Approved by the Order of the Ministry of Finance of Ukraine of December 24, 2010 No. 1629

National provision (standard) of financial accounting in public sector 125 "Changes of accounting estimates and error correction"

I. General provisions

1. This National provision (standard) determines procedure for disclosure in the financial reporting of information concerning changes in accounting estimates, changes in accounting policy and correction of material mistakes.

2. Regulations of this National provision (standard) are applied by subjects of financial accounting in public sector (further - subjects of public sector).

3. Terms which are used in national provisions (standards) of financial accounting in public sector have such value:

accounting assessment - provisional estimate which is used for the purpose of expense allocation and the income between the corresponding accounting periods;

material mistake - the error found in current period as a result of which the financial reporting cannot be considered as reliable further.

4. Accounting policy of the company of public sector is determined in the administrative document in which evaluation methods, accounting, procedures which the subject of public sector shall apply and according to which regulatory legal acts on financial accounting provide more than one option shall be established. One-alternative evaluation methods, accounting and procedures in such administrative document it is inexpedient to include.

II. Changes in accounting estimates and material mistakes

1. Accounting assessment can be reviewed if circumstances on which this assessment was based change, or the additional information is obtained, or there came certain event.

2. The result of change of accounting estimates should be included in the financial reporting in that period in which change took place, as well as in the next periods if change influences also these periods.

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