TORONTO, Jan. 13 /CNW/ - When preparing an earnings news release care
needs to be taken to ensure that the information provided does not
mislead investors or other readers.
Reporting issuers often prepare summarized financial communications,
most commonly in the form of an earnings news release. The Canadian
Institute of Chartered Accountants (CICA) and the Canadian Investor
Relations Institute (CIRI) have teamed up to produce a new publication
that offers some brief observations to assist management in preparing
its summarized financial communications. The document is titled "Quarter-End Financial Communications - Content to Consider".
"Earnings information is important and will often impact the market so
both the good news and bad news for the reporting period should be
addressed," said Chris Hicks, Principal, Guidance and Support, CICA.
"The joint CICA/CIRI document provides a useful framework for preparers
to consider when developing an earnings news release."
Since a news release can never substitute for reading the entire
reporting package, it works best when accompanied by the financial
statements and management's discussion and analysis (MD&A).
"A primary role of the investor relations professional is to ensure that
significant changes to an organization's main priorities or objectives
are clearly and fairly communicated to the capital markets in a timely
manner," stressed Tom Enright, President and CEO, CIRI. "An earnings
news release is commonly used by analysts in advance of or in
conjunction with quarterly earnings conference calls with issuers as it
may help them formulate questions and ultimately frame the issues to be
addressed in their own research notes to the Street."
The joint publication is intended for use by both CFOs and investor
relations officers. It may also prove useful in helping management
organize its MD&A to ensure that the key messages are clearly
communicated. The document can be found on the web sites of the CICA's
Canadian Performance Reporting Board (www.cica.ca/cpr) and CIRI (http://www.ciri.org)
Chartered Accountants (CAs) are Canada's most valued, internationally recognized profession of
leaders in senior management, advisory, financial, tax and assurance
roles. Through their integrity, expertise, and internationally
recognized qualification standards, Canada's 77,000 CAs sustain their
influence and leadership position both in Canada and globally. As
trusted business advisors to Canadian organizations of all sizes,
Canada's CAs foster confidence in Canadian business and contribute to
the health and sustainability of Canada's capital markets and economy.
The Canadian Institute of Chartered Accountants (CICA) represents
Canada's CA profession both nationally and internationally. The CICA
is a founding member of the International Federation of Accountants
(IFAC) and the Global Accounting Alliance (GAA).
The Canadian Investor Relations Institute (CIRI) is a professional, not-for-profit association of executives responsible
for communication between public corporations, investors and the
financial community. CIRI contributes to the transparency and integrity
of the Canadian capital market by advancing the practice of investor
relations, the professional competency of its members and the stature
of the profession. With four Chapters and 600 members across Canada,
CIRI is the world's second largest society of investor relations
professionals. More information is available at www.ciri.org
SOURCE Canadian Investor Relations Institute
For further information:
or to arrange an interview, contact:
Tobin Lambie, Media Manager
Senior Manager Communications & Professional Development, CIRI