The Financial Reporting Council of Nigeria has released
guidelines on the impact of COVID-19 on financial reporting.
The FRC said on its website on Thursday that this was the second
set of guidelines to be released by the council in two weeks.
While the first guidelines targeted auditors of financial
statements in Nigeria, it stated that the latest targeted preparers
of financial statements during the COVID-19 period.
The regulator noted that its statutory responsibilities involved
ensuring accuracy and reliability of financial reports and
corporate disclosures; maintaining a register of professional
accountants and other professionals engaged in the financial
reporting process; and advising the Federal Government on matters
relating to accounting and financial reporting standards in
Nigeria.
It added that the purpose of the guidance was for directors of
reporting entities and those charged with governance to assess the
risk of COVID-19 at an early stage of the financial reporting and
audit process.
“The guidance therefore serves to draw preparers’ attention to
the possible impact of COVID-19 on their businesses with the
consequent financial reporting implications which they are expected
to give particular attention to, all within the framework of
existing body of standards such as International Financial
Reporting Standards,” it stated.
Some of the specific issues addressed in the guidance are
“events after the reporting period, going concern, effects on
interim financial reporting; changes in expected credit losses for
loans and other financial assets; net realisable of inventories;
group reporting; effects of government and regulatory relief
programmes on entities and their customers and transparency and
disclosures.”
The Financial Reporting Council of Nigeria has released
guidelines on the impact of COVID-19 on financial reporting.
The FRC said on its website on Thursday that this was the second
set of guidelines to be released by the council in two weeks.
While the first guidelines targeted auditors of financial
statements in Nigeria, it stated that the latest targeted preparers
of financial statements during the COVID-19 period.
The regulator noted that its statutory responsibilities involved
ensuring accuracy and reliability of financial reports and
corporate disclosures; maintaining a register of professional
accountants and other professionals engaged in the financial
reporting process; and advising the Federal Government on matters
relating to accounting and financial reporting standards in
Nigeria.
It added that the purpose of the guidance was for directors of
reporting entities and those charged with governance to assess the
risk of COVID-19 at an early stage of the financial reporting and
audit process.
“The guidance therefore serves to draw preparers’ attention to
the possible impact of COVID-19 on their businesses with the
consequent financial reporting implications which they are expected
to give particular attention to, all within the framework of
existing body of standards such as International Financial
Reporting Standards,” it stated.
Some of the specific issues addressed in the guidance are
“events after the reporting period, going concern, effects on
interim financial reporting; changes in expected credit losses for
loans and other financial assets; net realisable of inventories;
group reporting; effects of government and regulatory relief
programmes on entities and their customers and transparency and
disclosures.”