The Parliament adopts amendments to the Law “On Accounting and Financial Reporting in Ukraine”

Today, the Parliament of Ukraine has adopted the Law “On Amendments to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine””.

What’s it about?

The Law “On Amendments to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”” was developed by the Ministry of Finance as part of the obligations of Ukraine stipulated in the Association Agreement with the EU in regard to the adaptation of the Ukrainian accounting regulation to the respective EU norms.

To adjust the Ukrainian legislation to the EU Directive 2013/34/EU, the new Law contains, among others, the following points:

• Extended application of the international financial reporting standards by making them legally binding for big companies as well as for companies extracting subsoil resources of national significance;
• Adoption of criteria to classify companies as micro, small, medium-sized or big business in regard to financial reporting;
• Improvement of the procedure for the presentation of financial reports in a unified electronic format and their disclosure along with the respective auditor’s conclusion.

What’s the benefit?

The adopted Law shall contribute to the improvement of the legal framework for accounting and financial reporting in line with the European regulations as well as shall make the reporting more transparent and improve the possibilities to compare the financial reports of Ukrainian companies thus improving the investment climate in Ukraine.