Companies prone to wrong practices during hardship – FRC

The Financial Reporting Council of Nigeria (FRC), has stated companies are prone to doing wrong things with the economic hardship in the country.

To this end, the council is strengthening the regulatory oversight and deepening the integrity of financial statements with the Accounting Development Tool (ADT).

Chief Executive Officer of the council, Dr. Rabiu Olowo, stated this in Lagos when the Netherlands Consul-General in Lagos, Michel Deelen, paid him a courtesy visit to discuss the ADT in Nigeria project in partnership with the United Nations Conference on Trade and Development (UNCTAD).

According to him, the ADT Nigeria project would help align the country with the global baseline for accounting practices.

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He stated that research had shown that during the period of economic hardship, companies are prone to do wrong things when it comes to financial reporting, which requires improved regulatory oversight.

“We are all aware of what is going on in Nigeria today, economic challenges or hardship if you like; research has shown that this period stimulates and encourages companies to do the wrong thing especially when it comes to financial reporting,” he explained.