In its recent Public Notice, the Financial Reporting Council of Nigeria (FRC), announced Nigeria’s early adoption of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standard, IFRS S1 (the General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (The Climate-related Disclosures).
Issued in June 2023 and effective for annual reporting periods beginning on or after January 1, 2024, the IFRS Sustainability disclosure standards provide a comprehensive framework for disclosing sustainability-related financial information, such as risks and opportunities for entities.
The FRC has, through this Public Notice, called on Nigerian entities willing to be part of this early adoption phase to submit specific documents indicative of their readiness to implement IFRS S1 and S2.
Here are the key points and submission guidelines:
1. Early Adoption Announcement: The FRC has officially declared Nigeria’s intention to be an early adopter of IFRS Sustainability Disclosure Standards.
2. Entities Eligible for Early Adoption: The FRC is currently identifying reporting entities with reasonable sustainability reports over the past two years who are willing to be part of the “early adoption category” for these standards. Entities selecting to adopt IFRS S1 and S2 for reporting periods ending on or before December 31, 2023, will be considered as early adopters.
3. Submission Requirements: Entities desiring to be part of the early adoption phase are required to submit the following documents, which indicate their readiness for early adoption:
a. A Board Resolution affirming the decision to adopt early.
b. GAP Analysis Report.
c. Implementation Plan for the adoption of the standards.
4. Submission Deadline: The soft copies of these submissions should be sent to arwg@frcnigeria.gov.ng , and hard copies, to the FRC’s head office, no later than October 31, 2023.
5. Additional Information: Please note that the FRC may request further documentation or information during the process to determine an entity’s readiness.
6. Clarification: FRC emphasized that only entities choosing to be early adopters and meeting the its readiness criteria will be permitted to declare that they are early adopters.
A copy of the Public Notice can be viewed or downloaded from here.
For any inquiries or clarification regarding this process, please feel free to contact us via clients@vi-m.com