The Nigerian Stock Exchange (NSE) has adopted a uniform accounting year end for all of its Dealing Members.
It noted that following consultations with dealing members, December 31 has been adopted as a common accounting year end, “effective no later than December 31, 2014.”
The Exchange said Monday in a circular signed by Olufemi Shobanjo, head, broker dealer regulation, that the decision to adopt a uniform accounting year end for all of its dealing members became necessary to ensure consistency and more effective regulatory oversight.
“Failure of a dealing member to submit Audited Financial Statements on the date due for submission shall attract a penalty of N5, 000 per day of default for a maximum of four weeks, and where a dealing member fails to submit Annual Financial Statement after four weeks of default, the dealing member firm shall forthwith be suspended from trading,” adding that “regulatory sanctions will be enforced on dealing members that fail to meet the above deadlines,” NSE noted.
“Consequently, all affected dealing members should as a first step, pass board resolutions to the effect that their accounting year end will be December 31 and, thereafter, inform The Exchange and other relevant agencies accordingly. During 2014, a maximum accounting period of eighteen (18) months and a minimum of six (6) months is allowable, in line with accepted accounting practice,” the NSE said in the circular to all dealing members.
It further stated: “In the circumstances, all dealing members whose accounting year end falls on 31st December, should in the usual practice, submit their full year’s financial statements to The Exchange not later than three (3) months after the year end.
Firms with year ends between January and May 2014, should submit the normal audited accounts (12 months) and thereafter, submit their audited accounts for the pro-rated period to 31 December 2014,” noting that the audited accounts for the pro-rated period should equally be submitted to the Exchange not later than three (3) months after the period end.