Nigera has signed an agreement to begin the process of adopting IFRS.
Now Nigerian President Goodluck Jonathan has signed the Financial Reporting Council of Nigeria Act 2011 into law, the countries road map to staged adoption of IFRS will start 1 January 2012.
As the result of the new legislation a Financial Reporting Council will be created to issue and regulate accounting, actuarial, valuation and auditing standards.
Federal Ministry of Trade and Investment Honourable Minister Olusegun Aganda said, “this law shall put Nigeria on the path to adopting the best organised approach to regulation of financial reporting as it is currently practiced in the UK, Australia, Malaysia and the US”.
According to Aganda the new legislation is meant not only to create the enabling environment for the implementation of the IFRS and to guarantee credible financial reporting regime in both public and private sector entities in Nigeria but also to produce wealth creation and economic transformation.
Aganda also said other benefits include job creation, an increase in foreign direct investment and assurance of easier access to external capital, an enhancement of local and foreign investors’ confidence in the quality assurance systems of financial reporting and, reassurance that more meaningful and decision enhancing information will now be arrived at from financial statements issued in Nigeria.