IAASA publishes Information Note about deficiencies in companies’ disclosures

Sep 11, 2019
Irish Auditing & Accounting Supervisory Authority (IAASA) has published an Information Note highlighting deficiencies in companies’ disclosures regarding liquidity risk.
 
The purpose of the Information Note is to remind management and those charged with governance of the requirements in accounting standards to disclose high-quality liquidity risk analysis in annual and half-yearly accounts and, thereby, to contribute to the provision of useful financial information to users of those reports.
 
Liquidity risk tables and the related liquidity risk disclosures (i.e. liquidity risk analysis) is a key metric for users of companies’ accounts. Liquidity risk analysis is essential information that enables users of the accounts to understand the timing of cash flows and changes therein associated with financial liabilities. 
 
In expressing disappointment with the quality of certain companies’ disclosures, IAASA is calling on companies to provide meaningful liquidity risk analyses in their accounts.
 
The Information Note is available here.

Source: IAASA