Disclosure & Transparency

Abu Dhabi Securities Exchange has been a pioneer in the area of disclosure and transparency. Listed companies used to disclose only their annual statements, and only during a particular period of each year. Recognizing the importance of disclosed data , however, the Market redoubled its efforts in this direction to ensure flow of financial data four times during each year. The benefits of such data and information may be summarized as follows:

1) Provision of financial information to investors covering five periods for each year. Companies used to provide shareholders with financial statements during the first four months of each year. Abu Dhabi Securities Exchange now make financial data available on quarterly basis. These data contribute to a healthy trading environment wherein investors may make rational investment decisions. Moreover, these reports play a significant role in stimulating trading and curbing rumors and misleading information, and reflect positively on valuation of shares.

2) Promotion of confidence amongst dealers. This is achieved by regularly monitoring companies balance sheets, effectively supervising media activities and reporting, and ensuring that only sound information and data are passed to the investing public. The Market is particularly keen on checking financial data and ensuring their conformity with established rules and regulations before authorizing release for publication in local newspapers.

3) Financial statements are considered a major source of information for various categories of individuals and agencies outside the company. These agencies include current and future shareholders, lenders, government and regulatory authorities, stockbrokers and researchers, who use such data for their various purposes and interests. The absence of disclosure standards is likely to undermine the capabilities of these agencies. It may cause investments to head into the wrong directions, and create an environment of uncertainty which may adversely reflect on many aspects of life.

4) Fair valuation of share prices. The absence of reliable information breads rumors and lead to damaging speculation which, together, formed the major cause for many of the crisis that hit financial markets in the past.

5) Companies may rely on Abu Dhabi Securities Exchange channels in publicizing and highlighting important events. The Market's role goes beyond publication of periodical financial data to include publication of any important events or productive developments related to the company. Circulation of such news to the public is likely to contribute to an increase in value of its stock.

Financial Reports 

As per the Market's established rules and regulations, listed companies are obliged to provide the Market with their annual financial statements, including its annual report, within three months of the end of the financial year and its quarterly statements within thirty days of the end of the quarter. These data should be prepared in accordance with international accounting standards, and submitted in a hard or soft copies, and should at least include the following:
1- Board of Directors report or summary.
2- Balance sheet.
3- Income Statement.
4- Cash Flow Statement
5- Shareholders Equity Statement.
6- Basic earning per share.
7- General Explanatory Notes.