GEN - General - Pro active monitoring of financial statements
JSE
GEN
GEN - General - Pro active monitoring of financial statements
PRO ACTIVE MONITORING OF FINANCIAL STATEMENTS
The JSE Limited wishes to announce that it is embarking on a process of pro
actively monitoring financial statements for compliance with International
Financial Reporting Standards (IFRS). Historically regulation of compliance
with IFRS was done on a reactive basis only ie through receipt of a complaint
or by JSE staff identifying a concern on an ad hoc basis.
Under the new proactive monitoring process, the financial statements of every
listed company will be reviewed at least once every five years, in addition to
any other investigations arising from public complaints. The JSE will drive
the process but will be assisted by the University of Johannesburg (UJ) and
the Financial Reporting Investigation Panel (FRIP).
The FRIP, previously know as the GAAP Monitoring Panel (GMP), is an advisory
body of accounting experts. It was formed in 2002 by the JSE and The South
African Institute of Chartered Accountants to assist the JSE to enforce
company compliance with IFRS. The FRIP provides advice to the JSE on alleged
cases of non-compliance with financial reporting requirements. The role of the
FRIP under the new process will continue as it has in the past.
The new process involves the JSE randomly identifying the companies to be
reviewed during a particular calendar year and providing this information to
the UJ Team. The Department of Accountancy at UJ will then assist the JSE by
conducting a review of the financial statements of these companies. The
findings of the UJ team will then be considered by the staff of the JSE who,
depending on the results, will engage with the listed company. In certain more
complex matters, the JSE will consult the FRIP for its advice.
16 February 2011
Date: 16/02/2011 11:10:01 Produced by the JSE SENS Department.
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