Dnipro Finance and Taxes
On Friday, November 13, an online meeting of EBA Dnipro Financial & Tax Committee was held. The speakers were the experts of BDO Ukraine: Natalia Susidka, the Head of the Сommittee, the company’s CFO; Roman Gruba, the Head of Accounting Consulting and Transaction Support Department; Kateryna Rafalska, Partner of the company. We discussed the actual topic: “The transition to filing financial statements in iXBRL form” and speakers answered the questions of our participants.
All companies that represent public stock, extractive industries, business activities (the types identified by the Cabinet of Ministers of Ukraine) must implement financial statements in international iXBRL form aсcording to Article 12 of the Law of Ukraine “On Accounting and Financial Reporting”.
The target of the International Financial Reporting Standard is to maintain stability and transparency in the financial world not only for investors, international banks but also for other users. This form allows processing large capacity of qualitative and quantitative indicators. It is based on the metadata provided in the taxonomy and described with the help of interconnection between the concepts.
iXBRL has an HTML extension and can be opened in the Internet browsers for viewing. It has built-in “tags” that allow you to access the file data, which are accepted by software for further processing as well as by people.
At our meeting, we reviewed the difficulties during the transition to IFRS accounting, such as:
- incomplete functionality of the accounting system;
- insufficient level of employees competency;
- absence of the developed accounting policy in accordance with IFRS;
- difficulty in determining the tax effect from the transition.
The experts proposed the following solutions for difficulties that had been described above:
- for the function of the accounting system – the installation of accounting modules 1C (for calculating reserves, accounting for rent, biological assets), that will be developed for individual solutions by third-party developers;
- for staff development – to organize individual and corporate training, outsourcing;
- to determine the tax effect – to receive specialized advice.
Nowadays, there are available free software by JEVERA with the support of USAID and Arelle – a reporting validator; from the paid ones there were presented CaseWare and Medoc.
The disadvantages of free software include:
- inability to integrate with the accounting system,
- impossibility of simultaneous work for several specialists,
- difficulty in determining the location of the mistake and more time for validation.
We sincerely thank our speakers for the meaningful answers, professional submission of materials, and informative insights that we received.