“De Visu” Audit Firm conducted an audit in accordance with the requirements of the Law of Ukraine “On Financial Restructuring”.
Today, this regulatory and legal act has already been fully implemented, which introduced a mechanism for the financial restructuring of debtor enterprises. Effective application of the proposed mechanism will allow bringing under regulation the situation with non-performing loans of banks, improving the financial system and helping to restore the solvency of companies.
It should be recalled that in accordance with the requirements of this law, the debtor, who intends to restructure debts, must provide the involved creditors and investors with financial statements that meet the requirements of international financial reporting standards or national accounting standards, depending on which standards he/she uses, for each of the three financial years preceding the commencement of such a procedure. Along with the reporting it is also necessary to provide the report of the auditor or the audit firm (at the request of the creditors involved). An obligatory condition for conducting the procedure is the involvement of an independent expert to conduct an inspection of financial and economic activities, the state of collateral, a forecast of the main operating and financial indicators of the debtor and related persons for the period of restructuring.
“The Law on Financial Restructuring was adopted with the aim of creating an effective and efficient mechanism for voluntary financial restructuring of the debts of Ukrainian companies and their pre-judicial rehabilitation. This normative legal act provides for a number of advantages for debtors, in particular, a special tax regime for certain transactions related to the financial restructuring procedure, a moratorium on the satisfaction of creditors’ claims, protection against the recognition of transactions as invalid. Therefore, this mechanism is attractive to debtors.
Since the Law on Financial Restructuring is time-limited and is valid until October 19, 2019, companies need to hurry with the restructuring of their debts. This process for large corporate clients can last up to three years, so it is better to start working now. Our experts are ready for such challenges and will be happy to help to restore the solvency of debtors. 'De Visu' offers audit, valuation, legal and advisory services” – says Oleksandr Boiko, “De Visu” Group President.
