Media Release
21 December 2010
Review highlights need for better valuation disclosure
Securities issuers need to include more information on how their financial assets and liabilities have been valued, says
Securities Commission Chairman Jane Diplock.
Ms Diplock was commenting on findings from the latest review in the Commission’s ongoing financial reporting
surveillance programme, which aims to improve the credibility of financial reports and which looked closely at
disclosure about valuations.
Recent amendments to reporting standards require disclosure about re-valued financial assets and liabilities. Issuers
must include a breakdown showing the extent to which valuations are linked to market prices and the underlying
assumptions for valuations which are not directly based on market prices.
The review also found that issuers need to ensure alternative performance measures, where disclosed, are better
explained.
“Any disclosure of alternative performance measures needs to be properly communicated and not detract from statutory
financial information,” Ms Diplock said.
The Cycle 14 report, which will be published in the New Year, looked at 25 issuers’ financial statements with balance
dates between 31 March and 31 July 2010. The Commission is writing to 17 issuers on 32 matters.
ENDS