Amendments to Financial Reporting Disclosures

Amendments to Financial Reporting Disclosures

Amendments to Financial Reporting Disclosures 768 512 Tamela

In addition to the JSE Consultation Paper Proposals amendments summarised in last month’s article, the JSE has proposed the following Financial Reporting Disclosure Amendments:

The scope and nature of financial results to be announced:

Amendments to existing definitions and the introduction of new definitions such as “condensed financial statements”, “summary financial statements” and “results announcement” to facilitate amendments, which aim to:

▪ simplify the wording of Section 3 of the JSE Listings Requirements;
▪ remove the obligation to always prepare an IAS 34 compliant abridged report – this now only needs to be prepared if the detailed audited annual financial statements (“AFS”) are not available; and
▪ remove the obligation to obtain an auditor’s opinion on the interim results published where the previous set of AFS were accompanied by a modified opinion.

The contents of the results announcement:

▪ Amendments to the content of the JSE’s Stock Exchange News Service (“SENS”) announcements and the mechanism by which the detailed results are published, which is placing them in the JSE cloud (i.e., all results are now placed on the JSE cloud).
▪ Simplification of the wording for procedure relating to non-compliance. The current position is maintained but administrative matters are eliminated (such as JSE notifications).
▪ Simplification of the wording of press announcements. The current position is maintained other than the removal of the references to Key Audit Matters (“KAMs”).

Minimum contents of interim results, condensed financial statements and summary financial statements:

Replacement of Paragraphs 8.57 and 8.58 in their entirety including incorporating the previous Paragraphs 8.60 and 8.61. and simplification of wording.

Minimum content of annual reports:

“Annual report” is now defined as the AFS plus certain additional information mandated by the requirements as follows:

▪ Simplifying the wording in paragraph 8.62.
▪ Paragraph 8.63 has been split between the AFS (remains in paragraph 8.63) and additional information in the annual report (moved to now repealed 8.64) – essentially, what is included as audited or not is the same as before other than moving paragraph 3.4(b)(vi) (trading statements) and profit forecasts to the additional information for annual reports.

Practice notes and guidance letters:

The simplification and removal of certain guidance letters relating to financial reporting disclosures, including the removal of Practice Note: 1/2003.

How can we help?

Tamela provides ongoing sponsor, independent sponsor, and transaction sponsor services on the JSE Listings Requirements, including amendments thereto. For more information, please contact Mmakobela Mathabe on 073 336 0788 or

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