An investigation of the number of shares reported by JSE-listed companies and the effect on the net asset value or tangible net asset value ratio disclosed in annual reports for the 2000-2009 financial years

In the absence of clear accounting guidelines, the closing number of shares reported in the company annual report is not always equivalent to the closing balance of the group shares.The closing balance of the number of shares of 111 companies listed on the Johannesburg Stock Exchange, for the period 2000 to 2009, was analysed and compared to an electronic database, managed and maintained by the Graduate School of Business of the University of Stellenbosch, on which a reconciliation of the closing number of group shares was recorded for the companies selected.In addition, the effect of the incorrect number of shares reported in the annual report was compared to the net asset value and/or tangible net asset value ratio, to the extent that the information was available.For the purposes of this empirical study, the mining, most of the financials, development capital and alternative exchange sectors were excluded.