Decree of the Ministry of Finance #627 from 27/06/2013

With Decree № 627 from 27.06.2013, the Ministry of Finance introduced a number of changes in accounting standards.

In particular, Regulation (Standard) 10 "Receivables" was amended with rule, which provides that receivables with budget payments includes debt of financial and tax authorities, as well as advance payments, overpayment of taxes and fees and other payments to the budget and reflects in balance with the release of arrears of income tax.

The revised provisions are set out in paragraph 7 of Regulation (Standard) 15 "Revenue". Thus, it was found that recognized revenue is classified in accounting in the following groups:

- Income (loss) from sale of goods (works, services) - total income (loss) from sales of products, goods, or services rendered without deduction of discounts, return of previously sold products and indirect taxes (VAT, excise duties, etc. );

- Net income from sale of goods (works, services) - is determined by deducting from the income from sale of products, goods and services provided to discount the value of returned goods previously sold, revenue, contracts that include principal (due amount, etc.), taxes and fees;

- Other operating income - the sum of included other income from operations of company, except net income from sale of goods (works, services), including: income from operating lease assets, operating income from rate differences, recoveries of amounts of previously written-off assets, income from royalties, interest earned on balances in current accounts with banks, income from sale of current assets (excluding financial investments), non-current assets held for sale and disposal groups;

- Financial income – a part that includes dividends, interest and other income earned from financial investments (excluding income accounted for under the equity method);

- Other income – inter alia, include income from sale of investments, income from non-operating foreign exchange differences and other income arising in the course of economic activity, but not related with operating activities of the enterprise.

Also, changes were made to the Regulations on use of the Chart of Accounts in assets, capital, liabilities and business operations of enterprises and organizations. Electronic money is with group 3 "funds, accounts and other assets". Summary information on availability and flow of electronic money will be driven to the subaccount 335 "Electronic money denominated in national currency" account 33 "Other Assets". Subaccount 335 shows operations with electronic money taken by commercial agents and users in accordance with regulations of the National Bank and regulations of electronic money, consistent with the National Bank.

Electronic money is found as the unit value that is stored on an electronic device, is accepted as means of payment by persons (other than those who produce them), is the liability of such persons, which is done in cash or bank transfer. Moreover, for accounting purposes the electronic money of single-purpose prepaid card use are not recognized: loyalty card of merchants, card stations, tickets for travel on public transport, etc., which are accepted as means of payment only by their issuers.