IFRS First time adoption – Phase 3: SME

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.

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One comment on “IFRS First time adoption – Phase 3: SME

  1. Wiviane

    Banks:Isn’t the main problem here one of law ecorfnement? Because the CMA can institute all the rules they want. However, if the AG or other law ecorfnement agencies refuse to prosecute and jail white collar crimes, what is really going to change?Brokers like Nyagah & Francis Thuo should have been investigated & possibly prosecuted. Then, fined & maybe even jailed for stealing people’s money.Until there is a recognition in the entire country that white collar crimes are just as damaging as other crimes, I don’t think anything is really going to change.You have to catch a guy like Madoff and send him to jail for 150 years in order to send a message to other people who might be thinking of doing this.It’s the only way to reduce corruption and it’s the only way to temper the intrinsic greed that exists within all of us.kenyanentrepreneur.com

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