Shortcomings revealed in Securities Commission review of 2004 financial reports

The Securities Commission has completed the first stage of its financial reporting surveillance programme by reviewing a selection of audited full-year reports. It found shortcomings in 40% of those reports.

The purpose of the surveillance programme is to encourage New Zealand issuers to improve the quality of their financial reporting, so that investors can have confidence in the credibility of the financial information provided to them and the integrity of New Zealand's securities markets. Following this review, the Securities Commission has said that "a number of issuers need to do more to raise the standard of their financial reporting". The review also identified incompleteness and inaccuracy in prospectuses, substantial security holder information and continuous disclosure notices. The Commission expects to publish a report on the review.

For more information, see www.sec-com.govt.nz.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.