Sharechat Logo

Commission sees need for greater transparency

Wednesday 17th November 2010

Text too small?

The Securities Commission's latest review of financial reporting standards has highlighted the need for a greater focus on transparency.

"Ensuring stakeholders and investors are fully informed about all areas of their investment is vital, and issuers must ensure they provide clear, concise and transparent financial statements which are easily understood," said Securities Commission chairman Jane Diplock.

The Commission's Cycle 13 review focused on segment reporting, the standard introduced at the start of last year to ensure investors have a clear insight into an entity's operations and the information management uses to make operating decisions.

The Commission is concerned some disclosures do not meet the core principle of the standard and reminded issuers that the financial reporting standard requires a greater level of transparency than the previous standard.

This cycle looked at the financial statements of 20 companies with March 31 2010 balance dates and the Commission wrote to 16 of the assessed companies to raise 30 issues.

The latest results found an improvement in the level and type of disclosures relating to investment property revaluations, however some areas required better disclosure, particularly about operating segments, key judgments and significant assumptions and impairment relating to goodwill.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report