By Udeme Ekwere
Thursday, 11 Nov 2010
The Nigerian Accounting Standards Board has approached the Nigerian Stock Exchange for assistance towards the collection of statutory annual dues from quoted companies.
A statement from the NASB on Wednesday said the Executive Secretary/Chief Executive Officer, NASB, Mr. Jim Obazee, made this appeal during a courtesy visit to the NSE.
The statement said, â€ÂÂI wish to, once again, request that the Exchange assist our board in the collection of these statutory annual dues, by making it mandatory for companies trading on the floor of the NSE to produce the evidence of up-to-date payment of the statutory annual dues paid to the Nigerian Accounting Standards Board, while transacting business at the Exchange.â€ÂÂ
While stating that the NASB was funded largely from annual dues payable by persons and entities enumerated in the Act, Obazee noted that in accordance with Section 13(a) (iii), the annual dues to be paid by all publicly quoted companies was N200,000 annually.
He also called on the NSE to partner other relevant stakeholders on the speedy passage of the Financial Reporting Council Bill, adding that it would enhance effectiveness in the system.
He said, â€ÂÂWe will also like to request your Exchange to lend its voice to the call to the National Assembly to accelerate the passage of the Financial Reporting Council Bill, as it will help in addressing the current institutional weaknesses in the regulation, compliance and enforcement of standards, and the development of robust arrangements for monitoring and enforcing compliance with financial reporting standards.
â€ÂÂWe hope to also partner with you in our commitment to financial integrity, by communicating your office when our board directs a company to withdraw and re-issue its financial statements, when it is found to be misleading.â€ÂÂ
Responding, the Interim Administrator of the NSE, Mr. Emmanuel Ikazoboh, stressed the need for adequate orientation and education on the adoption of International Financial Reporting Standards among corporate entities in the country.
He said that this was important, as many companies were still not aware that the adoption of IFRS was cost intensive.
Ikazoboh said, â€ÂÂThe market thrives on information. If there is no adequate financial reporting and disclosures, investors will not be able to take informed decisions. Therefore, we will ensure that financial reporting is of international standards, as this is one of the criteria required to be the best, as quoted companies and even stock exchanges.
â€ÂÂWe must ensure that we remain one of the best stock exchanges in the world, and to be able to achieve this, we must ensure that we embrace the IFRS standard of reporting.â€ÂÂ
Source: Punch