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Strategy of application of International Financial Reporting Standards (IFRS) in Ukraine has been approved

24.10.2007

The Directive specifies that IFRS include standards of accounting and financial reporting applied in the member states of the European Union in accordance with Directive No. 1606/2002 of the European Parliament and EC Council as of July 19, 2002 ð.

The strategy assumes:

  • statutory preparation of financial reporting in accordance with IFRS starting from 2010 by companies whose shares are listed and traded publicly on the stock market, by banks and insurance companies;
  • adaptation of national accounting standards (NAS) for those companies that do not apply IFRS;
  • approval of accounting regulations for issues not covered by IFRS;
  • most-favored regime for small business entities: simplification of accounting (for small business entities it is presumed even to allow application of no double-entry accounting).

It is planned to:

  • officially publish IFRS;
  • create a freely accessible information and analytical database for the questions on application of IFRS;
  • take measures to improve qualification and skills of accountants;
  • transfer to preparation of tax, statistical and other reporting on the basis of accounting information.

The strategy emphasizes the approach ruled by the State to accounting regulation and a unified Chart of Accounts and items of financial reporting.

The program of reforming accounting system with application of IFRS approved by Resolution No. 1706 of the Cabinet of Ministers of Ukraine on October 28, 1998, presumes introduction of IFRS by their adaptation to economic and legal environment and market relations in Ukraine. By today, 32 NASs have been developed on the basis of IFRS and approved by the Orders of the Ministry of Finance of Ukraine.

This Resolution takes effect on October 24, 2007.

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