EDGE Magazine | Q3 2011


In Ukraine the local GAAP can be substituted by IFRS that what most accounting and business society have been waited long time


The Law N3332 of 12 May 2011 introduces IFRS as an alternative to local GAAP. The Law is valid from 11 June 2011 with some provisions taking effect from 1 January 2012.


Companies will now be free to choose IFRS as guidance or the local GAAP for their financial reporting, and it is no longer required to maintain their accounting in local GAAP.


institutions, public companies, banks,


The Law does however require financial insurance


companies, and some other companies listed by the Government must prepare their financial statements in IFRS starting January 1, 2012.


Surely many companies will choose IFRS as its general accounting guidance along with those companies mandated to do so by the Government. For many international companies, this will relieve the added expense and burden of maintaining double accounting records to satisfy both local and offshore users.


It is expected that such progressive introduction would increase the investment attractiveness of Ukraine, simplify the procedure of attracting offshore capital by local businesses, and assure ownership rights of shareholders, investors and creditors.


However, there is a room for discussion in regard to which period the new IFRS requirement should apply, whether it should be the 2011 financial year or the 1stquarter of 2012. The Law does not precisely state this effective date, so additional explanation is expected from the Ministry of Finance.


Ludmila Kosarenko – Business and Tax


Adviser in Ukraine , Ludmila has more than 15 years experience in accounting and tax consultancy, 10 years of them she took up a senior position in tax and legal services with PricewaterhouseCoopers. Connect with Ludmila at +380503341731, lkosarenko@i.ua or


http://ua.linkedin.com/in/ludmilakosarenko


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