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THE RESOLUTION OF THE NATIONAL COMMISSION PERFORMING STATE REGULATION IN THE FIELD OF POWER AND UTILITIES OF UKRAINE

of October 10, 2017 No. 1223

About approval of the Procedure (rules) of the organization and accounting on licensed types of activity subjects of managing in the field of heat supply

According to article 17 of the Law of Ukraine "About the National commission performing state regulation in the field of power and utilities" the National commission performing state regulation in spheres of power and utilities decides:

1. Approve the Procedure (rules) for the organization and accounting on licensed types of activity by subjects of managing in the field of heat supply which is applied.

2. This resolution becomes effective from the date of, its publication following behind day in the official printing publication - the Pravitelstvenny Kuryer newspaper.

Chairman of NKREKP

D. Vovk

Approved by the Resolution of the National commission performing state regulation in the field of power and utilities of Ukraine of October 10, 2017 No. 1223

Procedure (rules) for the organization and accounting on licensed types of activity subjects of managing in the field of heat supply

1. General provisions

1.1. Action of this Procedure (rules) extends to subjects of natural monopolies and subjects of managing in the adjacent markets which perform or intend to perform economic activity on production of heat energy on the heatgenerating installations (further - production of heat energy), of transportation of heat energy by the high-level and local (distribution) thermal networks (further - transportation of heat energy), delivery of heat energy and are licensees of NKREKP (further - licensees).

1.2. This Procedure (rules) determines the mechanism, the principles, procedures and unified methodical bases of the organization and accounting by licensed types of activity separately from other types of economic activity which state regulation performs NKREKP.

1.3. In this Procedure (rules) terms are used in the following values:

assets of general purpose - assets which are used more than in one type of economic activity, including assets of general production and general economy appointment;

allocation base - indicator of measurement of certain factor which exerts the greatest impact on amount of the corresponding operating or other expenses and is used for their distribution in case of impossibility of reference of separate expense types directly to certain type of economic activity;

vertically integrated company - the heatsupplying companies with two and more types of the productions interconnected among themselves (organizationally, technology and economically) combined by the single purpose of activities;

production product cost (works, services) are the direct expenses of the main operating activiies expressed in cash on production (works, services) and the distributed variables and fixed general production expenses of operating activiies of the company;

expenses of general purpose - the expenses connected with implementation by the licensee more than one type of economic activity and which for the purposes of determination of financial result by types of economic activity are distributed on the basis of the allocation bases established or approved by authorized body for the purposes of pricing;

intraeconomic calculations - the calculations arising at vertically integrated company in case of the interconnected implementation of the licensed and other types of economic activity for the purpose of disclosure of information on their income, expenses, financial results, assets and liabilities on the principles established by this Procedure (rules);

the cost element is set of economically homogeneous expenses;

the involved assets - assets which are connected or are used in economic activity of the licensee and include current and non-current assets;

external consumers are buyers to whom the licensee implements heat energy on rates for the corresponding category of consumers (the population, budgetary institutions, the religious organizations, other consumers (except the population));

the capital (equity) is exceeding of book value of company assets on its obligations (i.e. result of the first Section of liability of balance (the report on financial condition));

accounting on licensed types of activity is system of collection, processing and preparation of information necessary for NKREKP for effective implementation of tasks of state regulation of activities of subjects of the natural monopolies and subjects acting in the adjacent markets;

complete product cost (works, services) are the total expenses expressed in cash consisting of cost of sales of products (works, services), the distributed operating expenses of the period (administrative, other operating expenses) and finance costs of the company;

directly involved assets - assets which are used only in one type of economic activity;

the working chart of accounts of financial accounting - the systematized list of accounts which provides group of accounting information on financial and economic activities of the company determines creation of all system of financial accounting for the purpose of receipt of necessary data for management, control and the reporting;

self-produced cost actual is the cost consisting of self-produced actual production cost, the distributed operating expenses of the period (administrative, other operating expenses) and finance costs of the company;

cost of sales of products (works, services) is cost which consists of production product cost (works, services) which was implemented during the accounting period, unallotted fixed general production expenses and above-standard production costs;

tariff cost is cost which consists of production product cost (works, services), the distributed operating expenses of the period (administrative, other operating expenses) and finance costs of the company included in tariff.

1.4. Accounting on licensed types of activity is performed for the purpose of forming of information on the income, expenses, assets, the capital and obligations by types of economic activity which are performed by the licensee, and to products types (works, services).

1.5. In the field of heat supply treat the licensed types of activity:

1) production of heat energy, including:

the heat energy made at combined heat and power plant, thermal power plant, the NPP, KGU;

the heat energy made on installations with use nonconventional and renewable energy resources;

the heat energy made on sources/installations (except stated above)

the heat energy acquired at other subjects of managing;

2) transportation of heat energy, including:

heat energy which is transported by own networks for own consumers;

heat energy which is transported by own networks for consumers of other licensees;

heat energy which is transported by networks of other licensees;

3) deliveries of heat energy.

1.6. Treat other types of economic activity:

1) the licensed types of activity, except for the types of activity listed in Item 1.5 of this Chapter;

2) unlicensed types of activity in the field of heat supply (utilities, rates for which are established by NKREKP), including:

services in centralized heating (further - TsO);

services in centralized delivery of hot water (further - TsPGV);

3) other unlicensed types of activity which are not specified in subitems 1 and 2 of Item 1.6 of this Chapter, and in particular:

issue of specifications on accession to thermal networks of other producers of heat energy and/or consumers of heat energy;

accession to thermal networks of other producers of heat energy and/or consumers of heat energy.

The list specified in this Item is approximate. For accounting of specifics of managing licensees can disaggregate or expand it: by types of economic activity, on structural units (divisions), categories of consumers and so forth.

1.7. Data of accounting on licensed types of activity are used for the regulatory and control purposes of NKREKP, managerial needs of the licensee when forming rates, investing programs and the reporting represented to NKREKP (further - the regulatory reporting).

1.8. Accounting tasks by licensed types of economic activity are:

creation of information base for effective tariff regulation, investing activities and benchmarking;

ensuring transparency and objectivity of information by types of activity;

prevention of cross subsidizing between types of economic activity, categories of consumers;

introduction of single techniques of forming of indicators of the regulatory reporting for the purpose of ensuring their reliability and comparability.

1.9. Accounting is performed separately on each licensed type of activity in the field of heat supply and to each other type of activity of the licensee.

1.10. Accounting on licensed types of activity is based on data of accounting and intraeconomic (managerial) accounting and is method of disaggregation of financial information according to requirements which are determined by this Procedure (rules), and restrictions of NKREKP regarding the licensed types of activity. Providing separate regulatory requirements is reached by means of intraeconomic (managerial) accounting, that is by application of techniques of calculation, algorithms, calculations and distributions.

1.11. Provisions of this Procedure (rules) do not change and do not cancel financial accounting, and also requirements to forming of financial and tax statements.

2. Accounting principles on licensed types of activity

2.1. Accounting on licensed types of activity is based on the following principles:

charges and compliance of the income and expenses - the licensee reflects the income and expenses at the time of their origin irrespective of receipt date of money, at the same time for determination of financial result of the accounting period it is necessary to compare the income of the accounting period to expenses which were performed for receipt of this income;

the sequences - the licensee constantly (from year to year) applies rules of accounting on licensed types of activity, including methodical bases of asset allocation, the capital, obligations, expenses and the income, in the procedure established by this Procedure (rules), except cases when there are essential conditions of modification of technique which will provide more reliable reflection of information by the licensed types of activity and/or other types of economic activity, or in case of change of requirements of the regulator;

cause and effect relationship - the licensee shall directly or by distribution on consecutive and reasonable basis to consider the determined and distributed income, expenses, assets, the capital and obligations of the accounting period on licensed types of activity and/or other types of economic activity (products, services), including within structural units (divisions), types of economic activity;

objectivity - the licensee shall distribute the income, expenses, assets, the capital and obligations of the accounting period between types of economic activity (products, services) is impartial, preventing thereby misstatement of financial result of any kind of economic activity and influence on decision making by users of accounting information;

completeness of lighting - the licensee shall reflect in accounting and the reporting under licensed types of activity and/or other types of activity all information on the actual and potential effects of transactions and events which can influence the decisions made on its basis;

reliability - the licensee shall guarantee that information on the licensed types of activity and/or other types of economic activity is exact, reliable, does not contain mistakes and misstatements which are capable to influence the decisions made on its basis;

usefulness - the licensee shall apply such techniques of accounting on licensed types of activity which allow to obtain information which is this information, exhaustive, useful and available to internal and external users;

feasibility - the licensee shall provide rational ratio between costs for receipt of information and economic result from its obtaining;

frequency - the licensee creates information on the income, expenses, assets, the capital and obligations on licensed types of activity and/or other types of economic activity periodically (once for the accounting period - year), avoiding duplication of the same indicators in data of accounting on licensed types of activity and/or other types of economic activity;

transparency - the licensee shall provide identification, accounting, distribution and reference of the income, expenses, assets, the capital and obligations on licensed types of activity and/or other types of economic activity so that it was possible is transparent, accurately and unambiguously to display the relevant information in the financial and regulatory reporting;

essence prevalence over form - the licensee reflects transactions in accounting and the reporting according to their economic essence, and not just on the basis of the legal form.

3. The list of actions for providing the organization and accounting for licensed types of activity

3.1. For the purpose of the organization and accounting for licensed types of activity the licensee holds technical, methodical, organizational and information actions:

Technical supply includes 1):

the choice of form of accounting of the income, expenses and assets taking into account features of activities and technology of processing of accounting data (program and material security);

use of information technologies of collection, accumulating, processing, storage and information transfer;

Methodical providing includes 2):

documentation of economic activities on production, transportation, delivery of heat energy and other types of economic activity (source and settlement documents, accounting registers, rules and the schedule of document flow, etc.);

development and approval of the working chart of accounts of financial accounting of assets, obligations, the capital, the income and expenses (synthetic accounts, sub-accounts and analytical accounts) that allows to perform registration, disaggregation, groups and generalization of accounting information on licensed and other types of economic activity.

The licensee uses the sub-accounts this analytics proceeding from requirements of management, extent of disaggregation of data for calculation of product cost (works, services) in licensed types of activity, for control, the analysis and the reporting with preserving account codes of the Chart of accounts of the financial accounting approved by the order of the Ministry of Finance of Ukraine:

procedure (technique) for distribution and accounting of the income, expenses, financial results, obligations and assets on licensed types of activity separately from other types of economic activity;

determination of methods of calculation of cost of production, transportation, delivery of heat energy;

3) organizational support includes creation of necessary conditions for accounting on licensed types of activity and creation of the regulatory reporting, in particular:

system development and forms of intraeconomic (managerial) accounting and reporting of economic activities under licensed types of activity, additional system of accounts and registers of analytics;

approval of rules of document flow and technology of processing of accounting and settlement information, determination of the rights of workers to signing of documents on licensed types of activity;

control of observance of requirements for accounting on licensed types of activity, comparability of indicators of forms of the regulatory reporting;

organization of professional development of personnel of the licensee;

Information support includes 4):

creation of information model of the licensee and databases, including automated;

timely informing the relevant services and divisions on changes in the legislation on regulation of the corresponding field of activity, rules of accounting on licensed types of activity and so forth.

4. Rules for apportionment of assets, obligations, the capital, the income and expenses between types of economic activity

4.1. Assets, obligations, the capital, the income and expenses of the licensee are distributed between types of economic activity by the general rule on:

such that can be directly (directly) carried to one type of economic activity (the licensed type of activity in the field of heat supply, other type of economic activity);

subject to distribution in consecutive basis with certain (reasonable) allocation base (further - distributed);

unallotted are part of assets, obligations, the capital, the income and expenses which did not enter in directly (directly) carried or distributed.

4.2. Have no direct reference (directly) and such assets, obligations, the capital, the income and expenses, on which are established normative or regulatory (including tax), of restriction in the current legislation or determined by those by the independent solution of the licensee are not subject to distribution on certain (reasonable) base to licensed types of activity in the field of heat supply.

In case of lack of legislative restrictions on assets, obligations, the capital, the income and expenses which are unallotted for licensed types of activity in the field of heat supply the licensee independently makes the decision on their inclusion in structure of other types of economic activity, except the licensed types of activity in the field of heat supply.

4.3. Include in structure of assets, obligations, the capital, the income and expenses of each separate type of economic activity such which are directly connected with one type of economic activity, and also are distributed on certain base.

4.4. Asset allocation between types of economic activity:

1) directly involved assets on licensed types of activity in the field of heat supply is part of assets of the licensee which are directly used by the licensee for implementation of one type of economic activity in the field of heat supply (production, transportation, delivery of heat energy);

2) directly involved assets of other types of economic activity are assets which are directly used by the licensee for implementation of any other type of economic activity, except the licensed types of activity in the field of heat supply;

3) allocation base of assets of general purpose are:

between the licensed in the field of heat supply and other types of economic activity of the licensee - expenses on compensation of the main production personnel;

between licensed types of activity in the field of heat supply - allocation base of the general production and administrative expenses provided by procedure for forming of rates;

4) in structure of the involved assets on licensed types of activity in the field of heat supply are not included:

investment real estate;

incomplete capital investments;

non-productive fixed assets (including objects of social infrastructure);

free of charge received subjects of non-current assets;

the non-current assets withheld for sale and groups of disposal;

financial investments;

biological assets;

delayed tax assets;

receivables by calculations for imputed incomes;

deferred expenses;

other involved assets which are directly connected with other types of economic activity.

4.5. Distribution of obligations between types of economic activity:

1) obligations which directly concern licensed types of activity in the field of heat supply, consider those if the income and expenses connected with their origin belong to activities for production or transportation or delivery of heat energy. For example, the supplier debt of natural gas, to budgets for ecological tax for implementation of emissions in atmospheric air by stationary sources of pollution, etc. is part of obligations of activities for production of heat energy;

2) obligations which directly concern other types of activity of the licensee, consider those if the income and expenses connected with their origin belong directly to other types of activity of the licensee;

3) the obligations of the licensee concerning several licensed in the field of heat supply or other types of economic activity, are subject to distribution on the established reasonable allocation base if debt maintenance expenses are also distributed on the following types of economic activity, products (works, services).

Allocation base of obligations of the licensee are direct expenses on types of activity of the licensee;

4) in structure of obligations on licensed types of activity in the field of heat supply are not included:

delayed tax liabilities;

the long-term loans and obligations concerning activities of the company - the licensee in general;

providing future expenses and payments;

target financing which concerns activities of the company licensee in general;

the obligations connected with the irreversible assets withheld for sale and groups of disposal;

other obligations which are directly connected with other types of economic activity.

4.6. Capital allocation between types of economic activity:

1) the capital by licensed and other types of economic activity is determined by subtraction from asset cost of the amount of obligations of the corresponding type of economic activity (by accounting equations);

2) the licensee has the right to determine equity components by the general rule provided in Item 4.1 of this Chapter.

4.7. Income distribution between types of economic activity:

1) as the income of the corresponding licensed type of activity in the field of heat supply is recognized by the income of the licensee which can be directly carried to activities for production or transportation or delivery of heat energy or are determined by distribution on reasonable and consecutive basis;

2) the income of any other type of economic activity, except the licensed types of activity in the field of heat supply, is recognized by the income of the licensee which is directly connected with implementation of other type of activity or determined by distribution on reasonable and consecutive basis;

3) the income from other operating activiies in case of impossibility of implementation of their accounting on the corresponding licensed types of activity in the field of heat supply and to other types of economic activity is subject to distribution between types of activity of the licensee in proportion to cost of sales of products (works, services).

Financial and other incomes of the licensee is unallotted, except cases when receipt of such income is directly connected with separate type of economic activity of the company;

4) in structure of the income on licensed types of activity in the field of heat supply are not included:

the value added tax, other charges and deductions from the income (charges, discounts, return of goods, etc.);

financial incomes;

tax income on profit;

income from realization of financial investments, non-current assets (fixed assets, intangible assets, etc.);

the means of target financing concerning activities of the company - the licensee in general;

income from not operational exchange differences;

income from gratuitously the received non-current assets;

income from sales of products (works, services) of other types of economic activity (including provision of services on centralized heating and centralized delivery of hot water).

4.8. Expense allocation between types of economic activity:

1) Expenses of the licensed type of activity in the field of heat supply the expenses which are directly connected with implementation of activities for production or transportations or delivery of heat energy or determined by distribution on reasonable and consecutive basis are recognized;

2) costs of any other type of economic activity, except the licensed types of activity in the field of heat supply, is recognized by the expenses which are directly connected with implementation of other type of economic activity or determined by distribution on reasonable and consecutive basis;

3) expense allocation of general purpose is performed in the following sequence:

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