The State Property Fund explains an issue on the financial statements submitted by the auction participant together with the application for participation

Part seven of Article 14 of the Law of Ukraine “On Privatization of State and Communal Property” (hereinafter - the Law on Privatization) prescribed that the latest annual or quarterly financial statements are submitted to the application for participation in the privatization of small privatization along with other documents.

According to the Law of Ukraine “On Accounting and Financial Reporting in Ukraine”, the Procedure for Submitting Financial Statements, approved by the Decree of the Cabinet of Ministers of Ukraine from 28.02.2000 No 419, legal entities regardless of organizational and legal form of management and ownership, as well as representations offices of foreign business entities, are required to keep accounting and submit financial statements in accordance with the law.

Financial reporting forms must be registered with the relevant authority, which have to be indicated in the relevant receipt of their acceptance.

It should be noted that in accordance with part nine of Article 14 of the Law, the privatization body for the sale of a small privatization object does not approve the electronic bidding protocol, does not conclude a sale and purchase contract from sale result at the auction with a potential buyer who:

-         does not meet the requirements of Article 8 of this Law;

-         has not submitted documents or information, the mandatory submission of which is provided by this Law;

-         provided false information about himself.

Thus,if the auction participant - a legal entity has not submitted the last annual or quarterly financial statements with the relevant receipt of its acceptance together with the application for privatization, it is a violation of the parts seventh and ninth of Article 14 of the Law on Privatization.