Mandatory Transition Date to IFRS for Banks in Ukraine
In June 2011 the changes in law “On accounting and financial reporting in Ukraine” have been signed by the President of Ukraine. In accordance with such changes public interest entities (Public Joint Stock companies), banks, insurance companies, and other companies that operate in financial markets are required to prepare financial statements in accordance with IFRS. The Cabinet of Ministers of Ukraine may provide additional list of entities subject to reporting under IFRS.
In December 2011, National Bank of Ukraine, Ministry of Finance and Ministry of Statistics issued joint letter clarifying adoption of IFRS in Ukraine. Banks are required to use 1 January 2011 as date of transition to IFRS. All other entities subject to IFRS adoption may choose either 1 January 2011 or 1 January 2012 as a date of transition to IFRS. Financial statements for 2011 are to be prepared based on Ukrainian Accounting Standards. All other entities may voluntary choose IFRS as their reporting framework.