Asset Publisher

IOSCO Statement of 14 November 2022: issuers are encouraged to ensure fair, transparent and timely disclosure about impacts of economic uncertainty

The International Organization of Securities Commissions (IOSCO), with its Public Statement of last 14 November, emphasizes issuers' need of a fair, transparent and timely disclosure of the impacts of economic uncertainty. IOSCO recommendation is also addressed to external auditors as well as audit committeees (or those charged with governance) and underlines the need to be particularly vigilant to a transparent communication in the consideration of risks and uncertainties that may affect an issuer's operations, financial condition, cash flows and prospects.

IOSCO also highlights some factors with particular impacts on the on-going economic situation: supply chain challenges; impacts of the COVID-19 pandemic; evolving impacts of the conflict in Ukraine; growing energy supply shortages and costs; labor shortages; inflationary pressures; volatility in currency exchange rates; rising interest rates; changes in monetary/fiscal policies and other responses from central banks and other government authorities.

In relation to the latter, IOSCO also recommends a consistent and high quality application and enforcement of reporting standards and disclosure regulations.