Lagos — A report on the nature of convergence of Nigeria's financial reporting to the International Financial Reporting Standards (IFRS) will be released next month, Executive Secretary and Chief Executive of the Nigerian Accounting Standards Board (NASB), Mr Godson Nnadi, has said.

He said the Federal Government will later announce when all corporate organisations will commence their financial reporting based on the new standards.

Addressing journalists in Lagos, Nnadi said the committee in charge of the Report has started its meetings in Ibadan, Oyo State and has been given 14 days deadline to deliver the report.

"There were controversies regarding Nigeria's readiness for the IFRS, with questions as to whether the Standards would be applicable to all corporate organisations in the country (financial and non financial institutions); when the convergence was to commence; weather Nigeria would adopt the IFRS in whole or in part.

"To end the controversy, the Federal Government inaugurated a roadmap committee recently, comprising experts from the World Bank and stakeholders in the Nigerian financial sector.

The Committee's terms of reference was to harmonise local standards set by the NASB and provisions of the IFRS and come out with a single document for the country. Nnadi said the Committee's report will be submitted to the Governing Council of the NASB, which will issue a statement on it in January 2010 and thereafter pass the report to the government for the next line of action - detailing commencement date for the country.

"The various interface the Committee is having with the World Bank and other groups to further chart the timetable to guide the country with regard to the IFRS.

The convergence will boost foreign direct investment inflow into the country, as the global business community will begin to have more confidence in Nigerian companies. "There is also the issue of promoting transparency but I must add that the document alone will not guarantee transparent as accurate financial reporting still depends on the human element," he added.

The Chairman of the NASB, Mr Michael Popoola, said while not pre-empting the report of the Committee, the IFRS that will be put to use in Nigeria will not be the whole document but a version of it that will recognise the peculiarities of the Nigerian business environment.

The Chairman of the World Bank/ Nigerian IFRS Roadmap Committee, Mr Jim Obazee, said the characteristics of the Nigerian environment will be considered by the Committee.

He said: "Theses characteristics will influence the way Nigeria adapts to and promote the internationalisation of accounting standards."

The Central Bank of Nigeria (CBN) had given banks December 31, 2010 deadline to present their reports on the IFRS. But banks with international operations such as Access Bank Plc, First Bank of Nigeria Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc and Intercontinental Bank Plc among others, have announced their preparedness to present their December 31, 2009 common- year- end reports based on the IFRS.

Nnadi said the affected banks will be presenting two accounts - one based on the local statement of accounting standards and the other targeting their foreign stakeholders on the IFRS.

He said Nigeria as a country will not be said to have converted to the IFRS until all companies are mandated to commence their financial reporting based on the expected Report.