Chief Executive Officer of the Financial Reporting Council (FRC), Mr. Jim Obazee has said that the implementation of International Financial Reporting Standards (IFRS) has led to increased growth in foreign investments over the years.
Obazee added that Nigeria has become top destination for foreign investment. Obazee during the weekend reportedly said “The implementation of IFRS increased the assurance and comfort of both local and foreign investors, in the financial statements that are issued by companies in Nigeria.
“The International Accounting Standards Board classified Nigeria as an IFRS-based country and even sent their priced officials to come and run a three-day ‘train-the-trainer’ workshop on IFRS for SMEs.
“Nigerians can see that professionals who engage in the financial reporting process of entities (in both public and private sectors of the economy) have to mandatorily register with the FRC. They also attest and take responsibility for the accuracy and reliability of the financial reports issued by such entities.
“Nigeria is the first country of the world to require this. Had this been the global practice, Arthur Andersen (chartered accountants) will still have been in existence today, as only the registered professionals would have been punished for the fraudulent reporting of Enron.
“Nigeria also saw that public institutions such as the Central Bank of Nigeria and the Bank of Industry were investigated for fraudulent financial reporting. This is also the first time that federal government institutions are subjected to this level of inspection.”