The Danish Securities Council has concluded 28 cases, of which 17 concern annual reports for 2010; one concerns an interim financial report for 2011, 6 concern annual reports for 2009 and 4 concern interim financial reports for 2010. Reports selected for financial reporting enforcement activities in 2011 account for 12% of the total number of issuers of reports.
In annual reports for 2010 and interim financial reports for 2010, the Danish Securities Council found misstatements in 49% of cases processed, and infringements deemed not to have significance to investors’ decision-making in a further 26% of cases. These are only preliminary figures, as cases concerning annual reports for 2010 are still pending.
Compared with the financial reporting enforcement activities on annual/interim financial reports for the financial year of 2009, the Council found misstatements in 80% of cases, and infringements deemed not to have significance to investors’ decision-making in a further 13% of cases.
Please note that reports for the financial year of 2009 were only selected on a risk-based foundation, whereas in the financial year of 2010, 56% of reports were selected on a risk-based foundation and 44% were selected randomly. In reports selected on a risk-based foundation, the probability of finding misstatements is greater than in reports selected randomly.
Misstatements ascertained in 2011 have been related to incorrect treatment of business combinations, misstatements in recognition and measurement, as well as incorrect accounting policies, misstatements in presentation and misstatements in relation to disclosure requirements.
Read the full report here (pdf)
Chairman of the Danish Securities Council
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