As of first quarter 2019, Public Interest Enterprises will start financial reporting under new electronic format. The European Union project EU-FINSTAR, which supports the introduction in Ukraine of the new system, together with the Chamber of Auditors held the conference for audit entities authorized to perform audits of such enterprises in Kyiv on January 24.
By law, public interest entities include companies whose securities are admitted to stock trading, banks, insurers, non-state pension funds, as well as large companies with net income of more than EUR 40 million and over 250 employees. The new electronic formats use eXtensible Business Reporting Language (XBRL) – the fastest growing digital format for exchanging financial and business information. The system introduces reporting in a unified format, which will be adopted by all state regulators of the financial market. This will greatly simplify and automate the preparation, presentation and verification of financial statements.
Johannes Baur, Head of Section for Economic cooperation, energy, infrastructure and environment in the EU Delegation to Ukraine, underlined that in 2017 and 2018 Ukraine made remarkable steps towards full, accurate, and timely disclosure of financial information, in line with its commitments as per the Association Agreement, it is now time to implement the relevant financial reporting technologies.
Nina Yuzhanina, Chair of the Tax and Customs Committee of Verkhovna Rada, stressed the importance of transparency of financial reporting and responsibility of auditors in the process. She noted that the efficiency of the reporting system reforms not only brings Ukraine closer to its European neighbours but also contributes to attracting investments into the economy of our country.
The new EU-compliant Audit Law was signed by the President in February 2019. Under the audit reform, a new, independent public oversight body for audit is being established. The EU-FINSTAR consulted the Ministry of Finance of Ukraine during the launch of the new audit regulator until October 2018. The Public Oversight Board of Ukraine (POBU) had elected all its Board members by December 2018, and has already begun its work. The EU is continuing its support for Ukraine’s accounting and audit in line with EU and international good practice and standards.
The EU technical assistance project EU-FINSTAR provides support to Ukraine’s Government and state institutions in introducing financial transparency, strengthening the financial services’ sector of Ukraine, its adaptation to EU and international standards and best practice. Beneficiaries of the project are the Ministry of Finance of Ukraine, the National Bank of Ukraine, the National Securities and Stock Market Commission and the National Commission for the State Regulation of the Financial Services Market.
The project started on March 27, 2015 and will last until September 26, 2019. It is implemented by the Hulla & Co Human Dynamics KG consortium. Its budget is EUR 4.36 million.
