GBOLABO AFUWAPE
Nigerian Stock Exchange (NSE) has insisted that every financial statements for submission to it must meet the requirements of the International Financial Reporting Standards (IFRS) applicable to the period covered by the accounts.
This is one of the new propositions to the Rule book for dealing members of the Exchange announced on Thursday.
According to a circular published on the NSE website, the rules were of two main divisions, Submission of Financial and Non-Financial Reports to The Exchange and Extension of time for Submission of Audited Financial Statements, and Quarterly Returns.
As touching submission of Financial and Non-Financial Reports, the exchange stated that Every Dealing Member shall submit to The Exchange its audited annual financial statements, within ninety (90) calendar days of the end of the fiscal year, and its quarterly financial statements returns within thirty (30) calendar days of the end of the quarter; and any other periodic report within the period stipulated by the exchange.
“All financial statements shall be prepared in accordance with the requirements of the International Financial Reporting Standards (IFRS) applicable to the period covered in such financial statement(s). The Exchange shall communicate the need for submission of any other periodic financial report to Dealing Members via its circular to the Market” the exchange said.
Furthermore, “If a Dealing Member fails to comply with this provision, it shall be liable to the following penalties which are subject to review by Council and any change thereto shall be made public by way of a Circular: (1) Failure of a Dealing Member to submit quarterly returns on the date due for submission shall attract a penalty of Five Thousand Naira (N5,000) per day of default, and the Dealing Member shall be suspended from trading with effect from the first trading day after the due date; (2) Failure of a Dealing Member to submit audited financial statements on the date due for submission shall attract a penalty of Five Thousand Naira (N5,000) per day of default for a maximum of four (4) weeks” it further said.
Whereas, as touching extension of time for Submission of Audited Financial Statements and Quarterly Returns the exchange stated that where appropriate, a Dealing Member must or may apply for an extension of time for the submission of its quarterly returns, or audited annual financial statements. Such application for extension shall be made no later than two (2) weeks before same is due and such Dealing Member shall be expected to give reasons for requesting the extension.
“The decision to grant a Dealing Member’s request for an extension of time under subarticle (a) shall be entirely at the discretion of The Exchange and such extension shall in no event be longer than a period of four (4) weeks from the due date for submission for quarterly returns, and eight (8) weeks for audited financial statements; (c) Where a Dealing Member fails to submit its quarterly returns or audited annual financial statements at the expiration of the extended period granted, the Dealing Member shall be suspended from trading forthwith” the exchange stated.
It further stated that “Where a Dealing Member is suspended from trading pursuant to Rule 7.4 (d), such suspension shall be lifted upon submission of the quarterly returns, or audited annual financial statements; (e) The penalties stated herein are subject to review without notice by Council and any change thereto shall be made public by way of a Circular”.
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