SINGAPORE, Oct 19: Listed companies in Singapore have been asked to report their results every quarter from Jan 1 next year.

But companies with market capitalisation of $20 million or less as at Sept 30—some 103 companies—have been given an extra year and need adopt quarterly reporting only after Jan 1, 2004.

The government said on Friday that it has accepted the recommendations of the Council on Corporate Disclosure and Governance (CCDG).

This body backed quarterly reporting, given “the need for timely disclosure in the context of a rapidly evolving economy and increasing volatile markets.”

Although the Singapore Exchange (SGX) may require material information to be disclosed as it arises, this “does not eliminate the need for formal and frequent reporting.”

The council, led by SGX chairman JY Pillay and which advises the Ministry of Finance (MOF) on corporate disclosure and accounting issues, also pointed out that many “leading disclosure and accounting issues, also pointed out that many “leading jurisdictions release financial results quarterly.” These include the United States, Canada and certain companies in Hong Kong and Britain.

The government originally accepted a recommendation for quarterly reporting last October. But amid corporate disasters such as Enron, the CCDG reopened the matter for discussion.

The MOF on Friday said that companies should adopt a consistent format for the quarterly reports. Those which report quarterly do not need to prepare a separate half-year report.

Accountants had earlier warned that smaller companies will be hit most because the additional costs will form a large part of their cost base.

Still, costs will vary depending on the scale of operations and whether extra staff are needed.

But they said it was likely to be only a small percentage of operating costs, under 3 per cent? Which could be anything from say $30,000 to a few hundred thousand dollars.

One listed company with a $90 million market capitalization said that costs would go up by “at least $30,000” once quarterly reporting was introduced.

When contacted, GRP — a supplier of marine and oilfield hoses with market capitalization of less than $20 million —said it would still go ahead with quarterly reports from Jan 1 next year despite the extra year given for such companies.

Financial controller Lelaina Lim said: “It’s a good way of keeping the scheme may be hard to implement as profits of firms differ from one another.

Hence, a uniform policy may be hard to achieve.

“Direct tax breaks and incentives would be more tangible and easier to implement,” he added.—The Straits Times / Asia News Network