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    IFRS Adoption: Nigeria

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    Please help with the following issues, challenges and lessons with IFRS Adoption in Nigeria. I have provided some main points I will need to discuss.

    4. Implementation of the plan
    a. Is there compliance
    i. What is the level of compliance at this point?
    ii. What are the plans to expand the implementation
    b. Proposals for more, higher levels of compliance
    i. What changes have been made
    ii. How likely are these changes to work for higher compliance

    5. Government effort
    a. Government compliance
    b. Government influence for compliance by private entities
    c. Civil unrest and war in enforcing compliance

    6. The compliance efforts of international companies in Nigeria
    a. MNCs and transnational companies complying?
    i. Have the international companies complied
    ii. Is there compliance influencing local companies
    b. Checks and balances for Nigeria and international companies


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    Solution Preview

    4a. Currently there is limited compliance. Companies in Nigeria are complying with standards issued by the NASB for several years. These are Nigerian GAAP.
    ii) The plans to expand implementation are that NASB announced its roadmap to convergence with IFRS in September 2010. Based on the roadmap Nigerian companies listed & significant Public Interest Entities will be required to comply with IFRS for periods ending after 1st January 2012.
    iii) The plan for expansion of the implementation is that other public interest entities will be required to comply for periods ending after 1st January 2013. These entities will be required to comply for periods ending after 1st January 2014.
    Proposals for higher level of compliance are:
    i) The key change is that by the year 2011, special public interest entities will be required to identify key reporting data and prepare IFRS opening statement of financial position. By the year 2012, these entities are required to prepare quarterly reports using IFRS rules. By 2013, other public interest entities are also required to prepare quarterly reports using IFRS, modify audit procedures, and investor communications in accordance with IFRS. The transition date for Small and Medium sized entities begin with 2012 and compliance is required by 2014.
    ii) These changes are likely to work for higher compliance because different entities are likely to identify loopholes in the existing system and process by ensuring compliance ...

    Solution Summary

    The response provides you a structured explanation of IFRS adoption, issues, and challenges in Nigeria. It also gives you some relevant references.