№ 2/2018

Fìnansi Ukr. 2018 (2): 26–47https://doi.org/10.33763/finukr2018.02.026

FINANCIAL AND ECONOMIC REGULATION

IEFYMENKO Tetiana ¹, LOVINSKA Ljudmyla ², OLIYNYK Yana ³

¹SESE “Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0002-9163-3959
²Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0001-5427-7185
³SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/

The implementation of the report on payments to government in Ukraine

Logging and extractive industry are of great economic and social significance for Ukraine. However, today these industries are characterized by a low level of investment, non-transparent legislation for mining and logging of primary forests. The conditions for overcoming these negative phenomena can be developed through the implementation of provisions of Directive 2013/34/EU, aimed to increase the transparency of activities of large undertakings and public interest entities, active in the extractive industry and logging of primary forests. To ensure the implementation of Directive 2013/34/EU, the Law “On Accounting and Financial Reporting in Ukraine” (№ 996, filed on July 16, 1999) was amended in 2017, according to the requirements to prepare the report on payments to government by certain types of undertakings. The organizational issues for the implementation of such reporting are put down on the Ministry of Finance of Ukraine represented by the experts of SESE "The Academy of Financial Management", who developed the methodological and organizational support for the PTG report. The article covers the conceptual framework, methodological approaches and organizational support for the report on payments to government for undertakings active in the extractive industry and logging. The developed draft forms of such reporting and methodological recommendations (guidance) for the preparation of this report take into account the peculiarities of activities of these undertakings, the provisions of national legislation and EU Directive requirements. The report on payments to government is non-financial, but at the same time it is based on the accounting data and contains the cost indicators of the accrued and paid payments and indicators of the amounts of mining or logging and selling of goods in-kind. The draft report envisages disclosing the information on the undertakings in general and on individual projects. The implementation of the drafts proposed doesn’t entail the additional costs and is intended to increase the transparency, accountability and legitimacy of the certain types of undertaking activities to promote the investment attraction.

Keywords:adaptation of Ukrainian legislation to EU legislation, transparency and accountability, non-financial reporting, the report on payments to government, undertakings active in the extractive industry and logging

JEL: M42, M48, Q23

Iefymenko T. . The implementation of the report on payments to government in Ukraine / T. . Iefymenko, L. . Lovinska, Y. . OLIYNYK // Фінанси України. - 2018. - № 2. - C. 26-47.

Article original in Ukrainian (pp. 26 - 47)

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