ORDER OF THE MINISTRY OF FINANCE OF UKRAINE

of February 7, 2013 No. 73

About approval of the National provision (standard) of financial accounting 1 "General requirements to the financial reporting"

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 1 "General requirements to the financial reporting" which is applied.

3. Determine that legal entities (except banks and budgetary institutions) who shall submit the financial reporting according to the legislation, apply the forms of the financial reporting determined by the National provision (standard) of financial accounting 1 "General requirements to financial reporting preparation" approved by this order, beginning from the reporting for the I quarter 2013 and in the subsequent accounting periods.

4. This order becomes effective from the date of its official publication.

5. (Chmeruk M. O.) in accordance with the established procedure to provide to department of tax, customs policy and methodology of financial accounting:

provision of this order on state registration in the Ministry of Justice of Ukraine;

promulgation of this order.

6. To impose control over the implementation of this order on the First Deputy Minister Myarkovsky A. I.

Approved by the Order of the Ministry of Finance of Ukraine of February 7, 2013 No. 73

National provision (standard) of financial accounting 1 "General requirements to the financial reporting"

І. General provisions

1. This National provision (standard) determines the purpose, structure and the principles of financial reporting preparation and the requirement to recognition and disclosure of its elements.

2. Regulations of this National provision (standard) are applied to the financial reporting and consolidated financial statements of legal entities (further - the companies) all patterns of ownership (except banks and budgetary institutions) obliged to submit the financial reporting according to the legislation.

3. Terms which are used in national provisions (standards) of financial accounting have such values:

assets - the resources controlled by the company as a result of last events which use, as expected, will lead to receipt of economic benefits in the future;

balance (the report on financial condition) - the report on financial condition of the company which displays its assets, obligations and equity for certain date;

accounting records - the reporting which is constituted based on accounting data for requirements satisfaction of certain users;

expenses - reduction of economic benefits in type reduction of assets or increase in obligations which leads to reduction of equity (except for capital reductions due to its withdrawal or distribution by owners);

equity - difference between assets and liabilities of the company;

money (money) - cash, means on accounts in banks and on-demand deposits;

income - increase in economic benefits in type increase in assets or reduction of obligations which leads to growth of equity (except for growth of the capital at the expense of fees of owners);

cash equivalents (money) - short-term highly liquid financial investments which are freely converted into certain amounts of money and are characterized by insignificant risk of change in value;

loss - excess of expense amount over income amount for which receipt these expenses were performed;

regular activities - any main activities of the company, and also transaction which provide it or result from its carrying out;

the report on equity - the report displaying changes in structure of equity of the company during the accounting period;

the cash flow statement - the report displaying receipt and disposal of money (money) during the accounting period as a result of operating, investing and financial activities;

the report on financial results (comprehensive income statement) - the income statement, expenses, financial results and comprehensive income;

the obligation - the debt of the company which resulted from last events and which repayment in the future, as expected, will lead to reduction of the resources of the company personifying economic benefits;

investing activities - acquisition and realization of those non-current assets, and also those financial investments which are not component of cash equivalents (money);

other comprehensive income - the income and expenses which are not included in financial results of the company;

consolidated financial statements - the financial reporting of the company which exercises control, and the companies which are controlled by it as single economic unit;

users of the reporting - the physical persons and legal entities needing information on activities of the company for decision making;

international accounting standards - the documents accepted by Council for international accounting standards which determine procedure for financial reporting preparation;

national provision (standard) of financial accounting - the regulatory legal act which determines the principles and methods of financial accounting and financial reporting preparation by the companies (except the companies, which according to the legislation constitute the financial reporting under International Financial Reporting Standards and national provisions (standards) of financial accounting in public sector) developed on the basis of International Financial Reporting Standards and the European Union law in the sphere of financial accounting and approved by the central executive body which provides forming and realizes state policy in the sphere of financial accounting;

non-cash transactions - the transactions which are not requiring use of money and their equivalents;

non-current assets - all assets which are not turnover;

accounting policy - set of the principles, methods and procedures which are used by the company for financial accounting, creation and provision of the financial reporting;

current assets - the money and their equivalents which are not limited in use and also other assets intended for realization or use during operating cycle or within twelve months from the date of balance;

operating activiies - the main activities of the company, and also other types of activity which are not investing or financial activities;

operating cycle - period between stock acquisition for implementation of activities and receipt of money and their equivalents from realization of products made from them or goods and services;

the main activities - the transactions connected with production or sales of products (goods, works, services) which is main goal of creation of the company and providing the main share of its income;

profit - the amount on which the income exceeds the related expenses;

notes to the financial reporting - set of indicators and explanations which provide disaggregation and justification of financial statement line items, and also other information which disclosure is provided by the relevant national provisions (standards) of financial accounting or international accounting standards;

the principle of financial accounting - the rule by which it conforms to be guided in case of measurement, assessment and registration of economic activities and in case of display of their results in the financial reporting;

disclosure - provision of information which is essential to users of the financial reporting;

cash flow (money) - receipt and disposal of money and their equivalents;

Article - the element of the financial statement answering to the criteria established by this National provision (standard).

comprehensive income - changes in equity during the accounting period as a result of economic activities and other events (except for changes of the capital due to transactions with owners);

essential information - information which lack can influence the decision of users of the financial reporting. Materiality of information is determined by the relevant national provisions (standards) of financial accounting or international accounting standards and management of the company;

financial activities - activities which lead to changes of the size and structure of own and loan capitals of the company;

the financial reporting - the reporting which contains information on financial condition and results of activities of the company;

net income from sales of products (goods, works, services) - the income which is determined by subtraction from the income from sales of products, goods, works, services (including payments from lease of objects of the investment real estate) the provided discounts, the cost of the returned earlier sold goods, the income which under agreements belong to consignors (to principal and so forth), and taxes and fees.

4. The purpose of financial reporting preparation is provision to users for decision making of complete, true and impartial information about financial condition and results of activities of the company.

5. The procedure and terms of accounts presentation and consolidated financial statements to users are determined by the legislation.

ІІ. Structure and financial statement elements

1. The financial reporting consists from: balance (the report on financial condition) (further - balance), the report on financial results (comprehensive income statement) (further - the report on financial results), the cash flow statement, the report on equity and notes to the financial reporting.

The balance of the company is made for the end of the last day of the accounting period.

The companies which constitute the financial reporting and consolidated financial statements by national provisions (standards) of financial accounting constitute interim financial statements which cover the corresponding period (the I quarter, the first half of the year, nine months), the accruing result since the beginning of accounting year as a part of balance and the report on financial results.

2. For the microcompanies, small enterprises which are recognized as those according to the Law of Ukraine "About financial accounting and the financial reporting in Ukraine", not entrepreneurial societies, representative offices of foreign business entities and the companies which keep the simplified financial accounting of the income and expenses according to the tax legislation the financial reporting reduced on indicators as a part of balance and the report on financial results which form and procedure for creation are determined by the National provision (standard) of financial accounting 25 "The simplified financial reporting", the approved order of the Ministry of Finance of Ukraine of February 25, 2000 No. 39, registered in the Ministry of Justice of Ukraine on March 15, 2000 for No. 161/4382 (in edition of the order of the Ministry of Finance of Ukraine of January 24, 2011 No. 25) (with changes) is established. The specified companies can independently determine feasibility of financial reporting preparation by the forms given in this National provision (standard).

3. The form and structure of financial statement line items are determined by this National provision (standard) and given in appendices 1 and 2 to this National provision (standard).

4. The companies can not provide Articles under which there is no information to disclosure (except cases if such information was in the previous accounting period), and also to add Article with preserving their name and code of line from the list of the additional clauses of the financial reporting given in appendix 3 to this National provision (standard) if Article answers such criteria:

information is essential;

assessment of Article can be authentically determined.

5. Indicators about the income tax, expenses and losses, deductions from the income, disposals of means, reduction of components of equity are given in brackets.

6. The financial reporting joins indicators of activities of branches, representations, departments and other separate divisions of the company.

7. In balance assets, obligations and equity of the company are displayed. In the cases provided by regulatory legal acts the separate balance is made. For creation of separate balance data of source documents on economic activities of the branches, representations, departments and other separate divisions allocated with the company for separate balance and also on economic activities which according to the legislation are subject to display in separate balance are brought in separate (open for this separate division or for display of economic activities on certain activities of the company) bookkeeping registers. According to separate bookkeeping registers the separate balance and the corresponding forms of the financial reporting concerning the specified economic activities are made. Indicators of separate balance and the corresponding forms of the financial reporting join in balance and the corresponding forms of the financial reporting of the company. Features of creation of separate balance of joint activities are determined by national provisions (standards) of financial accounting or international accounting standards. In case of creation of balance and the corresponding forms of the financial reporting of the companies taking into account indicators of separate balance and the corresponding forms of separate financial statements information on intraeconomic calculations (cross liabilities) is not provided in the equal amount.

8. In the report on financial results information on the income, expenses, profits and losses, other comprehensive income and total business return for the accounting period reveals.

9. Data on cash flow during the accounting period as a result of operating, investing and financial activities are provided in the cash flow statement (money). In case of financial reporting preparation and consolidated financial statements of the company can choose method of creation of the cash flow statement on direct or indirect method using the corresponding report form.

The company in detail gives the amounts of the receipts and expenditure arising as a result of operating, investing and financial activities. If cash flow (money) as a result of one transaction includes the amounts which belong to different types of activities, then these amounts are given separately in structure of the corresponding types of activity. Internal changes as a part of money (money) do not join in the cash flow statement. Non-cash transactions (receipt of assets by finance lease; barter transactions; acquisition of assets by share issue and so forth) do not join in the cash flow statement.

10. In the report on equity information on changes in structure of equity of the company during the accounting period reveals. In the graphs of the report on equity intended for reduction of components of equity the indicators given in the Section I "Equity" of balance are specified. For ensuring comparative information analysis of the report on equity of the company shall attach to the annual statement the report on equity for previous year.

11. The companies which according to the legislation apply international accounting standards and according to the International Financial Reporting Standard 1 "The first application of International accounting standards" submit the first annual financial reporting according to international standards, provide information for the beginning and the end of the accounting period in balance, and also for date of transition to international accounting standards.

ІІІ. Quality characteristics of the financial reporting and principles of its creation

1. Information which is specified in the financial reporting shall be intelligible and clear to its users provided that they have sufficient knowledge and are interested in perception of this information.

2. The financial reporting shall contain only pertinent information which influences decision making by users, gives the chance in time to estimate last, current and future events, to confirm and modify their estimates made in the past.

3. The financial reporting shall be reliable. Information provided in the financial reporting is reliable (truthful) if it does not contain mistake and the misstatement capable to influence the decision of users of the reporting.

4. The financial reporting shall give opportunity to users to compare:

financial statements of the company for the different periods;

financial statements of the different companies.

5. Prerequisite of comparability is reduction of the relevant information of previous period and disclosure of information on accounting policy and its changes. Establishment and changes of accounting policy of the company are performed by the company determining it in coordination with the owner (owners) or authorized body (official) according to constituent documents.

6. The financial reporting of the company is created with respect for such principles:

autonomies of the company on which each company is considered as the legal entity separated owners; therefore the personal property and obligations of owners shall not be displayed in the financial reporting of the company;

going concern which provides assessment of assets and liabilities of the company, proceeding from the assumption that its activities will continue further;

frequency which allows distribution of activities of the company to certain periods for the purpose of financial reporting preparation;

historical (actual) cost which determines priority of assessment of assets, proceeding from expenses on their production and acquisition;

charge according to which the income and expenses are reflected in financial accounting and the financial reporting at the time of their origin, irrespective of time of receipt or payment of money (money);

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