• Tuesday, April 16, 2024
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Nigeria’s FRC, Netherlands move to enhance transparency in financial reporting

Nigeria’s FRC, Netherlands move to enhance transparency in financial reporting

The Financial Reporting Council (FRC) of Nigeria is collaborating with the Netherlands to enhance transparency and accountability in financial reporting through the implementation of the Accounting Development Tool (ADT).

This was agreed on during a meeting involving the consul-general of the Netherlands Embassy and the Financial Reporting Council of Nigeria on Wednesday, February 21, 2024, where they discussed the accounting development tool (ADT) in Nigeria in partnership with the United Nations Conference on Trade and Development (UNCTAD).

FRC in collaboration with the UNCTAD, initiated the implementation of the ADT in Nigeria. The ADT Kick-off session took place on August 22nd, 2023 in Lagos.

Speaking during the meeting, Rabiu Olowo, executive secretary/CEO, FRC, emphasised the importance of strengthening regulatory frameworks to ensure transparency and accountability in financial reporting.

Amid Nigeria’s economic challenges, Olowo highlighted the need to prevent companies from engaging in improper financial practices. Aligning with global accounting standards is a priority for regulatory bodies, aiming to uphold reliability for financial statement users. Olowo expressed gratitude for the support of the Consulate and emphasised the significance of monitoring progress to achieve desired outcomes.

He said, “For us as regulators we are very alert and awake to our responsibilities and your investment in accounting development tools will only further strengthen our capacity to do our job very well.”

On his part, Michel Deelen, consul-general of the Netherlands, expressed concerns about the lack of clarity in annual reports, comparing them to misleading television commercials. He emphasised the importance of transparency, especially in challenging times for Nigerian companies.

The consul-general highlighted the need for improved transparency in financial reporting, citing the Nigerian context where companies may resort to creative bookkeeping. He stressed the crucial role of annual reports in providing transparency for shareholders and the public.

Deelen said, “The Nigerian context sometimes makes companies be creative in their bookkeeping and we all know that is not good or beneficial to anybody also not to shareholders and also not to the public at large.