Operators in the financial sector have described the recent adoption of the International Financial Reporting Standard (IFRS) will boost cross-border listing by quoted companies in Nigeria.
Both the Institute of Chartered Accountants of Nigeria (ICAN) and the PricewaterhouseCoopers (PwC) agreed that IFRS is a medium to promote transparency, global funding and cross-border listing.
Speaking at an IFRS workshop organised by Businessday for journalists in Lagos yesterday, representatives from both the ICAN and PwC described the IFRS as a set of accounting standards to promote transparency, global funding and cross-border listing.
In his presentation, the Registrar of ICAN, Mr. Rotimi Omotoso, who was represented by the institute’s Deputy Registrar, Mr. Olusoji Odukoya, said: “The IFRS reporting has been a means to help in cross-border listing as you have seen with the likes of GTBank which listed in the London Stock Exchange and also for companies that want to raise bonds.”
He also explained that the new reporting standard had also ensured that companies were transparent.
“What has changed from the old method and the new IFRS is the level of disclosure making it easy for investors and stakeholders to point out the strength of a company and also give them the opportunity to back out when they please,” he added.
He also identified clarity and constant revaluation of assets as some benefits of the IFRS.
In her presentation, a manager at PwC, Ms. Uloma Ojima said: “The IFRS reporting was adopted by companies that need global funding.”
She further expressed her worries over the implementation and understanding of the reporting standard in schools as Nigerian educational curriculum did not cover the teaching of IFRS.
Stakeholders to Campaign against Dishonoured Cheques
Stakeholders in the financial sector have concluded plans to address the incidence of dishonoured cheques in the country.
To this end, the first ever national stakeholders’ workshop on dishonoured cheques tagged: “Statutory and Regulatory Framework for Dishonoured Cheques in Nigeria,” is expected to hold between November 20th and 21st in Abuja.
According to a statement from the organisers, an important medium for advancing business life in any country is the reliability of its bills of exchange.
It stated that the primary objective of the forthcoming workshop would be to reinforce the attempts of the Central Bank of Nigeria (CBN) in enhancing the credibility of the financial sector.
In addition, it said the workshop would be the stakeholders’ contribution to the string of concern that the present administration’s drive for the stability and sanitisation of the financial sector had continued to spearhead.
“For many years in Nigeria, cheques have been the most common bill of exchange used in everyday transactions. Unfortunately, the confidence in this medium of exchange has continued to dwindle because of the lack of integrity, knowledge and or enforcement of the legal effect of giving a cheque to another party which is returned unsettled upon its presentation.
“There is no doubt however, that the Central Bank of Nigeria together with other regulatory, compliance and enforcement agencies, have consistently embarked upon strings of reforms, policies and regulations in a firm bid to evolving a healthy financial sector vide a reliable, consistent and secure payment system,” it added.