As the press service of the NBU reported, in accordance with the Law of Ukraine “On Protection of the Interests of Subjects of Submission of Reports and Other Documents During the Period of Martial Law or State of War”, the NBU extended the period of non-application of influence measures for untimely submission of financial statements and consolidated financial statements by non-banking institutions for 2023.
This also applies to the rules regarding the deadlines for submitting consolidated financial statements in 2023 due to the gradual implementation by insurers of IFRS 17 “Insurance Contracts”. After all, from January 1, 2023, International Financial Reporting Standard 17 “Insurance Contracts” is mandatory for use in the insurance market.
“In the conditions of martial law, the financial and time resources of insurers, necessary for the development and implementation of new procedures, IT solutions, processes for the purpose of implementing IFRS 17 “Insurance Contracts”, are limited. Most of the insurers have difficulties with the reconfiguration of accounting and IT systems, the availability qualified personnel to develop the appropriate accounting policy, methodology and models for calculating liability under insurance contracts, with a change in approaches to the formation of financial statements and the calculation of key indicators.” – written on the NBU website.
What documents are required for insurers who have not had time to implement IFRS 17 “Insurance Contracts”?
- reporting determined by the Rules for the preparation and submission of reports by market participants of non-banking financial services to the National Bank of Ukraine, approved by the Resolution of the Board of the National Bank of Ukraine dated November 25, 2021 No. 123 (hereinafter – Rules No. 123) instead of financial statements prepared in accordance with IFRS, including IFRS 17 “Insurance contracts”;
- the report of the subject of audit activity, which, according to the Law of Ukraine “On the Audit of Financial Statements and Audit Activity”, has the right to conduct a mandatory audit of the financial statements of enterprises of public interest, on providing assurance regarding the reporting data of the insurer, compiled in accordance with Rules No. 123 as of the last reporting date, prepared in accordance with international auditing standards, instead of the auditor’s report on the insurer’s annual financial statements or the auditor’s report on the review of the insurer’s interim financial statements.
Please note that during the 1st quarter of this year, the NBU fined participants of the non-banking financial market for violations of financial monitoring in the amount of UAH 156.6 million. And for the entire past year, the NBU issued fines to these institutions for only UAH 8.026 million.