By KYIV. Jan 3 (Interfax-Ukraine) – The Cabinet of Ministers has agreed on a methodology for calculating the allowance for doubtful accounts against expected credit losses for receivables of NJSC Naftogaz Ukrainy.
The decision of the Cabinet of Ministers is enshrined in relevant resolution No. 1214-r dated December 30, 2022 on some issues of the activities of National Joint Stock Company Naftogaz Ukrainy, published on the government portal.
"To agree Appendix No. 4 methodology for calculating the allowance for doubtful accounts against expected credit losses for receivables to the Accounting Policy of NJSC Naftogaz Ukrainy… in terms of determining the methods for calculating the amount of the allowance for doubtful accounts (allowance for expected credit losses) and the method for determining the coefficient of doubtfulness," the government said in the resolution.
The document also applies to subsidiaries (companies), the founder of which is the NJSC, and business entities, of which the company is a shareholder (participant).
According to the comments of the former Naftogaz leaders, the methodology for calculating the allowance for doubtful accounts can have a stabilizing effect on the financial activities of Naftogaz, in particular in cases where the government uses the practice of advance transfers of Naftogaz profits to the state budget.
