FRC may extend adoption of IFRS by MFBs – official

microfinance

 

The Financial Reporting Council (FRC) may extend the deadline for Microfinance Banks (MFBs) to adopt to the International Financial Reporting Standards (IFRS).

A senior official of the council, who preferred anonymity, said that the council was considering the extension because some notable firms were yet to adopt 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.

“Remember that the deadline for the adoption for MFBs expired on Dec. 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,” he said.

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

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

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

The CBN has directed MFBs operating under a unit category to recapitalise to the tune of N20 million, N100 million for states and N2 billion for those operating under the national category.