Expert’s recipe on standardized financial reporting through IFRS compliance - LiveTimes Online

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Wednesday, 15 October 2014

Expert’s recipe on standardized financial reporting through IFRS compliance

.Template of IFRS statement
 From Taiwo Oluwadare, Ibadan

The WFO, a business solution company in Lagos has enjoined fellows of Institute of Chartered Accountants of Nigeria (ICAN) in Ibadan to comply with the International Financial Reporting Standard (IFRS), to enhance efficiency in preparing their financial statement.

WFO, an acronym from partners and a "Big 4" experienced business solution company in Audit, tax, advisory and accounting outsourcing services made this known at a seminar organized recently to enlighten the fellows on IFRS benefits and its compliance.

Speaking at the seminar, the guest lecturer, Mr. Oluwole Oluyemi said the financial standard has been adopted in Nigeria in 2010 during the time of Senator Jubril Martins Kuye, the then Minister for Commerce and Industry.

According to him, the minister did a roadmap on how it can be adopted by companies in Nigeria adding that by the virtue of this come December 2014; most SMEs would have adopted the financial standard to enhance efficiency.

He said the new financial standard helps especially the investors, employees and others that have been at the receiving end of the former standard to able to maximize opportunities and helps the macro economy to improve as well.

Nigeria- Generally Accepted Accounting Principle (N-GAAP), he said is the former financial standard which doesn’t reveal detail of a financial profile compare to IFRS that give an in-depth of financial statement.

Oluyemi maintained that IFRS ensures standardisation, uniformity, aids investment, performance management and investment appraisal so that all IFRS compliant firms can have uniformity of reporting standard and quality.

Speaking at the session, the chairman of Ibadan society of ICAN, Mr. Ganiyu Adebayo said the advent of the financial standard has helps business owners and accountants to better manage their businesses.

He said training and retraining of members on IFRS compliance is the key to its implementation especially for auditors to able to peruse and improve on financial statement before them to enhance financial performance.

"We have been able to expose participants to international reporting standard. The IFRS enable a layman to understand the content of a financial statement, unlike N-GAAP and helps to understand financial statement from other parts of the world that are IFRS compliant" he explained.

In a different forum, the advisor Limited company also organized a seminar with Ibadan Chambers of Commerce and Industry (ICCI) on International Financial Reporting Standard (IFRS) compliance.

Speaking at the seminar, the guest lecturer, Mr. Oluwole Oluyemi said the IFRS initiative was initiated by International Accounting Standard Committee (IASC) and its benefit cut across social, economic and legal strata.

According to him, the financial statement helps especially the investors to make decision by able to unravel the equity shares of a company as a major factor to know whether to buy or sell.

He said, it also helps to decipher the business profile of a company to know its strength and weakness before an investor invest in it saying because IFRS protects investor’s interest.

Said he "there are sectors of Nigerian economy today that are now IFRS compliant to win customers confidence. Example is Insurance companies and brokers to strengthen and enhance the economic sector".

Speaking to journalists, the president of ICCI, Mr. Abimbola Makanjuola said he had gained personally as other members and nation as a whole will also gain to curb menace of corruption and enhance better income to the state.

He said even though, he has an accountant to prepare account for him, he can understand better its content by the virtue of new standard of reporting account statement.

He therefore maintained that role of ICCI is to protect the interest of members and public as a whole against government decision that may be inimical to their well being. 

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