EU supports better investment climate in Ukraine through enhanced credibility and comparability of financial reporting by public interest entities
July 7, 2021.
On 6 July 2021, the EU-funded project "Implementation of EU Practices for Accounting, Financial Reporting and Audit in Ukraine" (EU-FAAR), together with representatives of the Ministry of Finance of Ukraine and the financial sector Regulators - the National Bank of Ukraine, National Securities and Stock Market Commission and the Audit Public Oversight Body - , presented the progress of implementing the IFRS XBRL Taxonomy reporting in Ukraine. The presentation was joined by globally leading experts on this reform, Ann Tarca, Member of International Accounting Standards Board (IASB) at IFRS Foundation in London, and John Turner, CEO at XBRL International.
With EU support, starting 2021, Ukrainian economic entities of public will file their financial reports using the most advanced international format - IFRS XBRL Taxonomy, which will significantly improve the quality of financial information. The IFRS XBRL Taxonomy is issued annually based on the IFRS and XBRL standards. IFRS (International Financial Reporting Standards) are implemented to increase consistency, transparency and comparability of financial information around the world. XBRL (eXtensible Business Reporting Language) is an open international standard for digital business reporting. Introducing financial reporting under IFRS XBRL Taxonomy is a challenging, but important area of financial sector reform. Implementing the IFRS XBRL Taxonomy in It will lead to benefits such as:
strengthening the transparency of financial reporting and performance indicators of enterprises;
free and accessible business information exchange;
increasing investment attractiveness by providing internationally understandable and comparable structured financial data.
Liudmila Gaponenko, Director of Department for Accounting Methodology and Audit Legal Provision of Ministry of Finance of Ukraine, emphasised: “Ukrainian public interest entities will file their IFRS XBRL Taxonomy-based financial reporting for the first time in 2021. With a new, tailored taxonomy and data collection system in place, the country is looking forward to improved reporting and structured financial data in a single electronic format that will be comparable and compatible with EU and international standards.”
Developing the Taxonomy, tailoring it to Ukrainian legislation requirements and the annual release of the Taxonomy requires a significant joint effort by the Ministry of Finance of Ukraine and the financial sector Regulators – the National Bank of Ukraine, National Securities and Stock Market Commission and the Audit Public Oversight Body.
Vitaliya Mudruk, Sector manager of Economic cooperation, energy, infrastructure and environment section at the EU Delegation to Ukraine, commented: "The EU-FAAR helps Ukraine reach an important milestone of the financial sector reform by increasing transparency and credibility of the financial information submitted by public interest entities. We are pleased to note the effective cooperation of the project and Regulators in achieving this progress”.
Background information: The EU-FAAR project was launched in January 2020 and is implemented by a consortium of companies led by DAI Global (Austria) in partnership with IZI Spa (Italy) and ACCA Romania (Romania). The project aims to achieve significant benefits in terms of improved market transparency, helping Ukraine to meet European disclosure standards and facilitating trade and collaboration with the European Union. Since 2015, the EU is supporting the Ministry of Finance of Ukraine, the National Bank of Ukraine, the National Securities and Stock Market Commission and the Audit Public Oversight Body in implementing financial transparency reforms, including harmonisation of the legislation on accounting and audit with EU Law, establishment of a system of audit oversight which is independent from the profession and implementing financial reporting in a single electronic format.
For additional information, please contact:
Mr Jon Hooper, EU-FAAR Team Leader, firstname.lastname@example.org
Ms Yuliia Yurchenko, Project Coordinator, email@example.com