KHALEEJ TIMES, Thursday, Mar 26, 2020 | Shaaban 2, 1441
Dubai regulator asks firms to include Covid-19 impact in financial reports
The Dubai Financial Service Authority (DFSA), the regulatory agency of
Dubai International Financial Centre (DIFC), on Wednesday asked companies
operating in the free zone to include impact of coronavirus in their year-end
"In light of potential business disruption due to Covid-19, the DFSA wishes to
remind Reporting Entities (REs) of their obligations to disclose and control
information in order to protect actual and potential investors and to maintain a
fair, informed and orderly market in securities. Specifically, REs should
consider if there is any relevant significant information about the impact of
COVID-19, inter alia, on their financial position, business or operations that
should be disclosed," the regulator said in a notice posted on its website.
"REs that are preparing a year-end Financial Report are reminded of their
obligation to include in their Report details of any matter or circumstance
since the end of the financial year that has significantly affected or may
significantly affect its operations. REs should, to the extent possible, provide
information about the actual and potential impacts of Covid-19 on their business
activities, financial situation and prospect," said the notice.
The total number of firms in DIFC reached 2,437 last year, up 14 per cent from
2018. It attracted a record-breaking 493 new businesses in 2019. The DIFC is now
home to a community of 25,600 people, creating over 2,000 new jobs in 2019.
In case of delays in completing annual audit report due to restrictions on the
movement of staff, the Authority advised Reporting Entities to engage with DFSA
Markets Monitoring Team at the earliest to discuss period disclosure