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Fundie warns on earnings transparency

Tom Richardson

Demands are growing for companies to fully disclose how much government cash handouts and tax concessions are sandbagging accounts over an August earnings season set to be dominated by COVID-19.

Matt Nacard the chief executive officer of asset manager Ethical Partners Limited said companies must also disclose how debt or rental repayment deferrals are artificially inflating results.

Ethical Partners Funds Management CEO Matt Nacard, right, and investment director Nathan Parkin. Karl Schwerdtfeger

"We believe that every listed company needs to outline the full extent of COVID-oriented assistance received," said Mr Nacard. "It will materially impact company results across most sectors."

Major companies claiming from the $70 billion JobKeeper stimulus program include Cochlear, Qantas, Virgin, Mirvac Group and Lendlease. Casino operator Star Entertainment had 7000 staff on the $1500 fortnightly payments program.

The hamstrung retail sector has claimants including Premier Investments and Accent Group, with the latter's accounts set to show the benefits of payments to 2000 staff over lockdown periods.

Ahead of an earnings season labelled the "biggest one-off in history", Mr Nacard said "without the right information in appropriate detail it is hard to make a sound judgement. The added disclosure should be a requirement and condition of taxpayer assistance".

Read Tom Richardson's full report on earnings season here.

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    Original URL: https://www.afr.com/markets/equity-markets/asx-to-rise-dow-retakes-27-000-gold-hits-us2055-20200805-p55iw1