Domestic enterprises keep accounts and prepare financial statements in the currency of Ukraine – UAH (Article 5 of Law of Ukraine “On Accounting and Financial Reporting in Ukraine” No. 996-XIV of July16, 1999). Accordingly, if they make payments on export-import transactions in foreign currency, then when reflecting such transactions in accounting, foreign currency is converted into UAH. How correctly and on what date to make such recalculation – below.
Regulatory framework
Transactions with foreign currency are reflected in the accounting in accordance with the requirements of NAS 21 “Effect of changes in foreign exchange rates”, approved by Order of the Ministry of Finance No. 193 of August 10, 2000 (hereinafter – NAS 21), and the recalculation of foreign currency in UAH is carried out according to the rules established in items 5 and 6 of NAS 21.
Rule 1
Transactions in foreign currency at initial recognition are reflected in the reporting currency (UAH) by converting the amount in foreign currency using the exchange rate at the beginning of the date of the transaction (date of recognition of assets, liabilities, equity, income and expenses).
At the same time, we draw your attention to the fact that according to item 4 of NAS 21, the exchange rate means the exchange rate of the currency of Ukraine to the currency of another country established by the National Bank. In addition, the NBU currently sets the exchange rate per day (at the end of the working day). It is valid throughout the next working day. That is, the course at the beginning and end of the day is the same.
In view of this, to reflect foreign exchange transactions, foreign currency is converted into UAH exclusively at the NBU exchange rate in effect on the date of such transaction.
Rule 2
A company may reflect non-monetary transactions in foreign currency in the reporting currency in the amount specified in the bank’s documents, taking into account the peculiarities of the bank’s exchange rate on the date of the transaction, provided that it does not contradict the requirements of tax and customs legislation regarding the application of the exchange rate.
This rule was relevant in 2014-2015, when there were two NBU courses during the day. Now, when there is only one NBU exchange rate during the day, the problem with the inconsistency of the NBU exchange rate on the transaction and the bank statement has been eliminated. As a result, this rule has lost its relevance.
Rule 3 (for importers)
The amount of advance (prepayment) in foreign currency provided to others for payments for the purchase of non-monetary assets (inventories, fixed assets, intangible assets, etc.) and the receipt of works and services, when included in the value of these assets (works, services) are converted into reporting currency using the exchange rate at the beginning of the day of payment of the advance.
In case of advance payments in foreign currency to the supplier in parts and receipt of non-monetary assets (works, services) in parts from the supplier, the value of received assets (works, services) is recognized by the amount of advance payments using exchange rates based on the sequence of advance payments.
Rule 4 (for exporters)
The amount of the advance (prepayment) in foreign currency received from other persons for payments for the supply of finished products, other assets, works and services, when included in the income of the reporting period is converted into the reporting currency using the exchange rate at the beginning of the date when the advance is received.
If the advance payments from buyer are received in foreign currency in parts and non-monetary assets (works, services) are provided to the buyer income in parts income from the sale of assets (works, services) is recognized by the amount of advance payments using exchange rates, taking into account the sequence of advance payments.
