November 25, 2011
The guidelines to regulate the implementation of the insurance industry International Financial Reporting Standard (IFRS) will be released by December, Acting Director Supervision, National Insurance Commission (NAICOM) Mr Opara Nicholas, has said.
He disclosed this at a workshop organised by NAICOM for journalists in Ijebu Ode, Ogun State. Nicholas said the commission is putting finishing touches to ensure that the guidelines are issued to enable insurers adopt the IFRS to aid their next year accounts preparations.
He said: “We are close to releasing the guidelines; we are presently engaging the operators, when we are through with the sorting out of some identified challenges that may stall the implementation of the initiative we will issue the guidelines. We are hopeful that by December the guidelines will be issued to enable operators use them in their next year operations.
“Under the existing financial reporting, we have what we call uniform financial reporting standard. We have looked at the basis of accounting presentations and have prepared a format, which would be followed by all the operators in preparing and presenting their financial statements. The same thing we are trying to achieve under the IFRS. We are also working to ensure that the accounting system of insurance companies will be uniform. The way we hope to achieve this, is by looking at options that are available in the IFRS. The IFRS gives provisions for options, if the companies are allowed to choose their options, without harmonising them; it is possible that the financial statements they would prepare will be different from others.”
Nicholas said that the insurance industry is ahead of other sectors in the quest to meet the government’s deadline on the compliance of the new standard, adding that insurers have been enjoined to produce dual accounts this year to enable them transit smoothly to the IFRS next year.
He said : “The Commission is working towards choice of options, right now, we have identified all the options that are available under the various guidelines and we would work with the operators and consultants in choosing that best options.”