principles and procedures in Ukraine are regulated by the "Special
Rules for the Organization of Accounting in Ukraine" (the "Accounting
Rules") approved by Decision No. 250 of the Cabinet of Ministers
of Ukraine on April 3, 1993.
summarizes a number of the relevant provisions from the Accounting
(a) Compliance with the Accounting Rules is mandatory for all
Ukrainian enterprises regardless of their form of ownership. The
Ministry of Finance is responsible for establishing the official
accounting methods in Ukraine and is empowered to issue special
regulations from time to time regarding the same.
b) Official books and accounting records are
to be maintained in the national currency of Ukraine. Transactions
in foreign currency are to be recalculated into local currency
at the official exchange rate of the National Bank of Ukraine
("NBU") in effect at the moment of the transaction. A parallel
entry may be made in the actual currency of the transaction.
(c) The director general of an enterprise is responsible for organizing
bookkeeping and accounting procedures. Accounting is carried out
by the accounting department, headed by a Chief Accountant, or
by an outside organization if the enterprise does not have an
(d) The fiscal year for all enterprises begins on January 1 and
ends on December 31. For newly organized enterprises, the first
fiscal year begins on the date of registration and ends on December
31. If the enterprise is registered later than October 1, its
first fiscal year ends on December 31 of the following year.