By Zimbabwe Electricity Transmission And Distribution Company (ZETDC) was heavily impacted by the Effects of Changes in Foreign Currency Exchange Rates” and International Accounting Standard (IAS) 29 – “Financial Reporting in Hyperinflationary Economies” of foreign currency on the market, the Audit for the year ended December 2023 by Acting Auditor General Kujinga.
In her opinion, except for the effects of the matters described in the Basis for Qualified Opinion section of my report, the financial statements present fairly, in all material respects, the financial position of the Zimbabwe Electricity Transmission and Distribution Company (Private) Limited as at December 31, 2022, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).
Use of alternative market rates is not compliant with the law and as a result the directors have not attempted to estimate rates that may more fairly reflect the results and state of these transactions and balances in compliance with IAS 21 – “The Effects of During the year, the Company predominantly traded in Zimbabwe Dollars.
The Company,however, had transactions and balances that were in foreign currency. The foreign currency transactions were translated using the respective spot rates determined by the auction exchange rates and these rates were not in compliance with IAS 21 – “The Effects of Changes in Foreign Currency Exchange Rates” as they are not the exchange rates for immediate delivery because of the shortage Changes in Foreign Currency Exchange Rates”.
The report reflected that the prior year financial statements were qualified for similar reasons and the impact on the current year has not been adjusted for and International Accounting Standard (IAS) 29– “Financial Reporting in Hyperinflationary Economies” was applied on the current period’s financial information which was not in compliance with IAS 21– “The Effects of Changes in Foreign Currency Exchange Rates”.
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