Today, on May 24, the Cabinet of Ministers adopted a resolution that improves the accounting of suspicious debts in the public sector. The Ministry of Finance will now monitor state-owned monopoly enterprises or those with a net profit of more than UAH 50 million. This was reported by the Ministry of Finance, according to UNN.
According to the new rules, the Ministry of Finance will control how state-owned enterprises with the status of natural monopolies or net profit of more than UAH 50 million form reserves to compensate for possible losses from outstanding debts.
In particular, this applies to:
- methods for calculating the amount of the allowance for doubtful debts;
- a method of determining the doubtfulness ratio, which shows how likely it is that debts will not be repaid.
Methodologies for assessing the risk of defaulting on debts have also been updated in accordance with international financial reporting standards (IFRS 9). This will allow public sector companies to manage their finances more effectively and reduce risks to the state budget.
Recall
Ukraine's largest alcohol producer , the State Enterprise Ukrspyrt, has completely ceased production activities and has a multimillion-dollar debt to the state budget.