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Tuesday, Sep 17th

Listed Zim telco, FinTech firms delay release of financials

Listed Zim telco, FinTech firms delay release of financials

Econet Wireless and FinTech Group Cassava will postpone the release of financials for the period to the end of February 2019, after receiving the go-ahead from the Zimbabwe Stock Exchange (ZSE).

The companies, behind services EcoCash and Steward Bank, cited the shift in the country's currency regulations for the decision to postpone the release of financials that were due on 31 May 2019.

Econet and Cassava are among the country's highly capitalised stocks on the ZSE, but the impact is still being felt from a change in the functional currency instituted earlier this year by the Reserve Bank of Zimbabwe.

The government devalued the Zimbabwe bond note currency and appeared to opt for the RTGS$ over the US Dollar as an accounting currency. The RTGS$ has a valuation of approximately 1:5 against the greenback, according to the official interbank exchange rate, and 1:8 in parallel markets.

Previously, the government required that the functional currency be evaluated on a 1:1 basis for the bond notes versus US Dollar.

Charmaine Daniels, company secretary for Cassava said, in a notice to shareholders, that "the board is currently considering the application of additional accounting requirements" following the new finance policies announced on 20 February this year.

"The board wishes to advise all shareholders that the financial statements for the period ended February 28 2019 will be published on or before 30 June 2019," added Daniels.

Charles Banda, secretary for Econet, stated: "Following the change in functional currency, reporting entities have to reconsider the measurement basis of their assets and liabilities as well as their income and expenses."

He added: "After due consultation with the Zimbabwe Stock Exchange, the board of directors wishes to advise all shareholders that the financial statements for the period ended 28 February 2019 will be published on or before 30 June 2019 to allow sufficient consideration of the relevant accounting principles."

The ZSE recently stated: "going forward, issuers are expected to fully comply with International Accounting Standards as guided by the listing requirements unless statutes direct otherwise".

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