The Financial Reporting Monitoring Panel, an oversight body of the Zimbabwe Stock Exchange (ZSE) has completed reviewing the recently published financial results of the listed companies amid indications that some quoted firms may be forced to make more disclosures when publishing the financials.
Report by Bernard Mpofu
The panel, which comprises public accountants and auditors’ board, the Securities Commission of Zimbabwe and the ZSE advises the exchange on apparent cases of non-compliance with international financial reporting standards. SECZ chairs Financial Reporting Monitoring Panel (FRMP).
Reports of every company, according to the panel were reviewed at least once every three years.
Sources yesterday told NewsDay that the FRMP had completed a two-week exercise of reviewing financial results of 26 companies which released either half-year or full year results for the year ended December 31 2012.
During the current reporting season, struggling concern Zeco Holdings was forced to release its financials after it had missed the March 31 deadline.
“The panel is this week expected to submit a report to the SECZ and the ZSE on disclosures for listed companies,” a source close to the developments said.
ZSE acting chief executive officer Martin Matanda said the process of reviewing the results was ongoing, adding that the exchange was yet to receive a report from the panel.
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Should the report reveal that most companies did not comply with minimum disclosures, the ZSE-listed companies may be forced to make more disclosures or republish their financial results for the just ended reporting season as the equities market regulator pushes for more reforms on the local bourse.
Disclosures were crucial in assisting outside reviewers of financial information for the purpose of making investments.
Experts say the FRMP, which was established in 2004 had limited effectiveness until 2012 when the equities market regulator raised concerns that some publicly-owned companies were withholding critical information from investors. SECZ chief executive officer Tafadzwa Chinamo could not be reached for comment at the time of going to print.
Last November, Chinamo said the commission was concerned with the reluctance by some listed companies to announce looming going concern crises which often prejudiced investors.
Official statistics indicated that ZSE was currently being driven mainly by large-cap counters and a handful of mid-cap counters.
Penny stocks continued to struggle mainly due to weak shareholder support and undercapitalisation.
