October 16, 2026 · 11 min read
Financial statements of small enterprises and micro-enterprises in Ukraine change from 1 January 2027. On the balance sheets in Forms No. 1-m and No. 1-ms, long-term liabilities, provisions and targeted financing will be shown on three separate lines instead of one. Small enterprises will also report a revaluation surplus and administrative expenses separately. Seven accounts are being added to the simplified chart of accounts, so it makes sense to update the accounting policy and the accounting software in December 2026.
The changes were approved by Order of the Ministry of Finance of Ukraine No. 483 of 15 September 2026, registered with the Ministry of Justice on 30 September 2026 under No. 1304/46698. It was amended by Order No. 520 of 2 October 2026. Both orders take effect on 1 January 2027, but no earlier than the day of their official publication. They amend National Accounting Standard 25 “Simplified Financial Statements” (NP(S)BO 25), the simplified chart of accounts and the header details of the full financial statement forms.
Who prepares small-enterprise and micro-enterprise financial statements
A company’s category is set by Part 2 of Article 2 of the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”. A micro-enterprise is a company that meets at least two of three criteria, based on its indicators as at the date its annual financial statements for the previous year are prepared. A small enterprise does not meet the micro-enterprise criteria but meets at least two of the three small-enterprise criteria. Newly established companies use their indicators as at the date their own annual financial statements are prepared.
| Criterion | Micro-enterprise | Small enterprise |
|---|---|---|
| Balance sheet value of assets | up to EUR 350,000 inclusive | up to EUR 4 million inclusive |
| Net revenue from sales of products (goods, works, services) | up to EUR 700,000 inclusive | up to EUR 8 million inclusive |
| Average number of employees | up to 10 inclusive | up to 50 inclusive |
Euro amounts are converted at the National Bank of Ukraine’s average official exchange rate for the year. If a company fails to meet the criteria of its category for two consecutive years, it moves to another category.
Which forms a company uses is set by clause 2 of Section I of NP(S)BO 25:
- forms No. 1-m and No. 2-m (financial statements of a small enterprise) are prepared by small enterprises and by branches and representative offices of foreign legal entities;
- forms No. 1-ms and No. 2-ms (financial statements of a micro-enterprise) are prepared by micro-enterprises and non-entrepreneurial companies; we covered how non-profit organizations report in a separate article.
Companies that, in accordance with the law, prepare their statements under International Financial Reporting Standards (IFRS) do not apply NP(S)BO 25.
As a general rule, micro-enterprises and non-entrepreneurial companies file abridged annual financial statements: a balance sheet and an income statement. Other companies reporting under the national accounting standards also prepare interim statements for the first quarter, the first half-year and nine months on a year-to-date basis. Micro and small enterprises file their annual statements no later than 28 February of the following year; if that date falls on a non-working day, the deadline moves to the first working day after it. These rules are set by the Procedure for Submitting Financial Statements approved by Cabinet of Ministers Resolution No. 419 of 28 February 2000. Corporate income tax payers additionally file quarterly or annual financial statements with the tax authority together with the corresponding tax return (clause 46.2 of the Tax Code of Ukraine).
What changes in the small-enterprise balance sheet (Form No. 1-m)
Four new lines will appear on the equity and liabilities side of Form No. 1-m. Revaluations of non-current assets and financial instruments will be reported separately from additional capital. Long-term liabilities, provisions and targeted financing, which line 1595 currently combines, will be split across three lines, and Section II will be renamed “Long-term liabilities and provisions”.
| Line | Before | From 2027 |
|---|---|---|
| 1405 “Revaluation surplus” | no such line; revaluations were reported in line 1410 | revaluations of non-current assets and financial instruments |
| 1410 “Additional capital” | revaluations, non-current assets received free of charge, other additional capital | non-current assets received free of charge and other additional capital |
| 1500 “Long-term liabilities” | a single line 1595 “Long-term liabilities, targeted financing and provisions” | bank loans that are not current liabilities, other borrowings and other long-term liabilities |
| 1520 “Long-term provisions” | also in line 1595 | provisions for vacation pay, warranty obligations and the like |
| 1525 “Targeted financing” | also in line 1595 | the balance of targeted financing and earmarked receipts, including funds released from taxation under corporate income tax incentives |
| 1595 | the only line of Section II | “Total for Section II” |
A balance sheet like this tells the owner and the bank more. It shows which part of the long-term amounts is debt and which part is provisions for vacation pay or warranty obligations. Accountants, in turn, should separate these balances in their sub-accounts as at 31 December 2026. Otherwise the 2027 balance sheet will have nothing to put in the “Beginning of the reporting year” column.
How to report administrative expenses in Form No. 2-m
A new line 2130 “Administrative expenses” will appear in the small-enterprise income statement (Form No. 2-m). It will sit directly below line 2050 “Cost of sales of products (goods, works, services)”. The line will show general overheads related to managing and running the company, and line 2285 “Total expenses” will equal the sum of lines 2050, 2130, 2180 and 2270.
Administrative expenses will be removed from the “Other operating expenses” item (line 2180). Selling expenses, charges to the allowance for doubtful debts and losses on operating exchange differences will stay there, as will taxes and levies.
In the 2027 statement, line 2130 will need comparative figures for 2026, because column 4 of the statement shows data for the same period of the previous year. If administrative expenses have so far been booked to account 97 “Other expenses” together with other costs and without separate tracking, they will have to be extracted from the 2026 expenses retrospectively. It is worth checking whether such tracking is in place before the 2026 books are closed.
What changes in micro-enterprise financial statements
The micro-enterprise balance sheet (Form No. 1-ms) will get an expanded non-current assets section. At present, intangible assets, long-term biological assets and capital investments in progress are included in the “Fixed assets” item; from 2027, each of them will have its own line:
- 1000 “Intangible assets”, including 1001 “original cost” and 1002 “accumulated amortization”;
- 1005 “Capital investments in progress”;
- 1020 “Long-term biological assets”, at fair value or, if they are carried at cost, at net book value.
Fixed assets (1010–1012), other non-current assets (1090) and the section total (1095) remain. Section II will be split the same way as in Form No. 1-m: lines 1500, 1520, 1525 and the total in line 1595. The micro-enterprise income statement (Form No. 2-ms) will keep its line items; only its header details will be updated.
A separate requirement concerns the accounting policy. Clause 7 of Section I of NP(S)BO 25 allows micro-enterprises and non-entrepreneurial companies three simplifications:
- measuring non-current assets at original cost only, without impairment or revaluation;
- not recognizing provisions for vacation pay and warranty obligations, and instead expensing such costs in the period in which they are actually incurred;
- reporting current receivables at their actual amount.
From 2027, the measurement methods and accounting procedures a company chooses will have to be set out in its internal order on accounting policy. If the order has not been reviewed for a long time or does not mention the simplifications, it is worth updating it before 1 January (how to develop an accounting policy).
Which new accounts appear in the simplified chart of accounts
The simplified chart of accounts approved by Ministry of Finance Order No. 186 of 19 April 2001 will gain seven accounts. Companies may use the simplified chart but are not required to. Those keeping their books under the standard Chart of Accounts approved by Ministry of Finance Order No. 291 of 30 November 1999 need not open any new accounts, as all seven already exist there under the same numbers and names. Small enterprises on the simplified chart will use all seven, while micro-enterprises will use only account 12 and record the data of the other six in existing accounts 40, 74 and 97.
| Account | What it records | For micro-enterprises |
|---|---|---|
| 12 “Intangible assets” | intangible assets, until now recorded in account 10 together with fixed assets | account 12 |
| 41 “Revaluation surplus” | upward and downward revaluations of non-current assets and financial instruments | account 40 |
| 42 “Additional capital” | non-current assets received free of charge and other additional capital | account 40 |
| 43 “Reserve capital” | reserve capital formed out of retained earnings | account 40 |
| 71 “Other operating income” | operating income other than revenue from sales of products (goods, works, services) | account 74 “Other income” |
| 92 “Administrative expenses” | general overheads for managing and running the company | account 97 “Other expenses” |
| 94 “Other operating expenses” | operating expenses other than those recorded in accounts 90, 91 and 92 | account 97 “Other expenses” |
The purpose of several existing accounts will change as well. Account 47 will cover only provisions for future expenses and payments, while targeted financing, including humanitarian and charitable aid received, will be recorded in account 48. Account 55 will be called “Long-term liabilities” and will also cover deferred tax liabilities. Account 66 will be renamed “Settlements with employees” and will record all payments to employees, including workers outside the regular headcount. Account 31 will also record electronic money, while account 70 will additionally cover rental income, discounts granted to customers and other deductions from revenue.
New header details: NACE 2.1-UA, location and signatures
Header details will be updated on a common principle. Besides the NP(S)BO 25 forms, this applies to the full financial statement forms under NP(S)BO 1 “General Requirements for Financial Statements”, Form No. 5 “Notes to the Annual Financial Statements” and Appendix 1 to NP(S)BO 29 “Segment Reporting”. The line items of these forms do not change.
- Instead of a code under the Classification of Organizational and Legal Forms of Business (KOPFG), the legal form will be stated according to the Dictionary of Organizational and Legal Forms of Legal Entities.
- Next to the code under the Classification of Economic Activities (KVED), a code under NACE 2.1-UA will appear. The State Statistics Service is introducing this classification from 1 January 2027 by Order No. 191 of 28 October 2025; the form will show the code of the main activity under KVED-2010 and/or NACE 2.1-UA.
- On forms that include an “Address” field, it will be replaced with “Location”.
- Signatories will be named in the “First name SURNAME” format, and the chief accountant’s line will gain the words “the person responsible for maintaining the company’s accounting records”.
The last change brings the forms in line with Article 11 of the Law on Accounting. Financial statements are signed by the head of the company or an authorized person and by the accountant or the person who maintains the accounting records. If the books are kept by an outsourcing firm, the second signature belongs to its head or a person they authorize.
From which reporting period the new forms apply
For 2027 periods, the answer is simple. If the order is published before 1 January, companies on the simplified chart of accounts will switch to the amended chart from that date, and statements for 2027 periods will be prepared on the new forms. If the order is published later, the changes will apply from the day of publication.
The open question is the annual financial statements for 2026. Order No. 483 contains no transitional provisions on the reporting period. The reporting period for financial statements is the calendar year, and interim statements are prepared for the first quarter, the first half-year and nine months (Article 13 of the Law). The 2026 annual statements will be filed in early 2027, when the new forms may already be in force, even though the 2026 data was recorded under the current chart of accounts. The order does not address this directly, so companies should watch for Ministry of Finance guidance and start preparing now.
Companies can prepare for both scenarios by breaking down the balances as at 31 December 2026 and the 2026 expenses by the new lines. This data will be needed either way: for the 2026 annual statements themselves or for the comparative columns of the 2027 statements. If the new forms have to be applied to 2026 already, the 2025 comparatives will also be needed in the new breakdown.
What to do before 1 January 2027
- Check the company’s category. Compare its indicators with the criteria in Article 2 of the Law, bearing in mind the two-consecutive-years rule, and determine which forms it will file for 2027.
- Update the internal order on accounting policy. Micro-enterprises and non-entrepreneurial companies should record which clause 7 simplifications of NP(S)BO 25 they use. Small enterprises should define which expenses count as administrative and how they will keep accounts 41–43, 71, 92 and 94.
- Approve a working chart of accounts and transfer balances as at 1 January 2027. Companies on the simplified chart move intangible assets from account 10 to account 12 and, if targeted financing was recorded in account 47, move it to account 48. Small enterprises reallocate the revaluation surplus, additional capital and reserve capital from account 40 to accounts 41, 42 and 43. Balances are best transferred after the year-end inventory count.
- Configure the accounting software. Set up the new lines 1405, 1500–1525 and 2130, Section I of Form No. 1-ms, the new accounts and the updated header details: the NACE 2.1-UA code, the legal form under the new dictionary, the location and the signatories’ names.
- Prepare comparative data for 2026. Break down the balances as at 31 December 2026 and the 2026 expenses by the new lines. They will be needed either for the 2026 annual statements or for the comparative columns of the 2027 statements.
UHY Prostir provides outsourced accounting for businesses, representative offices of foreign companies and non-profit organizations, prepares and files their financial statements and advises in-house accountants. If you need advice on your accounting policy, working chart of accounts or the transition to the new forms, contact our team.
Frequently asked questions
When do the new financial statement forms for small enterprises take effect?
The changes were approved by Order of the Ministry of Finance of Ukraine No. 483 of 15 September 2026, registered with the Ministry of Justice on 30 September 2026 under No. 1304/46698 and amended by Order No. 520 of 2 October 2026. Both orders take effect on 1 January 2027, but no earlier than the day of their official publication. The changes cover Forms No. 1-m, No. 2-m and No. 1-ms, National Accounting Standard 25 “Simplified Financial Statements” and the simplified chart of accounts.
Who files financial statements only once a year?
As a general rule, micro-enterprises and non-entrepreneurial companies file only annual statements, except those required to report under International Financial Reporting Standards. They file abridged annual statements consisting of a balance sheet and an income statement no later than 28 February of the following year; if that date falls on a non-working day, the deadline moves to the first working day after it. This is set by the Procedure for Submitting Financial Statements approved by Cabinet of Ministers Resolution No. 419 of 28 February 2000. Corporate income tax payers that file quarterly returns also submit quarterly financial statements with each quarterly return (clause 46.2 of the Tax Code of Ukraine).
What are the criteria for micro-enterprises and small enterprises?
A micro-enterprise meets at least two of three criteria: a balance sheet value of assets of up to EUR 350,000 inclusive, net revenue from sales of up to EUR 700,000 inclusive and an average of up to 10 employees inclusive. A small enterprise does not meet the micro-enterprise criteria but meets at least two of these three: assets of up to EUR 4 million inclusive, net revenue of up to EUR 8 million inclusive and up to 50 employees inclusive. The indicators are taken as at the date the annual financial statements for the previous year are prepared (newly established companies use the date of their own annual statements), and euro amounts are converted at the National Bank of Ukraine’s average official exchange rate for the year. The criteria are set by Article 2 of the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”.
What is reported in line 2130 of Form No. 2-m?
From 2027, the small-enterprise income statement (Form No. 2-m) will show administrative expenses on a separate line, 2130. These are general overheads related to managing and running the company. They will be removed from the “Other operating expenses” item (line 2180), and line 2285 “Total expenses” will equal the sum of lines 2050, 2130, 2180 and 2270.
Which new accounts are added to the simplified chart of accounts?
From 2027, the simplified chart of accounts will gain accounts 12 “Intangible assets”, 41 “Revaluation surplus”, 42 “Additional capital”, 43 “Reserve capital”, 71 “Other operating income”, 92 “Administrative expenses” and 94 “Other operating expenses”. Accounts 42, 43, 71, 92 and 94 are expressly intended for small enterprises. Of the new accounts, micro-enterprises will use only account 12. They will record statutory, share, additional, reserve, unpaid and withdrawn capital and the revaluation surplus in account 40, other operating income in account 74, and administrative and other operating expenses in account 97. Retained earnings continue to be recorded in account 44.
What changes in the micro-enterprise balance sheet (Form No. 1-ms)?
The “Non-current assets” section will get separate lines for intangible assets (1000, with original cost in line 1001 and accumulated amortization in line 1002), capital investments in progress (1005) and long-term biological assets (1020). At present, these assets are included in the “Fixed assets” item. Section II will be split into long-term liabilities (1500), long-term provisions (1520) and targeted financing (1525), with the total in line 1595.
