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Legal Basis For Implementation Of The IFRS 9 Reporting Standard And Its Tax Implications For Nigerian Entities


In our view, the FIRS 9 regime has both legal and tax implications for business entities operating in Nigeria, particularly, those with substantial interest in financial instruments.

The potential challenges identified above notwithstanding, we hold the view that adoption of the IFRS 9 is not all doom and gloom for Nigerian businesses. Some recognized benefits that will flow therefrom include the now permitted deductibility of impairment losses in the financial statements of corporates, as well as the treatment of financial assets at fair value through profit or loss.

However, for businesses to access these benefits, it is imperative for the FIRS to exercise its discretionary powers (pursuant to section 24(f) of the CITA) with respect to treatment of bad and doubtful debts, in a manner that will give effect to the underlining and overarching objectives of the IFRS 9. We remain optimistic and are on the look out to see how IFRS 9 will help reporting obligations of Nigerian businesses and entities. 


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DISCLAIMER: This article is only intended to provide general information on the subject matter and does not by itself create a client/attorney relationship between readers and our Law Firm or serve as legal advice. Specialist legal advice should be sought about the readers’ specific circumstances when they arise.