THE JSE has rejected more than 40% of listed companies’ annual financial statements and returned them for correction since the introduction of new accounting rules and the bourse’s adoption of a risk-based approach to reviews.It involved 41.6% of listed companies the JSE reviewed over the period to June last year — an increase on the previous year’s non-compliance of 27.4%.The European Securities and Markets Authority, which averages data across 20 countries, found noncompliance of 21.4%, an improvement on the previous year’s 26%.André Visser, general manager of issuer regulation at the JSE, said a sample of 72 annual financial statements with years ending between February 2014 and June last year had been reviewed.Corporate governance expert Mervyn King said there was no cause for alarm about the high level of noncompliance."The financial statements are recognised today as only being part of a company’s corporate reporting and usually representing only about 30% of the market capita...
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