Ethio Telecom is scheduled to fully adopt International Financial Reporting Standards (IFRS) before the end of 2019, Addis Fortune reported. The company has hired KPMG East Africa for close to USD 1 million to assist in the project, which involves asset valuation for first time IFRS adoption. Contract delivery is expected within 70 working days of the contract signing. Ethio telecom has also formed a steering committee led by the CEO to follow up on the process.
For years, Ethio telecom has been using Generally Accepted Accounting Principles (GAAP) to prepare its financial reporting, according to Frehiwot Tamiru, CEO of the company. This divides its operations into six zones and 17 regions across the country. Along with the adoption of the reporting system, KPMG will value the assets of the company, which is scheduled to be partially privatised before the end of this fiscal year.
Ethio telecom, which will be joined by two other private telecom operators soon, has reached 44.4 million subscribers during the first quarter of this fiscal year, an increase of 10.4 percent from the same quarter in the previous year. Out of the total subscribers, 42.9 million are mobile voice subscribers, 21.6 million data and internet users and the rest are fixed service users.