The Implementation of IAS 37 in the Finance Industry

Abstract or Introduction

This paper wants to evaluate the implementation of IAS 37 in the finance industry.

The first financial industry emerged during the colonial era. A mammoth of circumstances necessitated a phase-by-phase financial entity development in Zimbabwe. The first phase stretched for ten years following 1980, when the financial industry was subject to strict government regulation. The second phase spanned from the years 1991 to 1997, when the financial industry was deregulated by the economic structural adjustment program (ESAP). The period from late 1997 to 2008 gave inroad to a new stage in the growth of the nation's financial entities. The crisis peaked in 2008, leading to the implementation of a multicurrency system, marking the crisis period. The multicurrency and Zimbabwe stock exchange regime's final phase runs from 2009 to date.

The Zimbabwe Stock Exchange Limited (ZSE) is a stock exchange that has been granted a license under the Securities Exchange Act (24:25) and was home to prestigious financial institutions. The foundation of the economy is made up of financial institutions. The finance industry plays a crucial part in the expansion and development of the economy. The industry is made up of 13 commercial banks, 5 building societies, and 1 savings bank making up the 19 operational institutions as of March 31st, 2022. Along with these, the Bank had control over 179 credit-only microfinance institutions, 8 licensed deposit-taking microfinance institutions, and 4 development financial institutions.

Finance industry supervision is the monitoring activity carried out by one or more authorities to ensure application and compliance with regulations. Regulation is the set of rules that govern how finance intermediaries conduct themselves.