Deloitte specialists visit Ukraine’s largest cities
Deloitte specialists held a series of seminars for business professionals in Odessa, Kharkiv, Lviv, Donetsk and Dnepropetrovsk
On 7 December, practitioners from Deloitte global professional services firm visited Dnepropetrovsk, holding one-day seminars on topical issues for members of the business community. The events took place in the Chamber of Commerce and Industry with the support of Alexander Vilkul, Governor of the Dnepropetrovsk Region, Dnepropetrovsk Investment Agency and the European Business Association.
Some of the topics discussed during the meetings are outlined below.
Transition of companies to International Financial Reporting Standards (IFRS)
Over 60 finance department representatives and CFOs from Dnepropetrovsk’s largest companies attended the Transition to IFRS seminar. Among the companies in attendance were "Dniprotyazhmash", "Southern GOK", "Comfy-trade", "Dnepropetrovsk Car Plant", "Dnepropetrovsk Switch Works", "company Agrosoyuz", "Dneprovagonmash", "ArcelorMittal Krivoy Rog", "Interpipe Management", "DTEK Dniprooblenergo".
The strong attendance levels evidence the huge relevance of this topic to businesses as financial reporting in accordance with international standards has become an essential part of every company’s activities where their leaders want to present their enterprises to investors and partners in the most appropriate way.
Deloitte specialists – Yevgenia Nogovitsyna, Audit Senior Manager, Maya Vasylenko, Audit Manager, and Vitaly Sheremeta, Tax & Legal Manager – discussed the legislative regulation of IFRS in Ukraine, explained the differences between Ukrainian Accounting Standards (UAS) and IFRS, and shared their professional knowledge on differed tax in IFRS and other subjects.
Transfer pricing, effective management of working capital and project portfolio prioritisation were the matters given most attention during the Deloitte Business Club session in Dnepropetrovsk, attended by 16 senior management representatives from companies including ArcelorMittal Kryvyi Rih, Evraz Ukraine, Interpipe NTRP, Comfy trade, Dneprospetsstal, Centravis Prodakshyn Ukraine.
With the possible adoption of the law on transfer pricing and related changes to the tax burden of companies, transfer pricing is at the forefront of discussion in business circles. Businesses need to start preparing themselves for substantiating prices for “controlled transactions” (i.e., transactions that may be subject to regulation) under transfer pricing rules. In practical terms, it means that companies will have to thoroughly analyse related-party transactions in order to minimise the risk of having to adjust revenues or expenses for tax purposes and prepare the necessary documentation: all this requires a particular set of skills. Yevgeniy Ratmanskyy, Senior Manager at Deloitte, explained in detail how taxation may change if new transfer pricing rules are adopted and the steps that should be taken by managers to prepare themselves for these changes.
Operating efficiency and the value of a company depends on the effective management of working capital and project portfolio prioritisation, hence why these topics have not lost any relevance to business managers. Maksim Stopnik, Consulting Manager at Deloitte, talked about the strengths and weaknesses of the functional management of working capital, the working capital structure and a sensitivity analysis of the individual components of working capital. Anna Shalina, Consulting Senior Manager at Deloitte, outlined criteria for identifying the most effective and strategically important projects.
This final event in Dnepropetrovsk in the series of free one-day seminars was one of the largest held by Deloitte specialists this year for business managers across the Ukrainian regions. Deloitte has already conducted similar seminars in Odessa, Kharkiv, Lviv and Donetsk.