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IFRS: FRC may extend deadline for microfinance banks

By BusinessNews Staff on April 27, 2014

The Financial Reporting Council may extend the deadline for microfinance banks to adopt to the International Financial Reporting Standards, the News Agency of Nigeria reports.

A senior official of the council, who preferred anonymity, made this known to NAN on Thursday in Lagos.

The official said that the council was considering the extension because some notable firms had yet to adopt the IFRS in their financial reporting.

The official said that the council was not pleased with the CBN which could not adopt the standards in its 2011 and 2012 financial reports.

According to the official, the extension will not be more than a year.

He said, “Remember that the deadline for the adoption for the MFBs expired on December 31, 2013. The last four months since the deadline expired may be part of the one year extension. The council may not grant the three-year extension demanded by the MFBs operators.”

NAN recalled that the MFBs operators had said that only 10 out of about 800 MFBs had complied with the IFRS because majority of the operators were ignorant of it.

They appealed for three years extension to enable them to train their workers on the IFRS.

Also, many of the MFBs had yet to recapitalise as directed by the CBN.

The CBN has directed the MFBs operating under a unit category to recapitalise to the tune of N100m for states and N2bn for those operating under the national category.

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