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FRC adopts ISSB to curb corporate corruption

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By Abraham Adekunle

Nigeria is reportedly the first African country to adopt the tool.

In a bid to promote transparency in corporate governance and end corruption in the private sector, Nigeria has adopted the International Sustainability Standards Board (ISSB). The country is reportedly the first in Africa to do so. The board was formed on November 3, 2021 at the United Nations global summit COP26 in Glasgow by the Trustees of the International Financial Reporting Standards (IFRS) Foundation. This was following the strong market demand for its establishment. The ISSB standards build significantly from existing reporting frameworks and standards.

It is developing in the interest of the public standards that will result in a high-quality, comprehensive global baseline of sustainability disclosures focused on the needs of investors and the financial markets. According to the foundation, sustainability factors are becoming a mainstream part of investment decision-making, and there are increasing calls for companies to provide high-quality, globally comparable information on sustainability-related risks and opportunities, as indicated by feedback from many consultations with market participants. There is also a strong desire to address a fragmented landscape of voluntary, sustainability-related standards and requirements that add cost, complexity and risk to both companies and investors.

ISSB has support from international organisations.

With its four main objectives, the ISSB has international support with its work to develop sustainability disclosure standards backed by the G7, the G20, the International Organization of Securities Commissions (IOSCO), the Financial Stability Board, African Finance Ministers and Finance Ministers and Central Bank Governors from more than 40 jurisdictions. Its objectives include to develop standards for a global baseline of sustainability disclosures; to meet the information needs of investors; to enable companies to provide comprehensive sustainability information to global capital markets; and to facilitate interoperability with disclosures that are jurisdiction-specific and/or aimed at broader stakeholder groups.

Furthermore, the ISSB builds on the work of market-led investor-focused reporting initiatives, including the Climate Disclosure Standards Board (CDSB), the Task Force for Climate-related Financial Disclosures (TCFD), the Value Reporting Foundation’s Integrated Reporting Framework and industry-based SASB Standards, as well as the World Economic Forum’s Stakeholder Capitalism Metrics. At their core, the ISSB standards will enable investors and other capital market participants to make informed investment decisions by providing information about companies’ sustainability-related risks and opportunities.

Emergence of ESG has made corporate governance more serious.

Meanwhile, all of these were disclosed by the Executive Secretary/Chief Executive Officer of the Financial Reporting Council of Nigeria (FRC) Ambassador Shuaibu Ahmed at the 2023 Annual Corporate Governance Conference. Speaking as a guest speaker under the theme, “ESG and Corporate Governance: Aligning Strategies for Sustainable Success,” Ahmed said that the world of corporate governance has undergone tremendous change due to the emergence of Environmental, Social and Governance (ESG). He stressed that with the ESG, the corporate governance world has taken a more serious look at issues of the environment, labour and social responsibility.

Also, he noted that a roadmap for the implementation of ESG in the Nigerian public sector will soon be launched. The keynote speaker, Dr. Jackie Chimhanzi, noted that human rights, labour, environment, and corruption are problems associated with corporate governance, which ESG addresses. The president of the Society for Corporate Governance Nigeria, Mr. Muhammed Ahmad, stated that issues around environmental responsibility are no longer a thing of choice for corporate organisations because they affect them. Discussants at the event included Mark Hoffman, Mrs. Chioma Afe, Ngozi Edozien, as well as Adebayo Amzat.

The standards are designed with efficiency in mind.

Present at the event as well were the Director General/ Chief Executive Officer of the Institute of Directors, Tijjani Borodo; Alhaji Garba Abubakar, Mr. Ibrahim Dasok Arabi, amongst others. Overall, the IFRS Foundation maintains that the standards are developed with efficiency in mind, helping companies to report what is needed globally to investors across markets globally; and to provide the right information, in the right way, to support investor decision-making and facilitate international comparability to attract capital.

Related Link

IFRS Foundation: Website

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1 month ago

FRC adopts ISSB to curb corporate corruption. – Nigeria is reportedly the first African country to adopt the tool. – Express your point of view.

1 month ago

The FRC has made excellent progress going a suitable approach with the acceptance of the ISSB standard. The ISSB will assist in fostering the accountability and responsibility that are necessary in administration. This is a result of its widespread acceptance on a worldwide level.

Adeoye Adegoke
Adeoye Adegoke
1 month ago

I’m glad to hear that the Financial Reporting Council (FRC) in Nigeria has adopted the International Standards on Auditing and Review (ISSB) as a tool to combat corporate corruption. This is indeed a significant milestone for Nigeria, as it becomes the first African country to embrace this tool.
The adoption of the ISSB demonstrates the government’s commitment to promoting transparency, accountability, and ethical practices within the corporate sector. By implementing these international standards, Nigeria is taking a proactive stance in addressing the challenges posed by corporate corruption and working towards a more robust and trustworthy business environment.
The ISSB provides a comprehensive framework that helps strengthen financial reporting, auditing, and review processes. It sets clear guidelines and best practices for auditors and reviewers, ensuring that they adhere to high standards of professionalism and integrity. This, in turn, enhances the reliability and credibility of financial statements, which is crucial for investor confidence and economic growth.
The fact that Nigeria is the first African country to adopt the ISSB is a testament to its commitment to promoting good governance and combating corruption. It sets a positive example for other nations on the continent to follow, highlighting Nigeria’s leadership in fostering transparency, accountability, and integrity in business practices
In addition, public awareness campaigns and educational programs can play a vital role in promoting a culture of ethics and integrity within the corporate sector. By raising awareness about the importance of transparent financial reporting and the negative consequences of corruption, individuals and organizations can make informed decisions and actively contribute to a corruption-free business environment.
Overall, the adoption of the ISSB by the FRC in Nigeria is a positive development that showcases the country’s commitment to combating corporate corruption. It provides a solid foundation for building a more transparent, accountable, and ethical business landscape. With continued efforts and collaboration, Nigeria can set a strong example for other African countries and contribute to the promotion of good governance and sustainable economic development across

1 month ago

There has always been corruption!
The fact that Nigeria is setting an example by implementing the ISSB to combat corporate corruption is truly noteworthy. It demonstrates our dedication to encouraging openness and accountability.In order to combat the problems caused by corruption in businesses and create a more stable and reliable economic climate, Nigeria is adopting an active role.
A thorough structure is provided by the ISSB to improve financial reporting.