Adoption of Ifrs in Financial Institution
IFRS PROVISION FOR FINANCIAL INSTITUTIONS
As the forces of globalization prompt more and more countries to open their doors to foreign investments and as businesses expand across borders, Banks recognize the benefits of having a commonly understood financial reporting framework supported by strong globally accepted accounting standards.
In addition, the regulatory authorities namely, Central Bank of Nigeria and Security & Exchange Commission (CBN & SEC) have also adopted this date as the compliance date by deposit money banks and have issued relevant circulars to this effect.
IFRS are a set of international accounting standards issued by the International Accounting Standards Boards (IASB).
The adoption of IFRS is aimed at:
• Promoting transparency
• Increasing quality and efficiency of financial reporting
• Providing financial statements that will engender investors’ confidence (due to the robust disclosure requirements of IFRS).
• Facilitating cross-border stock exchange listing.
IFRS adoption is not just an accounting exercise and the conversion is expected to affect our processes, systems, people and other areas of our business.
The IASB describes its pronouncements under the label "International Financial Reporting Standards", though it continues to recognise (accept as legitimate and adopted by them) the IAS issued by the defunct IASC.
With the adoption of IFRS in Nigeria, a lot stands to be gained from the seemingly distressed global economy.
With successful implementation of IFRS, Nigeria will benefit economically by receiving a boost on foreign direct investments (FDIs).
In 2010, the Central Bank of Nigeria (CBN), in a bid to integrate the banking system into the global best practices in financial reporting and disclosure, commenced partial adoption of the International Financial Reporting Standards (IFRS) in the Nigerian banking system.
The move, according to the CBN, was to enhance market discipline and reduce
As the forces of globalization prompt more and more countries to open their doors to foreign investments and as businesses expand across borders, Banks recognize the benefits of having a commonly understood financial reporting framework supported by strong globally accepted accounting standards.
In addition, the regulatory authorities namely, Central Bank of Nigeria and Security & Exchange Commission (CBN & SEC) have also adopted this date as the compliance date by deposit money banks and have issued relevant circulars to this effect.
IFRS are a set of international accounting standards issued by the International Accounting Standards Boards (IASB).
The adoption of IFRS is aimed at:
• Promoting transparency
• Increasing quality and efficiency of financial reporting
• Providing financial statements that will engender investors’ confidence (due to the robust disclosure requirements of IFRS).
• Facilitating cross-border stock exchange listing.
IFRS adoption is not just an accounting exercise and the conversion is expected to affect our processes, systems, people and other areas of our business.
The IASB describes its pronouncements under the label "International Financial Reporting Standards", though it continues to recognise (accept as legitimate and adopted by them) the IAS issued by the defunct IASC.
With the adoption of IFRS in Nigeria, a lot stands to be gained from the seemingly distressed global economy.
With successful implementation of IFRS, Nigeria will benefit economically by receiving a boost on foreign direct investments (FDIs).
In 2010, the Central Bank of Nigeria (CBN), in a bid to integrate the banking system into the global best practices in financial reporting and disclosure, commenced partial adoption of the International Financial Reporting Standards (IFRS) in the Nigerian banking system.
The move, according to the CBN, was to enhance market discipline and reduce
References: DeGregorio, J. (2003). The role of FDI and Natural Recourses in Economic Development. Working paper No. 196. Central Bank of Chile, Santiago, USA. Kumar, A. (January 30, 2007). Does Foreign Direct Investment Help Emerging Economies? Economist 's View. FRB Dallas. Retrieved:http://economistsview.typepad.com/economistsview /2007/01/frb_dallas_does.html. Oduware, Uwadiae (2012). IFRS Adoption in Nigeria and Optimising the gains of Global Investment Climate. Akintola Williams Deloitte, December 2012. Okpala Kenneth Enoch ( 2012). Adoption of IFRS and Financial Statement Effects: The Perceived Implications on FDI and Nigeria Economy. Australian Journal of Business and Management Research, Vol.2 No.05 [76-83]. Oyetayo, E.O., Arogundade, K.K., Adebisi, S.O. & Oluwakayode, E.F. (2011). FDI, Export and Economic Growth in Nigeria. European Journal of Humanities and Social Sciences. 2(1), 66-86. Report of the NASB Roadmap to Adoption of IFRS Nigeria (2010).