JSE Proactive Monitoring 2020 report and combined findings

The JSE published its latest proactive monitoring report for the year 2020. This report provides an overview of the JSE’s detailed findings from their monitoring activities and summarises the main issues from a reporting perspective that preparers (listed and non-listed) should strongly consider when preparing their respective financial statements.

This year’s report highlights specific topics which Audit Committees should consider when fulfilling their respective duties.

Some of the JSE 2020 focus areas detailed in the report include disclosure deficiencies around:

  • the adoption of IFRS 9 Financial Instruments and 15 Revenue from Contracts with Customers,
  • insufficient disclosure of significant judgements and estimates,
  • lack of applying a materiality framework to the preparation of financial statements and
  • specific errors identified relating to cash flow statement and deferred tax accounting. 

The report also discusses some common areas of disclosure omissions where preparers are not fully providing the correct level of disclosure in their financial statements.

The JSE focus area for 2021 is the correct application of IFRS measurement and disclosures of the financial statements taking the impact of COVID-19 into account.

The JSE, along with the 2020 proactive monitoring report, has also released a combined findings document which combines all the results of previous monitoring reports between 2011 to 2019 and both reports can be found by clicking this link.