Financial Reporting: Council Wants SMEs To Adopt Global Standard

Small and Medium
Enterprises (SMEs) in the country have been urged to ensure effective compliance with the relevant provisions of the International Financial Reporting Standards (IFRS) in their financial transactions.
Speaking  to The Tide on Friday at the Presidential Hotel, Port Harcourt after a business roundtable discussion with selected SMEs promoters, a member of the Financial Reporting Council of Nigeria (FRC) Alhaji Ibrahim Abubakar said there was imperative need for SMEs in Nigeria to comply with a globally acceptable accounting standard to meet the financial reporting standards.
Abubakar said with the enactment of the Financial Reporting Council of Nigeria Act 2011 by the National Assembly and the subsequent adoption of the principles of the International Financial Reporting standards from January 1, 2012, Nigeria was to promote and implement internationalization and harmonization of financial reporting and jurisdictional financial statements regulation through a phased transitional model.
The FRC council member said SMEs in Nigeria are expected to prepare their financial statements for the year 2014 in accordance with IFRS standards, stressing that the IFRS adoption round map was to  ensure improvement of financial operations of the SMEs in Nigeria.
He said the administration of the present Federal Government under President Goodluck Jonathan has set the path to address the proper financial models for SMEs for effective accountability.

Philip Okparaji