New Valuation Regulations to Boost Financial Sector Integrity – FRC Boss
The Financial Reporting Council of Nigeria (FRC) is making strides toward enhancing transparency and fairness in the financial sector with its proposed Valuation Regulations for Financial Reporting. Dr. Rabiu Olowo, the Executive Secretary/CEO of FRC, emphasized this during a stakeholders’ engagement session held in Lagos.
Key Highlights of the Proposed Regulations
1️⃣ Structured Valuation Practices:
The regulations aim to standardize valuation methods, reducing subjective judgments and ensuring comparability of financial statements across industries and regions.
2️⃣ Enhanced Transparency:
Valuers will now disclose methods and assumptions, ensuring stakeholders clearly understand how valuations are derived.
3️⃣ Defined Roles and Accountability:
The framework outlines responsibilities for valuers, auditors, and other stakeholders, fostering accuracy and integrity in financial reporting.
4️⃣ Alignment with Global Standards:
By adhering to international best practices, the guidelines aim to attract local and international investors while minimizing risks associated with inconsistent valuation practices.
Dr. Olowo’s Vision
Dr. Olowo stated:
“These regulations provide a structured approach that upholds fairness, transparency, and accuracy. They are a significant step toward ensuring that our financial markets remain competitive, credible, and investor-friendly.”
He also highlighted that the stakeholders’ input from the engagement session would help refine the regulations, ensuring they meet market needs while fostering trust and integrity.
What’s Next?
Stakeholders are encouraged to submit their comments on the draft regulations before they are finalized. The proposed framework promises to reshape Nigeria’s financial landscape by promoting fairness, reducing ambiguities, and setting clear guidelines for valuation processes.
Stay updated on this transformative initiative as FRC ushers in a new era of financial reporting excellence!
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