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The OTC FX Futures market recorded a circa 25% increase in the notional amount matured in February 2017, $266.17mm, to $354.00mm, being the 9th Naira-settled OTC FX Futures contract, NGUS MAR 22 2017, which matured and settled on Wednesday, March 22, 2017, on FMDQ OTC Securities Exchange, the OTC FX Futures Exchange. The NGUS MAR 22 2017 contract which stopped trading eight (8) days earlier, was valued against the Nigerian Inter-Bank Foreign Exchange Fixing (NIFEX) Spot rate as published by FMDQ on March 22, 2017; and brings the total value of contracts so far matured on the OTC FX Futures Exchange to $2.42bn, and about $6.24bn worth of OTC FX Futures contracts traded so far. In its usual manner, the CBN refreshed the quotes for the existing 1- to 11-month contracts and introduced a new 12-month contract, NGUS MAR 28 2018, for $1.00bn at $/₦298.50. These quotes are available on FMDQ’s website. Reference: https://www.fmdqotc.com/354mm-settles-as-9th-otc-fx-futures-contr...

As part of its plan to fully resuscitate the vibrancy of the Nigerian foreign exchange (FX) market, the Central Bank of Nigeria (CBN) has continued to support the operations of the OTC FX Futures market. By offering new contracts to replace matured ones and actively refreshing its quotes on the existing contracts, in line with the FMDQ OTC Securities Exchange (“FMDQ” or the “OTC Exchange”) reference rate for foreign exchange activities in the recently introduced Investors’ & Exporters’ FX Window – the NAFEX, the apex bank again displays its determination to maintain market stability and create an environment conducive for foreign and Nigerian portfolio investors. Accordingly, having ceased trading eight (8) days in advance, the 11th OTC FX Futures contract, NGUS MAY 24 2017, with notional amount $253.61mm, matured and settled on FMDQ on Wednesday, May 24, 2017. This brings the total value of contracts so far matured on FMDQ, the OTC FX Futures Exchange, to $3.64bn, with a tot...

As companies prepare for the new revenue accounting standard that takes effect in 2018, there’s no shortage of apprehension among financial executives. Given both the impact of the forthcoming changes as well as the adjustments companies need to make, companies still have plenty of work to do. Revenue recognition is a critical and often complex accounting area that companies can't afford to get wrong. Many boards and investors will want to know what to expect. Regulators will also be looking for increased disclosures throughout 2017 as adoption draws closer. Given this backdrop, we included a question on the greatest challenges pertaining to the new regulation as part of a recent survey of more than 700 accounting and finance executives conducted by PwC and the Financial Executives Research Foundation. When asked to rank the difficulty of different revenue recognition implementation issues, a significant majority of respondents saw all of the issues as somewhat or very difficult...

Tax audits don’t always lead to greater compliance down the road, according to a research paper that was one of several recently released in the 2016 IRS Research Bulletin . If an audit doesn’t result in an additional tax assessment, it may actually result in a drop in compliance, according to “Do Audits Deter Future Noncompliance?,” one of several papers included in the Research Bulletin, which features papers from the latest IRS-Tax Policy Center Research Conference at the Urban Institute in Washington, D.C., last summer. The conference highlighted research on tax compliance and current tax issues affecting tax administration, and facilitated dialogue among IRS researchers, tax experts from other countries, academic researchers, federal agencies and private sector experts. Papers include: • “Do Audits Deter Future Noncompliance?” examining the number of IRS audits annually and the amount of tax recovered, the impact of enforcement activit...

Among the many disruptive technology trends impacting the way we do business, blockchain is one that is less well known within the accounting community. However, given its potential impact, blockchain is certainly not a trend that accountants can afford to overlook any longer. Defined as an open, distributed ledger, blockchain technology records and verifies transactions without any trusted central authority. The technology itself exists as a file that maintains a continuously growing list of ordered records called blocks. Each block contains a timestamp and a link to a previous block using a “fingerprint.” Blockchains are resistant to modification of data and cannot be altered retroactively. Here are some potential uses for blockchain in accounting and audit: • Traceable audit trails; • Automated audit processes; • Authentication of transactions; • Tracking ownership of assets; • Development of “smart contracts;” and, • Registry and inventory system for any asset, ranging from...

IFRS 9 changes. In summary, IFRS 9 will replace IAS 39 Financial Instruments and bring together the following aspects of accounting for financial instruments: classification and measurement; impairment; and hedge accounting. IFRS 9 is relevant to many different companies but will have the greatest effect on financial institutions. In practice, the most significant change will be in the way financial institutions account for loan losses. IFRS 9 replaces the incurred loan loss model of IAS 39 with an expected loan loss model. The new model is likely to result in greater loan loss provisions by financial institutions and will provide investors with useful information on changes in credit risk exposure. IFRS 15 changes. IFRS 15 will replace IAS 18 Revenue and IAS 11 Construction Contracts. It will establish a comprehensive framework for determining when to recognise revenue and how much revenue to recognise. It is expected to increase comparability among companies across sectors and ...

A Guide to the IFRS Education Initiative. The objective of the education initiative is to reinforce the IFRS Foundation’s goal of promoting the adoption and consistent application of a single set of high-quality international accounting standards. In fulfilling its objective, the education initiative takes account of the special needs of small and medium-sized entities and emerging economies.　 To achieve its objective, the education initiative will make available an appropriate range of high-quality, understandable and up-to-date material and services about standard-setting and IFRSs. Click here for a list of recent publications. Click here for a list of forthcoming IFRS events.  Framework-based teaching of principle-based standards. The IFRS Foundation education initiative is developing comprehensive free to download teaching material to support those teaching IFRS to develop their students' ability to make the judgements and estimates to apply IFRS with rigour...