The Cabinet of Ministers of Ukraine supported the project of amendments to the law on accounting and financial reporting, which provides for the introduction of mandatory reporting on sustainable development for certain categories of enterprises. About this reported Ministry of Finance.
Such an initiative should create equal conditions for Ukrainian business on international markets alongside European companies, promote investment attraction, increase competitiveness and fulfill Ukraine’s obligations under the Association Agreement. Reporting will include data on the company’s impact on the environment, social aspects, labor relations, human rights, anti-corruption measures, and how these factors affect its activities.
The information will be submitted according to European standards in the form of a separate section of the management report – together with the financial statements. The changes will affect large enterprises, parent companies of large groups, as well as medium and small companies whose securities are traded on the regulated capital market.
The introduction of the new requirements will take place in stages: from 2028, large companies with more than 500 employees will report, in 2029 – other large enterprises, and from 2030 – medium and small companies whose securities are in stock exchange circulation. In addition, the draft law provides for updating the criteria for the classification of micro, small, medium and large enterprises, taking into account inflation and the recommendations of the European Commission.
The document also establishes the mandatory introduction of international accounting and reporting standards for state-owned enterprises and companies with a state share of more than 50%. Such enterprises should not only switch to international financial reporting standards, but also prepare a management report.
