Securities Commission to assess impact of credit squeeze

Thursday 4th September 2008

The Securities Commission will examine how well companies have adjusted to the global credit squeeze and weakening property market in their financial reporting.

The regulator will review company reports for the year ended June 30 as part of its Financial Reporting Surveillance programme, focusing on treatment of impaired assets, classification of debt, goodwill disclosures and determining fair market values.

"All participants involved in the financial reporting process need to understand the potential impact of current market turbulence on the issuer, particularly the liquidity squeeze and a degree of softening in the property sector," chief accountant Alastair Boult said.

By Jonathan Underhill

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