GEN - General - Pro active monitoring of financial statements

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 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department.