Expert Market: the transition to IFRS will increase the transparency of the banking system

Ministry of Finance prepared a draft law "On Amendments to Certain Legislative Acts of Ukraine on issues of accounting," which proposes to oblige the banks and insurance companies to file Financial Reporting under IFRS. Andre Varmut, board member of the Bank's Financial Management Forum Commerzbank Group, spoke about the pros and cons of potential changes: "If the initiative of the Ministry of Finance will lead to the adoption of the bill, which clearly would force the Ukrainian banks transparently, accurately and honestly report under IFRS, we certainly welcome this development. In this direction for several years running and the NBU, trying to bring accountability standards UAGAAP to IFRS, and this activity, we also welcome as a useful, albeit still imperfect attempt to increase the transparency of the banking system. So far, such efforts amounted to the adoption of acts who had mixed interpretations, and a significant number of exceptions, which are a result of not contributing to a real increase of transparency of the system. It is necessary that the bill is real and not declaratively requires banks to report under IFRS. and that the results have not been that banks have confirmation of the external auditor's report, who are supposed to be in accordance with IFRS, but in reality it is not. It is crucial to align with the new law and tax law. Unfortunately, the reality is that some players are not interested to file IFRS financial statements, because there is so called the embellishment of the balance. It is therefore assumed that if the bill is adopted, then this process will not be as fast and smooth as we would like. Perhaps soon the market will hear allegations that a full transition to IFRS is premature. We do not hold this view because we are completely transparent and open bank and is already conducting accountability in compliance with Ukrainian and international standards. Our report under IFRS for 2008 and 2009 financial year proved one of the world's top auditing firms. You will be with statements for the 2010 transition to IFRS would greatly enhance the transparency of the system as a whole, and each bank individually, helping banks to improve relations with each other, with customers, partners, regulators and other stakeholders. Furthermore, the transition to international accounting standards would facilitate the risk assessment, comparative analysis of banks, and in the medium term - would facilitate the access of Ukrainian banks to international capital markets. "