New Zimbabwe.com

Companies Struggle To Publish Results Due To Hyperinflation

By Alois Vinga

MOST companies listed on the Zimbabwe Stock Exchange (ZSE) are finding it difficult to release their annual financial performance results due to the demanding hyper-inflationary reporting standards.

The reporting format is set out under International Accounting Standards 29, which requires companies to avail historical information and the selection of a pricing index.

This week, British American Tobacco (BAT) company secretary, Pauline Kadembo informed shareholders that publishing the 2019 full year (FY) results would be delayed by one month because of the new demands.

“This is due to the extensive work necessary to conform to the requirement that financial statements are adjusted for hyperinflation so as to comply with International Accounting Standard 29,” she said.

However, BAT promised to release the results before the end of April 2020.

Zimre Holdings Limited also hinted to stakeholders recently that issues beyond the group’s control have delayed the 2019 FY results.

Agricultural concern, Ariston Holdings Limited cited similar concerns after delaying the publication of its results last month.

“This is due to the considerable additional work necessary in order to conform to the requirement that the Financial Statements are adjusted for hyperinflation so as to comply with IAS 29, Financial Reporting in Hyper-inflationary Economies,” the company said in a statement.

Paper and packaging group, Nampak Zimbabwe Limited advised its shareholders and the investing public that delays in publishing results were prompted by the new reporting standards.

“This is due to the requirements that the Financial Statements are adjusted for hyperinflation so as to comply with International Accounting Standard 29,” the company said.