Ernst & Young to value Kyivenergo assets to IFRS
KYIV. July 7 (Interfax-UKRAINE) - Ernst & Young Kyiv will carry out a valuation of fixed assets for Kyivenergo to International Financial Reporting Standards.
Kyivenergo signed an agreement worth UAH 250,000 (with VAT) with Ernst & Young Kyiv on July 1 (UAH7.9715/$1 on July 7), a trade results notice on the Ukrainian Economy Ministry website said.
Buildings and structures, equipment, vehicles, unfinished constructions, incomplete capital investments and uninstalled equipment will be valued.
The deadline for the preliminary assessment report is August 15 2011.
A revaluation of Kyivenergo fixed assets to IFRS was a condition of the $160 million loan raised from the World Bank loan in 1998 for city heating network development.
Kyivenergo must repay the loan by 2018.
Kyivenergo operates almost all the energy installations in the Ukrainian capital, with the exception of Darnitsia Heat and Power Plant.
Electricity output increased 25.3% year-on-year in 2010 to 4.746 billion kilowatt hours and thermal energy production grew 8% to 15.2 million gigacalories.
Energy Company of Ukraine owns 50% plus one share in Kyivenergo and Ukraine's biggest privately owned energy holding DTEK owns 39.98%.