It is registered
Ministry of Justice of Ukraine
November 17, 2003
of November 7, 2003 No. 617
About approval of the National provision (standard) of financial accounting 27 "The non-current assets withheld for sale and discontinued operation"
According to article 6 of the Law of Ukraine "About financial accounting and the financial reporting in Ukraine" PRIKAZYVAYU:
1. Approve the National provision (standard) of financial accounting 27 "The non-current assets withheld for sale and discontinued operation" (further - the National provision (standard) 27) approved by Methodological council on financial accounting of the Ministry of Finance of Ukraine which is applied.
2. To department of financial statistics and analysis, methodology of financial accounting and control (Chugunov I. Ya.) provide provision of this order on state registration in the Ministry of Justice of Ukraine.
3. To impose control of execution of this order on the First Deputy Minister of Finance of Ukraine Yaroshenko F. O.
First vice-Prime Minister of Ukraine, Minister of Finance of Ukraine
N. Ya. Azarov
Approved by the Order of the Ministry of Finance of Ukraine of November 7, 2003 No. 617
1. This National provision (standard) determines the methodological principles of forming in financial accounting of information on the non-current assets withheld for sale and group of assets which is necessary to disposal as a result of sale transaction, and also discontinued operation and disclosure of such information in the financial reporting.
2. Regulations of this National provision (standard) are applied by the companies, the organizations, other legal entities (further - the companies) irrespective of patterns of ownership (except budgetary institutions and the companies which according to the legislation constitute the financial reporting under International Financial Reporting Standards).
3.1. Delayed tax assets.
3.2. Assets which are connected with payments to workers upon termination of their labor activity.
3.3. Non-current financial assets which are estimated at fair value.
3.4. Non-current biological assets which are estimated at fair value, reduced by the expected expenses on the place of sale.
3.5. The investment real estate which is estimated at fair value.
4. Terms which are used in provisions (standards) of financial accounting have such value:
Use cost - the present cost of future cash flows which, as expected, will arise from use of asset and its liquidation.
Group of disposal - set of assets which are planned to sale or alienation in a different way by one transaction and obligations which are directly connected with such assets which will be transferred (are extinguished) as a result of such transaction.
Component of the company - unit (group of units) which generates money both can be separated is operational and provides activities for production and/or sale of products (works, services).
The discontinued operation is liquidated or recognized as the component of the company withheld for sale which is:
a) the isolated direction or segment of activities of the company;
b) part of the unified coordinated plan of refusal of the separate direction or segment of activities of the company;
c) affiliated enterprise which was acquired only for the purpose of its resale.
1. The non-current asset and group of disposal are recognized withheld for sale if:
economic benefits are expected to be received from their sale, but not from their proper use;
they are ready to sale in their present condition;
their sale, as expected, will be complete for year from the date of recognition their such which contain for sale;
conditions of their sale answer usual conditions of sale for similar assets;
implementation of their sale has high probability, in particular if the management of the company prepares the corresponding plan or the firm contract on sale is signed, their active offer in the market at the price which answers fair value is performed.
The period of completion of sale can be extended for term more than one year if it is caused by circumstances which are out of control of the company continuing to implement the sales plan.
2. Non-current assets, group of disposal which alienation is planned in a different way than sale for date of balance, are not recognized withheld for sale.
3. Primary recognition of non-current assets and group of disposal as withheld for sale is carried out for date when concerning assets, groups of disposal are met the conditions given in Item 1 of this Section or for date of receipt of the assets acquired with sales objective.
4. If non-current assets, group of disposal are recognized withheld for sale after date of balance, then such recognition is performed for the following date of balance.
If such recognition happens after date of balance, but before approval of the financial reporting, then information on the non-current assets, group of disposal withheld for sale reveals in notes to the financial reporting.
5. The structure of group of disposal can also include the goodwill acquired as a result of transaction of business combination provided that such group is group of assets which generates money and on which the goodwill according to requirements of other provisions (standards) of financial accounting was distributed.
6. Non-current assets, group of disposal which are acknowledged withheld for sale stop to be recognized structure of non-current assets.
On the non-current assets withheld for sale including non-current assets which enter into group of disposal depreciation is not.
7. The company continues to recognize financial expenses and other obligations which belong to obligations of the group of disposal withheld for sale.
8. Acquired (received, including it is free) assets which are recognized the non-current assets withheld for sale are set off on balance on acquisition value which is determined according to the National provision (standard) of the financial accounting 9 "Inventories" approved by the order of the Ministry of Finance of Ukraine of 20.10.99 No. 246, registered in the Ministry of Justice of Ukraine 02.11.99 for No. 751/4044.
9. The non-current assets and group of disposal withheld for sale are displayed in financial accounting and the financial reporting for date of balance on the smallest of two sizes - book value or net value of realization.
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