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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: P. Ramamoorthy who wrote (10240)	3/19/1998 12:53:00 AM
From: Risky Business	Respond to of 13949

The Australian Stock Exchange (ASX) yesterday told its 1,200 listed companies to disclose their plans for dealing with the millennium computer "bomb" by June 30 or face suspension of trading in their shares. "It is essential that those who deal with these companies have some idea of their state of readiness for year 2000," said Richard Humphry, ASX managing director. Directors of companies which failed to prepare adequately for the transition could be held liable personally, Mr Humphry warned. The ASX requirements are among the toughest introduced by any stock exchange to oblige companies to reveal their plans for defusing the millennium bomb. The US Securities and Exchange Commission requires listed companies to disclose plans for, and the cost of dealing with, the bomb -aconsequence of programming that renders most computers incapable of distinguishing between one century and another. At the turn of the coming century, uncorrected systems could fail or produce inaccurate information. Under the new Australian rules, listed companies will be asked to submit plans to the exchange by June 30, the end of the financial year, detailing the extent of their exposure to potential problems, the measures being taken and the overall cost of the measures. The plans must also include assessments of the extent to which a company's computer system might be affected by links to other systems, for example, those of business partners and suppliers. They must also disclose the names of officials in charge of millennium bomb-related projects. The reports will then be made public. The ASX announcement reflects growing anxiety among Australia's regulatory authorities that many companies, as well as government agencies, are not preparing adequately for the transition. The ASX urged government auditors to find out whether essential service providers were ready. The recent interim earnings reporting season showed quoted Australian companies had budgeted A$1.4bn (œ645m) for problems related to the year 2000. The Australian arm of Coopers & Lybrand estimated Australian companies would need to spend some A$5.5bn to deal with the transition. The ASX has spent $12.5m so far on safeguarding its own systems.