FRC Challenges New Estate Valuers on Ethics and Integrity
The Importance of Ethics and Professionalism in Valuation
Dr. Rabiu Olowo, the Executive Secretary of the Financial Reporting Council of Nigeria (FRC), has emphasized the critical need for newly inducted estate surveyors and valuers to maintain the highest standards of ethics, integrity, and professionalism. His remarks were made during the induction ceremony for new members of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) held in Lagos.
This event marked a significant milestone, welcoming new professionals into a field that is essential for maintaining financial transparency and accountability. The ceremony symbolized not only continuity but also a renewed commitment to excellence within the valuation profession.
A Call to Uphold Professional Standards
During his address, Dr. Olowo urged the new inductees to produce reports that could withstand scrutiny from auditors, regulators, investors, and the courts. He highlighted the dynamic nature of the valuation field, where markets evolve, standards change, and regulatory expectations shift. This ever-changing landscape requires professionals to engage in continuous learning and remain adaptable.
He emphasized the importance of upholding ethical practices, avoiding conflicts of interest, and rigorously documenting assumptions. Additionally, he encouraged the new professionals to challenge unreliable information and ensure their reports are accurate and reliable.
The Role of the FRC in Professional Development
Dr. Olowo also spoke about the FRC’s efforts to build capacity within the valuation profession. Recent initiatives include the Nationwide Training Tour on valuation for financial reporting, which engaged approximately 1,000 professionals across major cities in Nigeria. The FRC has also integrated valuation methodologies into its training programs and developed a comprehensive guide on valuation for financial reporting, distributed free of charge to professionals.
The Directorate of Valuation Standards, part of the FRC, plays a crucial role in regulating valuation practices. It is responsible for developing guidance materials, reviewing valuation practices through inspections, and ensuring that valuation reports meet the standards required for a modern, transparent economy.
A Partnership for Accountability
Dr. Olowo highlighted the strong synergy between the FRC and NIESV, describing it as a partnership that supports accountability and transparency. Over the years, both institutions have worked collaboratively to develop key regulations, such as the Valuation for Financial Reporting Regulation. This landmark regulation was developed through extensive collaboration and input from seasoned NIESV members.
Once approved by the minister, this regulation will become enforceable, making compliance mandatory for all valuation reports used in financial statements. It will guide auditors in identifying deficiencies and inform the FRC’s inspection and monitoring activities.
The Impact of Valuation Work
Dr. Olowo reminded the inductees that their work has far-reaching implications. Their assessments of fair value influence decisions on loans, investments, mergers and acquisitions, insurance claims, government asset management, and even court proceedings. Investors rely on these valuations to make informed decisions, while regulators use them to assess solvency, capital adequacy, and compliance.
Government agencies depend on these valuations to make infrastructure and policy decisions. Therefore, accuracy and integrity are not just desirable but essential in this profession. Negligence can have serious consequences, making it imperative for professionals to maintain the highest standards.
A Commitment to Trust and Responsibility
Finally, Dr. Olowo reminded the inductees that they are not just joining a profession but becoming custodians of trust. Their work carries legal, financial, and reputational implications for organizations. As they take their professional oath, they must be committed to upholding the values of their profession and contributing to a more credible financial reporting regime.
Posting Komentar