The Autorité des marchés financiers reports that its latest continuous disclosure review shows that the quality of the financial information circulated in the Québec market is good and in compliance with securities laws.

The AMF released on Thursday the results of Phase II of its Continuous Disclosure Review Program. The review, which covers the period from July 1, 2003 to March 31, saw scrutiny of nearly 230 issuers, (about 50% of the reporting issuers whose head office is located in Québec), with a focus on large cap issuers.

As a result of the review, the AMF required more than 365 prospective changes and 70 financial restatements in which material deficiencies or errors were noted. The changes most often required concerned: interim financial statements, stock-based compensation and other stock-based payments, cash flow, earnings per share, management’s discussion and analysis, and non-GAAP financial measures.

The objective of the AMF’s CDR Program is to encourage issuers to improve the quality of the financial information they publish and demonstrate greater transparency so as to regain the confidence of investors. “The CDR Program is not intended to qualify the financial condition of issuers or uncover instances of fraud, but rather to educate issuers and those who work with them about the nature and scope of their obligations as well as the need to improve the quality of the information they provide,” said Josée Deslauriers, AMF director of Financial Markets.

Over the coming year, the AMF will carry out Phase III of the program, which will consist mainly of analyzing the continuous disclosure documents of the 90 or so listed issuers who have not yet undergone a full review.