E&Y finishes audit of Ukrzaliznytsia for 2016 – Ukrzaliznytsia chief
E&Y has finished audit of the financial report for 2016 for public joint-stock Ukrzaliznytsia and the company's board approved the draft consolidated financial report drawn up under international financial reporting standards (IFRS), Ukrzaliznytsia Board Chairman Wojciech Balczun has said.
"We pay attention that the warning about large doubts of the auditor that the company would operate without interruptions disappeared from the report for 2016. This entry in the 2015 report showed that the auditor had doubts that the company would exist next 12 months. Now we have the confirmed fact of stabilization in the company," he wrote on his Facebook page.
Balczun said that auditors focused on growth of important indicators and positive cash flow that allows investing in development of the enterprise in 2017.
"Now attention: the loss of UAH 7.3 billion under international standards is linked to large growth of depreciation expense – from UAH 7 billion in 2015 to almost UAH 18 billion in 2016. The loss on paper is linked to the indexation of the cost of fixed assets, not the indicator of real losses of the company," he said.
He said that auditors also said that in the comparable conditions (stability of the hryvnia, absence of growth of depreciation expense) in 2015 and 2016 the performance in 2016 could be better by almost UAH 11 billion.
"We can state the obvious thing: figures of Q1 2017 show that the financial and economic results continue improving. This report will be presented to the government for approval," Balczun said.
