Government has mandated parastatals to embark on International Financial Accounting Standards in order to facilitate transparency in operations as well as restore viability.
The directive to use international financial accounting standards follows the change from the use of the local currency to multicurrency in a move that is expected to result in state owned utilities complying with global best practise in financial accounting systems.
Comptroller and Auditor General Mrs Mildred Chiri saidÂ Â parastatals are expected to come up with international financial reporting standards aimed at ensuring that their audited financial statementsÂ reflectÂ business operating conditions, production costs, revenue inflows and future plans.
â€œWe are already in the process of ensuring that this system is also done by the parastatals for their own benefit,â€ said Mrs Chiri.
Financial Accountants for parastatals say they will comply with the new standards in line with turnaround policies aimed at increasing efficiency, viability and attracting potential investors.
Government owned companies are implementingÂ Â policies to sustain operations and increase their market shares within the local regional and international markets.
According to statistics in the 2010 national budget, state owned utilities now account for 40% of the countryâ€™s Gross Domestic Product, a development economists say will facilitate economic growth if the new arrangement on global financial standards is adopted.