UAIB denies availability of many mistakes in AMC financial statements
The Ukrainian Association of Investment Business (UAIB) believes that a statement of the National Commission for Securities and the Stock Market of Ukraine regarding many mistakes and deficiencies in financial statements of professional market players, in particular, asset management companies (AMC), is at variance with the facts
"The summary conclusion of the National Commission for Securities and the Stock Market, made on the basis of analysis of several companies, is doubtful without specifying and analyzing the significance of the violations, especially if the violation of prudential standards or other requirements by companies was a criterion for analyzing financial statements," the association said on its website.
UAIB recalled that the financial statements of professional players are subject to mandatory audit. According to International Standards on Auditing, a negative opinion applies to financial statements if the auditor concludes that the misstatements therein are substantial.
According to the association, the negative opinion of the auditor regarding financial statements for 2017 was recorded in less than 2% of AMC. In this case, the audit was conducted by firms from the register kept by the national commission.
UAIB believes that the national commission's judgments about the presence of many errors in the financial statements of companies regulated by the commission are misleading and undermine investor confidence, and also testifies to the poor quality of the regulator's authority.
The National Commission for Securities and the Stock Market on March 12 announced that there are many errors and deficiencies in the financial statements of professional stock market players. In particular, non-compliance with the requirements of IFRS was recorded in the statements of almost 70% of market players, violation of the requirements of international auditing standards – about half of the professional participants. The national commission conducted a selective analysis – about 40% of the published statements.