Nampak Zim delays publication of results

The herald

Tapiwanashe Mangwiro
Senior Business Journalist
The packaging company Nampak Zimbabwe will postpone the publication of its annual results, expected at the end of this month, until the end of January 2021 to comply with the international accounting standard (IAS) 29.

IAS 29, Financial Reporting in Hyperinflationary Economies, applies when the functional currency of an entity is that of a hyperinflationary economy.

The standard requires that the financial statements of an entity with a functional currency in a hyperinflationary economy be restated for changes in the general pricing power of the currency.

The results relate to the fiscal year ended September 30, 2021.

“This is due to the considerable additional work that was required to comply with the requirement that financial statements be adjusted for hyperinflation in order to comply with IAS 29 – Financial Reporting in Hyperinflationary Economies,” the company mother Nampak Limited, managing director John van Gend said in a statement.

“In addition, the financial statements must comply with the requirements of the Johannesburg Stock Exchange under which our majority shareholder, Nampak Southern Africa Holdings Limited, is listed. It is expected that these results will now be published no later than January 28, 2022, when an extension was granted by the Zimbabwe Stock Exchange.

Additionally, a trade update will be released before mid-February 2022 covering the first quarter period from October to December 2021.

In March, at the company’s annual general meeting, Van Gend said sourcing foreign currency remains a challenge. On a monthly basis, the company needs approximately US $ 3.5 million to cover raw materials.

“For us, although the auction system has helped us, we are still limited on how much we get and when it continues to hamper our daily trading,” he said.

Over the years, the economy has faced severe currency shortages, due in part to weak exports.

The arrival of the currency auction system has succeeded in calming the situation a little. Nampak closed yesterday up 3.65% at $ 11, leaving its cumulative gains at 381.93 percent

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