How Nigeria adopted International Financial Reporting Standards (IFRS)


This post is about How Nigeria adopted International Financial Reporting Standards (IFRS). The Nigerian Federal Executive Council approved 1 January 2012 as the effective date for convergence of accounting standards in Nigeria with International Financial Reporting Standards (IFRS).

How Nigeria adopted International Financial Reporting Standards (IFRS)

On 28 July 2010, the Nigerian Federal Executive Council approved 1 January 2012 as the effective date for convergence of accounting standards in Nigeria with International Financial Reporting Standards (IFRS). The Council directed the Nigerian Accounting Standards Board (NASB), under the supervision of the Nigerian Federal Ministry of Commerce and Industry, to take further necessary actions to give effect to Councils’ approval.

On 3 September 2010, the Nigerian Accounting Standards Board (NASB) announced a staged implementation of IFRS, as follows:

  • Publicly listed entities and significant public interest entities are expected to implement IFRS by 1 January 2012
  • Other public interest entities are expected to implement IFRS by 1 January 2013
  • Small and medium-sized entities are expected to implement the IFRS for SMEs by 1 January 2014.

Micro-sized entities may use either the IFRS for SMEs or the Small and Medium-sized Entities Guidelines on Accounting (SMEGA) Level 3 issued by the United Nations Conference on Trade and Development (UNCTAD).

In June 2011, legislative changes were enacted under which the Financial Reporting Council (FRC) of Nigeria replaced the NASB as the entity responsible for setting financial reporting standards in Nigeria.



The FRC has published regulatory guidance (link to FRC website) which requires Nigerian entities to make certain elections when applying IFRS 1First-time Adoption of International Financial Reporting Standards.  This guidance also requires all entities applying IFRS to make an explicit and unreserved statement of compliance with IFRS.


What is International Financial Reporting Standards (IFRS)

IFRS is a set of international accounting standards that state how particular transactions and events should be reported in the financial statement of companies. The standards, which replace the old International Accounting Standards, are issued by the International Accounting Standard Board (IASB), for the purpose of making international comparison of companies as easy as possible.

How Nigeria adopted International Financial Reporting Standards (IFRS)

The journey to adoption of IFRS in Nigeria started in July 2010, when the Federal Executive Council approved the Road map for Nigeria’s adoption of the standards.
This was followed with the enactment of the Financial Reporting Council of Nigeria Act in 2011, which led to the transformation of the Nigeria Accounting Standards Board to the Financial Reporting Council (FRC).
The FRC among other things is charged with the responsibility of implanting the road map for adoption of IFRS in Nigeria. In 2012 Nigeria commenced phased adoption of IFRS in 2012, with all companies quoted on the stock exchange and companies with significant public interest required to comply in the first phase.

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