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Business News of Monday, 19 July 2021


Dangote Cement adopts high-ranking reporting format

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Dangote Cement has become the first Nigerian listed company to report its financial results using the International Financial Reporting Standards (IFRS) taxonomy.

Dangote Cement stated that its financial information has been made available to investors in eXtensible Business Reporting Language (XBRL) format using the IFRS taxonomy.

XBRL enables companies to standardise the preparation, publishing, and exchange of financial information in a machine-readable format. It is mainly used by publicly listed companies that are required to use it by law, such as companies listed in the USA, Europe, and South Africa.

Data contained in Dangote Cement’s third quarter of last year, full-year 2020 and first quarter 2021 financial statements are now available in XBRL format.

Chief Executive Officer, Dangote Cement, Michel Puchercos, said the adoption of XBRL reporting would strongly benefit Dangote Cement’s existing and potential investors.

“It represents another step in Dangote Cement’s continuing efforts to modernise and enhance the transparency of, and access to, companies’ disclosures,” Puchercos said.

According to him, the adoption of XBRL would enable publicly available financial information to be captured accurately and promptly, thus bringing uniformity of results on all the platforms and ensuring that investors and analysts who use these platforms have the correct information.

He noted that although XBRL reporting is not mandatory for companies listed on the Nigerian Exchange, it is becoming a universal format to exchange financial data and promotes the coordination of international reporting requirements.

“The implementation of XBRL demonstrates Dangote Cement’s strong dedication to reaching international reporting and corporate governance standards. As Africa’s leading cement producer, we are leading the way with our commitment to sustainability and best practice.  We are driven by the goal of achieving the highest level of governance and building a prosperous and sustainable brand for all our stakeholders. Transparency and consistency are at the core of every part of our business culture,” Puchercos said

According to him, for Dangote Cement, XBRL increases the usability of financial statement information. The need to re-key financial data for analytical and other purposes is now eliminated. By presenting its statements in XBRL, the company offers a lot of benefits to investors and other stakeholders.

XBRL is a language for the electronic communication of business and financial data which is revolutionizing business reporting around the world. It provides major benefits in the preparation, analysis, and communication of business information. It offers greater efficiency, improved accuracy, and reliability to all those involved in supplying or using financial data.

It is already being put to practical use in several countries and implementations of XBRL are growing rapidly around the world.