By ETimes

Hyperinflation a headache for listed companies as Zimplow fails to release its full year 2021 financial results.

In terms of rule 39 (1) of the Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) Rules, 2019, listed companies are required to publish audited financial statements not more than three months after the end of every company’s financial year.

Many listed firms have failed to publish in time as the hyperinflation environment is a headache for accountants and auditors. This came at a time when Zimbabwe’s annual consumer price inflation climbed to 96.4% in April 2022 from 72.7% in March. Monthly inflation rises sharply to 15.5% from 6.3% in March.

After an overwhelming request for extension of compliance by Issuers to submit year-end financial statements, the ZSE granted a 30-day compliance grace period to 30 April 2022. This will allow Issuers to complete their audit processes and finalize financial statements and reports, according to ZSE.

The local bourse promised to penalize those who fail to meet the 30 April 2022 deadline for non-compliance.

But Zimplow, in a statement, said it will not be able to publish the abridged audited financial statements for FY2021.


“The delay is due to the extensive work necessary to conform to the requirement that Financial Statements are requested for hyper-inflation so as to comply with International Accounting Standard 29 – Financial Reporting in Hyperinflationary Economies,” said the company.

In 2019, the Public Accountants and Auditors Board informed all members that they may use International Financial Reporting Standard IAS 29: Reporting in Hyperinflationary Economies which gives guidance to preparers of accounts in hyperinflationary economies. The objective of IAS 29 is to establish specific standards for entities reporting in the currency of a hyperinflationary economy so that the financial information provided is meaningful.

“The board anticipates that the Abridged Audited Financial Statements will be published by 31 May 2022.”

The million dollar question everyone would want to know is whether the local bourse will walk the talk on penalizing listed firms that fail to meet the 30 April 2022 deadline – Harare


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