With the aim of bringing the NBU regulations into line with  the International Financial Reporting Standards (IFRS), on June 22, 2015, the Board of the National Bank of Ukraine approved the following resolutions:  No 399 On Amendments to the Procedure for application of the transformation method by the Ukrainian banks when compiling financial statements, and  No 400 On Approval of the Instruction on Accounting of Transactions with Securities and Financial Investments in the Ukrainian Banks  (hereinafter – Resolution No 400),  No. 401 On Approval of Amendments to the Instruction on Accounting of Lending, Savings (Deposit) Transactions and the Provisioning and Use of Provisions against Credit Risks by the Ukrainian Banks (hereinafter – Resolution No 401),  No 402 On Amendments to Some NBU Regulations  (hereinafter – Resolution No 402) and No 403 On Approval of Amendments to the Accounting Rules governing recognition of income and expenses of the Ukrainian banks (hereinafter – Resolution No 403).

The provisions of the aforementioned Resolutions will facilitate the recording of transactions in line with the IFRS to ensure the approximation of accounting and financial reporting data.  In particular, they have set out the rules for recording the following transactions in accordance with the IFRS: transactions with securities and financial investments; lending and savings (deposit) transactions, the provisioning and use of provisions against credit risks; the accrual of interest income on the impaired assets; preferred shares and investment in associates.  The transformation adjustments will be carried out only in respect of transactions that are presented in a manner inconsistent with the International Financial Reporting Standards requirements and applicable Ukrainian laws.

Resolutions No 400, No 401, No 402 and No 403 come into force from December 1, 2015.  By the aforementioned date, banks will be required to finalize business processes and respective software suites to ensure that transactions are recorded and presented in accordance with the IFRS requirements.