• The results were due end of June this year
• The company expects to release the results on or before 31^st of July
• About IAS

Harare- New tyres retailer and distributor, National Tyre Service (NTS) has missed the deadline to publish its audited financial results for the twelve months ended March 31, 2023, due to challenges related to implementing International Accounting Standards (IAS).

IAS are a set of accounting standards developed by the International Accounting Standards Board (IASB) to provide guidance on how to prepare and present financial statements. These standards are designed to promote consistency and comparability in financial reporting across different jurisdictions and industries.

IAS provide a standardized framework for financial reporting, which can enhance transparency and accountability in financial statements. This can help to build trust and confidence among stakeholders, including investors, creditors, and regulators.

In a statement released today, the company said it sort permission from the ZSE and expects to publish them on or before 31 July 2023.

“National Tyre Services Limited would like to advise shareholders that the Company will not be able to publish audited financial results for the twelve months ended 31 March 2023 by not later than 5 July 2023 in compliance with the Zimbabwe Stock Exchange Listing Rules,” said the company in a circular.

“The delay has been as a result of work finalization on IAS 21, IAS 29 and IFRS 16 which has taken longer than anticipated. National Tyre Services Limited therefore sought and were granted an extension by the Zimbabwe Stock Exchange.”

Implementing IAS in an economy like Zimbabwe can be challenging due to various factors such as hyperinflation, currency instability, and limited resources.

Zimbabwe has been experiencing hyperinflation since 2019, which has made financial reporting more complex. Companies must make accounting estimates and assumptions related to identifying hyperinflation, measuring the general price level, and restating financial statements in a hyperinflationary economy in accordance with IAS 29.

The use of blended inflation has further complicated financial reporting for Zimbabwean companies, as they may need to adjust their financial statements to reflect the new inflation rate. This could involve revaluing assets and liabilities, adjusting for changes in the value of the Zimbabwean dollar, and applying new accounting policies.

Currency instability is also a significant challenge for companies in Zimbabwe. The volatility of exchange rates can make it difficult for companies to accurately account for foreign currency transactions and foreign operations in accordance with IAS 21. Companies must make accounting estimates and assumptions related to the exchange rates used to convert foreign currency transactions and balances into the entity's functional currency. Given the rapid depreciation of the Zimbabwean dollar, this process can be particularly challenging and time-consuming.

Additionally, limited resources can make it difficult for companies in Zimbabwe to implement IAS effectively. Companies may lack the necessary expertise and resources to make the required accounting estimates and assumptions, which can lead to errors and delays in financial reporting.

The use of IAS promotes consistency and comparability in financial reporting, which can enhance transparency and accountability and build trust among stakeholders such as investors, creditors, and regulators.

Equity Axis News