensure efficient action plan and framework for compliance by all stakeholders with effect from January 1t, 2012.
Speaking at the launch of a roadmap for the adoption of IFRS in Abuja, Martins-Kuye noted the importance of compliance as world economies are more interconnected and symbiotic and nations are desirous of moving forward by freeing themselves from the limits of the present system of financial reporting standards.
He noted that as a result of globalization, a number of Nigerian companies have raised capital from international stock markets and others established presence in other jurisdictions while a good number of Nigerians hold the securities of non-Nigeria issuers.
The minister said “for a better understanding and appreciation of the risks and consequently, making decisions about the flow of economic capital, it makes sense that financial statements prepared in Nigeria use global financial reporting benchmarks.” He listed some of the programmes expected to be executed by the NASB to ensure smooth transition to IFRS by all stakeholders such as creating awareness on potential impact of the conversion, identifying regulatory synergies to be derived and communicating the temporary impact of the transition on business performance.
Other programmes include education and training, public sector financial reporting and applicable financial reporting standards and the future role of the NASB after the adoption of the IFRS. On the phased implementation of the IFRS, Martin-Kuye said “publicly listed entities and significant public interest entities are to prepare their financial statements using applicable IFRS by January 1, 2012. The choice of this date is anchored on the need to effectively transit to IFRS over a three year period.
Speaking at the launch of a roadmap for the adoption of IFRS in Abuja, Martins-Kuye noted the importance of compliance as world economies are more interconnected and symbiotic and nations are desirous of moving forward by freeing themselves from the limits of the present system of financial reporting standards.
He noted that as a result of globalization, a number of Nigerian companies have raised capital from international stock markets and others established presence in other jurisdictions while a good number of Nigerians hold the securities of non-Nigeria issuers.
The minister said “for a better understanding and appreciation of the risks and consequently, making decisions about the flow of economic capital, it makes sense that financial statements prepared in Nigeria use global financial reporting benchmarks.” He listed some of the programmes expected to be executed by the NASB to ensure smooth transition to IFRS by all stakeholders such as creating awareness on potential impact of the conversion, identifying regulatory synergies to be derived and communicating the temporary impact of the transition on business performance.
Other programmes include education and training, public sector financial reporting and applicable financial reporting standards and the future role of the NASB after the adoption of the IFRS. On the phased implementation of the IFRS, Martin-Kuye said “publicly listed entities and significant public interest entities are to prepare their financial statements using applicable IFRS by January 1, 2012. The choice of this date is anchored on the need to effectively transit to IFRS over a three year period.
