Listed firms need to be clear about pandemic impact: AFM

Companies which are listed on the Amsterdam stock exchange need to be clearer about the effect of the coronavirus pandemic on their operations in their financial reporting, the Dutch financial services authority AFM said on Tuesday.

‘Nearly all the companies reviewed report on the effects of the pandemic, but the quality of this reporting varies widely and needs to improve in certain respects,’ the AFM said in a new report.

The review looked at 26 companies which could be expected to experience negative effects from coronavirus and found that around a quarter of them gave a good assessment of their situation.

Around half needed to improve in some areas and a small group provided ‘hardly any disclosure’ about the impact of the pandemic on their finances.

The AFM said the reporting should include not only financial effects, but also non-financial aspects ‘such as the outlook for employees and the company’s business model’.

Companies should also ‘report clearly on the measures they are taking to mitigate the negative effects of the crisis,’ the AFM said.