IFRS 1 First-time Adoption of International Financial Reporting Standards sets out the procedures that an entity must follow when it adopts IFRSs for the first time as the basis for preparing its general purpose financial statements.
In order to achieve complete conversion, the Federal Reporting Council categorised reporting entities into three(3) phases and assigned deadline to them. As at the date of publishing this pose, Phase 1 and Phase 2 have been concluded. Phase three is expected to be concluded by December 31, 2014.
Phase 1: Publicly listed Entities and Significant Public Interest Entities (deadline is January 1, 2012 and the first IFRS based audited account shall be for the year ended 31 December, 2012)
Phase 2: Other Public Interest Entities (deadline is January 1, 2013 and the first IFRS based audited account shall be for the year ended 31 December, 2013)
Phase 3: Small and Medium-Sized Entities (SMEs)
IFRS for SMEs shall mandatorily be adopted as at January 1, 2014. This means that all Small and Medium-sized Entities in Nigeria will statutorily be required to issue IFRS based financial statements for the year ended December 31, 2014.
Entities that do not meet the IFRS for SME’s criteria shall report using Small and Medium-sized Entities Guidelines on Accounting (SMEGA) Level 3 issued by the United Nations Conference on Trade and Development (UNCTAD) .
It helps to work with a team that’s been there before. We understand the practical issues around IFRS from both a Nigerian and global perspective. Our experienced team works with organizations to help them implement IFRS in a comprehensive way.
Please note that Phase 3 is further defined to mean companies whose audited accounts are mainly filed with the Corporate Affairs Commission and the Federal Inland Revenue Service only.[plulz_social_like width="350" send="false" font="arial" action="like" layout="standard" faces="false" ]