IFRS: FRC may extend deadline for microfinance banks

ONE OF THE BANKS IN NIGERIA

Financial Reporting Council may extend the deadline for microfinance banks to adapt to the International Financial Reporting Standards.

A senior official of the council, who preferred anonymity, made this known to Ebiz247 on Thursday in Lagos.

The official said that the council was considering the extension because some notable firms had yet to adopt the 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.

E-biz247 recalled that the MFBs operators had said that only 10 out of about 800 MFBs had complied with the IFRS because majority of the operators were ignorant of it.

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

Also, many of the MFBs had yet to recapitalize as directed by the CBN.

The CBN has directed the MFBs operating under a unit category to recapitalize to the tune of N100m for states and N2bn for those operating under the national category.