The Nigerian Stock Exchange (NSE) has asked stockbroking firms to adopt a common accounting year-end of December 31 to ensure consistency and more effective regulatory oversight in the market.
Stockrokers, who are dealing members of the NSE, submit their quarterly returns and yearly audited accounts to both NSE and the Securities and Exchange Commission (SEC). But the dealing members have different year end.
However, NSE said yesterday that in order to ensure consistency and for more effective regulatory oversight, it has become necessary to adopt a uniform accounting year-end for all dealing members.
According to the Exchange, following consultations with the dealing members, December has been adopted effective not later than December 31, 2014.
“Consequently, all affected dealing members should as a first step, should pass Board resolutions to the effect that their accounting year end will be December 31 and, thereafter, inform the Exchange and other relevant agencies accordingly,” NSE said in a circular to the dealing members.
“In the circumstances, all dealing members whose accounting year end fall on 31st December, should in the usual practice, submit their full year’s financial statements to the Exchange not later than three months after the year end. Firms with year ends between January and May 2014 should submit the normal audited accounts (12 months) and thereafter, submit their audited accounts for the pro-rated period to 31 December 2014.”