More clarity in reporting: NSSMC clarifies information requirements for capital market participants

The NSSMC (National Securities and Stock Market Commission) has amended the information requirements concerning an audit or reviewing the financial statements of capital market participants and organized commodity markets. Henceforth, it will be easier for auditors to determine the accuracy of the settlement date of shareholders’ equity and to offer an opinion on the correctness of the calculation of prudential indicators.

This Resolution was adopted by the Commissioners of the regulator at its meeting. It includes amendments to the Resolution of the NSSMC dated July 22, 2021 No. 555.

“We have had our difficulties faced by professional capital market participants. Some of them were related to the changes in the legislation, several were related to the emergence of new instruments, such as green and infrastructure bonds. Therefore, we have prepared appropriate innovations for the clear supervision of market participants and at the same time for their convenience”, says Yurii Shapoval, the Commissioner of the NSSMC, who is responsible for submitting financial statements to the regulator.

The key thing in this resolution provides for the unification of approaches to determining the reporting date, on which the auditor’s document should indicate the opinion on the adequacy of the issuer’s equity under the requirements of the law. So, it must precede the date of the resolution on the securities issue.

In addition, the resolution clarified the concept of the reporting period for which the auditor must advance the opinion on the accuracy of the prudential indicators calculation. Also this resolution regulated the use of the additional concept – “the statement of the auditor’s opinion” in the case of a review of the interim financial information and etc.

According to persons who drafted document, all the updated requirements relate to the reports that will be prepared after the entry into force of this decision. It is expected that it will be implemented in one and a half or two months. At the moment the decision has been submitted to the Ministry of Justice of Ukraine for state registration.