Nume Ekeghe
The Central Bank of Nigeria (CBN) has released a set of guidance notes on the implementation of the International Financial Reporting Standards (IFRS9) for the other financial institutions (OFIs).
The circular which was signed by the Director of OFIs, Mrs. Tokunbo Martins, was posted on the central bank’s website.
The CBN directed the OFIs when measuring financial instruments and assessing significant increase in credit risk, to ensure that an entity, at each reporting date, assess whether the credit risk on a debt instrument measured at amortised cost and fair value through other comprehensive income has increased significantly since initial recognition, using among other factors the change in the risk of a default occurring over the expected life of the instrument.
Part of the circular reads: “The CBN expects OFIs to put in place policies and systems as well as governance arrangements and controls to identify instances…
