• Sun. May 26th, 2024

ZSE’s auditor gives qualified opinion on FY23 results

By ETimes

HARARE – The Zimbabwe Stock Exchange (ZSE) received a qualified opinion from its auditor, Grant Thornton, in respect of the 2023 annual financial statement.

A qualified opinion is an auditor’s opinion that the financials are fairly presented, with the exception of a specified area.

That means, Grant Thornton, it broadly vouched for its accounting despite finding minor problems.

Grant Thornton gave its qualified opinion as it had noticed noncompliance with International Financial Reporting Standards (IFRS) 13 “fair value measurement” on valuation of unquoted investments.

 “These financial statements include an investment of 111 945 shares in Chengetedzai Depository Company (CDC), an unlisted company which is measured at fair value through other comprehensive income. This investment was valued by Directors as at 31 December 2023 for ZWL1 024 702 951.

“The valuation of this unquoted investment was derived by applying certain assumptions which are not consistent with the requirements of IFRS 13 ‘Fair Value Measurement’. The value was based on a USD price that was derived from a transaction for the sale of CDC.

“Shares in 2020 and converted to ZWL at the closing interbank rate. The valuation did not consider all relevant market information that market participants would consider in valuing similar investments. The impact of this non-compliance with IFRS 13 has been considered material but not pervasive to the financial statements for the year ended 31 December 2023,” the auditor said.

The auditor noted that there is a presumed fraud risk with regards revenue recognition as guided by International Standard on Auditing (ISA 240 Revised).

“There is a risk that the revenue is presented at amounts higher than what has been actually generated by the Company. This is a significant risk and accordingly a key audit matter,” reads the report.

As for the financials, ZSE inflation adjusted profit rose 303.84% to $6.83 billion in 2023 from $1.69 billion in 2022.

Revenue went up 279.61% to $32.9 billion in 2023 from $9.69 billion in 2022.

As expected due to inflationary pressures in the market, ZSE total expenses surged by 157.08% to $26.7 billion in 2023 compared to $10.38 billion in 2022.

The local bourse declared a dividend for the period under review.

“The dividend is a blend between the US dollar and ZiG, which represents US$0.88 per share and ZiG5.25 per share. The ZiG amount equates to ZWL$13,109.36 as at the currency changeover date being 5 April 2024,” reads the notice to shareholders.

By ETimes

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