eBusiness Weekly
Business Writer
Reporting guidelines for the 2018 financials are almost ready and will come as a relief to businesses and accounting practitioners who have been waiting for direction on how to treat the 2018 accounts on the back of currency distortions bedevilling the country.
The development comes at a time there has been concern and worry among the accounting and auditing fraternity on how to report in the current economic environment that is fraught with many challenges including but not limited to currency uncertainty and volatility.
Following the introduction of FCA accounts and RTGS FCA accounts at banks, there hasn’t been clear guidelines on how company financials should be treated in terms of the reporting currency which should be uniform across board.
The situation has also been compounded by Government’s decision that selected imported products will have to pay duty in foreign currency, which to some, implies also selling such products in foreign currency.
Several companies are already marketing and advertising their products in foreign currency while some like jewellery manufacturer, Aurex, are already using a mixture of local and foreign currency. Customers at Aurex, will now have to make payments in foreign currency for 70 percent of the total and in RTGS for 30 percent of the total amount.
Government is also mulling allowing selected fuel dealer to sell fuel to motorists in foreign currency. The Zimbabwe Energy Regulatory Authority (Zera) has already made submissions to Government to allow some selected service stations countrywide to sell fuel to motorists in foreign currency.
While Government maintains the rate between bond notes or RTGS balances is 1:1 with US dollar notes or nostro balances, the market has been exchanging the two at 1:3.5 ratio in favour of the US dollar.
