FRC Gives Recipes for Successful Application of IFRS

For successful adoption of International Financial Reporting Standards (IFRS) in the country, changes would have to be effected in the nation’s taxation laws and regulations.

Addressing the management of the Federal Internal Revenue Service in Abuja, the Executive Secretary of the Financial Reporting Council (FRC), Mr Jim Obazee, said it may be necessary to change some regulations and laws and issue new ones as fiscal filters to preserve the tax base of the government to minimise the effects of IFRS transition on business.
He, however, said recourse to Section 59 of the FRC Act may be the alternative in case it is not possible to change the relevant laws. He also implored the FIRS to consider sending some of their technical officers on exchange programme to countries which are already making use of the International Accounting Standards in order to gain requisite experience.

He also implored the FIRS to issue a detailed transition guideline for companies to address grey areas that might arise in tax administration as a result of adoption of IFRS.
Stressing the need to clear all hurdles on the path of implementation of IFRS in the country according to Roadmaps developed by the defunct Nigerian Accounting Standards Board (NASB), Obazee also sought the support of the Service in efforts towards the operation and effective functioning of an IFRS Academy where high quality IFRS knowledge would be imparted to Nigerian practitioners.

The Academy, he said, would bridge the gap that currently exists between academic study of accounting in the country and conceptual requirements of IFRS application.
Obazee also solicited the support of the Service in the registration of professionals by requesting for the FRC certificate of registration. He disclosed that the FRC would commence registration of professionals by December this year in accordance with Sections 41 and 42 of the FRC Act which empowers it to register professionals.