State body in difficulty Escom has delayed the publication of its annual financial statements for the year, which ended on March 31, 2022, after the failure to appoint external auditors as announced on November 4, 2021.
The parastatal said the delay is also a result of the extensive process of taking a new audit, as well as the time taken to resolve several issues raised during the audit.
He said management is working hard to finalize the audited annual financial statements for the year ended, which is March 31, 2022, and is committed to publishing them by the end of November 2022.
“Eskom is currently resolving, together with the auditors, the advance restatements of its previously issued audited financial statements for the previous year ended March 31, 2021, which will have an impact on the financial situation and income statement of the Eskom Group.”
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The struggling SOE said some of the planned reformulations include the reclassification of coal inventories from current assets to non-current assets.
“Following a review of the quantity and utilization of coal stocks in power plants, it was concluded that some of the coal stocks will not be used within the normal operating cycle, as some of these coal stocks are derived from purchases of coal in the withdrawal phase or – remuneration methods exceeding use over a certain number of years, or exceeding the levels required to be required to comply with the grid code and for emergencies to guarantee security of supply.
“Reclassification of some electric debtors from current to non-current; a single discount rate was previously used to present the value of provisions for environmental restoration relating to power plants and for the costs of closing mines.
An adjustment is proposed to apply the discount rates corresponding to the expected timing of the associated cash flows on a per site basis, thereby increasing the net financial costs, “said Eskom.
Eskom said other reclassifications include various adjustments to property, plant and equipment, which include assets for which incorrect useful lives were used, extended useful life of unrecorded assets.
“Provisions for the obsolescence of stocks of insufficient consumables; and the restatement of the segment information as the segment financial information presented was not aligned with the financial information presented internally as required by IAS 8 Operating segments. “
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