Government introduces international standards to financial reporting

Ukraine's Cabinet of Ministers has amended its resolution “On approval of Procedure for submission of financial reports” № 419, dated Feb. 28, 2000, and instructions “On approval of the Strategy for application of international financial reporting standards” № 911, dated Nov. 11, 2007, the Information-Analytical Bulletin of the cabinet of Ministers of Ukraine informs.

Finance Ministry experts say the aim of the amendments is to update the tasks and objectives of the Strategy and definition of the main directions of its implementation. Based on an update of the main directions, it is envisioned to  approve actions for implementation of the Strategy. This, in their opinion, will promote establishing conditions necessary for the application of International Financial Reporting Standards (IFRS).

Strategy implementation is served by amendments to the Law of Ukraine "On accounting and financial reporting" in terms of  regulation of procedure for submission of financial reports in electronic form based on the Single Window principle and elimination of contradictions between IFRS and national legislation.

Given the government’s plans for creating favorable conditions for small business, it is envisioned to implement a number of actions aimed to improve accounting methodology. In particular, procedures for accounting and financial reporting for certain categories of small businesses will be simplified. The national legal framework in the area of accounting for small businesses will be adapted to the international standards.

Financial market experts feel positive about actions of the government to bring the national accounting and financial reporting practices in compliance with international standards. This, in their opinion, will simplify accounting and financial reporting for small businesses. It will also help make the reporting system more understandable and transparent for foreign investors. In turn, risks for investors will be reduced and Ukraine's economy will become more attractive for investment.