Cycle 5 of Financial Reporting Surveillance Prog.

News release

29 October 2007

Cycle 5 of Financial Reporting Surveillance Programme Completed

The Securities Commission has completed cycle 5 of its financial reporting surveillance programme.

The Commission reviewed financial reports of 40 issuers with balance date from 31 March to 30 September 2006. Twelve of the financial reports reviewed were prepared according to New Zealand Financial Reporting Standards (NZ IFRS).

“Companies must correctly separate and disclose adjustments made as part of the transition to NZ IFRS,” Commission Chief Accountant Alastair Boult said. “In the review we found that some issuers did not correctly separate NZ IFRS transition related adjustments from corrections of prior period errors.”

Sixteen issuers had matters that needed to be addressed. Satisfactory agreement was reached on 79% of matters raised. Three significant matters are being followed up separately.

The Commission is generally pleased with the cooperation from issuers and their willingness to improve the quality of their reporting.

"We are publishing the report because this information will be useful to issuers who want to improve the quality of their financial reporting particularly those adopting NZ IFRS," Alastair Boult says.

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.

The report on Review of Financial Reporting by Issuers Cycle 5 is available on the Commission’s website www.seccom.govt.nz

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