From left: Head, Lagos Control Office, National Pension Commission, Kenneth Egwu; Director, Inspectorate, NAICOM, Barineka Thompson; Deputy Commissioner for Insurance, Technical, Sunday Thomas and Head, Commissioner’ Office, Rasaaq ‘Salami at the event.
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Chuks Udo Okonta
Determined to ensure insurance companies comply with the rules governing the International Financial Reporting Standards (IFRS) 9, the National Insurance Commission (NAICOM) has secured approvals from the Security and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) for underwriters to submit their 2018 financial accounts by the end of April 2019 as against the statutory March deadline.
The Deputy Commissioner for Insurance, Technical, Sunday Thomas, disclosed this today at a media parley in Lagos. He noted that NAICOM approached the sister regulators – SEC and NSE – to extend the submission date to allow insurance companies tidy their accounts in line with the International Financial Reporting Standards (IFRS) 9.
On efforts made but the commission to ensure seamless migration from the the IFRS 4 to IFRS 9, Thomas noted that the commission having issued the IFRS 9 guidelines, had a meeting with Chief Operating Officers of companies to educate them on the workings of the IFRS 9.
He stated that the commission also had one-on-one engagements with the companies to ascertain their level of preparedness, adding that the commission had make the process easy for the underwriters.
He posited that IFRS 9 provides significantly improved information because it introduces a structured approach to the classification and measurement of financial assets that reflects the business model in which they are managed and their cash flow characteristics.
It also provides for more timely recognition of loan losses as it uses a forward-looking expected credit loss model; and has an improved hedge accounting model that better links the economics of risk management with its accounting treatment, he said.
Director, Inspectorate, NAICOM, Barineka Thompson, said the new accounting format is an improvement on IFRS 4 that was in use before now, noting that IFRS 9 introduces a new methodology for financial instruments classification and that the incurred loss impairment model is replaced with a more forward looking expected loss model.
IFRS 9 Financial Instruments, he added, brings fundamental changes to financial instruments accounting and replaces IAS 39 Financial Instruments.
He noted that the commission had yesterday approved the 2018 accounts of four insurance companies which complied with the IFRS 9 guidelines.