The Financial Reporting Council of Nigeria (FRC) has called for improved adoption of the International Financial Reporting Standards (IFRS) and National Code of Corporate Governance (NCCG 2018), which were issued in 2019, for financial institutions in the country.
IFRS, apart from aligning Nigeria’s financial sector with world best practices on corporate governance, would also be a game changer in financial reporting and corporate governance practices in the country.
Specifically, Deputy Director/Head Directorate of Accounting Standards Public Sector, FRC, Dr. Iheanyi Anyahara, said all amendments to existing standards alongside the new standards issued by the International Accounting Standards Board (IASB) must be implemented by all reporting entities in Nigeria.
Speaking at a stakeholders interactive forum, hosted by FRC in collaboration with IASB), he said the Council remains resolute and committed to driving its vision of being the conscience of regulatory assurance in financial reporting and corporate governance.
Anyahara said the event was geared towards deepening the knowledge of IFRS 9, 16, and 17, and obtaining first-hand information on implementation challenges from the users in financial institutions in the country.
“The council has further simplified its registration processes, which implies that you can get your registration numbers within 48 hours after completing your registration. More so, the council ensures that all stakeholders are involved in the standard-setting processes of international accounting and auditing bodies through the various technical committees, amongst other initiatives.
“Recently, FRC began the assessment of IPSAS application and implementation of appropriate financial reporting framework in the public sector entities of Nigeria, which is another critical area of concern,” he said.
He said the council was at the final stage of issuing its long-awaited audit regulation, which is expected to provide increased transparency for investors and other stakeholders, as well as enhance economic growth amongst other benefits.
Meanwhile, Anyahara said FRC would be organising more events in financial reporting, auditing, and corporate governance to sensitise the general public and lessen the knowledge gap in IFRS standards in Nigeria, in collaboration with relevant agencies and organisations.
In July 2014, the IASB issued the final version of IFRS 9 (Financial Instruments), to replace the existing IAS 39 (Financial Instruments: Recognition and Measurement), which requires all reporting entities that had adopted IFRS to implement the new standard by January 01, 2018.