SMEs to issue IFRS based financial statements by 2014
Naomi Uzor
Small and Medium Enterprises(SMEs) will statutorily be required to issue International Financial Reporting Standards (IFRS) based financial statements at the end of December 31st 2014 as they will key into the recently launched Roadmap to the adoption of IFRS in Nigeria by the Federal Government come January 1, 2014.
Speaking at the launch of the roadmap, the Minister of Commerce and Industry, Senator Jubril Martins-Kuye, said that SMEs will key into it on January 1, 2014, adding that this means that all small and medium-sized entities in Nigeria will statutorily be required to issue IFRS based financial statements for the year ended December 31 2014.
“Entities that do not meet the IFRS for SMEs criteria shall report using Small and Medium-sized Entities guidelines on Accounting (SMEGA) level 3 issued by the United Nations Conference on Trade and Development (UNGAD)” he stated
According to him, the federal executive council accepted the recommendation of the committee on the Roadmap to the adoption of IFRS in Nigeria in the interest of the Nigeria economy for reporting entities in Nigeria to adopt globally accepted, high quality accounting standards by fully converging Nigerian National Accounting Standards with IFRS.
Senator Kuye urged the Nigeria Accounting Standards Board to ensure that the action plan and frame work of targeted activities that will enable a smooth transition to IFRS by all stakeholders are effectively coordinated and communicated, adding that the IFRS would promote compilation of meaningful data on the performance of various reporting entities public and private levels in Nigeria as well as encourage comparability and reliability of financial reporting in Nigeria as the IFRS will attract Foreign Direct Investment (FDI) and reduce of the cost of doing business as well as easier regulation of financial information of entities in Nigeria.
Furthermore, he urged the National Assembly to accelerate the passage of the bill into law at the earliest possible time and therefore requested the Nigerian Universities Commission and Board of Colleges of Technology and Polytechnics to work towards aligning their accounting curricular to cover the teaching of IFRS.
In his remarks, Mr. Prabhakar Kalavacherla of the International Accounting Standard Board congratulated Nigeria for the adoption of IFRS which he said, will help in alleviating poverty and propelling confidence in capital market, adding that Nigeria’s adoption of IFRS will spur other African countries to follow suit and advised Nigerians to focus on service industry and capacity building that will spur employment generation in Nigeria.
