By KYIV. May 9 (Interfax-Ukraine) – The National Bank of Ukraine (NBU), in accordance with the law On protecting the interests of reporting entities and other documents during martial law or a state of war, has extended the period of non-application of enforcement measures for the late submission of financial and consolidated financial statements by non-bank institutions over 2023.
According to the NBU website, sanctions for late reporting by insurers in 2023 will not be applied further due to the gradual implementation of International Financial Reporting Standards (IFRS) 17 “Insurance Contracts” which is mandatory from January 1, 2023.
The regulator justified its decision by the fact that in the conditions of martial law, insurers have limited financial resources necessary for the development and implementation of new procedures, IT solutions, processes in order to implement IFRS 17. In addition, most of the insurance companies experience difficulties with reconfiguring accounting and IT-systems, the availability of qualified personnel for the development of appropriate accounting policies, methods and models for calculating liability under insurance contracts, with a change in approaches to the formation of financial statements and the calculation of key indicators.
For insurers that did not have time to implement IFRS 17, the NBU clarified the list of documents they submit to obtain a license for a new type of insurance. In particular, instead of financial statements prepared under IFRS, including IFRS 17 “Insurance Contracts” they must provide reporting determined by the Rules for the preparation and presentation of reports by participants in the non-banking financial services market at the NBU, approved by Resolution of the NBU Board No. 123 dated November 25, 2021 (hereinafter referred to as Rules No. 123).
This list also includes the report of the subject of audit activity on confirmation of the reliability of data in the reports of the insurer as of the last reporting date instead of the auditor’s report on the annual financial statements or the auditor’s report on the review of the company’s interim financial statements.
All the changes were made by Resolution of the NBU Board No. 59 dated May 5, 2023 On amendments to Resolution of the Board of the National Bank of Ukraine No. 39 dated March 6, 2022 which entered into force on May 9.
