Some financial experts have said that the enforcement of International Financial Reporting Standard (IFRS) on Nigerian companies would reduce manipulation of their audited financial reports. They said in Lagos that enforcement of IFRS in Nigeria would enhance ethical practices in preparation of financial reports.

They agreed that enforcement of the standard would make financial reports of companies in Nigeria to be internationally acceptable. Dr Samuel Nzekwe, immediate past president of ANAN, said the new standard will promote transparency and accountability among accounting professionals.

“These will reduce financial improprieties by persons in position of trust and ensure exemplary conduct in carrying out auditing duties,” he said. Nzekwe said that it would raise the quality of auditing practices in Nigeria and also enhance global best practices in the financial reporting of companies. Mr Eddie Osarenkhoe, president of Finance Houses Association of Nigeria (FHAN), said that the new standard would create platform for foreign investors to assess financial position of Nigerian companies.

Osarenkhoe said that the IFRS provided for conformity of standard of financial statements prepared in Nigeria with the international standard.

“This portends good for Nigerian companies because it will provide opportunities for world class accounting professionals,” the FHAN president said.

He said that IFRS would reduce malpractices among auditors of various companies, adding that this would reflect the true picture of companies.

Dr Olumide Owoade, a lecturer in the Department of Economics at Lagos State University, said that the new standard would enhance the reporting standard of companies. “IFRS will have positive effects on the reporting procedures of companies in Nigeria,” he said.