The ASX’s proposal to tighten earnings guidance is a piecemeal response that does nothing to protect the retail investor. It maintains the lazy practice in Australia of financial reporting that has resulted in listed companies adopting inconsistent disclosure practices. The ASX proposal does nothing to create a formalised reporting regime that is consistent with overseas markets. Rather than tinkering with the thought process around “market guidance”, which no one understands, the ASX should introduce mandatory quarterly reporting for ASX 200 companies. Australia is decades behind the rest of the world on financial reporting to its markets. The ASX needs to come into the 21st century and insist the major companies, at least, produce quarterly reports. (VIEW LINK)