The Financial Reporting Council of Nigeria has said the country is not experiencing hyperinflation and thus there is no need for entities to apply International Accounting Standards (IAS) 29 in the preparation of financial statements for the 2024 financial year.
The IAS 29 is a reporting standard that prescribes rules for financial reporting for companies that use the currency of a country with very high inflation as their main currency for business operations.
According to the executive secretary and chief executive of the FRC, Rabiu Olowo, there is no need for companies to apply the IAS 29 as its surveys had shown that the country is not in hyperinflation.
Olowo said the council, having engaged various stakeholders such as the professional accounting bodies, external auditors, government regulatory agencies and public interest entities, had concluded that “Nigeria is not yet a hyperinflationary economy.”
He noted that there had been an evaluation of the five indicators of the economic environment of a country as stipulated in IAS 29 to determine the relevance and applicability of the standard in Nigeria in light of the inflationary trend in the country but found that the country met only one of the five.
