In the Weekend Australian, business columnist John Durie cites Partner Jonathan Wenig’s view that, while US regulators have encouraged forward-looking disclosures, the ASX and ASIC have taken the opposite approach.
“Wenig argues the US SEC by contrast supports forward-looking disclosure offering a safe harbour for good faith statements made with the appropriate language. Far better for investors to hear more about the range of scenarios before the board than less,” Durie writes.
“ANZ copped the ire of analysts by being less than fulsome in its disclosure of the impact on risk-weighted assets based on different economic outcomes. The trouble facing all boards is that, come the end of September when an array of government subsidies are halted, just how the economy reacts is anyone’s guess, other than concluding not well.
“As Wenig argues, it is better to have more information issued cautiously than a caution-induced vacuum.”
To read Durie’s column, click here.
