Ete Kpogho

What a way to kick-start the new FY 25! At EY Nigeria, it has been a week abuzz with a series of noteworthy events, starting with the celebration of EY Day on 1 July 2024 to the Manufacturers Association of Nigeria (MAN) Summit in partnership with EY Nigeria, and then a Client Update Event/Webinar. I had the privilege to participate in the Client Update Webinar themed: The Changing Economic and Regulatory Landscape: Implications for 2024 Half-Year Reporting on Wednesday 3 July 2024. Specifically, I discussed recent regulatory updates that will impact the financial reporting processes of businesses operating in Nigeria. The webinar, which saw an impressive turnout from both EY clientele and non-client participants, delved into macroeconomic updates and their ramifications for businesses, financial reporting updates, and considerations against the backdrop of current economic conditions and the latest regulatory changes. Here are the five important key takeaways from my presentation on regulatory updates: ✔ New Capital Requirements for Nigerian Banks: The Central Bank of Nigeria has significantly increased capital requirements for banks. Banks may consider raising capital through private placements, rights issues, public offers, or mergers and acquisitions. ✔ Banks should pay attention to the financial reporting implications of the method they choose to meet the new capital requirements. ✔ Adoption of IFRS Sustainability Standards: The Financial Reporting Council of Nigeria has set out a roadmap for the phased adoption of IFRS S1 and S2 standards on sustainability and climate-related disclosures. It is mandatory for Public Interest Entities (PIEs) to adopt these standards by 2028. PIEs should start now as early preparation is key to a seamless transition. ✔ FRC Guidance on Internal Control Over Financial Reporting (ICFR): The FRC guidance on ICFR becomes effective for annual periods ending on or after December 31, 2024. Are you ready? Management is expected to certify the effectiveness of ICFR in annual reports, and auditors are required to provide an attestation report. ✔ FRCN Rule 13 for Non-resident Companies: Non-resident companies deriving profit from Nigeria now have new filing obligations with the FRCN. The rule requires that the financial statements should be prepared in accordance with IFRS, audited by a licensed accountant in Nigeria, and submitted to the FRC within 30 days of sending to any other government authority. Were you unable to attend the webinar? Don't worry, as we have you covered. Stay tuned for the forthcoming edition of our client update webinar series. #EY #FinancialReporting Jamiu Adeyemi Olakisan, Alani Surakat, Anthony Oputa, Williams Erimona, Adeola Haastrup-Mbah (FCA), Olayinka Oyetunji, CFA, FCA, ACS, Dele Monsuru Lasisi, Ifeanyi Sylvester Obioha BSC,AAT,ACA., Esther Ajibola, Idoko Emmanuel, Ashish Bakhshi

134

7 Comments

It is always important to reiterate that the IFRSs have two primary (2) purposes; 1) They are either issued to address and replace some deficiencies inherent in some existing IASs (e.g IFRS 5 replacing IAS 35, IFRS 8 replacing IAS 14, IFRS 9 replacing IAS 39, IFRS 15 replacing IAS 8 and IAS 11, IFRS 16 replacing IAS 17, etc) or, 2) They are issued to address entirely new and emerging global corporate reporting issues (e.g IFRS 1, IFRS 2, IFRS S1 and S2, etc). In line with the first purpose highlighted above, IFRS 18 has come to address and replace some deficiencies inherent in IAS 1 based on Investors' concerns around transparency and uniformity. The four (4) clear objectives of IFRS 18 are the; 1) Introduction of defined subtotals and categories (operating, investing and financing categories) in the statement of profit or loss, 2) Introduction of requirements to improve aggregation and disaggregation, 3) Introduction of disclosures about Management-defined Performance Measures (MPMs) in the notes to the financial statements, and 4) Targeted improvements to the statement of cash flows by amending IAS 7 Statement of Cash Flows. IFRS 18 is effective for annual periods beginning on or after January 1, 2027, with early application permitted. For a smooth and well phased transition, companies are required to apply the new requirements in interim financial statements in the initial year of application and restate comparative information for the prior year, following IAS 8. Anticipate! #IFRSReporting #IFRSTransitionsAndConversions #IASBImplementations #FinancialReporting #TransparencyAndUniformity

35

2 Comments

The April 2024 edition of PwC's Tax recap series is live! In this episode, Kenneth Erikume, Partner and Lead Tax Reporting and Strategy and Ochuwa Alegeh share insights on 3 recent Executive Orders issued by the Nigerian government. The release of these Orders follow the circular on Fiscal Incentives for the Presidential Gas Growth Initiative recently issued by the Ministry of Finance. It also addresses some of the concerns of the stakeholders in the Petroleum sector regarding ease of doing business. However, achieving the objectives of the directives will depend on the government’s policy consistency, and collaboration and alignment of the Executive (including the Ministries Departments and Agencies) and the Legislature on the relevant tax and fiscal policy issues Chijioke Uwaegbute, Seun Adu, Esiri Agbeyi, Tiwa Otufale CTA, ADIT, Babatunde Adedigba, Ugochi Ndebbio LLB, BL, ACCA, ACA, FCTI, ACIS, Babatunde Olaniyi ACA, ADIT, ACTI, Ademola Idowu, FCA, MSc, Oluwatoyin David, Ayo Akinduyite, Abiodun Kayode-Alli https://lnkd.in/dvZAdjA5

20

Enhancing Trust through ISAE 3402 Reporting EY is delighted to share our latest thought leadership document, "Building Trust with Service Organisations in Nigeria through ISAE 3402 Reporting." This guide underscores the importance of ISAE 3402 reporting standards in ensuring robust internal controls over financial reporting, essential for maintaining client trust and regulatory compliance. In our interconnected business environment, service organisations such as fintech companies, datacenters, and SaaS providers play a critical role in managing user entities' data. The document elaborates on the significance of ISAE 3402 reports in providing assurance on the accuracy and reliability of financial statements, thereby mitigating risks associated with data outsourcing. The report covers the two types of ISAE 3402 reports: Type 1, assessing the design and implementation of controls, and Type 2, evaluating the operational effectiveness of these controls over time. It also addresses challenges faced by Nigerian organisations in implementing these controls and offers best practices for successful compliance. We believe this document will offer valuable insights for your organisation in enhancing trust, gaining a competitive edge, and improving risk management and operational efficiency. Please find the document attached. Should you have any questions or require further assistance, feel free to contact us. Thank you for your continued trust in our services. Best regards,

2

Finance Business Partner Masterclass - June 2024! 𝗠𝗘𝗘𝗧 𝗧𝗛𝗘 𝗙𝗔𝗖𝗜𝗟𝗜𝗧𝗔𝗧𝗢𝗥 Ajibola Jinadu With over 16 years of experience and a history of impactful roles, Ajibola is the expert you want to learn from. 𝗛𝗼𝘄 𝗗𝗼𝗲𝘀 𝗶𝘁 𝗛𝗲𝗹𝗽 𝗬𝗼𝘂? 1. 𝗚𝗹𝗼𝗯𝗮𝗹 𝗧𝗮𝗰𝘁𝗶𝗰𝘀, 𝗟𝗼𝗰𝗮𝗹 𝗜𝗺𝗽𝗮𝗰𝘁:    Dive deep into strategies that have proven successful across the globe. Ajibola's rich background spans from his start at Deloitte to his role as a CFO influencing markets across Africa, Europe, and the US. Here’s your chance to apply these wide-reaching insights directly to your local context. 2. 𝗕𝗲𝘆𝗼𝗻𝗱 𝗕𝗮𝘀𝗶𝗰𝘀:    With ICAN and ACCA Fellowships, and an FMVA certification, Ajibola doesn’t just know finance; he knows how to mold it to spur growth and innovation. This masterclass will move you beyond everyday finance into the realm of strategic business impacts. 3. 𝗕𝗼𝗮𝗿𝗱𝗿𝗼𝗼𝗺 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝘁𝗼 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗧𝗿𝗶𝘂𝗺𝗽𝗵𝘀:    Imagine having access to the strategies discussed in the boardrooms of 50 top companies. Ajibola brings this exclusive insight straight to you, offering unparalleled lessons on steering companies towards success. 4. 𝗦𝗶𝗺𝗽𝗹𝗶𝗳𝘆𝗶𝗻𝗴 𝘁𝗵𝗲 𝗖𝗼𝗺𝗽𝗹𝗲𝘅:    Ajibola’s ability to demystify complex financial concepts makes learning both enjoyable and impactful. Prepare to walk away with knowledge that feels intuitive and immediately applicable. 5. 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝘁𝗵𝗮𝘁 𝗜𝗻𝘀𝗽𝗶𝗿𝗲𝘀:    Transform from a traditional finance professional into a visionary leader who commands the boardroom with confidence and strategic foresight. 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗠𝗮𝘀𝘁𝗲𝗿𝗰𝗹𝗮𝘀𝘀? This isn't just a learning opportunity; it's an interactive experience that promises personal growth and professional advancement Engage directly with a mentor who’s walked the path and has transformed challenges into success. 𝗘𝗻𝗿𝗼𝗹 𝗡𝗼𝘄 𝘁𝗼 𝗦𝗲𝗰𝘂𝗿𝗲 𝗬𝗼𝘂𝗿 𝗦𝗽𝗼𝘁: Spaces are filling fast! If you’re ready to step up as a strategic financial leader, don’t wait. Register now (link in the comments below) and take a giant leap in your finance career! #myCFOng

30

3 Comments

The Central Bank of Nigeria (CBN) recently announced an increase in capital requirements for banks operating in Nigeria across the different license categories. #kpmg #kpmgadvisory #nigeria #kpmgtaxmobileapp #CBN #Bankrecapitalisation

3

The Electricity Act 2023 will shape the future of Nigeria's power sector. PwC's latest report explores its potential impact. Read more in the 14th PwC Annual Power and Utilities Roundtable report: #PowerRoundtable #ElectricityAct2023 #PwCPRT2023

2

Let's capitalise on emergence of new tools and concepts to improve the efficiency of current systems and processes. Spend some few minutes in this insightful piece.

21

1 Comment

Our maiden Deloitte Restructuring Survey 2024 (Ghana) launches on today, Monday, 29th April at GARIA Ghana. This is the first Restructuring Survey that comprehensively covers Ghana and solicits insights from Lenders, Practitioners and C-Suit Executives on key areas including business priorities, shareholder value creation, insolvency legislation, and informal restructuring. We look forward to sharing key insights from this survey with our audience. Kudos to Yaw Appiah Lartey, ESQ, FCCA, FCA, Dennis Ishmael Brown (BA, FCCA), Kow Bedu-Addo, Jo Mitchell-Marais FCA, Ken Afrah, Kulani Rivombo, Melainey Mpofu, MPhil, and the wider Deloitte Turnaround and Restructuring team for putting together this report. #DeloitteRestructuring #impactthatmatters #DeloitteRestructuring #DeloitteTurnaround #FutureofRestructuring #InformalRestructuring #BusinessRescue #DeloitteAfrica #ImpactThatMatters

41

I will be speaking tomorrow on " Beyond Compliance: Sustainability as a Business Enabler" as part of the CPD program for a group of dedicated accountants. Drawing from my experience in sustainability, risk management, and corporate governance, I look forward to offering insights into how businesses can leverage sustainability beyond regulatory compliance. With Ghana's adoption of IFRS S1 and S2 by the Institute of Chartered Accountants (Ghana) and the journey toward mandatory adoption from January 2027, it’s crucial for businesses of all sizes to understand what sustainability truly means. It's not just about adhering to regulations; it's about integrating sustainable practices that drive business growth, resilience, and long-term value. This session will delve into the steps businesses need to take now to prepare for the mandatory reporting requirements and how sustainability can become a strategic enabler rather than just a compliance checkbox. Looking forward to an engaging and insightful session! #Sustainability #IFRS #BusinessGrowth #Compliance #CPD #Ghana #Accountants #CorporateGovernance #RiskManagement #SustainabilityReporting #ESG

91

3 Comments

The Central Bank of Nigeria (CBN) recently announced an increase in capital requirements for banks operating in Nigeria across the different license categories. #kpmg #kpmgadvisory #nigeria #kpmgtaxmobileapp #CBN #Bankrecapitalisation

4

Save the date, save a moment and find out what may affect your tax account...

2

The URA has done its best to help us onboard to EFRIS, though not the most seamless way but you cannot discredit their efforts. From my conversations with a few small business owners and employees of companies in the finance department and even other individuals, it has become apparent to me that people do not know how tax works, especially when it comes to VAT. This lack of tax knowledge is one of the contributors to the inability of people to embrace EFRIS. When you partner this with some of the prevalent issues with the system, you understand why it gets a bad rep. I plan on writing a detailed article on how taxation of traders in Uganda actually works and how, from my experience, this has been integrated into EFRIS. This should at least solve one of the problems that traders have with EFRIS. At least for those that will have access to the article.

35

1 Comment

EY Africa’s Assurance Innovation & Digital Leader, Amé Thwaits on the future of AI in auditing: Read more on page 36 of ASA’s September edition: https://go.ey.com/3MAtu5g

18

Is there any reason why you’ve still not registered for this training program designed by the Deal Advisory Unit of KPMG Ghana? No matter your level of experience in financial modeling, business valuation, and investment analysis, there is still something here for you to learn. The sessions are designed to be interactive and practical, with real-world case studies designed to cover several sectors. 🔗 Register Here: https://lnkd.in/dbvbhqpR Do not hesitate to contact me if you need further clarification! #FinancialModeling #BusinessValuation #InvestmentAnalysis #KPMGGhana

43

3 Comments

The Lagos zone of the TAT has suprisingly ruled that the FIRS’ discretionary powers under section 21 of the CIT cannot be challenged. #kpmg #kpmgadvisory #kpmgtax #tax #FIRS #KPMGNigeria #Nigeria #VAT #taxaudit #dividends

11

1 Comment

On Thursday, August 8, 2024, at the Sheraton Hotel in Kampala, I attended the KPMG Executives' Breakfast on "Transcending Environmental, Social, and Governance (ESG) Compliance and Risks to Unlock Shareholder Value." Here are my key takeaways: Embarking on an ESG journey goes beyond mere compliance. It’s about weaving these principles into the very core of our business strategies, ensuring they drive sustainable growth and unlock long-term value for shareholders. ESG is a multi-layered journey that requires a thoughtful approach and long-term commitment. ESG should be considered as a Value Base and foundation that underpins all business practices for driving real impact. Understanding the concept of double materiality is vital. It’s about recognizing not only how environmental and social factors impact our businesses but also how our businesses impact the environment and society. Effective ESG integration involves setting clear targets based on key issues relevant to our companies. There is an urgent need to invest in our teams’ capacity to report on ESG metrics. Being able to measure and track progress in ESG initiatives is not only critical for continuous improvement but also for transparency and accountability. Starting the journey towards sustainability opens up numerous opportunities, from improving community relations to achieving financing from ESG-conscious lenders amongst others. Identifying where these opportunities lie can provide significant business advantages. Let us all connect purpose with business practices and make meaningful progress towards a sustainable future.

95

3 Comments