1. Public Sector Accounting and Reporting Reform
Ukraine, Kiev
Minsk, Belarus
2016

2. Legislative Framework for the Reform
Initially:
Strategy to Upgrade Public Sector Accounting System for (Resolution of the Cabinet of Ministers #34 dated January 16, 2007)
PFM Modernization Strategy (instruction of the Cabinet of Ministers #888-p dated October 17, 2007)
Since August 2013 – a component of the PFM reform (instruction of the Cabinet of Ministers #774-p dated August 01, 2013 «PFM Development Strategy»)
At present – Strategy for Governance Reform in Ukraine for (instruction of the Cabinet of Ministers #474-p dated June 24, 2016) calls for a revision of the PFM Development Strategy

3. Goal: improve public sector accounting system compliant with the International Standards (IPSAS)
Objectives:
design and introduce national standards of public sector accounting and reporting compliant with IPSAS
develop a Unified Chart of Accounts for public sector accounting harmonized with the budget classification
improve techniques to develop and consolidate statements using state-of-the-art IT systems

4. Legislative Framework
The Budget Code and Law on Accounting and Financial Statements have been amended
The MoF developed and approved by its orders:
19 NPSAS that reflect the requirements of IPSAS
PFA Chart of Accounts, guidelines on using the Chart of Accounts, standard correspondence templates

5. National Standards (NPSAS)
* White color denotes NS introduced since January 1, 2015
Accounting
Reporting
101 Presentation of Financial Statements
102 Consolidated Financial Statements
103 Segment Reporting
105 Financial Reporting in Hyperinflationary Economies
121 Property, Plant and Equipment
122 Intangible Assets
123 Inventories
124 Revenues
125 Changing in Accounting Estimates and Errors
126 Leases
127 Impairment of Assets
128 Liabilities
129 Investment Property
130 The Effect of Changes in FX rates
131 Construction Contracts  
132 Employee Benefits
133 Financial Investments
134 Financial Instruments
135 Expenditures
Черным цветом выделены стандарты, которые будут внедряться с 1 января 2017 года

6. 2) МoF plans to introduce 10 NPSAS and Chart of Accounts
The reform is implemented in stages
1) since January 1, 2015, nine NPSAS have been introduced
2) МoF plans to introduce 10 NPSAS and Chart of Accounts
from January 1, 2017 – for budget fund administrators and state special purpose funds
from 2018 – for the Treasure of Ukraine
The Treasury together with MoF have developed an action plan for – 2018 to introduce the PSA Chart of Account and NPSAS regarding financial statements production and budget execution.

7. NPSAS Introduction Challenges
Мethodological
Lack of:
approved regulation regarding budget classification (economic and incomes classification)
approved procedures for NPSAS-compliant financial statements
rules to consolidate financial statements data
Тechnology
public sector entities lack relevant software
Institutional
staff training

8. Key challenges
misalignment between the current budget classification and GFS requirements
defining rules to consolidate some data contained in budget holders’ financial statements
defining of reporting segments by public sector entities (country cases)
migration of state special purpose funds to NPSAS and Chart of Accounts
procedure to reflect differences in foreign exchange rates
According to NPSAS: revenues +; expenses +
Is it necessary to adjust budget appropriations approved by Law on State Budget for the amount of foreign exchange rate differences?

9. Thank you!