The Law of Ukraine “On Amendments to the Law of Ukraine on Financial Accounting and Reporting in Ukraine” dated 5 October 2017 enhancing the list of businesses which are subject to the obligatory annual audit and publication of their financial statements shall take effect on 1 January 2018 (the “Law”). The Law amends the existing criteria for businesses to qualify for the obligatory annual audit and adds new categories of businesses that will be obliged to perform the annual audit.
In accordance with the Law, the following businesses should apply new rules beginning from 2018 (i.e. to perform the audit of the 2017 financial statements):
- Issuers of securities admitted to trade at stock exchanges;
- Large and medium financial institutions, including banks, insurers, pension funds, etc;
- Public joint-stock companies;
- Subsoil explorers and producers;
- All-state monopolies; and
- Large companies issuing securities.
The following categories of businesses should apply new rules beginning from 2019:
- Small and micro financial institutions, including banks, insurers, pension funds, etc;
- Large companies that do not issue securities; and
- Medium companies.
The Law introduced a novelty that the qualifying businesses should publish their audited financial statements at their official websites in full.