The National Securities and Stock Market Commission informs about the beginning of the functioning of the Financial Reporting System (FRS) in XBRL format, starting on June 18, 2019, the relevant software package and the specialized website frs.gov.ua, which will provide basic information to FRS users.
The NSSMC informs enterprises that compile financial statements in accordance with international financial reporting standards about the need for registration in the FRS and encourages reporting entities to start preparing for disclosure in a new format today to avoid possible errors after the XBRL format becomes mandatory submission of annual financial statements starting from January 1, 2020.
At present, the NSSMC collects the information required for registration of FRS reporting entities to launch the software, and emphasizes the need for all users of the system to provide information for the creation of accounts in the form of an electronic document, the composition and form of which must comply with the E-mail Specifications, in the period up to June 7, 2019. XML forms of information about users authorized to provide Enterprise reporting.
Details of the information needed to create user accounts in the FRS and how to submit it are available at: https://www.nssmc.gov.ua/documents/tech_ifrs_initform.
It is proposed to submit information through persons authorized by the Commission to provide information services on the stock market for reporting and / or administrative data to the NSSMC, subject to the availability of appropriate treaty relations with such a person. Otherwise, the information, certified by a qualified electronic signature of the authorized person, is proposed to be sent to a special e-mail address: email@example.com.
According to the Commissioner Oleksandr Panchenko, "this is another step towards the introduction of international standards in Ukraine. The main advantages of the Financial Reporting System are the ability of all interested users to access unified, reliable and high-quality financial reporting prepared according to international standards. Ukrainian business, in particular, will become more open and understandable to potential investors. Analysts of global investment companies, international experts will be able to make more substantiated and accurate analyzes of the current situation and forecasts of the development of both individual Ukrainian companies and the national economy as a whole. "
The introduction of the Financial Reporting System of enterprises in a single electronic format is defined by the Law of Ukraine "On Accounting and Financial Reporting in Ukraine" (as amended).
The NSSMC operates the financial reporting center, compiled on the basis of the taxonomy of financial reporting in a single electronic format, and will provide the access of state authorities, other bodies and users to the financial statements submitted in accordance with the Resolution of the Cabinet of Ministers of Ukraine of 11.07.18 No. 547 "On Introduction of Amendments to the Procedure for filing financial statements ".
The development and integration of software for the financial reporting system is provided by the specialized company VIZOR (Ireland) as part of the technical assistance of the USAID.
The entities that are required to disclose the financial statements in the format of XBRL include entities of public interest, public joint stock companies, enterprises engaged in mining activities of national importance, enterprises that conduct business activities by type, list which is determined by the Cabinet of Ministers of Ukraine, as well as enterprises that independently have determined the appropriateness of the application of IFRS for the preparation of financial statements.
The system of financial reporting in electronic form will facilitate business conduct for Ukrainian companies. They will submit mandatory financial statements based on the "one-stop shop" principle: in one universal format for all financial market regulators (National Securities and Stock Market Commission, National Bank of Ukraine, Ministry of Finance of Ukraine, National Commission for state regulation in the field of financial services markets). Previously, financial statements were submitted to each regulator separately, while the reporting formats differed from one another.
XBRL (English eXtensible Business Reporting Language) is an open standard for business information exchange. In Western countries, it is a universally accepted standard for filing financial statements under IFRS and US GAAP in electronic form. XBRL is widely used in many countries by securities market regulators, bank regulators, tax authorities, and national statistical agencies. At present, XBRL is officially recommended for use and is supported by the IFRS Board for electronic reporting under IFRS. Main advantages of XBRL: automatic data entry without re-transformation; speed and automatic reporting, including consolidated; fast, efficient and reliable analysis and comparison of data; data tracking, reduction of decision time; increase efficiency and savings in supervisory processes, etc.