Many income trust issuers need to improve the quality of their disclosure, the Canadian Securities Administrators says.

The CSA issued its report from a review of the continuous disclosure records of 40 income trust issuers. To try to understand and evaluate the financial disclosure practices of income trusts, CSA staff conducted a coordinated project to review the continuous disclosure records of 40 income trusts starting in early 2003 and finishing by the fall.

As a result of the review, 29 of the income trusts committed to change disclosure in future management discussion and analysis filings, annual and interim financial statements and press releases. And, two of the income trusts were required to re-file their disclosure documents. The other nine were not required to change their previously filed disclosure documents or to commit to prospective changes.

The CSA reports that the review uncovered six specific issues where trusts need to pay closer attention to their disclosure: distributable cash, comparative figures, unitholders’ equity, future oriented financial information, non-GAAP financial measures, goodwill and intangibles.

The regulators say that they intend to continue monitoring the continuous disclosure provided by income trusts, including disclosure for the six specific issues addressed in this report.

The income trusts were in various industries and 11 of the 40 trusts had existed for more than one year when the CSA began the review.