ACCA, FRC To Collaborate Over Futuristic IFRS Engagements
SHALOM OLALEYE
The Umbrella body of accountants, ACCA, said it would have similar engagements for accountants and finance professionals so that both private and public organizations clearly understand reporting standards.
This statement was made by ACCA Head Nigeria, Tom Isibor, in Lagos during his closing remarks at a one-day event.
Tagged: IFRS In a changing world –
A conversation for banking, financial services and insurance professionals.
Earlier, the keynote speaker, Chief Executive Officer, Financial Reporting Council, FRC Ambassador Adamu Ahmed, quoted Donald R. Kelley, saying, “The world is becoming more complex, fraught with increasing possibilities for conflict over national rivalries, economic competition, and cultural and ideological fault lines. Russia’s invasion of Ukraine confirms Donald’s postulation”.
Adamu harped that “Financial reporting has had its share of change. It has undergone a rapid and unprecedented transformation in the last few years. The biggest and most significant transformation of all is that for the first time, most of the world now speaks one financial language, which is the International financial reporting standards, IFRS”.
He also recognized ACCA as the biggest supporter of the Financial Reporting Council.
“Without fear of being misquoted, I must say today that ACCA is the biggest supporter of the Financial Reporting Council.”
ACCA council member, CFO -AEDC, panellist Babajide Ibironke described financial instruments and their different aspects as contractual relationships.
“Financial instrument is a contractual relationship that an entity has entered into that gives rise to financial assets in one entity or financial liability or an equity instrument in another entity. Over 70 percent of the balance sheet of a bank are Financial instruments. It is such an important topic, not only in Nigeria but across the globe”.
Also speaking, Chief Executive ADRAC Professional services consulting, Dr. Deji Awobotu, said, “There are two parties involved in financial Instruments: the investor and the issuer. The issuer issues the financial instruments. The investor recognizes that instrument in its financial instrument as a financial asset.”
Adding to the discussion, Chief financial officer-TSL , Dr. Oluseyi Olarenwaju, identified the evolution of accounting, concluded with a quote, “You must continue to learn, unlearn and relearn. “
The event had Executive Director, ACCA Strategy and Governance, Maggie Mcghee, who recognized the keynote speaker in the house and panellists.
The moderator was Mrs.Ibukun Oyedeji -CFO, ECO Bank Nigeria.
Recall that IFRS 9 replaces IAS 39, Financial Instruments: Recognition and Measurement. It is meant to respond to criticisms that IAS 39 is too complex, inconsistent with the way entities manage their businesses and risks and defers the recognition of credit losses on loans and receivables until too late in the credit cycle.
