The Ministry of Finance of Ukraine has published the draft order “On Approval of Amendments to the National Accounting Regulation (Standard) 6 “Correction of Errors and Changes in Financial Reports” (hereinafter – the draft order).
The document provides for bringing the norms of the National Accounting Regulation (Standard) 6 “Correction of Errors and Changes in Financial Reports”, approved by Order of the Ministry of Finance No. 137 of May 28, 1999, into compliance with the requirements of national legislation and International Accounting Standard 8 “Accounting Policies, Changes in Accounting Estimates and Errors”, International Accounting Standard 10 “Events after the Reporting Period” and International Financial Reporting Standard for Small and Medium-sized Enterprises in terms of accounting estimates.
The changes will clarify that accounting estimates are the monetary expression of elements of financial statements that are not directly observable, but are determined approximately, that is, pre-estimated.
Examples of accounting estimates are:
- bad debt provision;
- net cost of selling a unit of stocks;
- fair value of assets or liabilities;
- amount of accrued depreciation of fixed assets;
- provision for fulfillment of warranty obligations.
Valuation is the determination of monetary amounts by which elements of financial statements should be recognized and displayed.
Accounting estimates are revised if the circumstances on which this estimate was based change or additional information is received. By its nature, a change in accounting estimate does not apply to previous periods and is not a correction of an error.
If a change in accounting estimate results in a change in assets, liabilities or equity, it is recognized by adjusting the carrying amount of the relevant asset, liability or equity in the period in which the change occurred.
If information about the size of the impact on future periods is not disclosed due to the impossibility of its preliminary assessment, the enterprise discloses information about this fact.
The Ministry of Finance of Ukraine by Order No. 535 of October 9, 2023 approved:
- the form of the Notification on the completion of currency supervision by banks on compliance with the deadlines for taxpayers' calculations for the relevant transactions on the export of goods to which the regime of export security is applied;
- the procedure for banks to submit to the State Tax Service of Ukraine the Notification on the completion of currency supervision by banks on compliance with the deadlines for taxpayers' calculations for the relevant transactions on the export of goods to which the export security regime is applied.
In accordance with Order No. 535, the bank within three working days following the day of completion of foreign exchange supervision for compliance with the settlement deadlines for the corresponding transaction for the export of goods to which the export security regime is applied (except for the completion of foreign exchange supervision in connection with the closure of all accounts resident in the bank and/or by changing the servicing bank in the customs declaration), submits to the State Tax Service by means of electronic communication in the electronic form of the Notification.
Data are entered into the Notification table in accordance with the description of the data on the transaction performed by the exporter, namely:
- to columns 2 and 3 – the number and date of the customs declaration confirming the export of goods outside the customs territory to which the export security regime is applied.
The date of the customs declaration is filled in with numbers in the following sequence: day of the month (two digits), month (two digits), year (four digits);
- to column 4 – the letter code of the currency, which is indicated in the customs declaration in accordance with the List of currency codes for statistical purposes, approved by Order of the State Statistics Service of Ukraine No. 33 of January 8, 2020;
- to column 5 – ten characters of the product code according to the UKT FEA, which are filled in a continuous order without any separators (spaces, periods, etc.);
- to column 6 – the invoice value of the goods to which the export security regime is applied, which corresponds to the value of column 42 "Price of the goods" of the relevant customs declaration.
The President of Ukraine signed draft law No. 11035 on conscripts.
The law proposes to establish that, during mobilization, conscripts whose term of military service has expired during martial law and whose military service has been extended beyond the established terms are released from reserve service within the terms determined by the presidential decree.
In particular, it states that within12 months conscripts cannot be called up.
If the draft law is adopted, the Cabinet of Ministers will be instructed to bring its regulatory acts into compliance, as well as to ensure that the same procedure is carried out by ministries and other central authorities.
The National Bank of Ukraine has completed the development and approved the key legal acts on the regulation of the financial services market in accordance with the new Laws of Ukraine "On Financial Services and Financial Companies", "On Insurance" and "On Credit Unions".
The new regulatory legal acts regulate the main issues of the work of non-banking financial institutions in accordance with the updated legislation, including requirements for capital and other prudential standards, requirements for risk management, internal control systems and corporate governance.
Before their approval by the Board of the National Bank, the projects were discussed with the market by publishing them on the pages of the official Internet representation of the NBU, during meetings and round tables with the participation of specialists from the National Bank's specialized departments.
Most of the provisions of the new laws came into effect on January 1, 2024.
At the same time, participants of the non-banking financial market have a six-month transition period to bring their activities into line with the new requirements.
The Cabinet of Ministers of Ukraine has foreseen an increase of the average wage (income) in Ukraine from March 1, 2024 by a factor of 1.0796, from which insurance contributions are paid, which is taken into account for calculating the pension, for recalculation of:
- pensions appointed in accordance with the Law of Ukraine "On Mandatory State Pension Insurance";
- pensions assigned in accordance with Articles 13, 21 and 36 of the Law of Ukraine "On Pension Provision for Persons Released from Military Service and Certain Other Persons" to military personnel, persons entitled to a pension under the Law "On Mandatory State Pension Insurance" and members of their families; disability pensions resulting from maiming or illness as a result of the Chernobyl disaster, provided for in part three of Article 54 of the Law of Ukraine "On the Status and Social Protection of Citizens Affected by the Chernobyl Disaster";
- pensions assigned in accordance with the laws "On Civil Service", "On Service in Local Self-Government Bodies", "On Scientific and Scientific and Technical Activity";
- monthly insurance payments to victims of accidents at work and occupational diseases that caused the loss of working capacity, and to persons entitled to insurance payments in the event of the victim's death, provided for in Article 31 of the Law of Ukraine "On Mandatory State Social Insurance".
Provision is made for the annual automatic recalculation of pensions of working pensioners, fixed minimum pension payments for persons with disabilities as a result of war and participants in hostilities, etc.
The Ministry of Agrarian Policy and Food of Ukraine and the Fund for Partial Guarantee of Credits in Agriculture concluded a Memorandum of Cooperation. The document is aimed at improving the conditions of the Fund's access to the State Agrarian Register as a consolidated information platform for all participants in the agrarian sector.
The main goal of the memorandum is to create an effective mechanism of interaction between the Fund and the State Agrarian Register to ensure transparency and efficiency in the management of financial risks in agriculture.
The Verkhovna Rada of Ukraine has adopted Law No. 5593-д "On Amendments to Certain Legislative Acts of Ukraine Regarding Improvement of Corporate Governance of Legal Entities whose Shareholder (Founder, Participant) is the State". This is a key stage for the reform of state-owned enterprises, because the law improves the conditions of corporate governance, strengthens the roles and responsibilities of supervisory boards, and brings the legislation of Ukraine closer to the standards of OECD countries, taking into account the conditions of martial law.
The law regulates many issues that will allow enterprises to work clearly for society, investors and international partners. Supervisory boards are given more powers to work, but also more responsibility. The government gets tools to control supervisory boards. Adoption of the law was one of the priorities of the Ministry of Economy, because its implementation will allow to attract more investments, promote the development of the economy and fill the state budget.
Adoption of the law is one of the conditions for joining the EU and receiving a tranche from the IMF. And also – an indicator of the Plan project for the Ukraine Facility program. The law takes into account OECD principles to the extent that wartime requirements allow.
This law changes the following:
- authorizes the Cabinet of Ministers to approve the State Property Policy – the rules of the game for all state-owned enterprises. Strategic development plans, as well as financial and investment plans of state-owned enterprises must be consistent with this Policy;
- expands the powers of supervisory boards – members of the supervisory board will make key operational decisions – approve financial, strategic, investment plans based on the State Property Policy and the owner's prospectus letters, appoint and dismiss managers of state-owned enterprises;
- obligates the Government to adopt a dividend policy that changes the norms for dividends. Their level will be set taking into account the needs of the industry or individual enterprise;
- introduces internal control: instead of audit commissions, modern control tools are provided – compliance, risk management, internal audit.
