Source: Radio New Zealand
123RF
The Financial Markets Authority says the need for quality, accurate and timely financial reporting is critical as global volatility increases uncertainty for businesses and investors.
“Investors need to be able to understand how relevant market conditions were considered at the time the financial statements were prepared,” FMA head of audit Jacco Moison said.
“This becomes even more important when economic instability, global tensions and rapid market shifts are creating greater uncertainty.
The FMA’s Financial Statements Monitoring Insights 2022-2025 report, summarises findings from reviews of 60 sets of audited financial statements as well as the reporting timeliness of all FMC-reporting entities over the past three years.
Moison said overall reporting standards were high though several recurring themes continued to affect the quality and clarity of financial reporting.
“I want to see some quite clear information, especially in areas of judgements or estimates,” he said.
“When things do change… make sure that you have a robust process in place to update your your information.”
He said high quality reporting enabled investors to assess resilience, understand emerging risks and make well informed decisions with confidence.
“We found that while many entities are meeting expectations, weaknesses in disclosures and delays in reporting can undermine trust in the market.
“Now is the time for directors and management to reinforce robust governance, strengthen financial reporting processes and ensure transparency in areas requiring significant judgement.”
The report emphasises directors were ultimately responsible for ensuring the accuracy and completeness of financial statements.
“High quality financial reporting is a fundamental accountability to investors,” Moison said.
“We encourage all reporting entities to reflect on these insights, strengthen their internal controls, and maintain the transparency needed to support confidence in New Zealand’s financial markets.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
