Vusumuzi Dube
Ricky Zililo, Senior Sports Reporter
HIGHLANDERS Football Club have confirmed that their audited financial statements will be out at the end of March.
Concerned Highlanders members should be relieved at the news that the club has brought forward the presentation of their audited accounts that were delayed as the auditing firm demanded that Bosso present their financials in US$ instead of local currency.
In a statement issued on Friday, Highlanders, whose treasurer Busani Mthombeni failed to produce audited financial statements at their 29 January Annual General Meeting held at the Clubhouse confirmed that the audit loggerhead was on preferred functional currency as reported by this publication last week.
The auditors demanded that since the club’s majority revenue or expenditure which is in the region of 70 percent was in United States dollars, it is only proper that the financials are reported in foreign currency.
According to sources, the auditors reportedly argued that when there were options to use the US$, which is the major functional currency that the club uses, why should the club opt for local currency.
Two emergency meetings were held between 22 and 25 February as the club leadership sought to come up with ways to bring their finances in the earliest possible time following pressure from members.
The Bosso hierarchy resolved at the joint sittings that those working on the financials should move with speed and present audited accounts before the end of March, a month before the date that the club’s executive had said they will be able to present to members.
In a statement titled “Delay in the publication of the audited financial statements for the year ended 31 December 2022”, Highlanders said audited financial statements will be published by 30 March.
The club, as per resolutions from the last two joint sittings of the board and executive said a notice for members’ meeting to review the financials will be published in due course.
In their statement, Bosso said:
“Highlanders Football Club wishes to advise the Highlanders Family and the Highlanders stakeholders that publication of the audited financial statements for the year ended 31 December 2022 has been delayed for the following reasons:
We presented our accounts for the year ended 31 December 2022 in line with International Accounting Standard 29 (IAS 29) — “Financial Reporting in Hyperinflationary Economies” which has been our basis of presentation in the previous years.
On the advice of our board, and also based on the information obtaining from our operations, in terms of the most significant currency, it is prudent for the club to change the functional currency as required by International Accounting Standard 21 (IAS 21) — “The Effects of Changes in Foreign Currency’’. Our assessment of functional currency in line with IAS 21 gave us indicators which have now been reconciled on interaction and advice with our auditors.
“We are now working on the application of IAS 21 as our basis of presentation of our accounts, to ensure that our financial statements faithfully present our financial position, financial performance, and the cash flows of the football club without inflation adjustments.”
Meanwhile, Highlanders played two practice matches against Mainline in Plumtree yesterday and won both encounters by identical 1-0 score lines. Ray Lunga and McKinnon Mushore were on target.
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