It is registered
in the Ministry of Justice of Ukraine
January 22, 2009.
of December 30, 2008 No. 1577
About approval of the Provision (standard) of financial accounting 34 "Payment based on shares"
(In edition of the Order of the Ministry of Finance of Ukraine of 09.12.2011 No. 1591)
According to part two of article 6 of the Law of Ukraine "About financial accounting and the financial reporting in Ukraine" and in pursuance of the actions plan concerning accomplishment in 2008 of the Nation-wide program of adaptation of the legislation of Ukraine to the European Union law approved by the order of the Cabinet of Ministers of Ukraine of 11.06.2008 of N 821-p, PRIKAZYVAYU:
1. Approve the Provision (standard) of financial accounting 34 "Payment based on shares" approved by Methodological council on financial accounting under the Ministry of Finance of Ukraine which is applied.
2. To provide to management of methodology of financial accounting (Parkhomenko V. M.) provision of this order in five-day time in accordance with the established procedure on state registration in the Ministry of Justice of Ukraine.
3. To department of ensuring activities of the Minister (foster service) (Shpenta I. Yu.) after state registration of this order in the Ministry of Justice of Ukraine to provide its promulgation on the official website of the Ministry of Finance of Ukraine.
4. Determine that the Provision (standard) of financial accounting 34 "Payment based on shares" becomes effective from 01.01.2010.
5. To impose control of execution of this order on the deputy minister Fudashkin D. O.
First Deputy Minister I. Umansky
Approved by the Order of the Ministry of Finance of Ukraine of December 30, 2008 No. 1577
1.1. This Provision (standard) determines methodological bases of forming in financial accounting of information on transactions on which payment is made based on shares with use of tools of equity and/or means (other assets), and also its disclosures in the financial reporting.
1.2. Regulations of this Provision (standard) are applied by the companies, the organizations and other legal entities (daleepredpriyatiya) 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).
1.3. Regulations of this Provision (standard) do not extend to transactions:
1.3.1. On which the company in exchange for tools of equity receives assets as component of the net assets taken as a result of merging of the companies and/or forms of their economic activity and to which the Provision (standard) of financial accounting 19 of "Merging of the companies" approved by the order of the Ministry of Finance of Ukraine of 07.07.99 of N 163, registered in the Ministry of Justice of Ukraine 23.07.99 for N 499/3792 is applied.
1.3.2. Connected with equity tools on which payment is provided to be performed means, other financial instruments or way of exchange for other financial instruments to which the Provision (standard) of the financial accounting 13 "Financial instruments" approved by the order of the Ministry of Finance of Ukraine of 30.11.2001 of N 559, registered in the Ministry of Justice of Ukraine 19.12.2001 for N 1050/6241 is applied.
1.4. Terms which are used in provisions (standards) of financial accounting have such value:
Internal cost - difference between fair value of shares on which the supplier of goods (works, services) has under the agreement on payment based on shares the right to be signed or receive, and the cost which to it shall be paid for these shares.
The agreement on payment based on shares - the contract between the company and other party (including the worker) about deliveries of goods (works, services) with calculations based on shares according to which after accomplishment of the conditions determined by this agreement the company shall extinguish obligations means (other assets) in the amount which is determined based on share value (other tools of equity), or to transfer equity tools.
Transaction on which payment is made based on shares, transaction on which the company settles debt for the acquired (received) goods (works, services) equity tools (including shares or share options) and/or means (other assets) in the amount which is determined based on share value or other tools of equity.
The share option - the agreement which grants to the holder the right (but it does not oblige) to be signed on the share of the company with fixed price or the price which can be determined for the specific period.
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