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Cash and Cash Equivalents
Cash of the Company include cash in banks, cash on hand, monetary instruments and cash equivalents which are not
restricted in use.
Foreign Currency
Financial statements of the Company are drawn up in national currency of Ukraine (UAH). At the initial recognition, eco-
nomic transactions performed in foreign currency are reflected in functional currency at the rate of the National Bank
of Ukraine at the date of transaction.
According to IAS 21, all monetary items accounted in foreign currency shall be converted and reflected in the Balance
Sheet at the rate of the National Bank of Ukraine at the date of financial reporting.
Exchange differences arising during recalculation are reflected as sum total in the Statement of financial performance
for the period in which they arise.
Lease
Lease is classified as a finance lease if it transfers substantially all the risks and rewards incident to ownership, and meets
one of recognition criteria stipulated by IAS 17 "Lease". All other leases are classified as operating leases.
Assets held for financial lease are recognized as the Company assets at the fair value or the discounted cost of the min-
imum lease payments at the date of receipt. Corresponding indebtedness should be included in the Balance Sheet as
obligations on financial lease with separation into long-term and short-term indebtedness.
Recognition of Loans and Obtained Credits
All long-term and short-term loans are recognized in the reporting period in which they were obtained.
Expenses on loans are recognized by accrual method – i.e. in the period in which they arose based on contract condi-
tions.
Expenses on loans which are directly connected with acquisition, construction or production of qualifying assets are cap-
italized as a part of such assets if the assets recognition criteria are met.
Other expenses on loans are recognized as expenses of the period in which they arose.
Investments
For the purpose of financial reporting, investments are classified as follows:
n
trade investments;
n
investments withheld until settlement;
n
investments in associated companies;
n
investments in subsidiary companies.
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