From December 1 2015, banks in Ukraine are required to fully transition to the International Financial Reporting Standards (IFRS). Successful transition and implementation of IFRS in Ukraine's banking sector will depend on the ability of both those responsible for arriving at financial estimations and preparing financial statements, and for banking supervisors to understand and confidently apply the key principles of IFRS.
In support of this transition, the CFRR organized three workshops in Kyiv with speakers and panelists, including the World Bank's CFRR senior staff, leading experts in accounting standards setting, and representatives of commercial banks and audit firms. The first workshop, delivered on September 16-17, 2015, focused on strengthening the regulator's capacity and practical ability to understand and work confidently with IFRS. Over 40 representatives of Banking Supervision, Risk Management and Accounting Methodology departments of the National Bank of Ukraine (NBU) took part in trainings and discussions to gain a better insight into the transition to IFRS and the challenges of conversion. The event helped participants become better acquainted with IFRS; and raised their ability to engage confidently with IFRS-based financial information and understand its role in monitoring and supervision.
The second workshop delivered jointly by the CFRR, the NBU, large commercial banks and audit firms on November 16-17, 2015, focused on successful implementation of IFRS by commercial banks and supported direct and open dialogue between the banks and the regulator. Over 70 representatives of financial and accounting departments from 40 Ukrainian commercial banks attended the workshop to increase their knowledge of IFRS, including updates on recent and upcoming IFRS developments and briefings on the latest IFRS 9: Financial Instruments. Interactive discussions of challenges and practical examples of conversion from entities already applying and working with IFRS helped participants to improve their understanding and skills in using IFRS, including applying fair value measurement and the recognition and measurement of financial instruments.
The third and final workshop held on May 10-11 2016, was dedicated to discussing the main challenges and difficulties faced by local banks in closing their first financial year under the IFRS. Approximately 50 participants from supervision and risk management departments of the NBU, as well as representatives of financial and accounting departments from 20 Ukrainian commercial banks, attended the workshop. Participants discussed the challenges of financial instrument valuation, explored the connection between IFRS and prudential regulations through practical application and case studies, and learned about the latest developments in bringing IFRS closer to the requirements of Basel III.
The World Bank's CFRR is grateful to the National Bank of Ukraine, UniCredit Bank, Raiffeisen Bank Aval, BDO, and Deloitte for delivering this series of workshops, which have strengthened the capacity and practical skills of medium and small size commercial banks in applying IFRS starting in 2016.