The Financial Reporting Council (FRC) has explained that Nigeria has not gotten to the point of hyperinflationary economy, adding that International Accounting Standards, IAS 29, is not necessary in 2024 financial statements preparation.
The Council, in a press statement signed by its Executive Secretary/Chief Executive Officer, Rabiu Olowo, noted that IAS 29 which borders on Financial Reporting in Hyperinflationary Economies should not be applied in the preparation of financial statements for the 2024 financial year.
According to Olowo, “Determining hyperinflation requires significant judgment and consideration of all relevant indicators. After thorough analysis of the above indicators, the FRC concludes that Nigeria is not yet a hyperinflationary economy.
“Therefore, IAS 29 should not be applied in the preparation of financial statements for the 2024 financial year.
“The FRC will continue to monitor economic developments and update this position when necessary. Data from the National Pension Commission shows that the Nigerian pension assets which are predominantly held in monetary assets have also continued to increase.”
