Gwarzo expresses concern for non-migration of firms to IFRS

THE Acting  Director -General of the Securities and Exchange Commission, Mounir  Gwarzo has expressed concern over the inability of some companies operating in  the Capital Market to fully migrate to the International Financial Reporting  Standards (IFRS).

    Gwarzo spoke when he received members of the Association of Reporting  Accountants in the Capital Market (ARACM) in his office in Abuja, Tuesday. 

   He said the commission was having some challenges with some of these  companies migrating to IFRS and expressed the readiness of SEC to collaborate  with ARACM  to ensure a smooth transition. 

  “Last year, almost 40 or more percent of the companies were yet to migrate to IFRS. We are looking at running a training programme for them and we want to collaborate with you”, he said.

   On the appeal by the association to make it mandatory for accountants and auditors to join the association, Gwarzo said the commission does not have the powers to  force any group or individual to belong to trade groups, but however added that  the SEC will do everything within its powers to encourage people to join trade groups. 

  Going forward, Gwarzo stated  that the SEC will use firms that belong to a  particular trade group, adding that this was one of the ways to encourage people to  join trade groups. “We do not have power to force people that they must belong to  any trade group”. 

  He reiterated the commission’s resolve to ensure that all the major disciplines in the capital  market operates under a particular associations nothing that allowing trade groups handle  issues before reporting unresolved ones to the Commission, will allow the SEC to be more focused in discharging its responsibilities as the apex regulator of the capital market. 

   The Chairman of the association, Ayodele Othihiwa said althouggh  reporting accountants have a role to play when new issues or transactions are being done, the auditor was more important in creating transparency because the  financial statement was a major information to operators in the  capital market. 

   According to him, one of the things happening generally, following the global  financial crisis was the new challenges to the kind of report that the auditor issues. `

“ You know our typical report looks at our responsibilities. We believe that the account gives a true and fair view.” 

   He therefore called for collaboration with the SEC in the area of capacity building for the market .