Disclosure

What does disclosure mean and what its significance?

  • Companies that offer securities to the public investors for the purpose of investment must be explicit regarding its business and securities which they sell, and risks that include the investment, this is what we call a disclosure.
  • Disclosure is information issued by companies, relating to the financial situation of the companies and their practices to assist the investor in making correct investment decisions and this is done through :
    • Annual reports.
    • Quarterly reports.
    • Reports of material events (substantial).

The daily business for the Disclosure department:

  • Check and make sure that the companies meeting the conditions with the disclosure requirements and look for ways to improve the level of disclosure.
  • Development rules and regulations, reporting and continuation in disclosure of corporations.
  • Make sure to provide reports to the disclosure requirements for all corporations.
  • Review all material information which is accurately provided by the issuers of securities to publish this information in the database of the commission in Iraq, where the public can see them.

When:

  • Disclosure is taken place periodically during specific periods linked to the financial year and for the relevant destination.
  • Continuously – immediately when an event that might affect the decision to invest occurs.

Why or for the purpose of::

  1. To organize or to ensure the disclosure of the full and correct information in a timely manner by the listed companies.
  2. Consolidation general requirements disclosure standards, in order to increase the confidence in the market.

What is required (General requirements for the listed companies):

  1. Provide the Commission and the stock exchange with quarterly financial statements within a period not exceeding 60 days ,from the end of each season and the first three quarters of the fiscal year for the company.
  2. Provide the Commission and the stock exchange with annual financial statements within a period not exceeding 60 days, after the end of the financial year for the company which includes the audited financial statements.
  3. All the financial reports must be compatible with international reporting standards and to some extent, the application of these standards are compatible with the applicable accounting standards in Iraq.
  4. The Information which is provided by the companies must be complete, accurate and up-to-date and recognizes the deadline in addition to being real and not mislead.