INTERNATIONAL FINANCIAL REPORTING STANDARDS IMPLEMENTATION

1 EXECUTIVE SUMMARY

OUR OBJECTIVE

We are desirous of being International Financial Reporting Standards Consultants to organisations for the implementation of
International Financial Reporting Standards [―IFRS‖].

OVERVIEW

The Federal Government of Nigeria had formally announced that the International Financial Reporting Standards (IFRS) will become
operative by 2012.

Public Listed Entities and Significant Public Interest Entities in the country would be preparing their accounts in accordance with the
IFRS from January 2011 in order to have comparative figures by end of 2012.

Other Public Interest Entities in the country would be preparing their accounts in accordance with the IFRS from January 2012 in
order to have comparative figures by end of 2013.

Small and Medium Sized Entities would be preparing their accounts in accordance with the IFRS from January 2013 in order to have
comparative figures by end of 2014.

Implementing IFRS can have an impact on almost all aspects of an organisation, including financial reporting systems, internal
controls, taxes, treasury, management compensation, cash management, and legal, among others.

While implementation of high-quality financial reporting standards is challenging, when planned and managed properly, the
conversion can bring substantial improvements in the performance of the finance function, streamline the statutory financial reporting
process globally, enhance controls, and reduce costs, as it affords:

 Standardized and improved accounting and financial reporting policies

  Heightened efficiency in the use and availability of resources

 Centralized statutory reporting at shared services centers

 Enhanced controls

 Improved cash management

OUR SERVICE OFFERING

IFRS represents a complete change in the language of financial reporting and as your consultants we shall assist you to fully transit
from Nigerian GAAP and implement IFRS.

We shall;

 Assist in determining your current position and providing information regarding the gap between your position and the
intended destination.

 Design an IFRS adoption programme for your organisation based on the diagnosis/gap analysis

 Implement an IFRS adoption programme for your organisation based on the diagnosis/gap analysis and the agreed adoption
programme.

 Provide post implementation support to ensure that the programme remains on track.
2 WHY OLAOLU OLABIMTAN & CO

THE FIRM

The firm has versatile experiences and very knowledgeable IFRS personnel with appropriate certifications.

OUR TRACK RECORD IN IFRS IMPLEMENTATION SERVICES

We have served and are already serving the following clients and the implementation which are going smoothly (on time & on
budget) are at different stages;

CLIENT STATUS

Omatek Ventures Plc Concluded

Vono Products Plc Concluded

Nigerian Reinsurance Corporation Concluded

Gitto Costruzioni Generali Nigeria Limited Ongoing

Ongoing
Hawthorn Suites
Urban Shelter Limited Ongoing

OUR IFRS TEAM

OLAOLU OLABIMTAN HAKEEM KAREEM KEHINDE ADEBOYE

Managing Partner Partner Senior Associate

(B.Sc Accounting, M.B.A, F.C.T.I, F.C.A, (B.Sc Applied Accounting, A.C.A, (B.Sc Mathematics, A.C.A, ICAN Certified
C.F.E,C.F.A, AICPA Certified IFRS Expert) A.C.C.A, A.C.F.E, ICAN Certified IFRS IFRS Expert)
Expert)
3 PROPOSED METHODOLOGY

OPERATIONAL METHODOLOGY

SCOPE

Our objective is to assist you to fully transit from Nigerian GAAP and implement IFRS.

We shall;

 Assist in determining your current position and providing information regarding the gap between your position and the
intended destination.

 Design an IFRS adoption programme for your organisation based on the diagnosis/gap analysis

 Implement an IFRS adoption programme for your organisation based on the diagnosis/gap analysis and the agreed adoption
programme.

 Provide post implementation support to ensure that the programme remains on track.

METHODOLOGY

Our strategy in addressing the assignment will be as follows;

PHASES

There are three key phases associated with converting to IFRS.

Creating an implementation plan based on this three phase framework allows management to assess in advance the extent to which
its business will be affected by these fundamental issues and to address these business issues appropriately.
 PHASE 1 PHASE 2 PHASE 3
 Gap Analysis - Diagnostics, Planning and  Implementation  Post Implementation Review -
Solution Development Maintenance
2 Weeks 12 WEEKS 24 WEEKS
◄PROJECT MANAGEMENT AND QUALITY ASSURANCE►
◄CHANGE MANAGEMENT AND KNOWLEDGE TRANSFER►

There shall also be four (4) elements that shall pervade the entire assignment and the four phases.

These are;

 Project Management

 Quality Assurance

 Change Management

 Knowledge Transfer

The particular work to be done in each phase shall be as follows;

 PHASE 1 : DIAGNOSTICS, PLANNING & SOLUTION DEVELOPMENT
OBJECTIVE
 Assessing the impact conversion may
have on all aspects of the business
 Identifying industry issues and
benchmarks, including assessing industry
peer group accounting policies under IFRS
and their relevance
 Setting up project team & providing
necessary orientation
 Determination & acquisition of required
resources & setting up project
management logistics.
 Understanding the current state of
processes and reporting in the
organisation
 Identification of the variations from IFRS in
the current processes and reporting
 Determination and identification of relevant
IFRSs and applicable processes and
reporting standards
 Identifying appropriate solutions
 Determining the right approach to
implementing critical changes to the
information technology and processes
WORK TO BE DONE EXPECTED OUTPUT
 Establish project team  Detailed work plan
 Set up project steering committee  Finalized logistics arrangement.
 Develop detailed work plan for the project  A good, high-level roadmap for the
stating tasks, responsibilities & timing conversion will define and control the
conversion, from possible changes in
 Hold project kick off meeting
technical accounting to implications for IT
 Determine engagement schedule & set up and personnel.
interviews.
 Conduct a high-level analysis of current
systems
 Interview key stakeholders to fully  Current state assessment
understand the current processes
 Gap Analysis
 Assess existing structure/ organisation
 Suggested IFRS compliant Accounting
 Assess current skills & expertise of the policies
responsible personnel - relevant individual
knowledge & ability to transit and manage
the new regime.
 Identify gaps.
 Develop appropriate solutions  Detailed conversion plan

OBJECTIVE
 Getting the reporting function
to work as prescribed
 Transition from local GAAP to
IFRS
 Implementing changes to
technology and processes
PHASE 2 : IMPLEMENTATION
WORK TO BE DONE
 Complete testing of all changes
 Recognition and Derecognition of components of the
financial statements as applicable
 Preparing the opening IFRS Statement of Financial
Position as of the transition date
 Preparing the full-year IFRS financial statements with
comparatives —potentially parallel reporting.
 Design reporting framework & report formats
EXPECTED OUTPUT
 New Chart of Accounts
 Opening IFRS Statement of Financial
Position as of the transition date
 Dual set of accounts on the ERP
 Full-year IFRS financial statements with
comparatives

 Build capacity around the  Develop plan for communicating the changes.  Training plan
designed reporting function
 Develop implementation plan, indicating personnel  Trained staff
and IFRS Framework
responsibilities, resource requirements & timing.
 This phase is the critical
 Articulate & document training needs for requisite
juncture for relevant
personnel.
education and training to
members of the accounting  Develop training curriculum
and finance organization, as
 Train necessary personnel on new processes and
well as all other business
methodology
units and stakeholders
impacted by the conversion.  Communicate changes to all stakeholders
 PHASE 3 : POST IMPLEMENTATION REVIEW - MAINTENANCE
OBJECTIVE
 Ensuring that the system is working as
prescribed after implementation
WORK TO BE DONE EXPECTED OUTPUT
 First review after 3 months of operation  Reports that fully comply with the
International Financial Reporting
 Second review after a further 3 months
Standards
period.
 Completion and deployment of any
additional education and training across
the organization
WORK TEAMS

An IFRS conversion project usually consists of cross functional work teams, implemented across the organization and business
units.

These work teams play a crucial role in each phase of the IFRS conversion framework.

We shall work with you to create teams to drive the process in the following areas;

TEAM 1: PROJECT TEAM 2 : TEAM : 3 : BUSINESS TEAM 4 : TEAM 5 : CHANGE

MANAGEMENT ACCOUNTING AND PROCESS AND REGULATORY AND MANAGEMENT,
REPORTING SYSTEMS INDUSTRY COMMUNICATION AND
TRAINING

 This team supports  This team identifies  This team interacts with  This team focuses on  This team assess IFRS
the IFRS conversion accounting the accounting and identifying impacts on education requirements
project differences and reporting work team to regulatory compliance throughout the
changes resulting understand key and reporting from the organization
 It establishes the
from the conversion accounting differences IFRS conversion.
project infrastructure  It develops education
to IFRS between Nigerian GAAP
and support role,  The team and training to meet the
and IFRS.
 It prepares the communicates with requirements
 It works with the
updated IFRS  It identifies the IFRS regulators as
other project teams  It develops and deploys
accounting policies conversion effects on necessary
to develop and track communication
business processes and
project milestones  It identifies and  It implements protocols around the
technology and evaluates
communicates regulatory and IFRS conversion
 It develops and implementation
reporting changes compliance reporting
maintains project alternatives.
resulting from process and system
plans
conversion to IFRS.  The team also prepares changes
and implements newly
required process
documentation
 It supports the IFRS
reporting functions during
the implementation and
post-implementation
phases.
4 NEXT STEPS

If you need help with IFRS in your organization contact any of the partners;

Olaolu Olabimtan
Managing Partner
Mobile: +234 803 371 0099
e – mail: olaolu@olaoluolabimtanandcompany.com

Hakeem Kareem
Partner
Mobile: +234 703 768 1603
e – mail: hakeem@ olaoluolabimtanandcompany.com