The Securities Commission has released its report on Cycle 12 of the Commission's ongoing Financial Reporting Surveillance Programme. The report covers 21 issuers with balance dates ranging from 30 June 2009 to 31 January 2010.

A number of matters relating to financial instrument disclosures and measurement were raised by the Commission with the issuers, reflecting the large proportion of financial institutions included in Cycle 12. These included:

  • inadequate or incorrect disclosure of concentrations of credit risk by security type and fair value assumptions;
  • the incorrect classification of financial assets and accounting policies for impairment that were inconsistent with NZ IFRS;
  • inadequate disclosure of significant assumptions underlying valuations of property, plant and equipment.

However, in comparison with previous cycles, the Securities Commission found improved disclosures in key management personnel disclosure and in the statements of compliance with NZ IFRS.