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Financial Statements
73
annual report
2013
MAIN ASPECTS OF ACCOUNTING POLICY OF MOTOR SICH JSC
The present accounting policy (further referred to as “accounting policy”) describes accounting basis, standards, rules and
procedures applied during accounting and financial reporting by all structural units of Motor Sich JSC, as well as its affiliated
companies. Accounting policy determines principles of admission and assessment of accounting entities, definition and
description of separate items of financial statements of the Company, as well as consolidated financial statements of the
group of affiliated companies (further referred to as “Group”).
Management of the Group determines and adopts the policy so that financial statements represented information:
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relevant for decision-making by customers;
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fairly representing financial position and performance of the Group (or the Company);
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reflecting economic sense of events and transactions, and not just their legal form.
The purpose of financial reporting is to provide such information on the Group’s and the Company’s financial position,
performance and cash flows that would be useful for making economic decisions by customers.
Application Field of Accounting Policy:
The accounting policy is developed for accounting and reporting according to the National Accounting Standards
(Regulations), the International Accounting Standards/International Financial Reporting Standards, as well as for tax
reporting based on accounting data.
Accounting is assigned to Accounting Department and its subdivisions headed by Chief Accountant. Accounting is
performed according to the National Accounting Standards (Regulations) and other normative acts of accounting in
Ukraine.
Accounting is performed based on the unified chart of accounts approved by Chief Accountant according to Order of the
Ministry of Finance of Ukraine No. 291, dated 30.11.1999.
Financial reporting under IFRS is drawn up based on information about assets, liabilities, capital, accounting transactions
and statements of the Company performance according to accounting data by conversion of items according to the
International Financial Reporting Standards.
The Company uses accounting data for accounting according to tax laws of Ukraine.
The present accounting policy is obligatory for application by all persons involved in formation of the Company’s assets
and liabilities, performance of transactions influencing the Company’s financial state.
Accounting Aspects:
The first financial statement of the Company based on the International Financial Reporting Standards is drawn up for
2013. Representation and disclosure of information complies with IAS1. Comparative information is represented
concerning one previous period – 2012. Notes describe basic corrections of items and their evaluation required for
conformity with the International Financial Reporting Standards.
Financial reporting elements recognition criteria:
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Assets is a resource controlled by the Company as a result of past events and from which future economic benefits are
expected by the Company.
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Liability is an obligation of the Company arising from past events, the settlement of which is expected to result in an
outflow from the Company’s resources embodying economic benefits.
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Equity is the residual interest in the Company’s assets after deducting all its liabilities.
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Income is an increase in economic benefits during the accounting period in the form of inflows or enhancements of
assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity
participants.