Re-statement to IFRS, US or UK GAAP

The Ukrainian regulatory body Ministry of Finance is responsible for development, issue and amendment of the National Accounting Standards (NAS).

The Ministry of Finance has been proclaiming that it takes the relevant IFRS (or IAS) as a basis for any particular NAS since the year 1999 (the year when the first NAS were adopted and published). This is quite true as a general statement until you get into details of the NAS. The detailed analysis demonstrates there are discrepancies between NAS and IFRS.

We can argue to what extent they are significant but it really depends on how diversified the business is and what kind of transactions it undertakes. The general trend is quite obvious: the discrepancies become more significant as your business grows and gets involved into financial and investment transactions. Thus, if to compare NAS with the US or UK GAAP the gap gets even bigger.

Ukrainian financial reporting has got another important negative feature: to find it prepared in compliance with NAS will most likely be an exception than the rule. The reason behind this sad fact is explained by the low status of the statutory financial reporting in the eyes of its potential users. The Ukrainian accountants are very good at compiling double entries and supporting transactions with documents but they do not think economically. The other reasons of the Ukrainian statutory reporting being of so low quality are considered in the article Financial reporting as a face of your business on our web-site.

We regard the financial reporting as the heart of our practice.

Alt's auditors and financial reporting consultants possess international qualification and unique practical experience in different industries. We closely monitor the latest drafts and amendments of NAS, IFRS, US and UK GAAP and update our comparative statements.

To convert the Ukrainian financial reports to another reporting environment all the items of the financial statements are to be analyzed in detail. Our re-statement procedure is always fully transparent and accompanied with detailed descriptions for every adjustment made. The client's management takes active part in the re-statement process communicating us the accounting and evaluation policies for the financial reporting items as well as other relevant information.

We always pass over to the client not just the final format of re-stated accounts but also our analytical spreadsheets with clear instructions how to continue the procedure internally.