In a report detailing the results of its continuous disclosure reviews, the Alberta Securities Commission finds that the quality of financial reporting is generally acceptable.

The report is based on the review of documents filed with the ASC during 2005. From a total of about 800 issuers, it selected 172 for either a full review of all of their filed materials or an issue-oriented review.

“As a result of these reviews, we concluded that the financial and other reporting by Alberta [issuers] continues to be generally informative, reliable, transparent, and in compliance with standards set out in securities legislation,” the report says.

However, it notes that ASC staff observed minor deficiencies in many of the financial statements and other materials reviewed. Still, it says, “these deficiencies did not detract significantly from their overall acceptability.”

The review found an apparent improvement over last year in how issuers disclosed income taxes, certain elements of their statements of cash flows, and the manner in which they prepared interim financial statements.

“The income tax rate reconciliation information and the various balance sheet accounts and tax return data supporting any income tax asset or liability balance in annual financial statements have improved,” it notes.

Also, the report states that interim financial statement presentations and related note disclosures show a real improvement from prior years.

The ASC said it continues to see deficiencies in the accounting for — and disclosure of — related party transactions.