Saturday, 5 July 2014

Why some insurers struggle with IFRS – Expert


Chuks Udo Okonta

Knowledge and skill gap; lack of sufficiently deep actuarial know how in conducting actuary valuation aspects of the financial statements; limited shareholders engagement amongst others, have been identified as challenges affecting insurers in aligning their accounts with the International Financial Reporting Standard (IFRS).

Head/ Legal and Regulation Division, Nigerian Stock Exchange (NSE) Tinuade Awe, who disclosed this, said it was expected that insurance companies would have little or no problem in transiting to IFRS, but reverse seem to be the case.

She said: “The issue of first time adoption of IFRS offs the table, it was expected that insurance companies will face lesser challenges in the preparation and submission of their accounts as at when due that has not been borne so far.

“The insurance sector has the negative distinction of usually having a majority of its members filing in default, even before IFRS adoption.”

She noted that the discharge of continuous disclosure obligations among insurers is very discouraging, and the tax regime also not encouraging.

 

 

 

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