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NCRIB commences IFRS training for insurance brokers

By on April 24, 2014

The umbrella body for insurance brokers in the country, Nigerian Council of Registered Insurance Brokers (NCRIB), has started a series of training to acquaint its members with the compliance requirements of the International Financial Reporting Standards (IFRS).

The President of the council, Mr. Ayodapo Shoderu, stated this while declaring open the pilot training in Lagos recently.

IFRS is a set of principles-based standards, interpretations and framework adopted by the International Accounting Standards Board (IASB) to create a sound foundation for accounting standards that are principles-based, internally consistent and internationally converged.

And in line with the directive of the federal government, the National Insurance Commission (NAICOM) mandated insurance and reinsurance companies to convert to the new standards by the end of the first quarter of 2011.

Insurance and reinsurance companies being public interest entities were expected to start their transition from January 2, 2011 while insurance brokers being other public interest entities were asked to do same by 2012.

Shoderu said NCRIB decided to engage the services of some IFRS consultants under its shared services scheme to reduce the financial burden on individual brokers.

He said the first in the series of training was for brokers operating in Lagos State even as he encouraged other members to cross check with the council for the dates they are billed to attend the training.

Shoderu, who was of the opinion that IFRS was designed as a common global language for business affairs so that company reports are easily understood and compared eith that of other companies across international boundaries, said it is necessar that insurance brokers comply with these rules.

“IFRS is a consequence of growing international shareholding and trade and is important for companies that have, or angling to have dealings in several countries, of which insurance brokers are critical interest groups to comply with the new trend.

“IFRS requires that accountants in broking firms maintain books of accounts which are comparable, understandable and relevant. The scheme requires operators be more transparent and meticulous in their financial accounting format. We are all aware that the global environment in which we operate has posed greater challenges for us to be more ethical and eschew unprofessional conducts if we want to remain in business” he stressed.

Meanwhile, the Commissioner for Insurance, Mr. Fola Daniel who was represented by an Assistant Director in the commission, Mr. Egwu Kenneth, commended the council for being the first insurance group in the country to put in place a shared services scheme for its members.

Daniel underscored the urgency in the implementation of IFRS in the industry saying the commission was committed to the adoption of IFRS not only because it is one of the initiatives of the insurance industry under FSS 2020 programme but also because it is imperative for the recognition of Nigerian insurance operators globally.

Also, the Lead Consultant of Netherwood Consulting, Mr. Adeyemi Adetunji noted that the new accounting standard mandates all businesses to make their accounting and financial reporting transparent.

It is imperative for insurance professionals to imbibe the new reporting format considering the nature of insurance as a global business, he added.

 

 

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