Commission finds flaws in financial reporting

The standard of financial reporting by some companies still needs work, a Securities Commission study has found.


It found shortcomings in the financial reports of 19 of the 46 companies reviewed; 35 of which were listed on the stock exchange, five on the NZAX, one on Unlisted and five non-listed issuers.

The commission said while few serious problems were found, they included failure to date or sign financial statements; overstatement of the value of property intended for sale; inadequate comparisons and explanations of actual versus prospective financial information; and disclosure of an intangible under a separate heading in addition to current and non-current assets.