SlideShare una empresa de Scribd logo
1 de 54
Descargar para leer sin conexión
: ROADMAP TO IFRS ADOPTION IN 
NIGERIA, CONVERSION FROM SAS 
TO IFRS AND THE CONCEPTUAL 
FRAMEWORK/FOUNDATION OF 
IFRSs STANDARDS 
Titus E. Osawe 
Assistant Director, Monitoring, Enforcement and Notifications Dept. 
Financial Reporting Council of Nigeria 
1
Content 
1. Background Information on Global 
Convergence 
2. Conceptual Framework for Financial 
Reporting 
3. Nigerian Roadmap to IFRS 
4. Briefs on First-Time Adoption 
5. Highlights of Steps involved in Conversion 
6. Over all Implications of IFRS Adoption 
7. Pitfalls to avoid.
BACKGROUND INFORMATION 
• What is IFRS? 
A series of single set of high quality , understandable 
and enforceable global accounting standards 
developed and published by the IASB to be used by 
entities in preparing general purpose financial 
statements and other financial reporting. 
International Standards 
• Standards 
+ IAS 1-41 (29 still applicable) 
+ IFRS 1 – 9 
• Interpretations 
+ SIC 1-32 (11 still applicable) 
+ IFRIC 1-19 (three withdrawn) 
IAS 
& SIC 
IFRS & 
IFRIC 
IASC; 1973-2000 
IASB; 2001 - DATE 
Generally IFRS = IASs + IFRSs 
with their interpretations
A Changing Global Financial 
Reporting Environment 
•Globally there is a remarkable movement towards a single 
financial reporting language – International Financial Reporting 
Standards (IFRS) 
•Currently (by the end of 2011), about 150 jurisdictions permit or 
require the use of IFRS 
•In Africa – Ghana, South Africa, Egypt, Kenya, Morocco(Banks;p), 
Namibia, Togo (p), Niger (p), Nigeria (Re: 2012) 
•Regulatory trend 
• International Accounting Standards Board (IASB) and the Financial Accounting 
Standards Board (FASB) have reaffirmed convergence efforts 
• Greater cooperation amongst regulators on IFRS application issues 
4
Benefits and Drivers of IFRS 
IFRS: 
Uniform 
Global 
Accounting 
Language 
More room for 
management’s 
judgment and truer 
reflection of economic 
reality with principles-based 
Reduced cost of 
financial reporting 
for global 
companies 
GAAP 
Industry 
perception of 
market 
leadership 
Improved 
transparency and 
comparability 
for investors and 
rating agencies 
international investors 
and to enable easy 
monitoring of overseas 
Ability to understand 
interaction with 
strategic initiatives 
to generate value 
from synergies 
Streamlined 
M&A activity 
Increasing 
demand for public 
accountability and 
transparency by all 
stakeholders 
Need to attract 
investments. 
Facilitate 
comparison 
between public 
entities 
More efficient 
access to capital 
for global 
corporations 
Ability to analyse 
impact on 
tax-related issues 
5
THE IASB’S CONCEPTUAL FRAMEWORK 
• The conceptual framework aims at providing a sound foundation for future 
accounting standards that are principles –based, internally consistent and 
internationally converged. 
• The Framework sets out the concepts that underlie the preparation and 
presentation of financial statements for external users. Its purpose is to: 
– Assist IASB in developing accounting standards and assist preparers of 
financial statements in applying IFRSs and in dealing with topics that have 
yet to form the subject of an IFRS 
– Assist users of financial statements in interpreting the information 
contained in financial statements prepared in conformity with IFRSs 
– Provide those who are interested in the work of IASB with information 
about its approach to the formulation of IFRSs 
• The framework was first published in July 1989 and adopted in April 2001.
• In July 2006 IASB produced a discussion paper-preliminary 
views on an improved conceptual 
framework for financial reporting. 
– The paper covers the first two chapters of a proposed 
conceptual framework: 
• Chapter 1: The objective of financial reporting 
• Chapter 2: Qualitative characteristics of decision-useful financial 
reporting information 
• In September 2010 the IASB approved the Conceptual 
Framework for Financial Reporting 2010 (the IFRS 
Framework), dealing with these first two chapters.
Project set-up 
The Council are conducting the project in 8 phases. Phase A was 
completed in September 2010. Phases B, C, and B the project 
are currently active 
Phases Topics 
A. Objectives and qualitative characteristics – Project completed 28/09/2010 as announced by the joint working group of IASB and FASB; 
B. Definitions of elements, recognition and derecognition - Last worked by joint group in October in October 2008; 
C. Measurement – Still developing Preliminary views as at July 2010 
D. Reporting entity concept – ED published 11/03/2010, exposed till 16/07/2010; 
E. Boundaries of financial reporting, and presentation and disclosure – last revisions was, February 2008; 
F. Purposes and Status of the framework – last revisions February, 2008; 
G. Application of the framework to not-for-profit - last revisions February, 2008; 
H. Remaining issues, if any - last revisions February, 2008;
• In the absence of a Standard or an Interpretation that 
applies specifically to a transaction, management must 
use its judgement in developing and applying an 
accounting policy that results in information that is 
relevant and reliable. 
– In doing this, IAS 8 (Accounting Polices, changes and 
Accounting Estimates and Errorsrequires management to 
consider the definitions, recognition criteria, and 
measurement concepts for assets, liabilities, income, and 
expenses as contained in the IFRS Framework.
• The Framework consists of several sections or 
chapters, following on after a preface and 
introduction. These chapters are as follows: 
– The objective of financial statements 
– Underlying assumptions 
– The qualitative characteristics of financial statements 
– The elements of financial statements 
– Recognition of elements of financial statements 
– Measurements of the elements of the financial 
statements 
– Concepts of capital and capital maintenance
Objectives of General Purpose 
Financial Reporting 
• To provide financial information about the 
reporting entity that is useful to existing and 
potential investors, lenders and other 
creditors in making decisions about providing 
resources to the entity, which includes 
decisions about the accountability of the 
entity’s management
Users Of General Purpose Financial 
Reporting 
The Conceptual framework groups these into 
primary and other users 
• Primary users are present and potential 
investors, lenders and other creditors. 
• Other parties include prudential and market 
regulators.
Users Information Needs 
• Primary users use the information to make 
decisions about buying, selling or holding equity 
or debt instruments and providing or settling 
loans or other forms of credit. 
• The primary users use the information to assess 
an entity’s prospects for future net cash inflows 
and to judge how effective and efficient 
management has discharged their responsibilities 
of using the entity’s existing resources. 
• Other parties, including prudential and market 
regulators, may find general purpose financial 
reports useful, but the reports are not primarily 
directed to regulators or other parties
Economic Resources And Claims 
• A reporting entity’s economic resources and claims are 
reported in the statement of financial position 
• Information about the nature and amounts assists 
users to assess an entity’s 
– financial strengths and weaknesses; 
– liquidity and solvency, and 
– its need and ability to obtain financing. 
• Information about the claims and payment 
requirements assists users to predict how future cash 
flows will be distributed among those with a claim on 
the reporting entity.
Qualitative Characteristics of Financial 
Statements 
Qualitative characteristics are the attributes that 
make the information provided in financial 
statements useful to users. They are majorly 
categorised as: 
• - Fundamental qualitative characteristics-relevance 
and faithful representation and 
• The enhancing qualitative characteristics that 
distinguish more useful information from less 
useful information -comparability, timeliness, 
verifiability and understandability.
Relevance 
• Relevant financial information is capable of making a 
difference in the decisions made by users. Financial 
information is capable of making a difference in decisions if 
it has predictive value, confirmatory value, or both. The 
predictive value and confirmatory value of financial 
information are interrelated 
• Materiality is an entity-specific aspect of relevance based 
on the nature or magnitude (or both) of the items to which 
the information relates in the context of an individual 
entity’s financial report 
• Information is material if its omission or misstatement 
could influence the economic decisions of users taken on 
the basis of the financial statements
Faithful Representation 
• General purpose financial reports represent 
economic phenomena in words and numbers, To 
be useful, financial information must not only be 
relevant, it must also represent faithfully the 
phenomena it purports to represent. 
• This fundamental characteristic seeks to 
maximise the underlying characteristics of 
completeness, neutrality and freedom from error. 
• Information must be both relevant and faithfully 
represented if it is to be useful
Comparability 
• Information about a reporting entity is more 
useful if it can be compared with a similar 
information about other entities and with 
similar information about the same entity for 
another period or another date. 
• Comparability enables users to identify and 
understand similarities in, and differences 
among, items
Verifiability 
• Verifiability helps to assure users that 
information represents faithfully the economic 
phenomena it purports to represent. 
• Verifiability means that different 
knowledgeable and independent observers 
could reach consensus, although not 
necessarily complete agreement, that a 
particular depiction is a faithful representation
Timeliness 
• Timeliness means that information is available 
to decision-makers in time to be capable of 
influencing their decisions
Understandability 
• Classifying, characterising and presenting information 
clearly and concisely makes it understandable. 
• While some phenomena are inherently complex and 
cannot be made easy to understand, to exclude such 
information would make financial reports incomplete 
and potentially misleading. 
• Financial reports are prepared for users who have a 
reasonable knowledge of business and economic 
activities and who review and analyse the information 
with diligence
Information Irrelevance And Faithful 
Representation 
• Enhancing qualitative characteristics (either 
individually or collectively) render information 
useful if that information is irrelevant or not 
represented faithfully
Cost Constraint On Useful Financial 
Reporting 
• Cost is a pervasive constraint on the reporting entity’s 
ability to provide useful information in general purpose 
financial reporting. 
• Reporting such information imposes costs and those costs 
should be justified by the benefits of reporting that 
information. 
• The IASB assesses costs and benefits in relation to financial 
reporting generally, and not solely in relation to individual 
reporting entities. 
• The IASB will consider whether different sizes of entities 
and other factors justify different reporting requirements in 
certain situations.
Constraints on Relevant and Reliable 
Information 
• Timeliness 
– If there is undue delay in the reporting of information it 
may lose its relevance. Management may need to balance 
the relative merits of timely reporting and the provision of 
reliable information 
• Balance between benefit and cost 
– The benefits derived from information should exceed the 
cost of providing it 
• Balance between qualitative characteristics 
– In practice a balancing, or trade-off, between qualitative 
characteristics is often necessary. Generally the aim is to 
achieve an appropriate balance among the characteristics 
in order to meet the objective of financial statements
The Reporting Entity- This is currently 
a discussion paper. 
• The conceptual framework describes rather than 
precisely define a reporting entity as a 
circumscribed area of business activity of interest 
to present and potential equity investors, lenders 
and other capital providers. 
– Examples of reporting entities are: 
• Sole trader 
• Corporation 
• Trust 
• Partnership 
• Associations, and 
• Group
The Parent Entity Financial Reporting 
• Two issues considered here are: 
– The parent company approach to consolidated financial 
statements. 
– Whether parent only financial statements and consolidated 
financial statements meet the objective of financial reporting 
and whether both are needed. 
• IASB preliminary conclusion is: 
– That consolidated financial statements should be presented 
from the perspective of group reporting entity not, the parent 
company shareholders 
– That the consolidated financial statements meet the objective 
of financial reporting, but that parent only financial statements 
maybe presented provided they are included in the same 
financial report as consolidated financial statements.
Underlying Assumptions 
• Accrual basis 
– In order to meet their objectives, financial statements are 
prepared on the accrual basis of accounting 
• Going concern 
– The financial statements are normally prepared on the 
assumption that an entity is a going concern and will continue in 
operation for the foreseeable future
Elements of Financial Statements 
• Financial statements portray the financial effects of transactions 
and other events by grouping them into broad classes according to 
their economic characteristics 
• These broad classes are termed the elements of financial 
statements 
• Elements directly related to the measurement of financial position 
in the balance sheet are assets, liabilities and equity 
• The elements directly related to the measurement of performance 
in the income statement are income and expenses 
• The statement of changes in financial position usually reflects 
income statement elements and changes in balance sheet elements
Financial Position 
• An asset 
– A resource controlled by the entity 
– As a result of past events and 
– From which future economic benefits are expected to flow to 
the entity 
• A liability 
– A present obligation of the entity 
– Arising from past events 
– The settlement of which is expected to result in an outflow from 
the entity of resources embodying economic benefits. 
• Equity 
– Is the residual interest in the assets of the entity after deducting 
all its liabilities
Performance 
• Profit is frequently used as a measure of 
performance or as the basis for other measures, 
such as return on investment or earnings per 
share. 
• The elements directly related to the 
measurement of profit are income and expenses. 
The recognition and measurement of income and 
expenses, and hence profit, depends in part on: 
– The concepts of capital 
– Capital maintenance used by the entity
Income and Expenses 
Income 
• Increases in economic benefits during the accounting 
period in the form of inflows or enhancements of assets or 
decreases of liabilities that result in increases in equity, 
other than those relating to contributions from equity 
participants 
Expenses 
• Decreases in economic benefits during the accounting 
period in the form of outflows or depletions of assets or 
incurrences of liabilities that result in decreases in equity, 
other than those relating to distributions to equity 
participants.
Capital Maintenance Adjustments 
• The revaluation or restatement of assets and 
liabilities gives rise to increases or decreases in 
equity 
• While these increases or decreases meet the 
definition of income and expenses, they are not 
included in the income statement under certain 
concepts of capital maintenance 
• Instead these items are included in equity as 
capital maintenance adjustments or revaluation 
reserves.
Recognition Of The Elements Of 
Financial Statements 
• Recognition is the process of incorporating in the 
financial statements 
– An item that meets the definition of an element; and 
– Satisfies the criteria for recognition 
• An item that meets the definition of an element 
should be recognised if: 
– It is probable that any future economic benefit 
associated with the item will flow to or from the 
entity 
– The item has a cost or value that can be measured 
with reliability.
Measurement of the Elements of 
Financial Statements 
• Measurement is the process of determining the 
monetary amounts at which the elements of the 
financial statements are to be recognised and 
carried in the balance sheet and income 
statement 
• Bases of measurement include: 
– Historical cost 
– Current cost 
– Realisable (settlement) value 
– Present value
NIGERIAN ROADMAP TO IFRS ADOPTION 
Adoption of IFRS in Nigeria: 
a trip down memory lane 
• What is SAS? 
Just like the IASB’s pronouncements (developing & publishing) of IFRS the NASB (now FRC) issues 
prescribeds and pronounce accounting rules to be used by entities in preparing general purpose 
financial statements, to ensure transparency and compatibility. 
• 32 SASs developed and published so far 
• 7 Industry Specific Standards 
• 1 SORP- Statement of Recommended Practice on Employees’ 
Retirement and Termination Benefits for Public Sector Entities 
• In the earlier years, NASB’s SAS had many similarities 
with IASB’s standards. (but the SASs never matched the 
pace of the IASs in terms of review and updates) 
35
Adoption of IFRS in Nigeria: 
a trip down memory lane 
• Adaptation was reiterated in Nigeria between 
2002 – mid 2008. 
• Closer harmonisation of SAS with IFRS took place 
in 2007 with the release of SASs 25, 27, 28, 29, 30. 
• Strong signals from CBN, SEC, NSE and other 
regulators suggesting adoption of IFRS.
SAS vs. IFRS 
SAS IFRS 
Principles based Principles based 
Primary statements Accounting Policies Accounting Policies 
Balance sheet Statement of Financial Position 
Profit and loss account Statement of Comprehensive 
Income 
Statement of Cash Flows Statement of Cash Flows 
N/A 
Statement of Changes in Equity 
Notes Notes 
Value Added Statement N/A 
Five Year Financial Summary N/A 
Measurement Basis -Historical Cost 
-Net Realisable Value 
-Revalued Amounts 
-Fair Value 
-Historical Cost 
-Net Realisable Value 
-Revalued Amounts 
-Net Present Value 
-Fair Value
Adoption of IFRS in Nigeria 
• A Road map committee was inaugurated on 
October 22, 2009. 
• The Road Map committee’s report was 
submitted January 26, 2010. 
• The Federal Government took a decision on 
July 28, 2010 to adopt IFRS effective January 1, 
2012 . 
38
IFRS 
Competence 
2010 
Transition Date: 
Other public 
interest entities 
(PIE’s) 
2011 
2012 
Reporting Date: 
Other PIE’s 
2013 
Alignment with other initiatives and training for appropriate personnel 
Realisation and standardisation of statutory reporting 
• Awareness 
• Assessment 
• Legislative changes 
• Training 
• Planning/ Impact analysis 
• Transition adjustments/ 
Opening BS (listed & 
SPE’s) 
• Transition 
adjustments 
• Prepare IFRS 
Opening Statement 
of Financial 
Position (SFP) 
• “Dry Runs” for 
Listed & SPE’s 
• Prepare 
comparative 
figures 
• IFRS/ Quarterly 
reporting by listed & 
SPE’s 
• Audit procedures 
• Investor 
communications 
• PIE’s prepare 
opening SFP & 
comparative figs 
• Dry Runs” for PIE’s 
• SME’s commence 
transition planning 
• IFRS/Quarterly 
reporting by PIE’s 
• Audit procedures 
• PIE Investor 
communications 
• Compliance 
monitoring for 
Listed & SPE’s 
• SME’s prepare 
opening SFP & 
comparative figs 
• PIE/SME Investor 
communications 
• “Dry Runs” for 
SME’s 
Roadmap to IFRS conversion 
Transition Date: 
Listed & 
Significant Public 
Entities (SPE’s) 
Reporting Date: 
(Listed & significant 
public entities) 
Transition Date: 
Reporting Date: 
SME’s 
SME’s 2014 
• IFRS reporting by 
Other SME’s 
• Audit procedures 
• Investor 
communications 
• Compliance 
monitoring 
39
Significant public interest entities 
• This means 
• government business entities, 
• all entities that have their equities or debt instruments 
listed and traded in a public market i.e. 
• a domestic or foreign Stock Exchange or 
• an Over the Counter market, including local and regional markets 
• such other organisations, though unquoted, are required 
by law to file returns with 
• regulatory authorities and this excludes private companies that 
routinely file returns only with Corporate Affairs Commission and 
the Federal Inland Revenue Service. Examples of entities meeting 
these criteria include financial and other credit institutions and 
insurance companies. 
40
Other Public Interest Entities 
• This refers to those entities, other than listed 
entities (unquoted, private companies) 
– which are of significant public interest because 
• of their nature of business, 
• size 
• number of employees 
• their corporate status which require wide range of 
stakeholders. 
– Examples of entities meeting these criteria are 
• large not for profit entities such as charities and pension 
funds and may include publicly owned entities 
• other entities where there is a potentially significant effect 
on financial stability. 
41
Adoption of IFRS in Nigeria: 
Challenges 
Length of time 
Level of preparedness of 
all the stakeholders: 
Regulators 
Challenges 
IFRS Skills Cost (IT, training etc.) 
42
BRIEFS ON FIRST TIME ADOPTION 
Summary of First-Time Adoption Dates – Nigeria 
NB: You must identify where you belong in the Nigeria Roadmap 
date of transition Comparative First IFRS reporting date 
information 
1 Jan 2011 31 Dec 2011 31 Dec 2012 
(Dec 31, 2010) 
transition period/ First IFRS reporting period 
dual reporting period 
Opening IFRS Last financial statements First IFRS 
Financial 
balance sheet in accordance with previous Statements 
GAAP other than IFRS 
43
Some relevant definitions 
Date of transition to IFRS 
The beginning of the earliest period for which an entity 
presents full comparative information under IFRS in its first 
IFRS financial statements 
Opening IFRS statement of financial position 
 An entity’s statement of financial position at the date of transition to 
IFRS 
First IFRS Reporting Period 
The latest period covered by an entity’s first IFRS financial 
statements 
Deemed Cost 
An amount used as a surrogate for cost or depreciated cost 
at a given date
Scope of IFRS 1 - Application 
Apply IFRS 1 in: 
 An entity's first IFRS financial statements 
• The first annual financial statement in which an entity 
adopts IFRS by an explicit and unreserved statement of 
compliance with IFRS 
Each interim financial report that it presents (under 
IAS 34) for part of the period covered in its first IFRS 
financial statements 
45
IFRS 1 - First-time Adoption 
 IFRS 1 requires an entity to use the same accounting policies in its Opening 
IFRS Statement of Financial Position and throughout all periods presented 
in its first IFRS FS 
 Apply IFRSs that are effective at the end of its first IFRS reporting period i.e. 
December 2012 in preparing and presenting 
 Statement of financial position for December 31, 2012 
 Statement of comprehensive income for December, 2012 
 Statement of Changes in Equity – December 31, 2012 
 Statement of Cash flows – December 31, 2012 
 All Comparatives for December 31, 2011 
 (Entity may apply new IFRSs that have been issued but not mandatory at the 
end of its reporting period as long as early application of such in permitted) 
46
First time application of IFRS-The 
first set of IFRS financial statements must have :- 
• Primary statements: 
•Three Statements of financial position (“Balance sheets”) 
•Two Statements of comprehensive income (“Income statement”) 
•Two Statements of changes in equity 
•Two Statements of cash flows 
• Notes: 
•Three periods presented for the balance sheet notes which are impacted at 
opening balance sheet date. 
•Reconciliation: Equity from SAS to IFRS at Opening balance sheet and 
comparative period 
•Reconciliation: Total comprehensive income from SAS to IFRS for comparative 
period
IFRS 1 - First-time Adoption 
Ignore transitional rules in other IFRSs, when 
adopting IFRS for the first time (e.g. transitional 
provisions in IFRS 2 and 3) 
IFRS 1 contains all the first-time adoption rules. 
Each new IFRS may update IFRS 1 
Beware: Be sure to be working with the right 
version of IFRSs
HIGHLIGHTS OF STEPS INVOLVED IN CONVERSION 
Seven Key points to note in your conversion 
1. As it relates to Nigeria roadmap identify your 
relevant year 
2. Generally - comply retrospectively with IFRS in 
force at the reporting date 
Particularly: 
Recognise all assets and liabilities required by IFRS 
Derecognise assets and liabilities not permitted by IFRS 
Reclassify all assets, liabilities or component of equity in 
accordance with IFRS 
Measure all recognised items according to IFRS 
3. There are optional exemptions and mandatory 
exceptions to retrospective application
4. Apply all mandatory exceptions in IFRS 1 
5. Consider optional exemptions 
6. Reconcile 
7. Disclose 
50
OVERALL IMPLICATIONS 
Implication on Financial reporting 
• New Assets coming onto the balance sheet 
• Potential for greater volatility from increased use of 
fair value 
• Increased use of management judgment 
• Transition elections and exemptions - potential 
impact on retained earnings 
• Significant increase in disclosures 
• Improved annual reports and accounts in terms of 
quality and quantity 
51
Implication on financial reporting (contd.) 
• Transparent and comparable data 
• Implications for debt covenants and other 
legal requirements 
• Additional valuation costs 
• The entity’s business process (all aspect of the 
organisation). Complete change of system, 
process and people. 
52
PITFALLS TO AVOID 
Don’t think it’s not an enterprise-wide issue. 
53 
• Poor stakeholder management 
• Last minute implementation from poor planning 
• Late engagement of business units 
– where data is captured; or 
– where customers are impacted 
• Not embedding accounting solutions into underlying systems 
• Internal reporting backing into legacy GAAP 
• Slow to move on developing and retaining resources 
• Push down of centralized accounting decisions without appropriate 
consultation 
• Underestimation of data required and support processes to get them
Thank you. 
54

Más contenido relacionado

La actualidad más candente

Ifrs & convergence of ind gaap with ifrs
Ifrs & convergence of ind gaap with ifrsIfrs & convergence of ind gaap with ifrs
Ifrs & convergence of ind gaap with ifrsCHIRANJIBI BISOI
 
Us Gaap Vs Indian Gaap
Us  Gaap Vs Indian GaapUs  Gaap Vs Indian Gaap
Us Gaap Vs Indian GaapAmit Gilra
 
Intro International Financial Reporting Standards (IFRS)
Intro International Financial Reporting Standards (IFRS)Intro International Financial Reporting Standards (IFRS)
Intro International Financial Reporting Standards (IFRS)Usman Farooq
 
Ifrs 3 business combinations
Ifrs 3 business combinationsIfrs 3 business combinations
Ifrs 3 business combinationsSohan Al Akbar
 
IFRS 1 - First Time Adoption of IFRS
IFRS 1 - First Time Adoption of IFRSIFRS 1 - First Time Adoption of IFRS
IFRS 1 - First Time Adoption of IFRSPIRON
 
Interim financial Reporting Ind As - 34
Interim financial Reporting Ind As - 34Interim financial Reporting Ind As - 34
Interim financial Reporting Ind As - 34sathishpalankar
 
Financial Accounting Standards Board vs International Accounting Standards Board
Financial Accounting Standards Board vs International Accounting Standards BoardFinancial Accounting Standards Board vs International Accounting Standards Board
Financial Accounting Standards Board vs International Accounting Standards Boardrashidulkarimrisan
 
International financial reporting standards (ifrs)ppt
International financial reporting standards (ifrs)pptInternational financial reporting standards (ifrs)ppt
International financial reporting standards (ifrs)pptIDBI Capital
 
Chapter 3
Chapter 3Chapter 3
Chapter 3iamzdo
 
Ifrs - IAS 1, IAS 2
Ifrs - IAS 1, IAS 2Ifrs - IAS 1, IAS 2
Ifrs - IAS 1, IAS 2sonicshare
 
IFRS 16 Leases Presentation
IFRS 16 Leases PresentationIFRS 16 Leases Presentation
IFRS 16 Leases PresentationTin Man Digital
 
IFRS 1
IFRS 1IFRS 1
IFRS 1KNAV
 

La actualidad más candente (20)

Ifrs & convergence of ind gaap with ifrs
Ifrs & convergence of ind gaap with ifrsIfrs & convergence of ind gaap with ifrs
Ifrs & convergence of ind gaap with ifrs
 
IFRS vs GAAP
IFRS vs GAAPIFRS vs GAAP
IFRS vs GAAP
 
New ifrs 9
New ifrs 9New ifrs 9
New ifrs 9
 
Us Gaap Vs Indian Gaap
Us  Gaap Vs Indian GaapUs  Gaap Vs Indian Gaap
Us Gaap Vs Indian Gaap
 
Intro International Financial Reporting Standards (IFRS)
Intro International Financial Reporting Standards (IFRS)Intro International Financial Reporting Standards (IFRS)
Intro International Financial Reporting Standards (IFRS)
 
Ifrs 3 business combinations
Ifrs 3 business combinationsIfrs 3 business combinations
Ifrs 3 business combinations
 
IFRS 1 - First Time Adoption of IFRS
IFRS 1 - First Time Adoption of IFRSIFRS 1 - First Time Adoption of IFRS
IFRS 1 - First Time Adoption of IFRS
 
Interim financial Reporting Ind As - 34
Interim financial Reporting Ind As - 34Interim financial Reporting Ind As - 34
Interim financial Reporting Ind As - 34
 
IND-AS
IND-ASIND-AS
IND-AS
 
Financial Accounting Standards Board vs International Accounting Standards Board
Financial Accounting Standards Board vs International Accounting Standards BoardFinancial Accounting Standards Board vs International Accounting Standards Board
Financial Accounting Standards Board vs International Accounting Standards Board
 
International financial reporting standards (ifrs)ppt
International financial reporting standards (ifrs)pptInternational financial reporting standards (ifrs)ppt
International financial reporting standards (ifrs)ppt
 
Chapter 3
Chapter 3Chapter 3
Chapter 3
 
IFRS
IFRSIFRS
IFRS
 
Ifrs
IfrsIfrs
Ifrs
 
International accounting standards ias intro
International accounting standards   ias introInternational accounting standards   ias intro
International accounting standards ias intro
 
Ias 1
Ias 1Ias 1
Ias 1
 
Ifrs - IAS 1, IAS 2
Ifrs - IAS 1, IAS 2Ifrs - IAS 1, IAS 2
Ifrs - IAS 1, IAS 2
 
IFRS 16 Leases Presentation
IFRS 16 Leases PresentationIFRS 16 Leases Presentation
IFRS 16 Leases Presentation
 
IFRS 1
IFRS 1IFRS 1
IFRS 1
 
Ias 1 presentation of financial statements
Ias 1 presentation of financial statementsIas 1 presentation of financial statements
Ias 1 presentation of financial statements
 

Destacado

The relevance of international financial reporting standards in the preparati...
The relevance of international financial reporting standards in the preparati...The relevance of international financial reporting standards in the preparati...
The relevance of international financial reporting standards in the preparati...Alexander Decker
 
The road to IFRS - a revised guide to IFRS 1 and first-time adoption
The road to IFRS - a revised guide to IFRS 1 and first-time adoptionThe road to IFRS - a revised guide to IFRS 1 and first-time adoption
The road to IFRS - a revised guide to IFRS 1 and first-time adoptionGrant Thornton
 
Adoption of international financial reporting standards (ifrs) insights from ...
Adoption of international financial reporting standards (ifrs) insights from ...Adoption of international financial reporting standards (ifrs) insights from ...
Adoption of international financial reporting standards (ifrs) insights from ...Alexander Decker
 
Un marco comun de normas de contabilidad y contabilizacion de los intengible...
Un marco  comun de normas de contabilidad y contabilizacion de los intengible...Un marco  comun de normas de contabilidad y contabilizacion de los intengible...
Un marco comun de normas de contabilidad y contabilizacion de los intengible...karenmgastelbondo
 
IFRS Transition
IFRS TransitionIFRS Transition
IFRS Transitionmecklaifin
 
IFRS Conversion in a global environment
IFRS Conversion in a global environmentIFRS Conversion in a global environment
IFRS Conversion in a global environmentajrothe
 
Ifrs Ice Breaking Slide Deck
Ifrs Ice Breaking Slide DeckIfrs Ice Breaking Slide Deck
Ifrs Ice Breaking Slide Deckeyindia
 
Bp presentation ifrs large and small icpas chicago south presentation marc…
Bp presentation ifrs large and small icpas chicago south presentation marc…Bp presentation ifrs large and small icpas chicago south presentation marc…
Bp presentation ifrs large and small icpas chicago south presentation marc…Barrett Peterson
 
Accounting standards (India) and convergence to IFRS. By: Pankaj Vasani
Accounting standards (India) and convergence to IFRS. By: Pankaj VasaniAccounting standards (India) and convergence to IFRS. By: Pankaj Vasani
Accounting standards (India) and convergence to IFRS. By: Pankaj VasaniIMTNagpur
 
IFRS Conceptual Framework - Free IFRS Course - Module 1
IFRS Conceptual Framework - Free IFRS Course - Module 1IFRS Conceptual Framework - Free IFRS Course - Module 1
IFRS Conceptual Framework - Free IFRS Course - Module 1IFRS Mentor
 
Top 4 Challenges in Financial Reporting and How to Overcome Them
Top 4 Challenges in Financial Reporting and How to Overcome ThemTop 4 Challenges in Financial Reporting and How to Overcome Them
Top 4 Challenges in Financial Reporting and How to Overcome ThemDisclosureNet
 
The conceptual framework for financial reporting
The conceptual framework for financial reportingThe conceptual framework for financial reporting
The conceptual framework for financial reportingShaameswary Annadorai
 
BP presentation, FASB and IASB convergence, and IFRS for SMEs, finance leader...
BP presentation, FASB and IASB convergence, and IFRS for SMEs, finance leader...BP presentation, FASB and IASB convergence, and IFRS for SMEs, finance leader...
BP presentation, FASB and IASB convergence, and IFRS for SMEs, finance leader...Barrett Peterson
 
FASB/IASB Joint Projects - presented by McGladrey at 2011 NYSSCPA Private Com...
FASB/IASB Joint Projects - presented by McGladrey at 2011 NYSSCPA Private Com...FASB/IASB Joint Projects - presented by McGladrey at 2011 NYSSCPA Private Com...
FASB/IASB Joint Projects - presented by McGladrey at 2011 NYSSCPA Private Com...Brian Marshall
 
IFRS - Conceptual framework
IFRS - Conceptual frameworkIFRS - Conceptual framework
IFRS - Conceptual frameworkSajjad Ahmed
 
2 the-conceptual-framework
2 the-conceptual-framework2 the-conceptual-framework
2 the-conceptual-frameworkMelani Edc
 

Destacado (20)

The relevance of international financial reporting standards in the preparati...
The relevance of international financial reporting standards in the preparati...The relevance of international financial reporting standards in the preparati...
The relevance of international financial reporting standards in the preparati...
 
A guide to the ifrs for sm es
A guide to the ifrs for sm esA guide to the ifrs for sm es
A guide to the ifrs for sm es
 
The road to IFRS - a revised guide to IFRS 1 and first-time adoption
The road to IFRS - a revised guide to IFRS 1 and first-time adoptionThe road to IFRS - a revised guide to IFRS 1 and first-time adoption
The road to IFRS - a revised guide to IFRS 1 and first-time adoption
 
Adoption of international financial reporting standards (ifrs) insights from ...
Adoption of international financial reporting standards (ifrs) insights from ...Adoption of international financial reporting standards (ifrs) insights from ...
Adoption of international financial reporting standards (ifrs) insights from ...
 
Un marco comun de normas de contabilidad y contabilizacion de los intengible...
Un marco  comun de normas de contabilidad y contabilizacion de los intengible...Un marco  comun de normas de contabilidad y contabilizacion de los intengible...
Un marco comun de normas de contabilidad y contabilizacion de los intengible...
 
IFRS Transition
IFRS TransitionIFRS Transition
IFRS Transition
 
IFRS Conversion in a global environment
IFRS Conversion in a global environmentIFRS Conversion in a global environment
IFRS Conversion in a global environment
 
Introduction to ifrs and convergence
Introduction to ifrs and convergenceIntroduction to ifrs and convergence
Introduction to ifrs and convergence
 
Ifrs Ice Breaking Slide Deck
Ifrs Ice Breaking Slide DeckIfrs Ice Breaking Slide Deck
Ifrs Ice Breaking Slide Deck
 
Diapositivas
DiapositivasDiapositivas
Diapositivas
 
Bp presentation ifrs large and small icpas chicago south presentation marc…
Bp presentation ifrs large and small icpas chicago south presentation marc…Bp presentation ifrs large and small icpas chicago south presentation marc…
Bp presentation ifrs large and small icpas chicago south presentation marc…
 
Contaduria publica
Contaduria publicaContaduria publica
Contaduria publica
 
Accounting standards (India) and convergence to IFRS. By: Pankaj Vasani
Accounting standards (India) and convergence to IFRS. By: Pankaj VasaniAccounting standards (India) and convergence to IFRS. By: Pankaj Vasani
Accounting standards (India) and convergence to IFRS. By: Pankaj Vasani
 
IFRS Conceptual Framework - Free IFRS Course - Module 1
IFRS Conceptual Framework - Free IFRS Course - Module 1IFRS Conceptual Framework - Free IFRS Course - Module 1
IFRS Conceptual Framework - Free IFRS Course - Module 1
 
Top 4 Challenges in Financial Reporting and How to Overcome Them
Top 4 Challenges in Financial Reporting and How to Overcome ThemTop 4 Challenges in Financial Reporting and How to Overcome Them
Top 4 Challenges in Financial Reporting and How to Overcome Them
 
The conceptual framework for financial reporting
The conceptual framework for financial reportingThe conceptual framework for financial reporting
The conceptual framework for financial reporting
 
BP presentation, FASB and IASB convergence, and IFRS for SMEs, finance leader...
BP presentation, FASB and IASB convergence, and IFRS for SMEs, finance leader...BP presentation, FASB and IASB convergence, and IFRS for SMEs, finance leader...
BP presentation, FASB and IASB convergence, and IFRS for SMEs, finance leader...
 
FASB/IASB Joint Projects - presented by McGladrey at 2011 NYSSCPA Private Com...
FASB/IASB Joint Projects - presented by McGladrey at 2011 NYSSCPA Private Com...FASB/IASB Joint Projects - presented by McGladrey at 2011 NYSSCPA Private Com...
FASB/IASB Joint Projects - presented by McGladrey at 2011 NYSSCPA Private Com...
 
IFRS - Conceptual framework
IFRS - Conceptual frameworkIFRS - Conceptual framework
IFRS - Conceptual framework
 
2 the-conceptual-framework
2 the-conceptual-framework2 the-conceptual-framework
2 the-conceptual-framework
 

Similar a Roadmap to ifrs

conceptual-framework-project-summary.pdf
conceptual-framework-project-summary.pdfconceptual-framework-project-summary.pdf
conceptual-framework-project-summary.pdfRuhulQuddus23
 
IFRS® Conceptual FrameworkProject SummaryMarch 2018C.docx
IFRS® Conceptual FrameworkProject SummaryMarch 2018C.docxIFRS® Conceptual FrameworkProject SummaryMarch 2018C.docx
IFRS® Conceptual FrameworkProject SummaryMarch 2018C.docxsheronlewthwaite
 
AABE-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe.ppt
AABE-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe.pptAABE-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe.ppt
AABE-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe.pptGereTassewN
 
ETHopia-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe - Copy.ppt
ETHopia-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe - Copy.pptETHopia-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe - Copy.ppt
ETHopia-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe - Copy.pptTemtimeDebere
 
ifrs-adoption-road-map-presentation-to-development-bank gashe
ifrs-adoption-road-map-presentation-to-development-bank gasheifrs-adoption-road-map-presentation-to-development-bank gashe
ifrs-adoption-road-map-presentation-to-development-bank gasheMohammedseid Ahmedin
 
chapter- 1 inroduction to advanced financial accounting.pptx
chapter- 1 inroduction to advanced financial accounting.pptxchapter- 1 inroduction to advanced financial accounting.pptx
chapter- 1 inroduction to advanced financial accounting.pptxMohamedAbdi347025
 
Presentation-IFRS.pptx
Presentation-IFRS.pptxPresentation-IFRS.pptx
Presentation-IFRS.pptxGereTassewN
 
Financial Reporting Council Accounting
Financial Reporting Council Accounting Financial Reporting Council Accounting
Financial Reporting Council Accounting ssuserce9546
 
Difference Between IASB And FASB conceptual framework
Difference Between IASB And FASB conceptual framework Difference Between IASB And FASB conceptual framework
Difference Between IASB And FASB conceptual framework Ro'ya Abd Elhafez
 
Day 1 s1 underlying ifrs concepts introduction and conceptual framework ia8 1...
Day 1 s1 underlying ifrs concepts introduction and conceptual framework ia8 1...Day 1 s1 underlying ifrs concepts introduction and conceptual framework ia8 1...
Day 1 s1 underlying ifrs concepts introduction and conceptual framework ia8 1...ESHETIE MEKONENE AMARE
 
IFA Lecture 01 Conceptual & Regulatory Framework.pptx
IFA Lecture 01 Conceptual & Regulatory Framework.pptxIFA Lecture 01 Conceptual & Regulatory Framework.pptx
IFA Lecture 01 Conceptual & Regulatory Framework.pptxMuhammadWaliUllah10
 
FASB Concept stmt 5
FASB Concept stmt 5FASB Concept stmt 5
FASB Concept stmt 5seanjagg
 
The Accounting Principles and Concepts.pptx
The Accounting Principles and Concepts.pptxThe Accounting Principles and Concepts.pptx
The Accounting Principles and Concepts.pptxUniversity of Mindanao
 

Similar a Roadmap to ifrs (20)

conceptual-framework-project-summary.pdf
conceptual-framework-project-summary.pdfconceptual-framework-project-summary.pdf
conceptual-framework-project-summary.pdf
 
CFFR Summary.pdf
CFFR Summary.pdfCFFR Summary.pdf
CFFR Summary.pdf
 
IFRS® Conceptual FrameworkProject SummaryMarch 2018C.docx
IFRS® Conceptual FrameworkProject SummaryMarch 2018C.docxIFRS® Conceptual FrameworkProject SummaryMarch 2018C.docx
IFRS® Conceptual FrameworkProject SummaryMarch 2018C.docx
 
AABE-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe.ppt
AABE-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe.pptAABE-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe.ppt
AABE-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe.ppt
 
ETHopia-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe - Copy.ppt
ETHopia-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe - Copy.pptETHopia-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe - Copy.ppt
ETHopia-IFRS-Adoption-Road-Map-Presentation-to-Development-Bank_Gashe - Copy.ppt
 
ifrs-adoption-road-map-presentation-to-development-bank gashe
ifrs-adoption-road-map-presentation-to-development-bank gasheifrs-adoption-road-map-presentation-to-development-bank gashe
ifrs-adoption-road-map-presentation-to-development-bank gashe
 
chapter- 1 inroduction to advanced financial accounting.pptx
chapter- 1 inroduction to advanced financial accounting.pptxchapter- 1 inroduction to advanced financial accounting.pptx
chapter- 1 inroduction to advanced financial accounting.pptx
 
Presentation-IFRS.pptx
Presentation-IFRS.pptxPresentation-IFRS.pptx
Presentation-IFRS.pptx
 
Lectures.pptx
Lectures.pptxLectures.pptx
Lectures.pptx
 
2014 Audit & Accounting Update
2014 Audit & Accounting Update2014 Audit & Accounting Update
2014 Audit & Accounting Update
 
Financial Reporting Council Accounting
Financial Reporting Council Accounting Financial Reporting Council Accounting
Financial Reporting Council Accounting
 
Cf feedback stmt
Cf feedback stmtCf feedback stmt
Cf feedback stmt
 
Difference Between IASB And FASB conceptual framework
Difference Between IASB And FASB conceptual framework Difference Between IASB And FASB conceptual framework
Difference Between IASB And FASB conceptual framework
 
Day 1 s1 underlying ifrs concepts introduction and conceptual framework ia8 1...
Day 1 s1 underlying ifrs concepts introduction and conceptual framework ia8 1...Day 1 s1 underlying ifrs concepts introduction and conceptual framework ia8 1...
Day 1 s1 underlying ifrs concepts introduction and conceptual framework ia8 1...
 
IFA Lecture 01 Conceptual & Regulatory Framework.pptx
IFA Lecture 01 Conceptual & Regulatory Framework.pptxIFA Lecture 01 Conceptual & Regulatory Framework.pptx
IFA Lecture 01 Conceptual & Regulatory Framework.pptx
 
The search for objectives
The search for objectivesThe search for objectives
The search for objectives
 
Chapter one LIC.ppt
Chapter one LIC.pptChapter one LIC.ppt
Chapter one LIC.ppt
 
FASB Concept stmt 5
FASB Concept stmt 5FASB Concept stmt 5
FASB Concept stmt 5
 
The Accounting Principles and Concepts.pptx
The Accounting Principles and Concepts.pptxThe Accounting Principles and Concepts.pptx
The Accounting Principles and Concepts.pptx
 
Unit 1.pptx
Unit 1.pptxUnit 1.pptx
Unit 1.pptx
 

Más de Peculiar Labstery

Statement of cash flow ias 7
Statement of cash flow  ias 7Statement of cash flow  ias 7
Statement of cash flow ias 7Peculiar Labstery
 
Treatment of non financial assets ias 16 17 & 40
Treatment of non financial assets ias 16 17 & 40Treatment of non financial assets ias 16 17 & 40
Treatment of non financial assets ias 16 17 & 40Peculiar Labstery
 
Ias provision for contingent liabilities etc 37 & 26
Ias provision for contingent liabilities etc 37 & 26Ias provision for contingent liabilities etc 37 & 26
Ias provision for contingent liabilities etc 37 & 26Peculiar Labstery
 
Presentation of financial stmt ias 1, 10, 24,
Presentation of financial stmt ias 1, 10, 24,Presentation of financial stmt ias 1, 10, 24,
Presentation of financial stmt ias 1, 10, 24,Peculiar Labstery
 
Exercises ias 40 investment property
Exercises ias 40 investment propertyExercises ias 40 investment property
Exercises ias 40 investment propertyPeculiar Labstery
 
Corporate governance in nigeria
Corporate governance in nigeriaCorporate governance in nigeria
Corporate governance in nigeriaPeculiar Labstery
 
Ias 21 the effects of changes in foreign exchange rates
Ias 21 the effects of changes in foreign exchange ratesIas 21 the effects of changes in foreign exchange rates
Ias 21 the effects of changes in foreign exchange ratesPeculiar Labstery
 
Fs disclosures interim & segment reporting
Fs disclosures   interim & segment reportingFs disclosures   interim & segment reporting
Fs disclosures interim & segment reportingPeculiar Labstery
 
Ethical bahaviour and corporate ethics
Ethical bahaviour and corporate ethicsEthical bahaviour and corporate ethics
Ethical bahaviour and corporate ethicsPeculiar Labstery
 
Fs discl interim & segment reporting case study
Fs discl interim & segment reporting case studyFs discl interim & segment reporting case study
Fs discl interim & segment reporting case studyPeculiar Labstery
 
Case studies for ias 1and 8 and 7.
Case studies for ias 1and 8 and 7.Case studies for ias 1and 8 and 7.
Case studies for ias 1and 8 and 7.Peculiar Labstery
 

Más de Peculiar Labstery (17)

Statement of cash flow ias 7
Statement of cash flow  ias 7Statement of cash flow  ias 7
Statement of cash flow ias 7
 
Treatment of non financial assets ias 16 17 & 40
Treatment of non financial assets ias 16 17 & 40Treatment of non financial assets ias 16 17 & 40
Treatment of non financial assets ias 16 17 & 40
 
Ias provision for contingent liabilities etc 37 & 26
Ias provision for contingent liabilities etc 37 & 26Ias provision for contingent liabilities etc 37 & 26
Ias provision for contingent liabilities etc 37 & 26
 
Presentation of financial stmt ias 1, 10, 24,
Presentation of financial stmt ias 1, 10, 24,Presentation of financial stmt ias 1, 10, 24,
Presentation of financial stmt ias 1, 10, 24,
 
Ifrs segment reporting 1
Ifrs segment reporting 1Ifrs segment reporting 1
Ifrs segment reporting 1
 
Ifrs 11 joint arrangements
Ifrs 11 joint arrangementsIfrs 11 joint arrangements
Ifrs 11 joint arrangements
 
Ifrs 6
Ifrs 6Ifrs 6
Ifrs 6
 
Ifrs 4
Ifrs 4Ifrs 4
Ifrs 4
 
Exercises ias 40 investment property
Exercises ias 40 investment propertyExercises ias 40 investment property
Exercises ias 40 investment property
 
Ias 31
Ias 31Ias 31
Ias 31
 
Corporate governance in nigeria
Corporate governance in nigeriaCorporate governance in nigeria
Corporate governance in nigeria
 
Ias 21 the effects of changes in foreign exchange rates
Ias 21 the effects of changes in foreign exchange ratesIas 21 the effects of changes in foreign exchange rates
Ias 21 the effects of changes in foreign exchange rates
 
Ias 11
Ias 11Ias 11
Ias 11
 
Fs disclosures interim & segment reporting
Fs disclosures   interim & segment reportingFs disclosures   interim & segment reporting
Fs disclosures interim & segment reporting
 
Ethical bahaviour and corporate ethics
Ethical bahaviour and corporate ethicsEthical bahaviour and corporate ethics
Ethical bahaviour and corporate ethics
 
Fs discl interim & segment reporting case study
Fs discl interim & segment reporting case studyFs discl interim & segment reporting case study
Fs discl interim & segment reporting case study
 
Case studies for ias 1and 8 and 7.
Case studies for ias 1and 8 and 7.Case studies for ias 1and 8 and 7.
Case studies for ias 1and 8 and 7.
 

Último

reStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdfreStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdfKen Fuller
 
127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP International127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP InternationalManu Mitra
 
10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdf10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdfEducationView
 
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptxSTORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptxsheenam bansal
 
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, ConventionsChapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, ConventionsMd Shaifullar Rabbi
 
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptxkids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptxJagrutiSononee
 
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...FaHaD .H. NooR
 
asdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsasdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsJulia Kaye
 
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...Md Shaifullar Rabbi
 
wealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptxwealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptxAnuragBhakuni4
 
Audhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdfAudhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdfaudhinafh1
 
Nashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashonHolloway
 
Blockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfBlockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfVISHNURAJSSNSCEAD
 
Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................calvinjamesmappala
 
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFJulia Kaye
 
How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?StrengthsTheatre
 
Moaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects PortfolioMoaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects Portfoliomoaaz el-shayeb
 

Último (17)

reStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdfreStartEvents March 28th TS/SCI & Above Employer Directory.pdf
reStartEvents March 28th TS/SCI & Above Employer Directory.pdf
 
127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP International127. Reviewer Certificate in BP International
127. Reviewer Certificate in BP International
 
10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdf10 Things That Will Shape the Future of Education.pdf
10 Things That Will Shape the Future of Education.pdf
 
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptxSTORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
STORY OF SUSAN & JUDY - CEREBRAL PALSY.pptx
 
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, ConventionsChapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
Chapter-1 IATA, UFTAA, ICAO, FAA, CAA, ATAB, Conventions
 
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptxkids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
kids gpaddfghtggvgghhhuuuuuhhhgggggy.pptx
 
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
FAHAD HASSAN NOOR || UCP Business School Data Analytics Head Recommended | MB...
 
asdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffsasdfasdiofujasloidfoia nslkflsdkaf jljffs
asdfasdiofujasloidfoia nslkflsdkaf jljffs
 
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
Chapter-4 Introduction to Global Distributions System and Computerized Reserv...
 
wealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptxwealth_spend_bharatpeVerse_Analysis .pptx
wealth_spend_bharatpeVerse_Analysis .pptx
 
Audhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdfAudhina Nur Afifah Resume & Portofolio_2024.pdf
Audhina Nur Afifah Resume & Portofolio_2024.pdf
 
Nashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - PrivNashon Holloway - Media/Press Kit - Priv
Nashon Holloway - Media/Press Kit - Priv
 
Blockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdfBlockchain_TezosDeveloperCommunitySNSCE.pdf
Blockchain_TezosDeveloperCommunitySNSCE.pdf
 
Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................Fireman Resume Strikuingly Text............................
Fireman Resume Strikuingly Text............................
 
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJFASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
ASDFSDFASDFASDFASDFOUIASHDFOIASUD FOIJSADO;IFJOISADJF
 
How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?How to Host a Successful Webinar for Success?
How to Host a Successful Webinar for Success?
 
Moaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects PortfolioMoaaz Hassan El-Shayeb - Projects Portfolio
Moaaz Hassan El-Shayeb - Projects Portfolio
 

Roadmap to ifrs

  • 1. : ROADMAP TO IFRS ADOPTION IN NIGERIA, CONVERSION FROM SAS TO IFRS AND THE CONCEPTUAL FRAMEWORK/FOUNDATION OF IFRSs STANDARDS Titus E. Osawe Assistant Director, Monitoring, Enforcement and Notifications Dept. Financial Reporting Council of Nigeria 1
  • 2. Content 1. Background Information on Global Convergence 2. Conceptual Framework for Financial Reporting 3. Nigerian Roadmap to IFRS 4. Briefs on First-Time Adoption 5. Highlights of Steps involved in Conversion 6. Over all Implications of IFRS Adoption 7. Pitfalls to avoid.
  • 3. BACKGROUND INFORMATION • What is IFRS? A series of single set of high quality , understandable and enforceable global accounting standards developed and published by the IASB to be used by entities in preparing general purpose financial statements and other financial reporting. International Standards • Standards + IAS 1-41 (29 still applicable) + IFRS 1 – 9 • Interpretations + SIC 1-32 (11 still applicable) + IFRIC 1-19 (three withdrawn) IAS & SIC IFRS & IFRIC IASC; 1973-2000 IASB; 2001 - DATE Generally IFRS = IASs + IFRSs with their interpretations
  • 4. A Changing Global Financial Reporting Environment •Globally there is a remarkable movement towards a single financial reporting language – International Financial Reporting Standards (IFRS) •Currently (by the end of 2011), about 150 jurisdictions permit or require the use of IFRS •In Africa – Ghana, South Africa, Egypt, Kenya, Morocco(Banks;p), Namibia, Togo (p), Niger (p), Nigeria (Re: 2012) •Regulatory trend • International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have reaffirmed convergence efforts • Greater cooperation amongst regulators on IFRS application issues 4
  • 5. Benefits and Drivers of IFRS IFRS: Uniform Global Accounting Language More room for management’s judgment and truer reflection of economic reality with principles-based Reduced cost of financial reporting for global companies GAAP Industry perception of market leadership Improved transparency and comparability for investors and rating agencies international investors and to enable easy monitoring of overseas Ability to understand interaction with strategic initiatives to generate value from synergies Streamlined M&A activity Increasing demand for public accountability and transparency by all stakeholders Need to attract investments. Facilitate comparison between public entities More efficient access to capital for global corporations Ability to analyse impact on tax-related issues 5
  • 6. THE IASB’S CONCEPTUAL FRAMEWORK • The conceptual framework aims at providing a sound foundation for future accounting standards that are principles –based, internally consistent and internationally converged. • The Framework sets out the concepts that underlie the preparation and presentation of financial statements for external users. Its purpose is to: – Assist IASB in developing accounting standards and assist preparers of financial statements in applying IFRSs and in dealing with topics that have yet to form the subject of an IFRS – Assist users of financial statements in interpreting the information contained in financial statements prepared in conformity with IFRSs – Provide those who are interested in the work of IASB with information about its approach to the formulation of IFRSs • The framework was first published in July 1989 and adopted in April 2001.
  • 7. • In July 2006 IASB produced a discussion paper-preliminary views on an improved conceptual framework for financial reporting. – The paper covers the first two chapters of a proposed conceptual framework: • Chapter 1: The objective of financial reporting • Chapter 2: Qualitative characteristics of decision-useful financial reporting information • In September 2010 the IASB approved the Conceptual Framework for Financial Reporting 2010 (the IFRS Framework), dealing with these first two chapters.
  • 8. Project set-up The Council are conducting the project in 8 phases. Phase A was completed in September 2010. Phases B, C, and B the project are currently active Phases Topics A. Objectives and qualitative characteristics – Project completed 28/09/2010 as announced by the joint working group of IASB and FASB; B. Definitions of elements, recognition and derecognition - Last worked by joint group in October in October 2008; C. Measurement – Still developing Preliminary views as at July 2010 D. Reporting entity concept – ED published 11/03/2010, exposed till 16/07/2010; E. Boundaries of financial reporting, and presentation and disclosure – last revisions was, February 2008; F. Purposes and Status of the framework – last revisions February, 2008; G. Application of the framework to not-for-profit - last revisions February, 2008; H. Remaining issues, if any - last revisions February, 2008;
  • 9. • In the absence of a Standard or an Interpretation that applies specifically to a transaction, management must use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable. – In doing this, IAS 8 (Accounting Polices, changes and Accounting Estimates and Errorsrequires management to consider the definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses as contained in the IFRS Framework.
  • 10. • The Framework consists of several sections or chapters, following on after a preface and introduction. These chapters are as follows: – The objective of financial statements – Underlying assumptions – The qualitative characteristics of financial statements – The elements of financial statements – Recognition of elements of financial statements – Measurements of the elements of the financial statements – Concepts of capital and capital maintenance
  • 11. Objectives of General Purpose Financial Reporting • To provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity, which includes decisions about the accountability of the entity’s management
  • 12. Users Of General Purpose Financial Reporting The Conceptual framework groups these into primary and other users • Primary users are present and potential investors, lenders and other creditors. • Other parties include prudential and market regulators.
  • 13. Users Information Needs • Primary users use the information to make decisions about buying, selling or holding equity or debt instruments and providing or settling loans or other forms of credit. • The primary users use the information to assess an entity’s prospects for future net cash inflows and to judge how effective and efficient management has discharged their responsibilities of using the entity’s existing resources. • Other parties, including prudential and market regulators, may find general purpose financial reports useful, but the reports are not primarily directed to regulators or other parties
  • 14. Economic Resources And Claims • A reporting entity’s economic resources and claims are reported in the statement of financial position • Information about the nature and amounts assists users to assess an entity’s – financial strengths and weaknesses; – liquidity and solvency, and – its need and ability to obtain financing. • Information about the claims and payment requirements assists users to predict how future cash flows will be distributed among those with a claim on the reporting entity.
  • 15. Qualitative Characteristics of Financial Statements Qualitative characteristics are the attributes that make the information provided in financial statements useful to users. They are majorly categorised as: • - Fundamental qualitative characteristics-relevance and faithful representation and • The enhancing qualitative characteristics that distinguish more useful information from less useful information -comparability, timeliness, verifiability and understandability.
  • 16. Relevance • Relevant financial information is capable of making a difference in the decisions made by users. Financial information is capable of making a difference in decisions if it has predictive value, confirmatory value, or both. The predictive value and confirmatory value of financial information are interrelated • Materiality is an entity-specific aspect of relevance based on the nature or magnitude (or both) of the items to which the information relates in the context of an individual entity’s financial report • Information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements
  • 17. Faithful Representation • General purpose financial reports represent economic phenomena in words and numbers, To be useful, financial information must not only be relevant, it must also represent faithfully the phenomena it purports to represent. • This fundamental characteristic seeks to maximise the underlying characteristics of completeness, neutrality and freedom from error. • Information must be both relevant and faithfully represented if it is to be useful
  • 18. Comparability • Information about a reporting entity is more useful if it can be compared with a similar information about other entities and with similar information about the same entity for another period or another date. • Comparability enables users to identify and understand similarities in, and differences among, items
  • 19. Verifiability • Verifiability helps to assure users that information represents faithfully the economic phenomena it purports to represent. • Verifiability means that different knowledgeable and independent observers could reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation
  • 20. Timeliness • Timeliness means that information is available to decision-makers in time to be capable of influencing their decisions
  • 21. Understandability • Classifying, characterising and presenting information clearly and concisely makes it understandable. • While some phenomena are inherently complex and cannot be made easy to understand, to exclude such information would make financial reports incomplete and potentially misleading. • Financial reports are prepared for users who have a reasonable knowledge of business and economic activities and who review and analyse the information with diligence
  • 22. Information Irrelevance And Faithful Representation • Enhancing qualitative characteristics (either individually or collectively) render information useful if that information is irrelevant or not represented faithfully
  • 23. Cost Constraint On Useful Financial Reporting • Cost is a pervasive constraint on the reporting entity’s ability to provide useful information in general purpose financial reporting. • Reporting such information imposes costs and those costs should be justified by the benefits of reporting that information. • The IASB assesses costs and benefits in relation to financial reporting generally, and not solely in relation to individual reporting entities. • The IASB will consider whether different sizes of entities and other factors justify different reporting requirements in certain situations.
  • 24. Constraints on Relevant and Reliable Information • Timeliness – If there is undue delay in the reporting of information it may lose its relevance. Management may need to balance the relative merits of timely reporting and the provision of reliable information • Balance between benefit and cost – The benefits derived from information should exceed the cost of providing it • Balance between qualitative characteristics – In practice a balancing, or trade-off, between qualitative characteristics is often necessary. Generally the aim is to achieve an appropriate balance among the characteristics in order to meet the objective of financial statements
  • 25. The Reporting Entity- This is currently a discussion paper. • The conceptual framework describes rather than precisely define a reporting entity as a circumscribed area of business activity of interest to present and potential equity investors, lenders and other capital providers. – Examples of reporting entities are: • Sole trader • Corporation • Trust • Partnership • Associations, and • Group
  • 26. The Parent Entity Financial Reporting • Two issues considered here are: – The parent company approach to consolidated financial statements. – Whether parent only financial statements and consolidated financial statements meet the objective of financial reporting and whether both are needed. • IASB preliminary conclusion is: – That consolidated financial statements should be presented from the perspective of group reporting entity not, the parent company shareholders – That the consolidated financial statements meet the objective of financial reporting, but that parent only financial statements maybe presented provided they are included in the same financial report as consolidated financial statements.
  • 27. Underlying Assumptions • Accrual basis – In order to meet their objectives, financial statements are prepared on the accrual basis of accounting • Going concern – The financial statements are normally prepared on the assumption that an entity is a going concern and will continue in operation for the foreseeable future
  • 28. Elements of Financial Statements • Financial statements portray the financial effects of transactions and other events by grouping them into broad classes according to their economic characteristics • These broad classes are termed the elements of financial statements • Elements directly related to the measurement of financial position in the balance sheet are assets, liabilities and equity • The elements directly related to the measurement of performance in the income statement are income and expenses • The statement of changes in financial position usually reflects income statement elements and changes in balance sheet elements
  • 29. Financial Position • An asset – A resource controlled by the entity – As a result of past events and – From which future economic benefits are expected to flow to the entity • A liability – A present obligation of the entity – Arising from past events – The settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. • Equity – Is the residual interest in the assets of the entity after deducting all its liabilities
  • 30. Performance • Profit is frequently used as a measure of performance or as the basis for other measures, such as return on investment or earnings per share. • The elements directly related to the measurement of profit are income and expenses. The recognition and measurement of income and expenses, and hence profit, depends in part on: – The concepts of capital – Capital maintenance used by the entity
  • 31. Income and Expenses Income • Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants Expenses • Decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.
  • 32. Capital Maintenance Adjustments • The revaluation or restatement of assets and liabilities gives rise to increases or decreases in equity • While these increases or decreases meet the definition of income and expenses, they are not included in the income statement under certain concepts of capital maintenance • Instead these items are included in equity as capital maintenance adjustments or revaluation reserves.
  • 33. Recognition Of The Elements Of Financial Statements • Recognition is the process of incorporating in the financial statements – An item that meets the definition of an element; and – Satisfies the criteria for recognition • An item that meets the definition of an element should be recognised if: – It is probable that any future economic benefit associated with the item will flow to or from the entity – The item has a cost or value that can be measured with reliability.
  • 34. Measurement of the Elements of Financial Statements • Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognised and carried in the balance sheet and income statement • Bases of measurement include: – Historical cost – Current cost – Realisable (settlement) value – Present value
  • 35. NIGERIAN ROADMAP TO IFRS ADOPTION Adoption of IFRS in Nigeria: a trip down memory lane • What is SAS? Just like the IASB’s pronouncements (developing & publishing) of IFRS the NASB (now FRC) issues prescribeds and pronounce accounting rules to be used by entities in preparing general purpose financial statements, to ensure transparency and compatibility. • 32 SASs developed and published so far • 7 Industry Specific Standards • 1 SORP- Statement of Recommended Practice on Employees’ Retirement and Termination Benefits for Public Sector Entities • In the earlier years, NASB’s SAS had many similarities with IASB’s standards. (but the SASs never matched the pace of the IASs in terms of review and updates) 35
  • 36. Adoption of IFRS in Nigeria: a trip down memory lane • Adaptation was reiterated in Nigeria between 2002 – mid 2008. • Closer harmonisation of SAS with IFRS took place in 2007 with the release of SASs 25, 27, 28, 29, 30. • Strong signals from CBN, SEC, NSE and other regulators suggesting adoption of IFRS.
  • 37. SAS vs. IFRS SAS IFRS Principles based Principles based Primary statements Accounting Policies Accounting Policies Balance sheet Statement of Financial Position Profit and loss account Statement of Comprehensive Income Statement of Cash Flows Statement of Cash Flows N/A Statement of Changes in Equity Notes Notes Value Added Statement N/A Five Year Financial Summary N/A Measurement Basis -Historical Cost -Net Realisable Value -Revalued Amounts -Fair Value -Historical Cost -Net Realisable Value -Revalued Amounts -Net Present Value -Fair Value
  • 38. Adoption of IFRS in Nigeria • A Road map committee was inaugurated on October 22, 2009. • The Road Map committee’s report was submitted January 26, 2010. • The Federal Government took a decision on July 28, 2010 to adopt IFRS effective January 1, 2012 . 38
  • 39. IFRS Competence 2010 Transition Date: Other public interest entities (PIE’s) 2011 2012 Reporting Date: Other PIE’s 2013 Alignment with other initiatives and training for appropriate personnel Realisation and standardisation of statutory reporting • Awareness • Assessment • Legislative changes • Training • Planning/ Impact analysis • Transition adjustments/ Opening BS (listed & SPE’s) • Transition adjustments • Prepare IFRS Opening Statement of Financial Position (SFP) • “Dry Runs” for Listed & SPE’s • Prepare comparative figures • IFRS/ Quarterly reporting by listed & SPE’s • Audit procedures • Investor communications • PIE’s prepare opening SFP & comparative figs • Dry Runs” for PIE’s • SME’s commence transition planning • IFRS/Quarterly reporting by PIE’s • Audit procedures • PIE Investor communications • Compliance monitoring for Listed & SPE’s • SME’s prepare opening SFP & comparative figs • PIE/SME Investor communications • “Dry Runs” for SME’s Roadmap to IFRS conversion Transition Date: Listed & Significant Public Entities (SPE’s) Reporting Date: (Listed & significant public entities) Transition Date: Reporting Date: SME’s SME’s 2014 • IFRS reporting by Other SME’s • Audit procedures • Investor communications • Compliance monitoring 39
  • 40. Significant public interest entities • This means • government business entities, • all entities that have their equities or debt instruments listed and traded in a public market i.e. • a domestic or foreign Stock Exchange or • an Over the Counter market, including local and regional markets • such other organisations, though unquoted, are required by law to file returns with • regulatory authorities and this excludes private companies that routinely file returns only with Corporate Affairs Commission and the Federal Inland Revenue Service. Examples of entities meeting these criteria include financial and other credit institutions and insurance companies. 40
  • 41. Other Public Interest Entities • This refers to those entities, other than listed entities (unquoted, private companies) – which are of significant public interest because • of their nature of business, • size • number of employees • their corporate status which require wide range of stakeholders. – Examples of entities meeting these criteria are • large not for profit entities such as charities and pension funds and may include publicly owned entities • other entities where there is a potentially significant effect on financial stability. 41
  • 42. Adoption of IFRS in Nigeria: Challenges Length of time Level of preparedness of all the stakeholders: Regulators Challenges IFRS Skills Cost (IT, training etc.) 42
  • 43. BRIEFS ON FIRST TIME ADOPTION Summary of First-Time Adoption Dates – Nigeria NB: You must identify where you belong in the Nigeria Roadmap date of transition Comparative First IFRS reporting date information 1 Jan 2011 31 Dec 2011 31 Dec 2012 (Dec 31, 2010) transition period/ First IFRS reporting period dual reporting period Opening IFRS Last financial statements First IFRS Financial balance sheet in accordance with previous Statements GAAP other than IFRS 43
  • 44. Some relevant definitions Date of transition to IFRS The beginning of the earliest period for which an entity presents full comparative information under IFRS in its first IFRS financial statements Opening IFRS statement of financial position  An entity’s statement of financial position at the date of transition to IFRS First IFRS Reporting Period The latest period covered by an entity’s first IFRS financial statements Deemed Cost An amount used as a surrogate for cost or depreciated cost at a given date
  • 45. Scope of IFRS 1 - Application Apply IFRS 1 in:  An entity's first IFRS financial statements • The first annual financial statement in which an entity adopts IFRS by an explicit and unreserved statement of compliance with IFRS Each interim financial report that it presents (under IAS 34) for part of the period covered in its first IFRS financial statements 45
  • 46. IFRS 1 - First-time Adoption  IFRS 1 requires an entity to use the same accounting policies in its Opening IFRS Statement of Financial Position and throughout all periods presented in its first IFRS FS  Apply IFRSs that are effective at the end of its first IFRS reporting period i.e. December 2012 in preparing and presenting  Statement of financial position for December 31, 2012  Statement of comprehensive income for December, 2012  Statement of Changes in Equity – December 31, 2012  Statement of Cash flows – December 31, 2012  All Comparatives for December 31, 2011  (Entity may apply new IFRSs that have been issued but not mandatory at the end of its reporting period as long as early application of such in permitted) 46
  • 47. First time application of IFRS-The first set of IFRS financial statements must have :- • Primary statements: •Three Statements of financial position (“Balance sheets”) •Two Statements of comprehensive income (“Income statement”) •Two Statements of changes in equity •Two Statements of cash flows • Notes: •Three periods presented for the balance sheet notes which are impacted at opening balance sheet date. •Reconciliation: Equity from SAS to IFRS at Opening balance sheet and comparative period •Reconciliation: Total comprehensive income from SAS to IFRS for comparative period
  • 48. IFRS 1 - First-time Adoption Ignore transitional rules in other IFRSs, when adopting IFRS for the first time (e.g. transitional provisions in IFRS 2 and 3) IFRS 1 contains all the first-time adoption rules. Each new IFRS may update IFRS 1 Beware: Be sure to be working with the right version of IFRSs
  • 49. HIGHLIGHTS OF STEPS INVOLVED IN CONVERSION Seven Key points to note in your conversion 1. As it relates to Nigeria roadmap identify your relevant year 2. Generally - comply retrospectively with IFRS in force at the reporting date Particularly: Recognise all assets and liabilities required by IFRS Derecognise assets and liabilities not permitted by IFRS Reclassify all assets, liabilities or component of equity in accordance with IFRS Measure all recognised items according to IFRS 3. There are optional exemptions and mandatory exceptions to retrospective application
  • 50. 4. Apply all mandatory exceptions in IFRS 1 5. Consider optional exemptions 6. Reconcile 7. Disclose 50
  • 51. OVERALL IMPLICATIONS Implication on Financial reporting • New Assets coming onto the balance sheet • Potential for greater volatility from increased use of fair value • Increased use of management judgment • Transition elections and exemptions - potential impact on retained earnings • Significant increase in disclosures • Improved annual reports and accounts in terms of quality and quantity 51
  • 52. Implication on financial reporting (contd.) • Transparent and comparable data • Implications for debt covenants and other legal requirements • Additional valuation costs • The entity’s business process (all aspect of the organisation). Complete change of system, process and people. 52
  • 53. PITFALLS TO AVOID Don’t think it’s not an enterprise-wide issue. 53 • Poor stakeholder management • Last minute implementation from poor planning • Late engagement of business units – where data is captured; or – where customers are impacted • Not embedding accounting solutions into underlying systems • Internal reporting backing into legacy GAAP • Slow to move on developing and retaining resources • Push down of centralized accounting decisions without appropriate consultation • Underestimation of data required and support processes to get them