According to ACCA, the annual inflation rate for Zimbabwe has blown past the 550% mark with the annual inflation rate stood at 551.63% in December. This pours water on Finance Mthuli Ncube’s puerile and repeated claims that inflation is going to come down one day soon.
Part of IAS29 guidance
On the 11th of October 2019, the Public Accountants and Auditors Board (PAAB) issued pronouncement 01 of 2019 which basically stated what every financial expert had long suspected, that Zimbabwe was going through a hyperinflationary period.
There was a problem however when this pronouncement was published. The pronouncement instructed accountants to factor in inflation when reporting financial information related to Zimbabwean dollars. But the Finance Minister had essentially put a blanket ban which prevented relevant government agencies from publicly communicating the figure.
This left a lot of accountants and managers confused but most hoped that accounting boards would come up with some sort of guidance. Well, the guidance is here courtesy of ACCA. The Association of Chartered Certified Accountants (ACCA)’s guidance helpfully includes the necessary inflation numbers that accountants needed.