Financial Reporting Surveillance Programme

News release

29 February 2008

Cycle 6 of Financial Reporting Surveillance Programme Completed

The Securities Commission has completed Cycle 6 of its Financial Reporting Surveillance Programme.

The Commission reviewed financial reports of 30 issuers with balance date from 31 December 2006 to 30 April 2007.

“Few matters were identified in the review of financial statements of first-time adopters of NZ IFRS. The Commission congratulates those issuers on their preparedness,” Chief Accountant Alastair Boult said.

“The Commission is encouraged by the commitment of issuers and their auditors to comply with NZ GAAP and to provide a true and fair view of their state of affairs. Compliance with NZ GAAP is good however, there is still room for improvement.”

Reports of 20 of the 30 issuers reviewed had matters that prompted the Commission to write to the issuer. Satisfactory agreement was reached on 92% of matters raised.

The Commission also raised matters relating to disclosures in respect of substantial security holder information, director share dealings and non-compliance with NZX Listing Rules.
Substantial security holders should be aware of changes to the Securities Markets Act 1988 relating to disclosure of changes in a substantial security holding. The legislative changes are effective from today.

The aim of the review is to encourage issuers to improve the quality of their financial reports and thus contribute to the integrity of New Zealand's securities markets.

The Commission will continue its financial reporting surveillance programme and will take steps where appropriate to encourage compliance with Financial Reporting Standards and other aspects of NZ GAAP (New Zealand Generally Accepted Accounting Practice).

The report on Review of Financial Reporting by Issuers Cycle 6 is available on www.seccom.govt.nz

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