FRC, global board advance financial reporting code

The Financial Reporting Council (FRC) has organised a webinar in collaboration with International Accounting Standards Board (IASB) to deepen the knowledge on the application and implementation of IFRS 9, 16 & 17 in Financial Institutions in Nigeria.

Nigeria adopted the International Financial Reporting Standard (IFRS) as part of measures to improve transparency, reporting practices and full disclosures.

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The Deputy Director/Head,  Directorate of Accounting Standards, public sector at the FRC, Dr. Iheanyi Anyahara said: “Having adopted the IFRS by the Council, it means that all amendments to existing standards alongside the new standards issued by the International Accounting Standards Board (IASB) must be implemented by all reporting entities in Nigeria.”

In July 2014, the IASB issued the final version of IFRS 9 (Financial Instruments) to replace the existing IAS 39 (Financial Instruments: Recognition and Measurement) which requires all reporting entities that have adopted IFRS to implement the new standard by January 01, 2018.

IFRS 9 introduces a new methodology for financial instruments classification and the incurred loss impairment model is replaced with a more forward-looking expected loss model.

The final version supersedes all previous versions and is mandatorily effective for periods beginning on or after 1 January 2018 with early adoption permitted.

Anyahara said: “The new standard requires lessees to recognize nearly all leases on the balance sheet which will reflect their right to use an asset for a period of time and the associated liability for payments.”

On 28 May 2020, the IASB issued an amendment to IFRS 16, Covid-19 – Related Rent Concessions which is effective for annual periods beginning on or after 1 June 2020.

Anyahara  said the Council is however getting its constituent ready for IFRS 17, Insurance Contracts which will be effective for annual periods beginning on or after 1 January 2023 after the standard was amended on 25 June 2020 to defer its effective date.