ZSE gives companies waiver on audited results Zimbabwe Stock Exchange Limited (ZSE)

Business Reporter

THE Zimbabwe Stock Exchange (ZSE) has extended the deadline to 30 April 2019 for listed companies to issue financial results for the period ended December 31, 2018.

Listed firms were required to have released their financials for the quarter ended December 31, 2018 by March 31, 2019. In a statement, ZSE chief executive officer, Mr Justin Bgoni said:

“Following the pronouncements of the monetary policies, in October 2018 and February 2019, there have been discussions around the reporting currency and the functional currency amongst the accounting profession.

“The market is expecting Public Accountants and Auditors Board (PAAB) to give guidance on this matter as auditors are unable to sign-off accounts in the absence of guidance from PAAB”. 

Mr Bgoni said due to the delay in release of the aforesaid guidance, the ZSE has observed that issuers with December year-ends were unable to release audited results audited by March 31, 2019 as required.

“As a result, the ZSE in consultation with the Securities and Exchange Commission of Zimbabwe has granted a blanket waiver of one month for all affected issuers to publish their 2018 audited results,” he said.

The companies are responding to the codification of Statutory Instrument (SI) 33 of 2019 and the Reserve Bank of Zimbabwe exchange control directive to authorised dealers.

Section 4(1) of SI 33 states that: “For accounting and other purposes, all assets and liabilities that were immediately before the effective date, valued and expressed in United States dollars (other than assets and liabilities referred to in section 44C (2) of the principal Act) shall on and after the effective date be deemed to be valued in RTGS dollars at a rate of one-to-one to the United States dollar.

“After the effective date, any variance from the opening parity rate shall be determined from time to time by the rate at which authorised dealers under the Exchange Control Act exchange the RTGS dollar for the United States dollar on a willing-seller willing-buyer basis.

“…That every enactment in which an amount is expressed in United States dollars shall, on and after the effective date, be construed as reference to the RTGS dollar, at parity with the United States dollar, that is to say, at a one-to-one rate.”

Mr Bgoni said it was their hope that the PAAB guidance was imminent. — @okazunga. 

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