Simplified Financial Reporting from 2027:

From 1 January 2027, small and micro-enterprises will prepare simplified financial statements using the updated Forms No. 1-m, No. 2-m, No. 1-ms and No. 2-ms, and will keep their accounting records under the revised Simplified Chart of Accounts. The changes were approved by Order No. 483 of the Ministry of Finance of Ukraine dated 15 September 2026 and clarified by Order No. 520 dated 2 October 2026. Below, we explain what exactly is changing, which businesses are affected, and how to prepare for the new requirements.

What is changing?

• Forms No. 1-m, No. 2-m, No. 1-ms and No. 2-ms have been updated, including certain reporting details and line items.
• The balance sheet forms will now provide a more detailed breakdown of certain components of equity, non-current liabilities, provisions and targeted financing.
• In Form No. 2-m, administrative expenses will be reported separately under line 2130.
• Form No. 1-ms will disclose intangible assets, capital investments in progress and long-term biological assets separately.
• The Simplified Chart of Accounts has been supplemented with new accounts, and the purpose and application of existing accounts have been clarified.
• Companies will need to document in their accounting policies the selected measurement methods and accounting treatment for assets, expenses, and trade and other receivables.

Why these changes matter for businesses

Although the new requirements will take effect on 1 January 2027, businesses should assess their impact on accounting and financial reporting well in advance. The updated financial reporting forms, the changes to the Simplified Chart of Accounts, and the new accounting policy requirements may require them to revise their analytical accounting, update accounting system settings, and prepare comparative data for 2026.

Who is affected by the new rules?

The changes apply to:

• small enterprises that prepare financial statements using Forms No. 1-m and No. 2-m;
• micro-enterprises that use Forms No. 1-ms and No. 2-ms; and
• business entities that apply the Simplified Chart of Accounts.

Practical steps for businesses 

1. Determine the applicable financial reporting forms. Check whether the company prepares its financial statements using Forms No. 1-m and No. 2-m or Forms No. 1-ms and No. 2-ms.
2. Identify the required accounting changes. Map the company’s existing analytical accounting to the new, more detailed line items in the updated forms, particularly those relating to revaluation surplus, provisions, targeted financing, intangible assets and administrative expenses.
3. Update the working Chart of Accounts. Identify the accounts and analytical dimensions required to automate the preparation of the updated financial reporting indicators. Micro-enterprises should also document which permitted simplifications they intend to apply.
4. Update the accounting policies. Document the measurement methods and accounting treatment for assets, expenses, and receivables, as well as decisions on the use of new accounts and analytical dimensions.
5. Configure the accounting system. Update the chart of accounts directory, the account-to-reporting-line mapping rules, the financial reporting forms, and the validation rules.
6. Prepare comparative data for 2026. Ensure in advance that 2026 data is sufficiently detailed and, where necessary, reclassified to complete the comparative columns in the 2027 financial statements. Pay particular attention to new line items for which the current accounting system may not provide separate analytical data.
7. Perform a trial close. Before preparing the first financial statements under the updated forms, verify that all accounts are correctly mapped to the relevant reporting line items, check the formulas used to calculate totals, and ensure consistency between the balance sheet and the income statement.

To make it easier to prepare for the new requirements, we have summarized the changes in three practical tables. The tables provide an at-a-glance overview of not only the new reporting line items and accounts, but also those that remain unchanged.

Table 1: Forms No. 1-m and No. 2-m. The complete list of fields and line items will help small enterprises quickly identify which figures need more detailed breakdown or which reporting settings need updating.
 
Table 2: Forms No. 1-ms and No. 2-ms. This table gives micro-enterprises a practical overview of the changes.
 
Table 3: Simplified Chart of Accounts and Accounting Policies. This table shows what has changed for small and micro-enterprises and highlights the accounting policy provisions that should be reviewed before the new requirements take effect.
 
We recommend using these tables as a practical tool to assess the required changes, assign tasks to accounting and IT teams, and monitor the readiness of comparative data for 2026.

Prepare for the changes in advance

If you have questions about the new simplified financial reporting requirements or need support in assessing their impact on your business, please contact BDO in Ukraine. Our professionals will be happy to help you understand the changes and prepare to implement them.