Boards are under increasing pressure to provide comfort over their distributable reserves. This is not only driven by a desire to enable them to execute on strategic initiatives, such as deals, but also because this provides a further indication of the effective control over quality and integrity of financial statements as a whole. The area of distributions and how they are structured and accounted for is buried in rules and guidelines which can be difficult to navigate.
Omobolanle Adekoya
Partner & Capital Markets and Accounting Advisory Services, PwC Nigeria
Tel: 234 (1) 271 1700