Dollar to Naira News

Enhanced financial reporting will attract investments to Nigeria – Experts – Business Day

By

Financial experts have highlighted that proper valuation standards can enhance the financial reporting of firms in Nigeria and attract foreign investments within and outside Nigeria.

This was disclosed during the valuation seminar c0-organised by BusinessDay and Diya Fatimilehin & Co. last week themed ‘Decoding Valuation Standards: Implications for Financial Reporting and Investment’.

“The theme of the event is broadly about the importance of valuation standards in Nigeria and to the Nigerian economy. There is a firm connection between valuation and global connectedness in business and credible valuation standards are critical in achieving the goal of the N1 trillion economy in 2030,” Gboyega Fatimilehin, founding partner of Diya Fatimilehin & Co. said in his open remarks.

He said proper asset valuation and accurate financial reporting are important for attracting investment both domestic and international into the Nigerian economy to ensure credibility of reporting.

“Consistent application of asset valuation standards help stakeholders to make better-informed decisions by providing a more transparent and reliable view of the company’s assets and their impact on the financial statement,” he added.

Rabiu Olowo, chief executive officer of the Financial Reporting Council, represented by Ugochukwu Obu Nwora, said that through valuation standards, investors can confidently make accurate decisions.

“Investors rely on the financial reports before investing and if they are not accurate, they can end up making the wrong investment decision that will impact their assets. Experts from different stakeholders have been assembled to ensure that the first-ever valuation standards in Nigeria should be out before the end of August 2024,” he added.

In a fireside session, Chris Thorne, director of Valuology, said the purpose of valuation is to give businesses insights into key decision-making, stressing that it is essential for financial stability.

“It is very important to have adequate standard valuation in reporting. Valuation is a theoretical transaction so it is important to have rules on how such a hypothesis is developed which doesn’t have to be common. Investors need to trust and understand how it’s delivered,” he said.

He added that the recent changes in interest rates and exchange rates around the world require a revaluation of markets to measure all of those risks. However, there are no best valuation methods, valuers need to understand their market dynamics and take into consideration the risks involved.

During the panel session, Jamiu Olakinsan highlighted the best practices to ensure that the revaluation translates into accurate reporting, stating that the valuation report serves as an input into the financial reporting of the firm.

“The key financial reporting requirements for tangible assets can be classified into property, plant, and equipment which is not mandatory to carry them at fair value and the second is an investment property for either capital appreciation or rental purpose,” he said.

He emphasised the importance of disclosing the value used through financial reporting with valuation techniques such as market approach, income approach, or cost approach.

See Dollar to Naira black market today, Pound to Naira, Euro to Naira, Dollar to Naira CBN rate and Dollar to Naira Bank rate today.

Related Posts

Standard Bank Securities: Banks under our coverage could pay N217bn as proposed windfall tax – The Cable News

By Bunmi Aduloju The Standard Bank Group (SBG) Securities says banks under its coverage could pay N217 billion in the proposed windfall tax. In a report on Thursday,…

Central Bank’s Misguided Policies Under Cardoso Have Worsened Naira, Strangled Nigerian Economy – Civic Organisation – Sahara Reporters

By Sahara Reporters The Nigeria Must Win Network (NMWN), a civil society, has stated that interventions under the Governor of Central Bank of Nigeria (CBN), Olayemi Cardoso’s leadership…

Alleged N17.8bn Debt: Court Orders CBN, EFCC to Investigate Afex Accounts in 28 Banks – This Day News

By Wale Igbintade A Federal High Court in Lagos has ordered the Central Bank of Nigeria (CBN) and the Economic and Financial Crime Commission (EFCC) to carry out…

CBN resumes dollar sales to BDCs, halts Naira depreciation – Vanguard News

By Babajide Komolafe Directs BDCs to sell at N1,471/$ The Central Bank of Nigeria, CBN yesterday, announced the resumption of dollar sales to bureaux de change, BDCs, a development that…

CBN projects external reserves to dip in 2024 – Punch News

By Oluwakemi Abimbola The Central Bank of Nigeria has projected that the external reserves could reduce slightly in 2024 on the back of debt service and other obligations. This…

BoI to invest in green financing, modular refineries – Daily Trust

By Philip Shimnom Clement As part of initiatives designed to maximise growth and boost local investments, the Bank of Industry (BoI) has announced that it will explore new…