The Central Bank of Nigeria (CBN) on Tuesday issued a guidance note on the implementation of International Financial Reporting Standard IFRS 9 to Other Financial Institutions (OFIs).
The notes specifies information to be submitted to the CBN not later than March 31, 2019 on IFRS9 implementation projects while requiring OFIs to submit monthly status updates on the implementation projects starting July 31, 2019.
To encourage seamless implementation, Tokunbo Martins, director, OFIs department of the CBN said the regulator has established a project team and OFIs are encourage to seek any clarification by contacting the accounting supporting team.
IFRS) was adopted in Nigeria on January 1, 2012 as part of measures to improve reporting practices, transparency and disclosures. Nigeria’s adoption of the IFRS implies that all revisions to existing standards as well as new accounting standards issued by the International Accounting Standards Board (IASB) must be adopted by all reporting entities. In July 2014, the IASB issued the final version of IFRS 9 (Financial Instruments) to replace IAS 39 (Financial Instruments: Recognition and Measurement) requiring all reporting entities that have adopted IFRS to implement the new accounting standard by January 1, 2018.
IFRS 9 prescribes new guidelines for the classification and measurement of financial assets and liabilities, making fundamental changes to the methodology for measuring impairment losses, by replacing the “incurred loss” model with a forward-looking “expected loss” model. The implementation of IFRS 9 would entail the exercise of considerable judgement by Other Financial Institutions (OFIs).
In order to ensure robust and consistent implementation of IFRS 9, the CBN said this Guidance Note details supervisory expectations, especially in areas where OFIs are expected to exercise considerable judgment and/or elect to use simplifications and other practical expedients permitted under the Standard.
HOPE MOSES-ASHIKE
