Mandatory IFRS

On 12 May 2011 Parliament of Ukraine adopted the Law of Ukraine On Introduction of Amendments to the Law of Ukraine On Accounting and Financial Reporting in Ukraine (the "Law"). The Law's objective is to harmonize Ukrainian legislation with the EU Regulation No 1606/2002 of the European Parliament and of the EU Council of Ministers of 19 July 2002 regarding the application of international accounting standards. The Law became effective on 11 June 2011.

The Law ensures the possibility of application of the International Financial Reporting Standards (the "IFRS") to the accounting and financial reporting of Ukrainian companies. According to the Law any company (except for certain categories of companies that are obliged to use IFRS) is free to use IFRS in their activity. To start officially using IFRS, such company must inform the State Statistics Committee.