BDO Ukraine brochure english versionDocument Transcript
International auditors and consultants
Letter from the President of BDO in Ukraine
Sector and Regional Experience
Our Services in Ukraine
Preparing for an IPO
letter from the president of BDO in ukraine
You are holding a brochure of BDO in Ukraine - the leading auditing
and consulting company, the fifth largest in the world. We have tried to
collect the most important information about our activities and hope
that this will help you make the right choice when looking for a reliable
assistant in auditing and consulting.
2013 is a special year for the BDO network – this year, across the
world, we are marking our international 50th anniversary and
celebrating all that has been achieved in the 50 years since BDO was
founded. At BDO, we’re proud that not only have we adapted to the
changing operating environment, globalization, needs and expectations
of our clients, but that we have grown into a US$ 6 billion business,
operating in 144 countries. In the last 10 years alone, our revenues
have almost tripled.
The changing environment has meant that our clients are looking for
more than numbers and standard service delivery. Now, more than
ever, trust is vital and companies are expected to grow and deliver
commercial value in a way that delivers broader social benefit. We
are fully aware that that doesn’t just apply to our clients; it most
certainly applies to our firms too. That’s why, to celebrate our 50th
year, we have launched a brand new globally-run campaign; BDO 50
for 50. The campaign will see firms across our network providing free
practical advice and assistance to charities and organisations within the
communities they serve – each providing more than 50 hours of free
support to charities or social enterprises.
From our foundations, built over the last 50 years, I believe BDO is
well positioned to look ahead with confidence. As a network of strong
firms, we are on course to strengthen our leading position within the
mid-tier of our profession and I am convinced that our growth will
continue apace. But it’s not all about growth – it’s the quality of our
service delivery that makes the real difference. What’s important is
that, while we grow, we continue to live up to our vision, our values
and maintain our unique BDO culture – these are the factors that have
made us what we are today and what continue to set us apart from our
competition. I am proud of the huge amount BDO has achieved so far
and feel privileged to be leading BDO in Ukraine forward as we embark
on the next 50 years.
The global vision of BDO is “To be the leader for exceptional client
service”. It means the following:
We anticipate our clients’ needs and are forthright in our views to
ensure the best outcome for them
We are clear, open and swift in all our communications
We deliver what we promise – every day, for every client
We provide the right environment for our people and the right
people for our clients
We create value through giving clients up to date ideas and
valuable insight and advice that they can trust
The fact that the company is a part of international network allows our
employees to constantly learn from global best practices in auditing
and consulting. Through regular meetings of the members-partners of
BDO, our experts exchange experiences in all aspects of the company
activities, improve their skills and share the national peculiarities of
work of each country. The global database, common quality standards
and the unique audit methodology of BDO enables delivering the most
value to the clients of BDO Ukraine.
President of BDO in Ukraine
BDO is the fifth largest international audit
and consulting network in the world
BDO has 55 000 employees and 1204 offices
in 145 countries*
The story of BDO development is a perfect example of the rapid
response to changing market conditions and customer needs. BDO
organization was founded in Europe in 1963, when progressive-minded
accounting firms in Germany, Great Britain, the Netherlands, the United
States and Canada came together to share and expand their knowledge,
and to support cross-national operations and customers. We were known
as the Binder Seidman International Group, and since 1973 changed the
name to Binder Dijker Otte & Co: BDO.
The beginning of the modern world structure of the organization began
in 1988 when it was decided to use the acronym in front of the names
of local BDO member firms. This, along with the introduction of a new
logo and a global brand, clearly demonstrated that the local experience
of our member firms has been merged with the international experience
and the strength of our international network.
Since then, our network has continued to evolve in response to customer
needs, which led to a change in our name in 2009 to just BDO. Such
transition to a single global name demonstrates our commitment
to serve customers on a seamless high level and compete successfully
in the international arena.
We have selected the best of experience in providing audit and
consulting services in different countries and different sectors of the
economy. We preach a common approach to service delivery, which also
guarantees individuality and professionalism to the customers.
Stake on the local experience of BDO partner firms and their
geographical proximity to customers is part of the BDO global strategy.
Membership of each member-firm in the global network is a guarantee
that the services provided comply with the high standards of BDO.
BDO member-firms are active in all regions of the world, and the close
cooperation among them made it possible to create a common strategy
of the BDO that is targeted at meeting the customer needs.
Our customers see us as their preferred adviser in matters of
auditing, while appreciating the constantly high level of service
throughout the world.
International executive office is located in Brussels (Belgium).
Rating Top 35 International networks, associations and alliances 2013 per level of revenue gain
networks by fee income
*data for November, 2013
LATEST COMBINED ANNUAL
TOTAL INCOME ($M)
previous years income ($M)
BDO offers services in every continent
and in all economically significant regions
British Virgin Islands
Trinidad & Tobago
Denmark & Faroe Islands
Isle of Man
BDO in Ukraine
Representatives of Ukrainian business have been waiting a long time
for a strong company on the market of audit and advisory services,
a company that would work in the same style and at the same high
quality level, as the world-known auditing and consulting companies, yet
which would be domestic one with a deep local knowledge at the same
BDO in Ukraine dates back to 1993, when the auditing and consulting
firm “Balance-Audit” was established in Dnepropetrovsk. In 1997 the
company joined international BDO network and was named “BDO
Balance-Audit”, which supported the compliance with the highest
international standards of BDO. Beginning from 2009, in line with
global strategy, we are called BDO Ukraine. The transition to a single
global name implies association of local experience member firms with
an international network that allows us to compete successfully in the
Establishment of company
Foundation of company
joing BDO International
network. Renamed into
• IFRS implementation
• Internal audit
• Agreed-upon examination
• Assistance to CFOs
• Specialized reviews and
• Tax consulting
• Accounting Outsourcing
For more than eighteen-years existence of BDO Ukraine we have
selected the best from the experience of audit and consulting services in
different countries and sectors of economy. Company offices are located
in the most major cities of Ukraine: Kiev, Dnipropetrovsk, Donetsk, Lviv,
Rivne, Sevastopol and Simferopol with over 200 professionals employed.
As a result of a valuation
company joing, BDO Valuation
Ukraine was formed
As a result of a legal
BDO Legal Ukraine
• Corporate ﬁnance
• Sector services
• Risk management
• Business restructuring
• Business consulting
• Sustainability Services
• System integration
• Marketing researches
• Recruiting of the ﬁnancial
Transition of all
member-firms to the
single name BDO.
Renaming into BDO LLC,
BDO Legal Ukraine
• International Structuring
• Wind Power Legal
• Support of the
• Due Diligence
• Services for foreigners
• Litigation & Regulatory
• Legal Consulting
Valuation (in particular, under IVS and
• business & integral property complexes
• securities &corporate rights
• intangible assets
• real estate (land plots, buildings, etc.)
• other property (personal property, vehicles,
Sector and Regional Experience
BDO works with the companies of main industries of Ukrainian economy
Fuel and energy complex.
Agroindustrial complex, food industry.
Financial institutes (banks, investment companies).
Mining and metallurgical industry.
Hotels and tourism.
Petrochemical and chemical industry.
Pharmaceutical companies and medical establishments.
Mass Media, telecommunications, high-tech.
Construction and real estate.
Public and unprofitable organizations.
Representative offices of foreign companies.
Trade and service industries.
Geography of BDO projects in Ukraine
Why the clients choose us
Single quality standards all over the world due to strict procedures
of control and risk-management.
Combination of the best world practices and deep understanding
of local traditions.
Global base of knowledge, unique methodology of BDO audit.
Highly skilled specialists with considerable experience
of a particular sector.
Fixed communication channels, detailed planning during close
cooperation with a client.
Considerable participation of partners in the team work.
Audit conclusions, given out by our firm, are acknowledged
by all foreign and international companies and organizations.
Our Services in Ukraine
We accompany business of our clients and
provide them with the full range of audit
and consulting services, which satisfy high
Transfer Pricing advice
Financial reporting audit in accordance with IFRS, and National
Accounting Standarts of Ukraine.
Developing internal tax accounting policy
Additional value of our services consists of that we give
consultation concerning internal financial control and conduct
of business improvement.
Expatriate tax services (including tax returns preparation)
Full accounting, tax, payroll and HR outsourcing
Audit of financial reporting to support company to enter
international stock exchanges (London Stock Exchange, German
Swiss Stock Exchange, etc.).
Audit of non-financial accounting.
Specialized agreed upon procedures related to conducted
operations, express-verifications, purchase or sale of business (Due
IFRS introduction services
Preparation of accounting registers and tax accounting procedures
due to the Ukrainian laws.
Preparation of the Ukrainian mandatory quarterly reporting.
Preparation of statistical and financial reports.
Delivering reports to the Ukrainian statistical and social insurance
authorities, pension fund and the tax office.
Making out of tax returns, which must be prepared according to the
laws «On the taxation of profits» and «On Value Added Tax».
Consulting on development and introduction of reporting
preparation methodology according to IFRS.
Preparation of IFRS accounts.
Specialized reviews and researches concerning
Consulting and training staff on issues of preparation of the
Authenticity of mapping in the accounting and reporting of
accounts payable and receivable.
Standardization of the financial control system in accordance
with the national and international financial reporting standards.
Assessment of existing status and optimization of the internal
Legal practice of BDO Legal Ukraine
Organization of the internal audit system.
Organization of management control system.
Wind Power Legal Services.
Support of the investment.
Tax optimization and tax structuring advice
Tax advisory on local issues and cross-border transactions
Services for foreigners.
Review of tax returns on corporate income tax, VAT, other taxes
Buy- and Sell-side Tax Due Diligence and deal structuring
Support in tax disputes
Valuation activities of BDO Valuation
Valuation of assets for international audit in accordance
with the International valuation standards (IVS) and IFRS.
Development of Sustainable Development strategy, preparation
Business, integral property complexes and securities valuation.
Intangible assets valuation.
Environmental audit, solving carbon emission, wastes
Real estate valuation.
Analysis of external tendencies and normative base influence.
Preparation of Integrated reporting.
BDO consulting services
Analysis of general, financial, tax and legal aspects of company
activities (Due Diligence).
Drafting business plans of investment projects and preparation
of investment memorandums.
Assistance in fundraising.
Audit of IT introduction.
Corporate Performance Management and Business Intelligence
Establishment of Enterprise Resource Planning system (ERP).
Supply Chain Management (SCM) and Warehouse Management
Customer Relationship Management (CRM).
Establishment of paper flow systems.
Supporting of business-appendixes.
Consulting on mergers and acquisition issues.
Complex service program for agroholdings.
Development of managing accounting system for managing
Professional Development Programs
International Financial Reporting Standards IFRS (IFA)
Internal Audit (IFA)
Establishment of internal audit system.
Strategic Management (IFA)
Establishment of internal control and risk-management system.
Business Performance Management (IFA)
Financial Management (IFA)
Restructuring and financial recovery.
Prifessional Code of Ethics of Accountants (IFA)
Establishment of corporate management system.
Development of expenses reduction program.
European Business Competence* License (EBC*L)
Development of business plans and projects of development.
CSO Audit (corporate social responsibility).
Development of the Balanced Scorecard system (BSC).
Optimization of business-processes.
Development of marketing strategies.
Improvement of company’s/group of companies’ organizational
Formulation of marketing system.
Development of customer service standards.
Development of motivation system.
Establishment of HR system.
Increase of marketing and sales system efficiency.
Development of managing accounting and budgeting system.
Development of managing reporting system (MRS) and Key
Performance Indicators (KPI).
Turnover and Cash Management (TCM).
Introduction of expenses management system.
Establishment of accounting by centers of responsibility.
Introduction of financial monitoring and diagnostics procedure.
Recruiting of the financial specialists
Standardized approach to the search and selection of highly
qualified financial sector professionals - accountants, auditors,
financial advisors, tax professionals, CFOs and other professions.
Objective professional testing and psychological assessment:
IFRS, NAS, taxation, etc., tests identifying types of personality,
level of intelligence and style of communication / management of
applicants in compliance with Client’s requirements.
Confirmation of references (recommendations) and professional
achievements of applicants from their previous work places.
Arranging interviews and Client assistance in conducting interviews.
Support the process of firing the approved applicant from the
previous work place.
Preparing for an IPO
We supply a wide range of Services
for companies from different sectors,
related to holding Initial Public Offering (IPO)
Our specialists will help clients at all stages of this process: from
decision-making about organizing of IPO to assistance in solving issues
which can arise up already after an entry to a stock exchange.
Help in creating corporate management and restructuring system,
recommendations on taxation.
Providing services, related to the holding IPO, we cooperate
with the BDO offices in Great Britain, Poland, Holland, Singapore and in
Development and formulation of accounting and internal
Help in preparation of financial information.
Recommendation on the reward schemes and payments criteria.
BDO work experience with London Stock Exchange:
more than 130 IPO for the last 5 years;
combined market value of transactions is more than
17 milliard pounds;
primary placement at London Stock Exchange(Main Market and
In the process of IPO
transactions of reverse acquisition, division of companies,
secondary placements, Eurobonds issues, transition with AIM to
the main market (Official List).
Due diligence with the purpose of determination information
to be disclosured in prospectus.
Verification of financial forecasts, helping management to assess
BDO work experience with Warsaw Stock Exchange:
since 2005 BDO provided services to more than 110 companies,
placed at Warsaw Stock Exchange;
currently there are 271 companies that have listing on the stockexchange with total capitalization in the amount of 219 milliard
Help in realization financial and tax strategy.
Help in meeting requirements on presentation of the financial
reporting, other requirements of a stock exchange and regulators.
Business-advising in the field of operating processes optimization
and capital management.
Help in a search and analysis of potential investment objects and
other development resources.
Actions of BDO Company in Ukraine governance, accelerating process of preparing
documents for IPO
• Preliminary planning.
• Forming team to work comfortably with.
• Establishment of realistic schedule of work.
• Maintenance of the positive productivity during
• Assurance of initial stocks offering process with internal
• Documentation in an organized manner.
all period of works implementation according
to the schedule.
BDO ukraine 11
Companies, which understand their influence on the environment
and society and also pay attention not only to the financial side
Strategy of sustainable development, accounting and
of activities, are more likely than all to success in a mid-term
Development of the extended Balanced Scorecard system.
Development of key indexes of efficiency in regard to
Verification of readiness to organize activities on
Writing reports on Sustainable Development and Corporate Social
Strategy of sustainable development and cooperating
with the interested parties (stakeholders).
Analysis of sustainable development influence on the chain
Profiling risks, related to sustainable development.
Preparation of “Consolidated Annual Report” which unites the
results of economic, public and ecological activities and their
and long-term prospect. It is important for sustainable development
of the company to understand the existent social, ecological and
financial effects on business and their co-operation.
BDO Ukraine possesses the deep understanding of how companies
should develop and adapt themselves to the constantly changing
environment of risks and possibilities. We will serve as a strategic
adviser in the issues of influence of the followings factors on
your business: climate change, new achievements in energy and
technologies, global tendencies and legislation.
Effective management measures on sustainable development will
bring your business an additional value and perceptible financial and
Climate change and energy sector
Energy audit of operations.
Solving carbon emission problem.
Solutions for effective use of energy.
Accompaniment of ecological audit.
Solutions on waste recycling.
Solutions on the use of renewable energy.
Practical researches and data gained
Determination what key economic, public and ecological
tendencies, news, reports and normative acts relate to your main
strategy and activities.
Creation practically feasible, client-oriented economic models,
determination priorities among the strategic variants of choice and
strategy of co-operating with the interested parties (stakeholders).
Assessment of ecological influence
Biological variety and ecological influence of activities accounting.
12 BDO ukraine
Integrated Reporting – going beyond
What is Integrated Reporting (IR)?
IR is a process that results in communication by an organisation, most
visibly a periodic integrated report, about how an organisation’s strategy, governance, performance, and prospects lead to the creation of
value over the short, medium and long-term.
21st century reporting
IR is gaining prominence because today’s corporate reporting does not
meet the evolving information needs of diverse stakeholdersgroups
including employees, regulators, investors and suppliers.
Stakeholders are increasingly calling for enhanced reporting of corporate responsibility and other informationthat impacts business performance including future direction, resource allocation and associated
social, environmental and financial impacts.
IR seeks to provide stakeholders with additional information to help
them make more informed assessments of companies and their longterm prospects.
Companies can benefit from thinking about their reporting in an
integrated way. This can help them better integrate strategy, governance, risk management and other factors as part of their internal and
Stakeholders increasingly expect companies to disclose environmental,
social, and governance information through reports or other means, such
as websites. And, mandatory sustainability disclosure requirements have
been adopted or proposed in many countries including Ukraine, including
requirements on specific topics like carbon emissions, waste management and transparency. Ukraine is also increasingly adopting European
Union standards and benchmarks including in the area of sustainability
and Corporate Social Reporting (CSR). IR has been very positively received across the EU and worldwide with over 100 companies including
Rosneft, Coca Cola, SAP and Volvo now future proofing their business
models by adopting IR to explain and communicate opportunities and
risks on their horizons.
Companies that use the IR concepts do producemore transparent
reporting and are likely to improve their access to capital, lower their
insurance premiums and significantly enhance corporate reputation.
IR is applicable across the entire organisational spectrum from SMEs to
multinational entities; from NGOs to public sector institutions.
BDO - your IR implementation partner
Integrated Risk Management
BDO is the official representative of the International Integrated Reporting Council (IIRC) in Ukraine ensuring peace of mind regarding IR quality
control, tailored application of IR tools and access to the latest developments across the international IR network.
Our IR experts are currently working with many companies including
Uralsib, Rosatom and Novo Nordisk to ensure a smooth transition from
current reporting practices separating financial and non-financial statements towards an integrated reporting platform.
BDO will help you identify the right external disclosures on the basis of
real clarity internally about what your business model is andhow it links
to strategic, operational and financial drivers of your business. We will
help you identify cost savings, maximising efficiency gains, build effective stakeholder engagement strategies and create consistent internal IR
information and data streams.
The Integrated Report = telling the full
story of value creation over time
BDO ukraine 13
(Association of Chartered Certified Accountants)
is a worldwide organization of professional
accountants. The purpose of organization is to give
the proper qualification to specialists, who aspire to
the value career in the field of accounting, finances
and management, and also possess sufficient capabilities and diligence.
BDO possesses Platinum status of the accredited employer for the
trainee development stream program, which allows the company to
promote the level of staff qualifications by methods and instruments,
developed by ACCA. To be accredited at this level, an employer
has to give complete sponsorship to the employees receiving ACCA
qualification. ACCA considers that business globalization implies the
necessity maintain single standards of financial reporting preparation.
We prefer the International Financial Reporting Standards (IFRS).
European Business Association was founded
1999 as a forum for discussions and solving
problems which businessmen encounter
in Ukraine. This initiative of companies
which saw advantages and benefits from the united actions of
European business community in Ukraine was supported by European
Commission. Today European Business Association includes more than
800 European, international and Ukrainian organizations, working on
the territory of Ukraine. Activities of association include collective
protection of interests, possibility to participate in the process of
decision-making at the level of the European Union, informative
support, adjusting connections between business and political
The global compact
The CPD Certification Service is the program
for permanent professional development. A receipt
of Certificate is the proof that trainings and
materials for employees preparation which are given
by the company, qualify for international standards and also that every
employee has his own plan of professional development.
The UN Global Compact is a voluntary initiative
which calls on companies to unity, general support
and activity in different areas of influence with the
only purpose to form in common main values in the
field of observance for human rights, labor standards,
environment protection and fight against corruption. By its decision to
join the Global Compact, the BDO as one of the leading businesses in
the financial sector of Ukraine demonstrates an example of high civil
and social responsibility, as well as shares experiences and knowledge
with other companies and organizations that follow similar principles.
BDO LLC, BDO Consulting LLC
BDO Valuation LLC
Office BDO in Dnipropetrovsk
201-203, Kharkivske Road,
Kyiv, 02121, Ukraine
Tel: +38 (044) 393 26 87 (88)
Fax: +38 (044) 393 26 91
4, Serova Street,
Dnipropetrovsk, 49000, Ukraine
+38 (056) 370 30 43 (44)
+38 (056) 370 30 45
Office BDO in Donetsk
2а, Pushkina Blvd, 5th floor,
Donetsk, 83001, Ukraine
Tel./Fax: +38 (062) 341 46 60
Office BDO in Rivne:
5a, Lermontova St., office 1
Rivne, 33028, Ukraine
Tel: +38 (0362) 26 24 69
Fax: +38 (0362) 26 44 93
Office BDO in Lviv:
109, Zelena Street, 3rd floor,
Lviv, 79035, Ukraine
Tel: +38 (032) 294 96 65
Fax: +38 (032) 294 96 65
Office BDO in Sevastopol:
17 Kulakova Street, office 4
Tel: +38 (0692) 54 41 42
Fax: +38 (0692) 54 42 20
Follow us on:
Office BDO in Simferopol:
9 Nekrasova Street
Tel: +38 (0652) 62 10 51
Fax: +38 (0652) 62 10 52
BDO Legal Ukraine LLC
5, Spasska St., office 52,
Kyiv, 04071, Ukraine
+38 (044) 220 12 60
+38 (044) 220 12 63
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations
and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice.
Please, contact BDO LLC to discuss these matters in the context of your particular circumstances. BDO LLC, its partners, employees and agents do not accept or assume any liability or duty of care
for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.
Each of BDO International Limited, Brussels Worldwide Services BVBA and the member firms of the BDO network is a separate legal entity and has no liability for another such entity’s acts or
omissions. Nothing in the arrangements or rules of the BDO network shall constitute or imply an agency relationship or a partnership between BDO International Limited, Brussels Worldwide
Services BVBA and/or the member firms of the BDO network.
BDO is the brand name for the BDO network and for each of the BDO Member Firms. BDO is formed from the first letters of the surnames of company founders: Binder, Dijker and Otte.
2014 BDO LLC. All rights reserved.