Why Nigeria Organizations need to adopt the International Financial Reporting Standards (IFRS)

The IFRS FRAMEWORK REFERS TO A PRINCIPLED BASE approach to developing a common set of financial reporting standards to achieve comparable financial reporting across borders. Currently, we have 120 countries adopting IFRS as a framework to govern accounting statements.

Although the Nigerian Federal Executive Council approved 1 January 2021 as the effective date for the convergence of accounting standards in Nigeria with IFRS, Nigerian companies looking to go global need to actively adopt this accounting standard and here is why :

1. They make comparison with global competition easier.

2. cross-border listing like the NewYork Stock Exchange, and London stock exchange is facilitated, making it easier to raise funds and make investments abroad.

3.Multinational companies with subsidiaries in foreign countries have a common, company-wide accounting language.

4. Foreign companies can be more easily appraised for mergers and acquisitions.