Paul Nyakazeya, Group Digital Editor 
CAFCA Limited (Cafca), received an adverse opinion from its auditors for its financial results for the year to September 30, 2019 due to challenges related to currency changes, a report has revealed.
According to a report by Akribos Research Services (Akribos), the basis of the opinion was that the company transacted using a combination of Nostro Foreign Currency Bank Accounts (FCAs) and local electronic balances (RTGS), mobile money and bond notes and coins.
“These transactions were considered to be separate currencies that needed to be translated for financial reporting purposes to the functional and presentation currency using an appropriate exchange rate in terms of International Accounting Standards (IAS 21),” the report said.
Zimbabwe reintroduced its domestic currency in 2018 after a 10-year hiatus and banned the use of a multiple currency system that had been in use since 2009, a situation that has forced several firms to delay releasing their financial results or receive hostile reports by auditors.
“Statutory Instrument 33 of 2019 stipulated that dollar balances held in local FCAs and mobile payment platforms, as well as bond notes and coins, would no longer be at parity (US$1:ZW$1) with United States dollars. The financial statements reflect these transactions and balances at parity during the period 1 October 2018 to 28 February 2019,” said Akribos.
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