Approval of the Regulations (standard) accounting





Legislative Acts of Ukraine in the sphere of real estate
MINISTRY OF FINANCE OF UKRAINE

ORDER


02.07.2007 N 779

Registered with the Ministry
Justice of Ukraine
July 16, 2007
under N 823/14090


Approval of the Regulations (Standard)
Accounting 32
"Investment property"


Article 6 of the Law of Ukraine "On Financial
Accounting and Financial Reporting in Ukraine "(996-14), P R I C A S order:

1. To approve the Regulations (Standard) Accounting 32
"Investment property", approved by the Methodological
Board of Accounting of the Ministry of Finance of Ukraine,
which is attached.

2. Accounting methodology
(Lovinskoye LG) ensure the submission of this order within five
term in the established procedure for state registration in
Ministry of Justice of Ukraine.

3. Department of organizational and analytical support
of the Minister (the service department) (Kutetska VM) after
state registration of this order to ensure its publication in
media.

4. To establish that the situation (standard) accounting
32 "Investment property" shall enter into force on 1 January 2008
year.

5. Control over the execution of this order that the Deputy
Minister Efimenko TI

First
Vice Prime Minister of Ukraine,
Minister of Finance of Ukraine N. Y. Azarov


APPROVED
Order of the Ministry of Finance
Ukraine
02.07.2007 N 779

Registered with the Ministry
Justice of Ukraine
July 16, 2007
under N 823/14090


(Regulation comes into force on 1 January 2008)


SITUATION
(standard) accounting 32
"Investment property"


General

1. This situation (standard) defines the methodological framework
formation of accounting information on the investment
Property and disclosure in financial statements.

2. Standards of these Regulations (standards) are applied
enterprises, organizations and other entities (hereinafter --
company) regardless of ownership (except budget
institutions).

3. This situation (standard) does not apply to matters
resolve the situation (standard) accounting 14
"Rent", approved by Order of the Ministry of Finance of Ukraine
28.07.2000 N 181 (z0487-00) and registered with the Ministry
Justice of Ukraine on 10.08.2000 under N 487/4708 (hereinafter - Regulations
(standard) accounting 14 "Leases"), and other
regulations (standards) of accounting, namely:
1) the classification of the lease on the operating and financial;
2) recognition of income from the lease of investment
estate;
3) assess the lessor of real estate that is available for rent at
a finance lease;
4) take into account sales and operations, selling assets to their
continuation of the lease;
5) the disclosure of financial and operating leases in
financial reporting;
6) accounting for biological assets related to
agricultural activities;
7) taking into account the rights to exploration and mining
and irreproducible resources.

4. Terms used in regulations (standards)
accounting, have the following meanings:
Investment property - their own or leased on terms
finance lease land, buildings, structures,
located on land held for the purpose of obtaining rental
payments and / or increase its own capital, and not for production
and delivery of goods, services, administrative purposes or
Sales in the course of normal activities.
Operating real estate - own or leased on terms
finance lease land, buildings, structures,
located on land held for use for
production or supply of goods or services, or in
administrative purposes.
The carrying value of an asset - an asset for which he
included in the total balance.

5. For accounting purposes is not considered an investment
Estate:

5.1. Operating real estate and real estate
provides for future use as an operating
property.

5.2. Real estate for sale contained in
normal course of business.

5.3. Being constructed or improved on the instructions
third parties.

5.4. Properties in the process of building or
improvements to future use as investment
property.

5.5. Real estate, leasing of another entity
economy under a financial lease.

6. If a certain fixed asset includes a portion that
withheld in order to obtain the rent and / or to increase
equity, and the other part, which is operating real estate
and these parts can be sold separately (or separately provided in
rent under a contract of financial lease), then these parts
appear as separate inventory items. If these parts do not
be sold separately, fixed asset recognized
investment property, to be used mainly from
to obtain the rent and / or to increase their own
capital.
With signs that fixed asset may be
assigned to the operating real estate, and investment
real estate company is developing criteria for their delineation.

7. If the company controls the investment property,
provided in the lease parent company or subsidiary
venture for the production or supply of goods or the provision
services, or administrative order, the object key
in the preparation of consolidated financial statements of the
group of companies is operating real estate.

Recognition and measurement of investment property

8. Investment property is recognized asset, if there
likelihood that the company will in the future from its
of economic benefits in the form of lease payments and / or
increase in equity, and its initial cost may be
reliably determined.

9. Acquired (created) investment property is transferred
on the balance sheet at cost. Accounting unit
investment property is land, building (part
building) or a combination thereof, as well as assets that form a
real estate investment and a coherent set of aggregate
generate cash flows.

10. Original cost of purchase of investment property
consists of the following costs:
amounts paid to suppliers (sellers) and contractors
for construction and installation works (excluding indirect taxes);
registration fees, state fees and similar payments
carried out in connection with acquisition (receiving) the rights to
investment properties;
amount of indirect taxes in connection with the acquisition (creation)
investment property (if they are not reimbursed
enterprise)
legal services, commission fees associated with
acquisition of investment property;
other costs directly related to the acquisition and
bringing objects of investment property to the state in which
They are suitable for use with the planned purpose.

11. The initial value of investment property created
now is its cost, determined on the date of commencement
of investment property, based on the total
cost of its creation.

12. The original cost of investment property received
finance leases as defined under regulations (standards)
accounting 14 "rent" (z0487-00).

13. If the acquisition of investment property is carried out on
conditions of payment delay, then its original value is recognized
price under the contract. Reward supplier in the amount of
difference between the contract price and the total amount of payments on its
recognizes the benefit of financial outlay.

14. The original cost of investment property increased
the amount of expenses related to its improvement (modernization,
modification, completion, additional equipment, reconstruction, etc.)
leads to an increase in future economic benefits originally
expected from the use of investment property.

15. Expenditure undertaken to maintain the investment
Property in working condition and receive a certain amount originally
future economic benefits from its use are included in the
the costs of the reporting period.

16. Enterprise on the balance sheet date reflects the financial
Reporting investment property at fair value, if
it can reliably determine, or at cost,
reduced the amount of accumulated depreciation, taking into account losses from
reduce the usefulness and benefits of its recovery recognized
under Regulation (standard) accounting
28 "Reducing the usefulness of assets, approved by Order
Ministry of Finance of Ukraine from 24.12.2004 N 817 (z0035-05) and
registered in the Ministry of Justice of Ukraine for 13/01/2005
N 35/10315. The selected approach is applied to the evaluation of all such
objects of investment real estate.

17. Evaluation of investment property at fair value
be applied before the date of retirement, transfer of investment
real estate operating properties and one that contains
for sale, or if it becomes impossible to reliably determine its
fair value at the balance sheet date.

18. Investment property is recorded at the original
value, reduced the amount of accumulated depreciation, taking into account
losses from reduced utility and benefits of its recovery,
not subject to revaluation.

19. Evaluation of investment property at fair value
based on prices of an active market in the same area in
such a state under such conditions, lease or other
contracts on the balance sheet date and does not take into account the future costs
improvement of real estate and related future benefits in connection with
future costs for the improvement of facilities investment
estate.

20. In the absence of an active market definition of fair
value of investment property is carried out by:

20.1. The most recent market price of the deal with those assets (with
the absence of significant changes in technology, market,
economic or legal environment in which businesses operate.

20.2. Current market prices for real estate that can
be in different condition, location, rent and other
contract terms, adjusted for individual
characteristics, etc. investment property for
which defines fair value.

20.3. Additional indicators of the level of prices
on investment properties.

21. In the absence of information on market prices
investment property of its fair value is determined by
the present value of future net cash flows from
asset, calculated in accordance with the provisions of paragraphs 11-14
(standard) accounting 28 "Reducing the usefulness
assets, approved by Decree of the Ministry of Finance of Ukraine
24.12.2004 N 817 (z0035-05) and registered in the Ministry
Justice of Ukraine on 13.01.2005 under N 35/10315.

22. The amount of increase or decrease in fair value
investment property on the balance sheet date is reflected in the composition
Other operating income or other expenses of operating activities
respectively.
The fair value of investment property does not include
prepayment and accrued income from financial leases.

23. In determining the fair value of investment
real estate companies, it includes all the basic facilities
funds that make investments in real estate holistic
complex and collectively generate cash flows. Such
investment property in the account is reflected as a separate
object that generates cash.
Permanently installed facilities and equipment (elevators
conditioners, etc.), whose value is taken into account when determining
fair value of investment property are accounted for
off-balance sheet accounting at historical cost. All other assets
used in conjunction with the investment property (furniture,
household equipment, office equipment, etc.) are estimated for
original (revalued) costs and are recorded
under the provisions of (standard) accounting 7
"Fixed Assets", approved by order of the Ministry of Finance
Ukraine from 27.04.2000 N 92 (z0288-00) and registered in
Ministry of Justice of Ukraine on 18.05.2000 under N 288/4509.

Translated into real estate investment properties
or removing it from the investment property

24. Translated into real estate investment properties or
its output from the investment property is carried out only
in the case of changes in the nature of real estate, which is certified by:
1) start to use it as an operating property;
2) start to prepare it for sale with the transfer object
Property investment in the stocks;
3) preparation of the operating properties for use as
investment property;
4) provision of an operating lease to another party;
5) the transfer of its stock or operating real estate to
investment property;
6) completion of the transfer of property from
of uncompleted construction in the investment real estate.

25. Translation investment property in the stocks
carried out if there are changes in how to use this
asset, as evidenced by the beginning of preparation for sale. If
implementation of investment property is carried out without prior
training, investment property transfer in the
stocks not subject. If the enterprise carries on improving
(completing construction, reconstruction, etc.) of an existing investment property
for its continued future use as investment
property, such property remains a part
investment property.
Translation investment property in the stocks
implemented in the manner provided for fixed assets.

26. When transferring an investment property
measured at fair value, operating in real estate
or in the stock cost of such fixed assets or
stock is determined by the fair value of investment
estate at the date of such transfer.

27. When transferring operating real estate investment,
that will be measured at fair value, the difference between
balance (residual) value of operating property and
fair value of investment property is shown
accordance with paragraphs 19 and 20 of Regulation (standard)
Accounting 7 "Fixed Assets", approved by Order
Ministry of Finance of Ukraine from 27.04.2000 N 92 (z0288-00) and
registered in the Ministry of Justice of Ukraine for 18/05/2000
N 288/4509.

28. When transferring real estate from the stock in the investment
estate, which will be measured at fair value, the difference
between the fair value of the property as of the date of transfer
and the balance (residual) value is recognized other income
or other expenses of the period in which such transfer occurred.
29. With the completion of the investment property, which
recorded at fair value, the difference between
fair value of the property at that date and the cost of
Construction is recognized other operating income or other
Operating expenses of the period in which there
completion.

Disposals of investment property

30. The recognition of investment property ceases when
disposal facility as a result of the sale, transfer in the lease,
elimination, making the charter capital, with the discrepancy
criteria for the recognition of an asset on other grounds, the translation from
Investment in real estate or real estate operating
discontinuing the use of such investment property with
Except expectation of any economic benefits from
its disposal.

31. Financial result on disposal of investment
estate is determined by subtracting from income from disposal of
book value of indirect taxes and costs associated with
disposal of investment property.

32. Income and expenses from the sale of investment real estate
its subsequent lease determined in accordance with the Regulations
(standard) accounting 14 "rent" (z0487-00).

Disclosure of information on investment property
in the notes to financial statements

33. The cost of investment property in the balance
reflected as a separate item.

34. The notes to the financial statements regardless of the method
evaluate investment property the following information on
each group of investment property:

34.1. Criteria for distinguishing investment property and
operating real estate.

34.2. Reflected in the income statement reporting
Period:
34.2.1. The amount of rental income from investment property.
34.2.2. Total direct costs (with a separate allocation for repairs and
services), recognized in connection with the content of investment
Real estate that generates rental income during the reporting
period.
34.2.3. Total direct costs (with a separate allocation for repairs and
services), recognized in connection with the content of investment
estate, which does not generate rental income during the reporting
period.

34.3. Restrictions on the possession, use and disposal
investment property.

34.4. The amount of the concluded agreements for the future:
34.4.1. On the acquisition, construction and preparation of investment
estate.
34.4.2. The repairs, maintenance and improvement of investment
estate.

34.5. Cost of purchased investment property.

34.6. The amount of capital investment in investment properties
the reporting year.

34.7. Cost of purchased investment property due
association and / or acquisitions.

34.8. The carrying value of investment property
dropped out.

34.9. Income from disposal of investment property.

34.10. The cost of investment properties transferred to / from
reserves and operating real estate.

34.11. Other changes in the carrying value of investment
estate.

35. In evaluating investment property at fair
value the following information:

35.1. The methods and significant assumptions, which are applied in
determining the fair value of investment property.

35.2. Implementation of the evaluation of investment real estate agents
assessment activities that have experience in assessing such property in
same locality, or the failure of such entities in
determining the fair value of investment property.

35.3. The carrying value of investment property at the beginning
and the end of the year.

35.4. Total other operating income and other expenses
operations resulting from changes in fair
value of investment property.

35.5. The amount of revenues and expenses resulting
transfer to investment property stocks and at the conclusion
construction of investment real estate.

35.6. The difference between the carrying amounts of assets that occurred
due to the transfer of the operating property in the investment
property, which is reflected in the composition of revenues, expenditures and
additional capital.

35.7. Description of investment property (poobektno in quantitative
and value), which ceases to be assessed at fair
value and would be valued at historical cost, reduced to
amount of accumulated depreciation, taking into account losses from reduced
usefulness and benefits of its recovery, to bringing:
35.7.1. The reasons for the impossibility of reliable determination of its
fair value.
35.7.2. Book value of such investment property.

36. In evaluating investment property at the original
value, reduced the amount of accumulated depreciation, taking into account
losses from reduced utility and benefits of its recovery,
the following information about each group of investment
Property:

36.1. Depreciation methods used now, and
range of useful lives.

36.2. The carrying value and the amount of wear and tear taking into account the losses
by reducing the usefulness and benefits of its recovery at the beginning and
end of the year.

36.3. The amount of accumulated depreciation during the year.

36.4. The amount of losses from reducing the usefulness and value of benefits from
recovery utility, as reflected in the income statement
results and report on equity for the year.

36.5. The fair value of investment property.

Head
accounting methodology LG Lovinskoye
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