Challenges of the new quarterly reporting regime
SGX needs to be watchful of companies doing "auditor shopping" to get an unmodified opinion.
Add BT as a preferred source
ON JAN 9, 2020, Singapore Exchange Regulation (SGX RegCo) announced that it will only require companies associated with higher risks to report quarterly results. It sees this risk-based approach as being more targeted and less arbitrary than the size-based approach that has been in operation since 2003.
Meanwhile, the continuous disclosure regime is being strengthened, with proposals such as stricter rules on interested person transactions, and improving valuations and external audits. SGX RegCo has also established a whistleblowing office and plans to "hard-code" into the listing rules the requirement for companies to have a proper whistleblowing policy.
A risk-based approach is also used in markets such as Hong Kong and Australia. In Hong Kong, quarterly reporting (QR) applies to companies listed on GEM, which was historically aimed at growth companies, but is now considered a board for small and mid-cap companies.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
