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SCA implements global reporting standards for listed companies

Haseeb Haider
Filed on September 25, 2011

ABU DHABI — In association with the bourses, the Emirates Securities and Commodities Authority (SCA), has implemented the international financial reporting standards for listed companies, a move which will increase greater disclosers, transparency and bring investors’ confidence.

Abdullah Al-Turifi, SCA Chief Executive Officer, signed the agreement Essa Kazim, DFM Executive Chairman and Rashid Al-Buloushi, ADX Deputy CEO, to start implementing international financial reporting standards for listed companies, by using the eXtensible Business Reporting Language (XBRL).

The agreement is part of the efforts to improve transactions by enhancing disclosure and transparency on the markets. It is part of the SCA’s strategic plan of applying advanced technologies on the local markets.

The first provisional report of the new system will coincide with the time for release of the fourth quarter report of 2011, which will cover twenty companies listed on each of the ADX and DFM. The companies will be selected according to market value and industrial sector. Al Turifi said “the move will facilitate the smooth display, storage and use of financial data electronically, information delivery at the right time to match with investment developments on the markets and direct transaction of securities business.”

He added it “will allow investors and financial analysts to quickly and accurately analyse data due to its ability to arrange and categorise financial data in a way that facilitates comparison vertically and horizontally, leading to high quality and accurate in-depth analysis.”

The chief executive pointed out that, regionally, the UAE has set the pace in the implementation of XBRL in the financial markets, just as it did in the area of using XBRL in issuing financial adequacy reports of brokerage companies.The new development, which is in line with the UAE’s 2021 National Charter aims at making the UAE “one of the best countries in the world.

Essa Kazim said the system will offer “a lot of benefits, particularly in the area of preparing and releasing of financial statement and disclosure,” adding that it saves time and efforts and “is very effective.”

“The new standard provides for companies a mechanism for releasing all types of information, including financial statements and corporate disclosures.” He noted that the DFM collaborated with the SCA and the ADX to set up the phases of implementing the new system, by tasking a joint committee to probe for the best way to apply it.

“It will enhance financial statement preparation, analysis and publishing, which will, in turn, boost investor confidence,” the DFM chief said.

Rashid Al-Buloushi called it “an important” achievement as it takes the sharing and display of financial information to the internet age thereby saving efforts and cost.

He pointed out that the market will continue to exert great efforts to ensure continuous development of services being rendered to investors.

haseeb@khaleejtimes.com





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