Publication date: 28.05.2024
New Rules for Accounting for Doubtful Debts for State-Owned Enterprises have been introduced: the Government's decision
On May 24, the Cabinet of Ministers of Ukraine adopted a resolution that improves the methods of accounting for doubtful debts by public sector enterprises. This is reported by the Ministry of Finance of Ukraine. The new rules provide for increased control by the Ministry of Finance over the determination of reserves to cover possible losses from outstanding debts.
Basic Provisions of the Resolution
Control of the Ministry of Finance
The Ministry of Finance will control how public sector enterprises that are natural monopolies or have a net profit of more than 50 million hryvnias determine the amount of the reserve to cover possible losses from outstanding debts. This control includes:
Methods of calculating the amount of the reserve for doubtful debts.
A method of determining the coefficient of doubt, which shows the probability of non-repayment of debts.
International Financial Reporting Standards
The new rules take into account international financial reporting standards (IFRS 9), which adjusts the approaches to assessing the probability of non-repayment of debts. This will ensure more accurate and transparent Legal analysis of the situation accounting of doubtful debts in accordance with the best global practices.
Value for State Enterprises
Improvement of Financial Planning
The introduction of new rules will help public sector enterprises better plan their finances. Accurate determination of reserves to cover doubtful debts will allow enterprises to manage their resources more efficiently and avoid financial risks.
Reduction of Risks for the State Budget
Strengthened control and improved methods of accounting for doubtful debts will help reduce financial risks for the state budget. This, in turn, will help to improve the financial stability of state-owned enterprises and increase the efficiency of the use of state funds. You may be interested in the following articles: lawyer's consultation, lawyers online, lawyer advice, lawyer services online, lawyer advice, lawyer help online, lawyer help, lawyer advice,lawyer's consultation, document analysis, legal analysis of the situation, written consultation, document review by a lawyer, lawyers' documents, lawyer's help online, lawyer online, legal opinion, lawyer's legal opinion, lawyer online.
Conclusion
The adoption of new rules for accounting for doubtful debts for state-owned enterprises is an important step in the direction of increasing financial transparency and efficiency of the public sector. These changes will allow for a more accurate assessment of the risks associated with non-repayment of debts and will provide better control over the financial resources of state-owned enterprises.
Recommendations for State Enterprises
Adaptation to the New Rules: Companies need to promptly adapt their financial systems and procedures in accordance with the new rules for accounting for doubtful debts.
Increasing the Qualifications of Personnel: It is necessary to provide proper training of financial specialists regarding the methods of calculating reserves and using the coefficient of doubt.
Use of International Standards: Companies should integrate international financial reporting standards (IFRS 9) into their accounting practices to ensure transparency and accuracy of financial reporting.
