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Zimbabwe to adopt international financial reporting standards

Zimbabwe to adopt international financial reporting standards

Finance and Economic Development Minister, Professor Mthuli Ncube has said the Public Accountants and Auditors Board (PAAB) has made a resolution for the early adoption of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards to be issued by the International Sustainability Standards Board (ISSB). In a statement seen by ZiMetro News, Ncube said the move is premised on attracting more investment and boosting private sector development in Zimbabwe. Reads the statement:

RESOLUTION BY THE PUBLIC ACCOUNTANTS AND AUDITORS BOARD OF ZIMBABWE (PAAB) FOR THE EARLY ADOPTION OF THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) SUSTAINABILITY DISCLOSURE STANDARDS ISSUED BY THE INTERNATIONAL SUSTAINABILITY STANDARDS BOARD (ISSB)
1. In line with its statutory mandate to prescribe auditing standards, accounting standards and accountancy reporting standards for use in Zimbabwe, including the application of internationally recognised auditing, accounting, and reporting standards, the Public Accountants and Auditors Board (PAAB) has made a resolution for the early adoption of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards to be issued by the International Sustainability Standards Board (ISSB).

2. Taking a cue from the communique issued by the African Ministers of Finance on 9 September 2022, the accountancy profession in Zimbabwe and indeed the Government of Zimbabwe endeavours to meet the needs of capital markets and other stakeholders and enhance transparency, accountability, efficiency, and comparability in business.

Zimbabwe has resolved to be an early adopter of the IFRS Sustainability Disclosure standards (when they are finalised and issued by the ISSB).

This has the potential to attract more investment and boost private sector development in Zimbabwe in line with the National Development Strategy (NDS1) macroeconomic framework premised on programmes aimed at achieving economic transformation through the creation of a thriving private sector-led, open and competitive economy.

3. Early adoption could help unlock and bring to the country capacity building and support as we prepare for implementation and rollout. Further, Zimbabwe and indeed Africa’s voice will be amplified in the standards development process.

4. The ISSB’s mission is to deliver a high-quality global baseline of sustainability disclosures, which includes an initial focus on detailed climate-related disclosures. Jurisdictional standard-setting in the field of sustainability-related financial disclosures is a relatively new discipline and many jurisdictions, including Zimbabwe, are participating in this process at scale for the first time.

5. “We, therefore, urge the ISSB to work closely with Public Accountants and Auditors Board of Zimbabwe, as a first mover and to provide strong advisory and capacity-building support to achieve early adoption and implementation of the Sustainability Standards.”

Hon. Prof. Mthuli Ncube

International accounting standards (IFRS) were formally adopted for use in Zimbabwe in 1993 and were legally operationalised in 1996.

In other news…

Value-Added Tax Deferral Minimum Threshold Raised To $1 Million

Finance Minister Mthuli Ncube said that the minimum threshold for VAT deferral has been raised from US$500,000 to US$1 million.

The government approved a temporary exemption from paying VAT on selected capital items imported by enterprises in the manufacturing, agricultural, mining, aviation, transportation, and health sectors.

Ncube stated that the facility was being overused in his national budget presentation for 2023…continue reading

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