New standards do not wait for a quiet year, and the established ones do not get easier. We take IFRS 9, IFRS 18, IFRS S1 and IFRS S2 from the board paper to the actual statements, notes and close calendar.
IFRS 18 recasts how performance is presented: categories of income and expense, management-defined performance measures, and the notes that have to sit beside them. We map the current profit or loss to the new structure, rewrite the statement, and train the team that will have to produce it every period.
IFRS S1 and IFRS S2 bring sustainability-related financial information into the same reporting discipline as the accounts. Governance, strategy, risk and metrics — climate first under S2 — written so they can sit next to the financial statements, not in a separate brochure. We scope the gaps, the data owners and the first set of disclosures the board can stand behind, against the FRC of Nigeria’s adoption calendar.
IFRS 9 in detail
IFRS 9 is where the numbers are largest and the judgement is hardest — especially for banks, microfinance banks and other lenders, where the expected credit loss charge can decide the year. We work on the whole standard, not only the impairment line.
- Classification and measurement — business-model assessment, SPPI testing, and the amortised cost, FVOCI and FVTPL categories applied to the actual portfolio
- Expected credit loss (ECL) models — three-stage impairment, significant-increase-in-credit-risk criteria, PD, LGD and EAD estimates, and forward-looking macroeconomic scenarios
- Simplified approach — provision matrices for trade receivables, contract assets and lease receivables
- Hedge accounting — hedge designation, documentation and effectiveness assessment
- CBN prudential reconciliation — for banks and microfinance banks: IFRS 9 impairment reconciled to CBN prudential provisions and the regulatory risk reserve
- Model review and governance — review of existing ECL models, assumptions, data and overlays before the auditor or regulator does
- Disclosures — IFRS 7 credit-risk, ECL movement and sensitivity disclosures
- Policies and training — accounting policies, methodology papers and training for credit, risk and finance teams
Who this is for
- Banks, microfinance banks and lenders that need IFRS 9 expected credit loss models the auditor and the CBN will accept
- Entities bringing IFRS 18 presentation into the next set of statements
- Boards that must publish IFRS S1 and S2 disclosures, not a sustainability brochure
- Finance teams that need a conversion plan and training, not a gap memo that sits in a drawer
What is included
- IFRS conversion and transition — from local GAAP or an older IFRS position: assessment, differences, risks and full implementation
- IFRS 18 — presentation and disclosure in financial statements, including management-defined performance measures
- IFRS 9 and IFRS 16 — financial instruments and leases: impact assessment, process change and compliant numbers
- IFRS S1 and IFRS S2 — general sustainability-related and climate-related disclosures
- Technical IFRS advisory — revenue, leases, financial instruments, consolidation and impairment, kept current
- Gap assessments and conversion plans — what changes, who owns it, and the calendar
- Training — workshops for the finance team that will produce the statements every period
How the work runs
Every engagement follows the same four steps: listen, scope in writing, do the work, stand behind it. The calendar and the named partner are in the letter — not in a follow-up email that never comes.
Questions we are asked
- When does IFRS 18 apply in Nigeria?
- Against the Financial Reporting Council of Nigeria’s adoption calendar — not a date copied from another jurisdiction. We scope the conversion to that calendar.
- Do S1 and S2 sit outside the accounts?
- They should sit next to the financial statements, with named data owners. We do not write a separate brochure and call it compliance.
- What is IFRS 18?
- IFRS 18 recasts how performance is presented: categories of income and expense, management-defined performance measures, and the notes that sit beside them. We map the current profit or loss to the new structure and train the team that will produce it.
- Do you still help with IFRS 9 and IFRS 16?
- Yes, in detail. Under IFRS 9 we cover classification and measurement, expected credit loss models, hedge accounting and the IFRS 7 disclosures. Under IFRS 16 we cover lease identification, measurement and the systems that keep the lease register current.
- Can you build or review our IFRS 9 ECL model?
- Yes. We build expected credit loss models from your loan and receivables data — staging, PD, LGD, EAD and forward-looking scenarios — or review an existing model, its assumptions and overlays. For banks and microfinance banks we reconcile the result to CBN prudential provisions.