HomeBusiness DigestTorrid time for ZSE

Torrid time for ZSE

Staff Writer

THE Zimbabwe Stock Exchange (ZSE) is facing a torrid time with companies still using historical accounting methods instead of the International Accounting Standards (IAS 29) system.

Local companies claim the international system is too cumbersome, tends to confuse shareholders, and takes too long to conduct.

The issue was discussed at the Institute of Chartered Accountants of Zimbabwe meeting in Nyanga last year where most financial controllers said the IAS 29 regulations were cumbersome and “really do not add any value to financial statements”.

The ZSE, led by Emmanuel Munyukwi, has however repeatedly warned firms to adhere to the regulations to no avail.

Some listed firms are still using the old system much to the disappointment of the bourse.

Last year the ZSE said companies which continued to use the old system would be penalised.

So far however nothing has happened to the firms utilising the old system.

March is the period when a majority of listed firms announce their results for the year ended December 31.

Innscor Africa Ltd which released its results last week said the principal accounting policies of the group were consistent with those applied in the previous year and conformed to IAS 29 save “that the group has not produced its hyperinflation results in this report but will do so in the annual report”.

No comment was forthcoming from the stock exchange this week.

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