Tanganda Tea Company Limited has terminated its engagement with Ernst & Young Chartered Accountants (Zimbabwe) as auditors, citing differences over the interpretation of accounting standards in hyperinflationary economies, effective July 15, 2024.
The decision was made due to differences in the interpretation and implementation of International Accounting Standard 29 (IAS 29) Financial Reporting in Hyperinflationary Economies.
Specifically, the company mentioned “differences on certain technical matters” regarding IAS 29, which seemingly suggested that there were disagreements on how to apply the standard in the context of Zimbabwe’s economic environment.
As a result, Axcentium (formerly Deloitte), the company’s previous auditors, have been reappointed to audit the company’s financial statements for the year ending September 30, 2024.
The Zimbabwe Stock Exchange has approved the extension of Axcentium’s audit services for one year, after which new auditors will be contracted.
The company will seek shareholder approval for the changes at its upcoming Annual General Meeting. The decision to change auditors was made by the company’s board of directors, according to a statement signed by Company Secretary Sharon Kodzanai.
“Tanganda Tea Company Limited wishes to advise its valued shareholders and the investing public of the termination of the engagement of Ernst & Young Chartered Accountants (Zimbabwe) as auditors for the Company for the year ending 30 September 2024 effective 15 July 2024 due to differences on certain technical matters regarding the interpretation and implementation of IAS 29 Financial Reporting in Hyperinflationary Economies.
“Axcentium (formerly Deloitte) who were the Company’s previous auditors have been reappointed as auditors of the Company for the year ending 30 September 2024.
“The Company received the approval of the Zimbabwe Stock Exchange to extend the audit services of Axcentium by one year, after which new auditors shall be contracted. Shareholder approvals for the changes shall be sought at the Annual General Meeting,” the company said.
