THE West African Institute for Financial and Economic Management (WAIFEM), has added voice for the adoption of the International Financial Reporting Standards (IFRS) in Nigeria to help businesses abide by globally acceptable standards, as the group commenced a regional course on IFRS to boost international business operations.With participants drawn from the central banks and ministries of the five West African countries, comprising The Gambia, Ghana, Liberia, Nigeria and Sierra Leone and new entrant, the Republic of Guinea, the Director-General of WAIFEM, Prof. Akpan Ekpo insisted that a viable international financial reporting standards would impart the much needed transparency in financial data disclosure.Declaring the course open at the WAIFEM headquarters in Lagos, he warned policy makers to have a pass mark for the country by setting higher standards of transparency, accountability and probity in the use of public resources by converging to global accounting standards as it had become imperative for African countries to be integrated into the global financial system in order not to be labelled a failed state.He attributed the destabilising factors of the global financial crisis to the amplification of financial shocks through the banking system, financial markets and the broader economy.He said: ' There was widespread criticism that the accounting standards and in particular, fair value accounting significantly contributed to the financial crisis and exacerbated the severity of the crisis, in view of its failure to deal with illiquid markets and distressed sales.'So far, over100 countries mainly in the European Union have adopted the IFRS. In the sub region, the adoption of IFRS was launched in Ghana in 2007 while Nigeria commenced the gradual adoption in January 2012. Meanwhile the Worldwide adoption of IFRS is expected to be completed by 2015.While urging other countries in the sub region to fast-track their migration and compliance to the new international accounting standards, he explained that the IFRS convergence process would involve significant challenges for the banking system in general as banks would need to upgrade their infrastructure including IT and human resources to face the complexities and challenges of the IFRS.Stressing that a key aspect of the West African Monetary Zone (WAMZ) project was the harmonisation of standards, processes and procedures of the operational modalities of the member countries to enable the smooth establishment of the second monetary zone in 2015, he said that the adoption of the IFRS would not only reaffirm its leadership role but would also ensure seamless harmonisation of accounting practices among countries of the zone.The benefits from the global adoption and worldwide adaptation of the IFRS according to him would form the basis for the comparability between enterprises operating in different jurisdiction and constituted a searchlight that international investors would use to make investment decisions in countries.Besides, he insisted that this would further promote transparency and engender greater financial credibility.'This would reduce cost of raising foreign capital as well as cost of compliance to a single standard for financial reporting purposes for enterprises operating across several countries.'Ekpo declared that these should be clearly defined and publicised for the information of all interested parties. 'I am happy to note that quite a good number of countries in our sub region have embarked on this path by enacting a Public Procurement Act to provide a clear framework.'He further explained that the course was taking place against the backdrop that globalisation had necessitated the need to have a universal accounting standards applicable to all jurisdictions.According to him, such standards would engender harmonisation of accounting frameworks and practices around the world. 'Through this achievement, evaluation of performances, adherence to best practices and comparison amongst similar players will be made possible.'Ekpo however noted that given the fact that economies of the sub region were linked to the rest of the world, it would be crucial that global accounting standards such as IFRS formed the basis for accounting and financial management practices in the sub region.Advocating for capacity building and skill development for the successful implementation of the IFRS provisions, he said that the overall objective of the course was to acquaint participants with the provisions of the international financial reporting standards as well as equip them with the necessary information to guide the process of migrating to IFRS.Objectives of the course include an appreciation of the need for global standards in the reporting of financial positions and performances, its merits and advantages over the current reporting system, knowledge of the method of interpretation, understanding of the use of IFRDS for policy making, implication for migration, understanding of the WAMZ programme and adoption of the IFRS by member states among others.He added that the institute which was set up by the central banks of member countries to build sustainable capacity in financial and economic management had from inception to date organised four hundred and one capacity building activities.With a team of experts to facilitate the course, he enjoined participants to make full use of the opportunity to start lasting professional relationships that would augur well for sub-regional integration.
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