Key Points:
ASX has moved to clarify the continuous disclosure
requirements for companies that have encountered earnings
surprises.
It is less than two years since ASX published its massive
Guidance Note 8 on how to comply with the continuous disclosure
rules. At 78-odd pages, the guidance dwarfs the two-page Listing
Rule 3.1 which it is intended to explain. However, as is inevitable
with attempts to explain relatively simple notions, the guidance
note threw up some new questions of its own. As a result, ASX has
now proposed some further changes.
The changes mainly focus on how companies should handle earnings
surprises in compliance with the Listing Rule. That the new
guidance in this area is something which needs further
clarification is no surprise to us. The new rules regarding
earnings surprises were significant changes for many companies, and
have dominated the enquiries we have had from clients on continuous
disclosure since the publication of the new
