MTN in its recently released MTN Group Financial results kept R9287 million aside. The management of the company has issued a statement to explain the reason for the action. According to the statement, the action is in line with the Principle of Prudence in generally accepted standards for accounting.
As explained in this statement, these standards demand that provision for contingent liabilities be made. The company disclosed that it was still negotiating with the Nigeria authorities and promised that any conclusion reached during the discussion would be made known to the stakeholder.
Amina Oyagbola, MTN Executive while speaking about the 2015 financial results said that the provision made complied with the requirements of the International Financial Reporting Standards (IFRS) and was required by the company’s auditors.