IFC, PWC Helps Nigeria Adopt Global Accounting Standards
ABUJA: Dec 01, (THEWILL) - IFC, a member of the World Bank Group and PricewaterHouseCoopers (PWC) co-hosted a seminar to help Nigeria’s banking and financial sectors adopt international accounting standards, which will bring greater transparency to financial reporting in the country and allow Nigerian companies to meet the disclosure requirements of international investors.
A statement from the World Bank and made available to THEWILL in Abuja said more than 80 participants from Nigeria’s banking and financial sector attended a one-day seminar last week in Lagos to improve awareness and understanding of the issues involved with adopting new International Financial Reporting Standards, (IFRS).
PwC Managing Partner, Ken Igbokwe, said, “The impact of IFRS goes beyond reporting by the accountants, it is also a standard for measuring business performance which makes it important that line managers understand its effect on the internal and external reporting of the operations and performance of the business.”
IFC Country Manager for Nigeria, Solomon Adegbie-Quaynor, said, “It is important to assist the market in preparing for the process of change and to realize the importance and benefits to be derived from increased transparency in financial reporting rather than to view this process as merely a compliance function."
World Bank further said International Financial Reporting Standards remove some of the subjectivity from financial reporting and provide a consistent basis for recognition, measurement, presentation and disclosure of transactions and events in financial statements, adding that the challenge now is in getting not only accountants to adopt these standards, but all necessary parties.
As more African businesses operate internationally, it is important for investors to be able to compare companies under similar standards in all countries where they operate. Greater transparency, which these standards will bring, is likely to attract increased investment into Nigeria.
In addition, local companies seeking dual listing in other countries will find it easier to comply with reporting requirements of overseas stock exchanges, and governments will be in a better position to assess the tax liabilities of multinational companies receiving income from overseas as well as for foreign multinationals setting up shop in their own country.