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KHALEEJ TIMES, Thursday, Mar 26, 2020 | Shaaban 2, 1441

Dubai regulator asks firms to include Covid-19 impact in financial reports

Emirates: 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 financial reports.

"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 obligations.

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