It is registered
Ministry of Justice of Ukraine
January 20, 2011
Approved by the Order of the Ministry of Finance of Ukraine of December 24, 2010 No. 1629
1. This National provision (standard) determines procedure for disclosure in the financial reporting of information concerning changes in accounting estimates, changes in accounting policy and correction of material mistakes.
2. Regulations of this National provision (standard) are applied by subjects of financial accounting in public sector (further - subjects of public sector).
3. Terms which are used in national provisions (standards) of financial accounting in public sector have such value:
accounting assessment - provisional estimate which is used for the purpose of expense allocation and the income between the corresponding accounting periods;
material mistake - the error found in current period as a result of which the financial reporting cannot be considered as reliable further.
4. Accounting policy of the company of public sector is determined in the administrative document in which evaluation methods, accounting, procedures which the subject of public sector shall apply and according to which regulatory legal acts on financial accounting provide more than one option shall be established. One-alternative evaluation methods, accounting and procedures in such administrative document it is inexpedient to include.
1. Accounting assessment can be reviewed if circumstances on which this assessment was based change, or the additional information is obtained, or there came certain event.
2. The result of change of accounting estimates should be included in the financial reporting in that period in which change took place, as well as in the next periods if change influences also these periods.
3. Consequences of change in accounting estimates should be included in the same financial statement line item which was applied to display of the income or expenses connected with object of such assessment earlier.
4. If it is impossible to differentiate change of accounting policy and change of accounting estimates, then it is considered and displayed as change of accounting estimates.
5. Correction of the material mistakes made in case of financial reporting preparation in previous years is performed by correction of balance of financial result of previous periods for the beginning of accounting year if such mistakes influence the extent of financial result of previous periods.
6. Correction of material mistakes which belong to previous periods, provides repeated display of the relevant comparative information in the financial reporting, except cases when it is inexpedient.
1. Accounting policy can change only if requirements of provision (charter), the requirement of body which approves national provisions (standards) of financial accounting in public sector change or if changes provide reliable display of events or economic activities in the financial reporting of the subject of public sector.
2. Change of accounting policy, in particular, is considered:
2.1. Transition to use of the new principle of financial accounting.
2.2. Change of approach to recognition or measurement of economic activity or event within one principle of financial accounting.
3. It is not considered change of accounting policy:
3.1. Acceptance of accounting policy for events or economic activities which differ on content from the previous events or economic activities.
3.2. Acceptance of new accounting policy for events or economic activities which did not happen earlier or which were not essential.
4. Accounting policy is applied concerning events and economic activities from the moment of their origin, except as specified, stipulated in Item 6 it undressed.
5. Influence of change of accounting policy on events and economic activities of last periods is displayed in the reporting in the way:
5.1. Corrections of balance of financial results of previous periods for the beginning of accounting year.
5.2. Repeated representation of comparative information of rather previous accounting periods.
6. If the amount of correction of financial result of previous periods for the beginning of accounting year cannot be determined authentically, then accounting policy extends only to events and transactions which happen after date of change of accounting policy.
1. In notes to the financial reporting it is necessary to open content and the amount of changes in accounting estimates which have significant effect on current period, or changes which are expected in accounting estimates if they significantly influence future periods; reasons for inexpediency of determination of the amount of changes in accounting estimates.
2. Concerning correction of material mistakes it is necessary to open such information:
2.1. Content and amount of mistake.
2.2. Financial statement line items of last periods, which pereobschitana for the purpose of repeated representation of comparative information, or reasons for inexpediency of reshortchanging.
2.3. The fact of repeated promulgation of the corrected financial statements.
3. In case of change in accounting policy of the subject of public sector it is necessary to open:
3.1. Reasons and essence of change.
3.2. The amount of correction of financial result of previous periods for the beginning of accounting year or reasons for impossibility of its reliable determination.
3.3. The fact of repeated submission of comparable information in financial statements or inexpediency of its reshortchanging.
Head of department methodologists and financial accounting
O. O. Kantsurov
Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info
Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system
If you cannot find the required document, or you do not know where to begin, go to Help section.
In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.
You also may open the section Frequently asked questions. This section provides answers to questions set by users.