Harare – Conglomerate, Axia Corporation Limited says the Group has equity accounted for Transerv and will only consolidate the business when an effective holding above 50 percent is achieved.
The Group which has an effective 26.01 percent share in Transerv said its Board has reassessed its position of control of the entity.
“Following this reassessment, the comparative Statement of Profit or Loss and Other Comprehensive Income has been restated, together with Statements of Financial Position, Statement of Changes in Equity and Statement of Cashflows to show effect of equity-accounting for Transerv.
“In addition, through a scheme of reconstruction, the Group has consolidated the results of Hat On Investments (Pvt) and Baobab Africa (Pvt) Ltd through its subsidiary Distribution Group Africa (Pvt) Ltd with effect from July 1, 2017.
“The change in accounting treatment is not withstanding the fact that there has been no change in the Group’s effective shareholding in Hat On increased by 0.02 percent,” said Luke Ngwerume in a statement accompanying the Group’s financial results for the year ended June 30, 2018.
He said the change will improve efficiency in reporting, monitoring and control and other administrative work in the distribution business.
“The acquisition of Hat On and Baobab by DGA Zimbabwe resulted in goodwill of $0.42 million on consolidation of DGA,” he said adding that management has decided to immediately impair the $0.42 million goodwill.
The main operating units in Axia Corporation Limited Group are TV Sales & Home, Distribution Group Africa and Transerv.
TVSH is the leading furniture and electronic appliance retailer with sites located countrywide.
DGA’s core areas of expertise lie in inbound clearing and bonded warehousing, ambient and chilled warehousing, logistics, marketing, sales and merchandising services.
Transerv retails automotive spares, by utilising multiple channels to service the needs of its customers.
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