In Zimbabwe, there are regulatory requirements for the preparation of financial statements, but the specific requirement for compiled financial statements may vary depending on the type of entity and its regulatory environment. Here are some key points to consider regarding the preparation of compiled financial statements in Zimbabwe:
Companies Act (Chapter 24:03): Under the Companies Act of Zimbabwe, companies registered in Zimbabwe are required to prepare and maintain financial statements annually. These financial statements must present a true and fair view of the financial position and performance of the company. While the Act does not explicitly require the preparation of compiled financial statements, it mandates the preparation of financial statements that comply with generally accepted accounting principles (GAAP).
Public Entities: Public entities, including listed companies on the Zimbabwe Stock Exchange (ZSE), may have additional reporting requirements imposed by regulatory bodies such as the Securities and Exchange Commission of Zimbabwe (SECZ) and the Zimbabwe Stock Exchange (ZSE). These entities may be required to prepare audited or reviewed financial statements rather than compiled financial statements to comply with regulatory requirements and provide assurance to investors and stakeholders.
Banks and Financial Institutions: Banks and financial institutions in Zimbabwe are regulated by the Reserve Bank of Zimbabwe (RBZ) and may be required to submit audited financial statements as part of their regulatory reporting obligations. Audited financial statements provide a higher level of assurance compared to compiled financial statements and are often required to assess the financial health and stability of banks and financial institutions.
Tax Reporting: While compiled financial statements may not be mandatory for tax reporting purposes in Zimbabwe, entities are required to maintain accurate accounting records and prepare financial statements that comply with tax regulations. Tax authorities may require entities to submit financial statements as part of their tax compliance and reporting obligations.
Overall, while there may not be a specific requirement for the preparation of compiled financial statements in Zimbabwe, entities are generally required to prepare financial statements that comply with applicable accounting standards and regulations. The level of assurance required for these financial statements may vary depending on factors such as the type of entity, regulatory requirements, and stakeholder expectations. It is advisable for entities to seek guidance from accounting professionals to ensure compliance with reporting requirements and obligations in Zimbabwe.