KEY POINTS:
The Securities Commission finds the same matters cropping up in its ongoing surveillance of the financial statements of securities markets issuers.
The commission said today it was pleased with the overall quality of financial reporting in this country.
It has now finished "Cycle 7" of its financial reporting surveillance programme, which represents the end of the first round of the programme which started in 2005.
All NZX issuers other than some dual or overseas listed entities, had now been reviewed at least once.
The commission said that in Cycle 7 it wrote to 17 of the 44 issuers reviewed.
It raised matters mainly about related party disclosures, financial instruments and certain essential disclosures.
Many of the matters identified were similar to those identified in previous cycles, the commission said.
In Cycle 7 the commission also wrote to five issuers on matters relating to the disclosure of information about directors' interests or directors' trading in the securities of the issuer and substantial security holder information.
Among other actions, it also referred an audit firm to the New Zealand Institute of Chartered Accountants in relation to whether fee dependency posed a possible threat to the audit firm's independence.
A quarter of all matters written to issuers about in Cycle 7 were resolved through further information and clarification, while in two-thirds of cases issuers agreed to revise or enhance disclosures in their future financial statements.
In 8 per cent of cases the commission's comments were reiterated in a second letter or subsequent correspondence.
Commission chief accountant Alastair Boult said the programme contributed to the integrity of the securities markets by encouraging issuers to improve the quality of their financial reports.
- NZPA
