FirstBank Adopts International Financial Reporting Standards

First Bank of Nigeria Plc has adopted the International Financial Reporting Standards (IFRS) as certified by the International Accounting Standards Board to further strengthen its corporate governance standards and enhance transparency in the disclosure of its financial reports.
The adoption of IFRS by FirstBank takes immediate effect, and will apply to the bank’s financial report for the year ended March 31, 2009; by so doing FirstBank aligns with the strongest global standards of transparency in financial reporting.
The need for financial statements to be comparable on the same basis across territories is an imperative in today’s global market where investors seek opportunities in markets outside their home economies. The adoption of IFRS by FirstBank will enhance shareholder value and bring added benefits to its business relationships with numerous overseas correspondent banks, multilateral organizations and international investors that require financial statements to make informed decisions about the bank.
At the moment, IFRS is not a regulatory requirement in Nigeria although efforts are reportedly underway to promote a convergence between IFRS and local accounting standards. The IFRS regime requires more detailed disclosures on risk management, insider related transactions and changes in accounting policies than obtains under the local Statements of Accounting Standards (SAS). The bank will continue to produce financial reports in compliance with both IFRS and SAS until local regulatory requirement makes full convergence of the two standards mandatory.
Mr. Sanusi Lamido Sanusi, group managing director/CEO of FirstBank, asserted that the “adoption of the IFRS is a significant milestone which further cements FirstBank’s leadership in corporate governance.” Hoping that other institutions will follow suit in order to promote transparency in financial reports and upgrade the nation’s sovereign rating.
Sanusi added that “FirstBank can now benchmark its performance against international financial institutions and thus spur the drive for better performance not just for us but for the industry as a whole.”
Mr. Oladele Oyelola, Chief Financial Officer (CFO) of the bank said that “as Firstbank becomes a global player, our financial statements prepared in line with IFRS will be easily comparable with other financial statements worldwide, thus eliminating the need to translate statements prepared under the local SAS for international use.”
FirstBank’s continued commitment to corporate governance and improved disclosure levels in the reporting of its financials has been recognized severally especially by the regulatory authorities. In November 2008, FirstBank won the Nigerian Stock Exchange’s (NSE) 2007 Quoted Company of the Year Award.
FirstBank’s “position as one of Nigeria’s leading financial services providers is largely due to its extensive branch network and strong franchise, which has also afforded the Bank a robust funding and liquidity profile.”