As part of its continued efforts to make the transition to the IFRS and compile consolidated financial statements in accordance with the International Standards under the current law (the Laws of Ukraine “On the National Bank of Ukraine”, “On Banks and Banking”, “on Accounting and Financial Reporting in Ukraine”, etc.), the National Bank of Ukraine participated in the round table meetings held during September-October 2012.

On 28 September, the Ukrainian Federation of Professional Accountants and Auditors initiated the round table meeting on “International Financial Reporting Standards in Ukraine: practical steps and future challenges" jointly with the Ministry Of Finance of Ukraine and the Audit Chamber of Ukraine. The round table meeting was attended by representatives from regulatory authorities, auditing companies and the World Bank.

Speaking at the round table meeting, the participants addressed a number of issues. In particular, Ms. Vira Rychakivska, Deputy Governor of the National Bank of Ukraine, informed the meeting participants about the near-term tasks associated with the implementation of the IFRS in the banking industry. In his speech at the round table meeting, Mr. O. Kantsurov, Head of Accounting Methodology Division of the Ministry of Finance of Ukraine touched on certain issues related to methodological support for IFRS adoption in Ukraine. Henri Fortin, Head of the World Bank Centre for Financial Reporting Reform outlined the objectives and prospects for improvement of financial reporting and auditing practices in the Eastern Partnership countries. Mr. Andrii Busiyok, Financial Manager of the World Bank Centre for Financial Reporting Reform, analyzed ways to enhance the credibility of profession and contribution made by professional accounting organizations to improve the quality of financial reporting and audit. Certain aspects of the IFRS implementation were addressed by other participants in this round-table discussion.

In addition, the meeting participants emphasized the need for all market participants to perceive the IFRS implementation as a key element of the economic development and creation of favorable investment climate, a tool required to exercise efficient supervision over the financial market and creation of information infrastructure. The meeting participants noted that transition to the IFRS requires considerable efforts by the state regulatory authorities and appropriate specialist training.

Another important issue related to the format in which information is provided was addressed at the round table meeting on “XBRL Taxonomy: prospects for implementation”, which was held on 4-5 October 2012 and initiated by the Ministry of Finance of Ukraine under the auspices of the USAID Financial Sector Development Project (FINREP). The round table meeting was attended by Ms. Vira Rychakivska, Deputy Governor of the National Bank of Ukraine, Mr. Bohdan Lukasevych, Chief Accountant – Director of accounting Department of the National Bank of Ukraine, Mr. O. Kantsurov, Head of Accounting Methodology Division of the Ministry of Finance of Ukraine, Ms. Olena Velychko, Advisor to the Chairman of the National Commission on Securities and Stock Market, Ms. Valentyna Legka, Executive Director of the Ukrainian Federation of Professional Accountants and Auditors, and USAID representatives.

During the meeting, Mr. Olivier Servais, Director of XBRL Activities [the International Accounting Standards Board (IASB)] delivered a speech on “The use of XBRL: global trends, international experience and steps to be taken owards adopting XBRL, benefits for companies and regulators from adoption of taxonomy”. Mr. Olivier Servais has noted that XBRL may become a standard for electronic reporting, ensure financial reporting submission, help bring the standards closer through codification, improve access to financial information and make transition to the IFRS easier. XBRL activities such as the development and adoption of taxonomies were presented. Mr. Olivier Servais has outlined further measures that the Group is set to implement.

Mr. O. Kantsurov, Head of Accounting Methodology Division of the Ministry of Finance of Ukraine, acted as a moderator to stimulate the discussion on the adoption of XBRL taxonomy in Ukraine. The meeting participants took the stance on the issue and stressed the crucial importance of developing a uniform standard for submitting financial reporting in a digital format by using XBRL. The implementation of a uniform standard would allow for automatic exchange of financial information in a uniform format, which makes it understandable for users, would speed up information processing and automate verification process, which is crucial for investment attraction and efficient state regulation.

The meeting participants have outlined the following key issues surrounding the adoption of XBRL taxonomy in Ukraine: understanding the effectiveness of the implementation of XBRL by economic entities that compile financial statements in accordance with the IFRS and by regulators; a study of problems that might arise when adopting XBRL; establishment of a legal framework for the adoption of XBRL taxonomy; organizational issues including the development of an action plan with regard to the adoption of XBRL at the government level, coordination of the program, a study of the experience of the countries that have already adopted XBRL, specialist training, etc.

Ukraine has set out on the path of XBRL adoption. In particular, considerable efforts have been made to translate XBRL taxonomy.