The Ministry of Finance of Ukraine considered the suggestions of the European Business Association in the revised edition of the Draft Order of the Ministry of Finance of Ukraine “On Approval of the National Provision (Standard) of the Financial Accounting 1 “General Requirements to the Financial Accounting” from 22 October 2012 (hereinafter – the Draft Provision/Draft).
Background: On 22 October 2012 the Draft Provision was published on the official site of the Ministry of Finance of Ukraine. The document says about unified common reporting forms submission of financial reports as on the basis of the National Provision (Standard) of the Statutory Accounting and International Standard of the Financial Accounting.
However, due to some drawbacks of the abovementioned Draft Regulation, the suggestions and comments thereto were elaborated by the member-companies of the Association and submitted to the respective state bodies. In particular, the Draft contained wording on information that “is designed for unambiguous interpretation” which was proposed to replace the more neutral and “understandable for users”. Moreover, such clarification should stimulate clearer and more understandable formulation of the Notes (Clarifications) to the reports. The Subpart (б) and (в) part 10 Charter IV of the Draft Regulation required additional explanations to avoid misunderstandings. Referring to subpart (в) this article is disclosed directly in Cash Flow, which in turn eliminated the necessity to re-display it one more time.
On 11 January 2013 a joint meeting of the representatives of the Association and the Ministry of Finance of Ukraine was held, during which all the positions were agreed and essential amendments of the Association thereto were considered.
Considering the importance of such document for the business community in the regulation of statutory and financial accounting, as well as the current trends of implementation of international standards into national legislation, the Association understands that the necessity to modify such standards will be imperative.
Finally, we are happy to inform you that the revised edition of the Draft Order “On Approval of the National Provision (Standard) 1 “General Requirements to the Financial Accounting” with amendments of the Association was disposed on the website of the Ministry of Finance of Ukraine.
We want to express gratitude to the state authorities for consideration of businesses’ suggestions and all member-companies of EBA Tax Committee for their active participation and persistence in the solving actual problems.
The Association will continue working to resolve these problem points for protection of the legitimate interests of its members and control the adoption of the Draft Provision precisely in this edition.