The National Insurance Commission (NAICOM) has issued guideline for the implementation of International Financial Reporting Standards (IFRS) 9. This follows its adoption by both the regulator and operators.

Its Deputy Commissioner, Mr Sunday Thomas who spoke to reporters in Lagos yesterday, said IFRS 9 provided significantly improved information because it introduced a structured approach to the classification and measurement of financial assets.

Mr Thomas said accounts of insurance firms would become more transparent with the adoption of IFRS 9 for the preparation of financial statements by the insurance companies.

Before now, the companies prepare their account with IFRS 4 accounting standard.

He said many companies are already complying while some have already submitted their IFRS 9 compliant financial statements.

He said four of the companies submitted early this week, noting that another five may have submitted yesterday.

He said the guideline for the new accounting standard has been sent to the operators and sought for their views.

“We have also engaged the CFOs of all companies where the director inspectorate engaged them.

“Thereafter, we have invited the companies on one on one basis where they were requested to tell us how far they have gone in terms of implementation and challenges.

“The IFRS 9 came into the system as part of transparency in financial transaction. Since the 2008 crisis, relevant institution and regulators across the world became concerned of transactions within the financial services sector.

“Based on this, the International Accounting Standard Board came up with some standards that will enable an ordinary person looking at financial recordings. With the adoption of IFRS 9, an ordinary person can have a better understanding and comparability of financial statements becomes a lot easier,” he said.