Published 24.09.2021. Some rules have changed since; ask us for the current position.
On 23 September 2021 the Cabinet of Ministers adopted a resolution amending the previously approved procedure for submitting financial statements. Among other things, the changes concern the deadlines for filing documents with the relevant regulatory authorities.
The amendments to the Procedure came in response to repeated requests from companies, since financial statements have to be filed together with the auditor's report.
The decision to change the deadlines took into account the views of the State Tax Service, the Ministry of Finance and the State Statistics Service (Держстат).
In brief: what companies need to know
Under Ukrainian law, certain companies must publish information on their financial position for the previous year every year. The documents are submitted to the tax authorities and the state statistics service.
Previously, the publication deadline was 28 February of the year following the reporting year. By that date an entity had to submit:
- the balance sheet;
- the statement of financial results;
- the auditor's report.
Under the new rules, the deadline has moved: the information can now be submitted by 30 April. For some businesses the deadline has been extended to 1 June.
Companies are also required to file interim financial statements for each quarter. Previously this had to be done by the 25th of the month following the reporting quarter.
Businesses are now allowed to file interim statements by the 30th.
A further change affects companies that prepare their financial statements under IFRS. Statements for 2020 and interim reports for 2021 can be submitted to the single financial reporting collection centre by 31.12.2021.
Please note
The changes above do not apply to everyone. Businesses that file consolidated financial statements are an exception: for them, nothing changes.
For now, interim reports are still due by the 25th. The shift in quarterly reporting deadlines will take effect only from 1 January 2022.
It is also worth noting that the National Bank of Ukraine will temporarily not impose penalties for late filing of 2020 reports and this year's interim reports prepared under international standards in XBRL format.
What about auditor's reports?
For the first time in 2020, businesses registered as value added tax payers must submit a copy of the auditor's report together with their financial statements.
Documents can be filed on paper or electronically, in line with the current legal requirements for electronic document flow.
In other words, companies have to commission external audits from specialist firms.
If the law is breached, managers and officials may face administrative liability under Article 163-1 of the Code of Administrative Offences (КУпАП). The article provides for a fine of UAH 85 to 255.
However, where the requirement to submit an auditor's report has been breached, a manager or official may be released from administrative liability if they have taken part in the tax compromise (податковий компроміс) scheme.
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