HomeBusiness DigestJewel Bank against IAS 29 regulations

Jewel Bank against IAS 29 regulations

Staff Writer

THE Jewel Bank has come out strongly against the continued insistence by the Zimbabwe Stock Exchange (ZSE) that companies publish their results using the International Accounting Standards (IAS)

29 system.

IAS 29 requires that the financial statements prepared in the currency of a hyperinflationary economy be stated in terms of the measuring unit current at the balance sheet date and that corresponding figures for the previous period also be restated in terms of the same measuring unit.

Jewel Bank chairman and a former deputy governor of the Reserve Bank of Zimbabwe Richard Wilde says his position as regards inflation-adjusted accounts is that they do not reflect the actual performance of the bank.

“Our position regarding inflation-adjusted results remains unchanged,” Wilde told shareholders last week. “Our view is that these results do not reflect the actual performance of the bank. We however continue to publish the inflation-adjusted results to comply with International Accounting Standard 29.”

The Jewel Bank posted a profit after tax of $16,9 billion for the financial year ended December 31 in historical accounting terms.

This reflected an increase of 526% over the 2002 earnings of $2,7 billion.

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