By Ikeoye Oyetoro

The Nigerian Accounting Standards Board (NASB), has identified amendment of incompatible financial legislations and collaboration among financial regulators in the country as conditions for effective implementation of International Financial Reporting Standards (IFRS) in the country.

The Executive Secretary of the board, Mr. Jim Obazee disclosed this during the 7th Corporate Financial Reporting Summit of the Board  in Lagos.

He said the full benefits of the IFRS may not be realised unless some existing laws inconsistent with its adoption are reviewed and the Financial Reporting (FRC) Bill currently before the National Assembly is passed.

He also advocated public sensitisation and creation of a dedicated website as well as collaboration among financial regulators saying NASB would create a Centre of Excellence and collaborate with tertiary institutions in the country in updating their curriculum to include study of IFRS.

Obazee also challenged the Nigerian Stock Exchange (NSE) to orientate its constituents on implementation of International Financial Reporting Standards (IFRS) and also help in developing the capacity of the nation’s tertiary institutions to train their students on IFRS and Accounting Standards.

The NASB boss however challenged accountants, auditors and auditing firms to learn application of IFRS saying it will greatly go a long way in assisting them in their job delivery.

He also implored the NSE to help facilitate payment of NASB dues by member companies and lauded the Board, which is the body saddled with issuing and enforcing compliance with accounting standards for its efforts at sanitising financial reporting in the country, saying reliable financial information is the oxygen of the capital market.

In the same vein, the Minister of Commerce and Industry, Senator Jubril Martins-Kuye, has described the adoption of the IFRS as the inevitable consequence of the nation’s quest to benefit from globalisation and improve corporate governance.

The Minister who was represented by his special assistant, Alhaji Tele Ogunjobi, identified the benefits of IFRS adoption to include assurance of useful and meaningful decision on investment portfolio in Nigeria, attraction of foreign direct investment (FDI), assurance of easier access to external capital.

Other benefits are reduction in the cost of doing business across borders by eliminating the need for supplementary information from Nigerian companies, easier regulation of financial information of entities in Nigeria and enhancing knowledge of global financial reporting standards by tertiary institutions

The NASB chairman, Mr Michael Popoola, said the emphasis of the NASB is not only imposition of punitive measures, but creation of awareness and orientation to eliminate errors.