Notification on the registration of financial reporting in the collection center and submission of financial reporting for 2020 prepared on the basis of Taxonomy UA IFRS XBRL

According to the second part of Article 12¹ of the Law of Ukraine on Accounting and Financial Reporting in Ukraine (hereinafter – the Law), enterprises of public interest, public joint-stock companies, business entities operating in extractive industries, as well as enterprises that carry out economic activities according to types, the list of which is determined by the Cabinet of Ministers of Ukraine, prepare financial reporting and consolidated financial reporting according to international standards.

In accordance  According to the part 5 of Article 12¹ of the Law, the enterprises mentioned in the second part of this Article, prepare and submit financial reporting and consolidated financial reporting to public authorities and other users at their request in the manner specified by this Law on the basis of financial reporting Taxonomy according to the international standards in a single electronic format. This format is defined by the central executive body, that ensures the formation and implementation of the state policy in the field of accounting.

The paragraph 1¹ of Section V “Final Provisions” of the Law determines that 2020 is the first reporting period for which the enterprises that are obliged to apply international standards, submit financial reporting on the basis of the Taxonomy according to the international standards in electronic form.

Pursuant to the Law, the Ministry of Finance of Ukraine in accordance with the Agreement with the International Financial Reporting Standards Fund (London, Great Britain), receives the text of financial reporting Taxonomy according to the international standards in the original language, translates it and publishes it on the official website.

The translation of the current version of financial reporting Taxonomy according to the international standards carried out by the Ministry of Finance of Ukraine was approved by the Order of the Ministry of Finance of Ukraine dated 13.11.2020 № 709 and published: https://mof.gov.ua/uk/taksonomija. The current Ukrainian translation of the financial reporting Taxonomy according to the international standards has been also posted on the IFRS Fund website (London, Great Britain: https://www.ifrs.org/issued-standards/ifrs-taxonomy/ifrs-taxonomy-translations/ .

According to the paragraph 2 of the Procedure of Financial Reporting Submission, approved by the Resolution of the Cabinet of Ministers of Ukraine dated 28.02.2000 № 419 (hereinafter – the Procedure), financial reporting and consolidated financial reporting prepared on the basis of the financial reporting Taxonomy according to the international standards of financial reporting in a single electronic format are submitted to the financial reporting collection center. The operational management of the collection center is carried out by the NSSMC in order to ensure access of public authorities, other bodies and users to the financial reporting and consolidated financial reporting submitted by the enterprises.

The financial reporting collection center is a software and hardware complex (a set of hardware and software) designed for the collection of financial reporting prepared on the basis of Taxonomy UA XBRL IFRS, in order to ensure access of public authorities, other bodies and users to the reporting.

The financial reporting collection center provides, in particular:

• collection of financial reporting prepared on the basis of Taxonomy UA XBRL IFRS;
• publication in the public database (on the website https://frs.gov.ua) of financial reporting prepared on the basis of Taxonomy UA XBRL IFRS;
• creation and maintenance of “user offices” (in particular, web applications for companies that submit financial reporting);
• access of public authorities, other bodies and users to the financial reporting submitted by enterprises etc.

Currently the financial reporting collection center and all of its functional components, including those intended for business registration and for collecting financial reporting of enterprises prepared on the basis of Taxonomy UA XBRL IFRS, are technically fully operational.

To be able to submit financial reporting based on Taxonomy UA XBRL IFRS, enterprises must pre-register in the financial reporting collection center.

It should be noted that the update of the portal “Registration of Reporting Entities” was completed in November of 2020. Therefore, all the above mentioned  companies have got a chance to register and perform other registration procedures in the financial reporting collection center.

Video training “Registration in the financial reporting collection center and verification of user credentials” is posted on the website “Financial Reporting System”: https://frs.gov.ua/.

An updated version of the electronic format of Taxonomy UA IFRS XBRL 2020, which is scheduled to be completed in January 2021, is currently being developed.

Given the above, enterprises defined in the second part of Article 12¹ of the Law submit financial reporting for 2020, the first quarter, the first half of the year and nine months of 2021 in the manner and terms specified by law, in the forms approved by the Order of the Ministry of Finance of Ukraine dated 07.02 .2013 № 73 on Approval of the National Regulation (Standard) of Accounting 1“ General Requirements for Financial Reporting”. Banks submit financial reporting in the forms specified by the National Bank of Ukraine.

However, such enterprises in compliance with the paragraph 2 of the Procedure will also have to prepare financial reporting in electronic form based on Taxonomy UA XBRL IFRS 2020 and submit it to the financial reporting collection center.

So, on December 24, 2020, the Financial Reporting System Management Committee established in accordance with the Memorandum of Understanding on the Development and Implementation of the Financial Reporting System between the Ministry of Finance, the NSSMC, the National Bank of Ukraine, State Statistics Service of Ukraine, Audit Public Oversight Body of Ukraine and State Tax Service of Ukraine, decided to recommend to financial market regulators within their authorities to provide the necessary actions to extend the deadlines for submission of financial reporting and consolidated financial reporting prepared on the basis of Taxonomy UA XBRL IFRS 2020 to the financial reporting collection center for 2020, the first quarter, the first half of the year and nine months of 2021 and not to apply sanctions for non-submission of such reporting by business entities within the deadlines set by law during 2021.

 Agreed by the protocol resolution of the FRS Management Committee dated 24.12.2020, established in accordance with Memorandum № 102/15 of Understanding on the Development and Implementation of the Financial Reporting System dated December 18, 2017.