Thursday, 15th March, 2012: IAASA has today published the findings of a review conducted of the quality of selected debt and fund issuers’ fair value and risk disclosures as contained within those issuers’ 2010 annual financial reports. Consistent with IAASA’s mandate to promote adherence to high standards in financial reporting, the purpose of this document is to assist those charged with the governance and management of debt and fund issuers to improve the standard of their reporting in this area.
Whilst the review did identify some instances of good quality reporting in this area, it has identified a range of deficiencies in the nature and quality of the information provided to users. In particular, selected debt issuers’ financial reports were, in some instances, found to contain significant non-compliance with the disclosure requirements of IFRS 7/FRS 29 Financial Instruments: Disclosures.
In light of the results of the review, the document offers suggestions and recommendations for the purpose of assisting those charged with funds’ and debt issuers’ governance and management to improve the quality of their future fair value and risk disclosures, thereby enhancing the decision usefulness of their financial reporting to users.