mgi ukraine) mgiworldwide J ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” FINANCIAL inked international netw ultirAmember of mgi ukraine) mgiworldwide)/ AUDIT & TAX SERVICES 7 ‘CONTENTS 1 STATEMENT OF RESPONSIBILITY OF THE MANAGEMENT 3 2 INDEPENDENT AUDITOR'S REPORT 4 3. FINANCIAL STATEMENTS OF SMALL ENTITY 6 4. NOTESTO THE FINANCIAL STATEMENTS OF SMALL ENTITY 8 BASIC INFORMATION ABOUT THE ASSOCIATION. 8 BASIS OF PRESENTATION OF THE FINANCIAL STATEMENTS 8 PRINCIPLES OF ACCOUNTING POLICY 9 NOTES TO THE FINANCIAL STATEMENTS Fr mgiworldwide)/ top 20 ranked international network association of independent =” audit, tax, accounting and consulting firms, ready to serve you.Deutsch-Ukrainische Industrie und Handelskammer Hiveunxo-YxpaincoKa ApomHenoeo~roprosenuita nanara STATEMENT OF RESPONSIBILITY OF THE MANAGEMENT PERSONNEL FOR THE PREPARATION AND APPROVAL OF ‘THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2023 The following statement, which should be considered together with the independent auditor's report, made in order to differentiate the responsibility of the management personnel and independent auditors, with regard to the financial statements of ASSOCIATION "GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY" (hereinafter referred to as the Association). The Association's management personnel is responsible for the preparation of the special purpose financial statements for the year ended December 31, 2023 (hereinafter referred to as financial statements), consisting of the Balance Sheet (form No.1-m), Statement of Profit and Loss (form No.2-m) and Notes to the financial statements in accordance with the National Accounting Regulation (Standard) 25 “simplified Financial Statements’ and other National Accounting Regulations (Standards) (hereinafter ~ NAR(S)), applied by small enterprise entities, as well as in accordance with requirements of the Law of Ukraine “On Accounting and Financial Statements in Ukraine” dated July 16, 1999 No.996-XIV regarding the preparation of financial statements (Law on Accounting and Financial Statements, ‘When preparing the financial statements, the managerial personnel of the Association is responsible for: selection of the proper accounting principles and their consistent application; application of substantiated assessment and judgments; ‘compliance with the applied NAR(S); preparation of the financial statements, based on the assumption that the Association will continue its activity in the nearest future, except of the cases when such assumption is unlawful ‘The management personnel of the Association shall also be responsible for: '* development, implementation and ensuring of the functioning of the efficient and reliable system of internal control in the Association; '* maintenance of the accounting system which allows to prepare the information on the financial condition of the Association with a reasonable degree of accuracy at any time and ensure the conformance of the financial statements to the requirements of the compliance with the applied NAR(S) and requirements of Law No.996; ‘* taking measures within its competence in order to ensure the preservation of the Association’s assets; ‘© prevention and detection of fraud and other abuses. The management personnel provided the auditors with all necessary information and explanations for the audit conduction. The management personnel did not identify any additional audit information which was not notified to the auditors. The financial statements of the Association for the year that ended on December 31, 2023 were approved for issue on January 30, 2024 on behalf of the Association, Chairman of the Board ASSOCIATION "GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY" Perau RE. <* acouiauia * Mepay = "HIMELIbKO-YKPATHCLEA Paiiwep Epix BGMMCIOB0-TOPTOBESBHA egpnoy/inH == TANIATA" 4os00s4s = 5 = egpnoy/ink > ° “2, 40800545 9, Sn, “Cana yO” Mano y 8 Aokyment nianicano y cepsici Byaco (nowaToK) 2. Sasa npo BignosiqanbricTe_HYMTN_2023 eng.pafmgi ukraine UsReoU code 23966832 pas line AUDIT 8 TAX SERVICES AAA Kona OF 783 Tels 38048299980 aeiniaacnd es INDEPENDENT AUDITOR'S REPORT To the General Meeting of Members and management of the ASSOCIATION “GERMAN-UKRAINIAN CHAMBER. (OF COMMERCE AND INDUSTRY” Omi ‘We have audited the financial statements of the ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” (hereinafter referred to as the Association), which comprise the balance sheet (Form No. 1-m} as at Decem- ber 31, 2023, the income statement (Form No. 2-m) for the year then ended on the stated date, and notes to the finan- ial statements, including a summary of significant accounting policies (hereinafter referred to as the financial state- ments). In our opinion, the accompanying financial statements are prepared in all material respects in accordance with the requirements of the National Accounting Principle (Standard) 25 “Simplified Financial Statements”, other National Ac- ‘counting Principles (Standards) (hereinafter ~ NAP(S)), as well as in accordance with the requirements of the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” dated July 16, 1999 No. 996-XIV on the preparation of financial statements (hereinafter ~ Law on Accounting and Financial Reporting}. Basis for Opinion ‘We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are set out in the “Auditor's Responsibilities for the Audit of the Financial Statements” section of our report. We are independent of the Association in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (ESBA Code) and the ethical requirements applied in Ukraine to our audit Of the financial statements; and we have fulfilled other ethical responsibilities in accordance with these requirements ‘and IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. De SMe We draw attention to Note 2 “Basis of presentation of the financial statements” to the financial statements, which indicates that the Association's management has considered the financial position, current plans, the results of the ‘Association’ activities and access to financial resources and the possible impact of the military aggression of the Russian Federation against Ukraine and the introduction of martial law in Ukraine in connection with it. To ensure financial liquidity, the Association concluded an agreement to receive a budget subsidy from the Federal Ministry of Economy ‘and a new grant agreement with a donor organization (Agency for Economic Affairs and Development AWE) to finance 4 project related to the provision of services, in particular in the field of holding tenders from international financial organizations through Ukrainian partner ministries and agencies, providing up-to-date information on events in Ukraine related to reconstruction and tenders, consulting companies on economic potential and development in Ukraine. De- spite the material uncertainty related with the war in Ukraine, management continues to take measures to minimize ‘the impact on the Association and therefore believes that the use of the going concern assumption for the preparation Of these financial statements is appropriate. These events and conditions indicate, that a material uncertainty exists that may cast significant doubt on the Association’ abilty to continue as a going concern. Our opinion is not modified of this matter. CIs ‘We draw attention that this reports intended solely for presentation to the Association's General Meeting of Members ‘and management and must not be distributed or used for any other purpose. Responsibilities of Management and Those Charged with Governance for the Financial Statements ‘Management is responsible for the preparation of the financial statements in accordance with NAP(S) 25 “Simplified Financial Statements” and the requirements of other NAP{S), Law on Accounting and Financial Reporting and for such Worldwide isa network of independent aud, ax accounting and consul ach member firm is aseparate Pegi, the activities, work, opinios mgiworldwide// perf, Por mete inforiation vst www. mgwer com legal ide any services ands member firms ae notan international partners“ucc" mgi ukrainey/ INDEPENDENT AUDITOR'S REPORT AUDIT TAX SERVICES internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. In preparing of the financial statements, management is responsible for assessing the Association's ability to continue ‘as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Association or to cease operations, or has no realistic alternative but to do so. ‘Those charged with governance are responsible for overseeing the Association's the financial reporting process. aa ‘Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from ‘material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Rea- sonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs ‘will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are consid- ‘ered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decision of users taken on the basis of these financial statements. ‘As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism ‘throughout the audit. We also: © identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and ap- propriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, international omission, misrep- resentations, or the override of internal control; © obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appro- priate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control; © evaluate the appropriateness of accounting policies used the reasonableness of accounting estimates and related disclosures made by management; © conclude on the appropriateness of management's use of going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Association’s ability to continue as a going concern. if we conclude that a material uncertainty exists, \we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Association to cease to ‘continue as a going concern. We communicate with those charged with governance regarding, among other matters, the planned scope and timing. of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit Key audit partner Inna STARYSHKO Registration number in the Register of Auditors and Audiig/#ntities: 102804 For and on behalf of PRIVATE ENTERPRISE “MGI UKRAINE” Director = Dmytro SUSHKO Registration number in the Register of Auditors and Entities: 100687 Date of independent auditor’s report: January 31, 20: Kyiv, Ukraine Basic information about the subject of audit activity PRIVATE ENTERPRISE “MGI UKRAINE”. Identification code according to USREQU: 23956432, Location: 01133, Ukraine, Kyiv, 14A Yevhena Konovaltsia Str, office 733. PRIVATE ENTERPRISE “MGI UKRAINE” is included in the Register of auditors and auditing ‘entities under section 2 "Subjects of audit activity”. The information is published on theofficial website ofthe Audit Public Oversight Body of Ukraine (https//www.apob.org.ua/) in the “Register” section. cl Wore fa network oF independent au, ax, accounting and consulting firms, Ml Worldwide doesnot provide any services and ks member fis are not an international partnership. ach member fim fsa separate AP , entity and neither MG Worldwide nor any member fitm accepts responsibilty forthe activities, wark, opinions or mgiworldwide// Service of any ther member rm, Formore information vist we menor comaAssociation “German-Ukrai n Chamber of Commerce and Industry” Annex 10 the National Regulation (Standard) fof Accounting 25 “simplified Financlal Statements” (paragraph 4 of Section FINANCIAL STATEMENTS ‘of small entity CODES Date Enterprise: Association “German-Ukrainian Chamber of Commerce and industry” {year, month, day} oad | a | Territory: Kyiv by eorPou | 40800545 (Organisational and legal frm of business: Assocation bykaToTTs [6039100000 in ot ees aot coats tro eee ra ‘Average number of employees, people: 14 by kveo [98:1 6230, 5830 Unit of measurement: UAH thousand with one decimal place ‘Address, telephone: 24 Pushkinske St, 01024 Kyy, 380663775167 1. Balance sheet as at December 31, 2023 Form No. 1-m Classification code [___1801006 = te | Sera] Ate endo he code ae reporting p z z 3 a {I Non-current assets Intangible assets 1000 35.2 a7 inital value 1001 301.2 301.2 accumulated depreciation 1002 (266.0) (2835) Capital investments in progress 1005 E 2275 Property, plant and equipment: 1010 21614 1,602.3, initial value 1011 7,633.8 6,476.4 wear and tear 1012 472.6) 14.874.0) Long-term biological assets 1020 E i Long-term financial investments 1030 E = ‘Other non-current assets 1090 Fs : Total for section | 1095 2196.3 1887.6 I. Current assets Inventories 1100 76h 77 including finished products 1103 zi Current piologigal assets 1110 E = Rec¢ivables for gootls, works, and services: 1125 = : Receivables from settléments with the budget 1135 E E [= inclined Acérhetax = 1136 = = Forheh liivént WebiGables 1155 733 23.2 SCurréallfinanetaiHestments 1160 E = Cash an eA eAaivalents, 1165 16,402.7 16,9153 Prepaid expenses 0 1170 423.7 226.1 ‘Otheeurpent ages 1190 es : Total fos section l 1195 17,6162 17,439.2 ‘lll. Non-currenif assets held for sale and disposal groups 1200 80.0 = Balance < ACOLMALIA 1300 19,892.4 19,2868 > Tepay__ > IMETIBRO-VRPATHOBRR, Paiiuep Epix MEGMMCMOBO-TOPTOBEStbHA eAPnoy/inH TASIATA™ ‘4ogosas «= 5% enpnoyind > 4, 40800545 2 . Foy, . ano yo camo y ®Association “German-Ukrainian Chamber of Commerce and Industry” ‘At the beginning Registered (share) capital 1400 : - Retained earnings (uncovered loss) 1420 2,566.8 1,258.5, long-term liabilities ie - - Total for section IIL 1695 2,234.5 1,794.3 Net income from sales of products (goods, works, services) 2000 = Cost of sales (goods, works, services) 2050 = Other expenses: 2270 (436.9) (37.0) Total costs (2050 + 2180 + 2270) 2285 (30,607.0) (25,006.2) aR uefa” aaa Head (signature) Chief Accountant (signature) Perau Rainer Erikh (initials, surname) Inna Banha (initials, surname)ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) "ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” Name of the legal entity (eucci) identification code according to EDRPOU eee Legal address: 34, Yevhenia Chykalenko St, Kyiv, 01004 ‘Actual address 34, Yevhenia Chykalenko St, Kyiv, 01004 Date of state registration | Date of recording: 01.09,2016 Record number: 1074 102 0000 061893 Governing bodies. ‘General Meeting of the Chamber Members Executive body ‘Management Board and Chairman of the Management Board KVED code 94.11 Activities of organizations of industrialists and entrepreneurs (main); Classifier of economic activities 82.30 Organization of congresses and trade exhibitions; Classifier of economic activities 58.19 Other types of publishing activities; Classifier of economic activities 63.99 Provision of other information services, n.e.c.; Classifier of economic activities 69.10 Activities in the field of law; Classifier of economic activities 69.20 Activities in the field of accounting and auditing; consulting on taxation; KVED code 70.22 Consulting on commercial activities and management; KVED code 73.20 Market research and public opinion surveys. 2, Basis of presentation of the financial statements, Statement of compliance ‘The Association “German-Ukrainian Chamber of Commerce and Industry” (hereinafter referred to as the Association) ‘was included in the Register of Non-Profit Institutions and Organizations with the non-profit status 0039 by the decision of the State Fiscal Service of Ukraine issued by the State Tax Inspection in Shevchenkivskyi District of the Main Department of the State Fiscal Service in Kyiv dated 26.09.2016 No. 251/26-59-12-25. Types of activities The financial statements of the Association have been prepared in accordance with the National Accounting Regulation (standard) 25 “Simplified Financial Statements” (hereinafter referred to as NAR(S) 25) and other regulatory requirements for the organization of accounting and reporting in Ukraine. The Association prepares its financial statements in a condensed form in accordance with Appendix 1 of NAR(S) 25 “Simplified Financial Statements”. The financial statements of the Association are prepared as of December 31, 2023. The financial statements for the year ended December 31, 2023 were approved by the Chairman of the Board of the ‘Association on January 30, 2024. Going concern assumptions On February 24, 2022, the Russian military invasion of Ukraine took place, which continues to this day, which is a significant event whose consequences cannot be determined at the moment on the scale of Ukraine. However, the ‘Association continues to work, new positions and @ department (the Department for the Reconstruction of Ukraine} have been created, The Association has received a new project and is working on a larger scale, namely, attracting new members. At the end of 2023, it had 31 temporary members. [As of the end of 2023, the Association management team (partially), including the accounting and financial accounting department, returned to the territory of Ukraine. The Association is provided with all the necessary means for continuous operation and conduct of all statutory activities and economic and financial transactions, including timely payment of salaries to employees and payment of taxes provided for by the current legislation of Ukraine. To ensure the Chamber's financial liquidity, a budget subsidy from the Federal Ministry of Economy for Environmental Protection for 2024 is expected, as well as membership fees, which are also expected in January ~ February 2024. The Association has continuously carried out and is carrying out its statutory activities and economic and financial operations and fulfils its contractual legal obligations in full The Association's management monitors the current situation and takes measures to minimize any negative consequences in order to preserve jobs, continue paying salaries to employees, and carry out its statutory activities,ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) ‘Management has reasonable grounds to believe that the Association has sufficient resources to support its activities for the foreseeable future. The Association has no intention or need to liquidate or significantly reduce the scope of ts activities. The Association has not had any suspension or interruption of its activities, The Association does not conduct business with Russia and has no assets in the territory of the aggressor country. ‘The Association has not faced any cases of restriction of access to funds, seizure or expropriation of assets for the needs of the state. In making this judgment, management considered the financial position, current plans, performance of the Association and access to financial resources. As at 31 December 2023, the Association entered into an agreement to receive a budget subsidy from the Federal Ministry of Economy in the amount of EUR 930,000 and a new grant agreement with a donor organization (AWE Agency for Economic Affairs and Development) in the amount of EUR 71,500 to finance a project related to the provision of services, in particular in the field of holding tenders from international financial organizations through Ukrainian partner ministries and agencies, providing up-to-date information on events in Ukraine related to reconstruction and tenders, advising companies on. Despite the significant uncertainties related to the war in Ukraine, management continues to take measures to minimize ‘the impact on the Association and therefore believes that the use of the going concern basis of accounting is appropriate in preparing these financial statements, There is significant uncertainty regarding some of the circumstances described above that may cause a significant change in the Association’s ability to continue as a going concern. Functional currency and presentation currency of the financial statements’ data all The functional currency of the Association is the Ukrainian hryvnia, which is the national currency of Ukt financial information in these financial statements is rounded to the nearest thousand UAH with one decimal place. For the purpose of forming the company’s financial reporting indicators, the following materiality criteria shall be established: * For Balance Sheet items ~0.5% of the Balance Sheet total. + For the items of the Statement of Financial Performance ~ 0.5% of the amount of expenses. Reporting period ‘The reporting period includes 12 months: from January 1, 2023 to December 31, 2023, 3, Principles of accounting policy 3.1. Basics of evaluation of financial reporti The financial statements are prepared on the going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business. The preparation of the financial statements requires management to make estimates and assumptions. Due to the inherent uncertainty in making such estimates, actual results reported in future periods may differ from those estimates. The Association's accounting policies are based on the following principles: = enterprise autonomy, under which each enterprise is treated as a legal entity separate from its owners; therefore, the personal property and liabilities of the owners should not be reflected in the financial statements of the enterprise; ~ going concern basis, which involves the measurement of assets and liabilities of an entity on the assumption that it will continue in operation; = periodicity, which implies the division of an enterprise's activities into certain periods for the purpose of preparing financial statements; + historical (actual) cost, which determines the priority of asset valuation based on the costs of their production and acquisition; + accrual and matching of income and expenses, according to which, in order to determine the financial result of the reporting period, the income of the reporting period should be compared with the expenses incurred to obtain this. income, In this case, income and expenses are recognized in accounting and reporting when they occur, regardless of the time of receipt and payment of money; = full disclosure, which requires that financial statements contain all information about the actual and potential consequences of transactions and events that may affect decisions based on them; = consistency, which implies that the company applies the chosen accounting policy on a consistent basis (from yearASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) to year). Changes in accounting policies must be justified and disclosed in the financial statements; ~ prudence, according to which the valuation methods used in accounting should prevent the understatement of liabilities and expenses and overstatement of assets and income of the enterprise; substance over form, whereby transactions should be accounted for in accordance with their substance and not only based on their legal form; = a single monetary measure, which involves measuring and summarizing all transactions of an enterprise in its financial statements in a single monetary unit. For the purposes of accounting and financial reporting, assets and liabilities are recognized and recorded at the lower of cost and fair value: the cost of their acquisition or occurrence ~ at historical or cost: assets at the amount of cash, cash equivalents or other forms of compensation paid for them; * liabilities ~ at the amount of funds mobilized in exchange for such liabilities or the amount of funds or their equivalents to be paid to settle the liabilities in the ordinary course of business; © fair (market) value: assets ~ at the amount that would have to be paid to acquire (exchange) such assets; liabilities ~ at the amount that can be settled as a result of a transaction between knowledgeable, willing and independent parties; ‘subsidiaries — using the equity method, ‘A subsidiary is an entity controlled by another entity (known as a parent), Financial investments in subsidiaries at the balance sheet date are carried at cost using the equity method. Financial investments accounted for using the equity method are carried at the balance sheet date at cost, which is determined by taking into account changes in the total equity of the investee, other than those resulting from transactions between the investor and the investee, The carrying amount of financial investments is increased (decreased) by the amount representing the investor's share of net profit (loss) of the investee for the reporting period, with this amount included in equity income (loss). At the same time, the carrying amount of financial investments is reduced by the amount of recognized dividends from the Investee. Financial investments are accounted for using the equity method as of the last day of the month in which the investee meets the definition of a subsidiaty. The use of the equity method of accounting for financial investments ceases on the last day of the month in which the investee does not meet the criteria of an associate or subsidiary. ‘The criteria for recognizing and measuring specific types of assets and liabilities, income and expenses are described in the following notes, Cash and cash equivalents. Cash and cash equivalents are assets that are readily convertible to cash and are subject to an insignificant risk of changes in value. Cash and cash equivalents comprise cash on hand and balances on hand with banks in Ukraine, Property, plant and equipment. Property, plant and equipment are recognized at cost and carried in the Balance Sheet at cost less accumulated depreciation, The carrying amount of property, plant and equipment is revalued based on the results of an annual inventory if the residual value of an item differs from its fair value at the balance sheet date by ‘more than 50%. ‘The Association applies the straight-line method of depreciation using useful lives. The useful lives of the main types of property, plant and equipment are as follows: Types of objects ‘Useful ife (years) Non-capital structures 20 Buildings and structures 5 Machinery and equipment Vehicles 5 Tools, appliances, inventory furnture) 3 Other property, plant and equipment FT Property, plant and equipment are non-current tangible assets that are separate objects worth more than UAH 20,000ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) ‘with a useful life of more than one year. Low-value non-current assets include items with a value not exceeding UAH 20,000.00 (twenty thousand) and with an expected useful life of more than one year. When they are transferred to operation, depreciation is charged in the first month of use of 100% of their value. The residual values, useful lives and methods of depreciation are reviewed at each financial year-end. The effect of any changes from previous estimates is accounted for as a change in an accounting estimate. Impairment of usefulness ‘At the date of the annual balance sheet, the Association assesses whether there is any indication that an asset may be impaired and, if so, determines the asset's recoverable amount. The following indicators may indicate that an asset is impaired: a decrease in the market value of the asset during the reporting period by a significantly greater amount than expected; = obsolescence or physical damage to the asset; + significant adverse changes in the technological, market, economic or legal environment in which the company operates that occurred during the reporting period or are expected to occur in the near future; = excess of the book value of the company’s net assets over their market value; = significant changes in the way the asset is used during the reporting petiod or such expected changes in the next period that adversely affect the company’s operations; other evidence that the asset’s performance is or will be worse than expected. any indication exists that an asset is impaired, the Association determines the asset’s recoverable amount. Regardless of whether there is an indication of impairment, the organization determines the recoverable amount of goodwill, as well as intangible assets with indefinite useful lives and intangible assets not used as of the date of the annual balance sheet. Intangible assets, Intangible assets are recognized at cost, which consists of their acquisition price and other costs incurred to make them available for use, and are carried at cost less accumulated amortization and accumulated impairment losses. Intangible assets with definite useful lives are amortized on a straight-line basis. ‘The Association has established the following useful lives for intangible assets: Name of the group Usefulife (years) The rights to use programs fer computer equloment, to various databases, -. other software eae Other intangible assets In accordance with the egal documents Inventory and low-value, non-expendable items Inventories include assets held for consumption in the course of operating activities with a useful life of up to one year. The unit of accounting for inventories is their name or a homogeneous group (type). Purchased (received) or produced inventories are credited to the balance sheet of the enterprise/institution at cost Upon disposal, inventories are valued using the FIFO method, As of the reporting date, inventories are recognized in accounting and reporting at the lower of cost or net realizable value Depreciation on low-value, non-expendable items is charged at 100% upon their transfer for use, with their quantitative accounting at the place of use during the period of actual use. Accounts receivable ‘Accounts receivables are recorded in accounts 36 and 37 by subaccounts. Advances for goods, works and services are recorded for in account 3711. Prepaid expenses ‘Account 39 is used to recognize and record deferred expenses. Revaluation occurs at the end of the month. Account 39, is used to distribute prepayments over several periods (months). Recognition of exchange rate differences Transactions in foreign currencies are initially recognized in UAH by translating the foreign currency amount using theASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) exchange rate at the beginning of the day of the transaction date (the date when assets, liabilities, equity, income and expenses are recognized), ‘The amount of a foreign currency advance (prepayment) is translated into hryvnias using the exchange rate at the beginning of the day of the advance date. The amount of the advance received in foreign currency against payments ‘when included in the income of the reporting period is translated into hryvnia at the beginning of the day of the date of receipt of the advance. For determining exchange rate differences at the balance sheet date, the exchange rate at the end of the balance sheet date is used, and for determining exchange rate differences at the date of a business transaction, the exchange rate at the beginning of the transaction date is used. ‘The Association may reflect non-cash transactions in foreign currency in the reporting currency in the amount specified Inthe bank’s documents, taking into account the specifics of the bank's application of the exchange rate on the date of the transaction, if this does not contradict the requirements of tax and customs legislation regarding the application of the exchange rate. ‘Accounting for transactions on receipt of foreign currency funds and sale of foreign currency funds is recorded by correspondence Dr 312 ~Cr 48 ~ receipt of targeted financing at the official NBU exchange rate; Dr 942 - Cr 312 ~to recognize expenses from the negative difference between the NBU official exchange rate and the commercial sale on the date of sale of currency; Dr 312 ~ Cr 711 ~ recording income from the positive difference between the official NBU exchange rate and the commercial exchange rate on the date of sale of currency, Transactions related to the translation of monetary items denominated in foreign currency at the NBU exchange rate at the end of the reporting period are recorded by posting entries: Dr 945 ~ Cr 31 ~ recording of exchange rate losses at the end of the reporting period; Dr 31~Cr 714 ~ recording of exchange rate gains at the end of the reporting period, ‘Specifics of income and expense recognition ‘The Association is a non-profit organization whose activities are not aimed at making a profit. The Association receives Income in the form of: Membership fees and one-time entrance fees. = Financial resources received as passive income (interest, dividends, insurance compensation or royalties) State and municipal grants or subsidies, as well as grants from state trust funds, grants within the framework of technical, charitable, and in particular humanitarian assistance that may be provided on the basis of international legal agreements ratified by the Verkhovna Rada of Ukraine, primarily grants from the DIHK e.V. or other state institutions of the Federal Republic of Germany or Ukraine, as soon as all necessary prerequisites are created and such receipts do not violate the Chamber's tax status as a non-profit organization. = Other subsidies, Amounts of membership and entrance fees, subsidies, and passive income received to finance the main statutory activities are recognized as income during the periods in which the expenses were incurred and in the amount of such expenses, Received targeted financing and targeted receipts in accordance with clauses 16 and 17 of NAR(S) “Income”. are recognized as income during the periods in which expenses related to fulfilment of the terms of targeted financing were incurred in accordance with clause 17 of NAR(S) 15 “Income”. ‘Targeted funding is accounted for in account 48 in terms of subaccounts: 4841 membership fees; 4842~ grants; 4843 — project financing, Donated non-current assets and targeted financing of capital investments in accordance with NAR(S) 15 “Income” are recognized as income during the useful life of the respective investment objects (fixed assets, intangible assets, etc. in proportion to the accrued depreciation of these object. Recognition and accounting of expenses is carried out in accordance with the requirements of NAR(S} 16 “Expenses”. Expenses incurred by the Association to ensure the main statutory activities and implementation of projects inASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) accordance with international agreements with the German Government are recognized as expenses of a certain period simultaneously with the recognition of income and targeted funding at the expense of which they were made. Deferred income includes targeted financing of capital investments, which is recognized as income over the useful life of the respective investment objects (property, plant and equipment, intangible assets, etc.) in proportion to the amount of accrued depreciation of these objects in accordance with the requirements of NAR(S) 15 “Income”. Financial results are accounted for in account 44, and financial results are recorded by correspondence: Dr 71, 74 — Cr 79-derecognition of recognized income to financial results, including positive exchange rate differences, Dr 79 ~ Cr 92, 93, 94 ~ derecognition of expenses incurred to financial results, including negative exchange rate differences. Dr 79 - Cr 44 — determination of the financial result as a positive difference that determines the balance of targeted financing that remained unused at the end of the reporting period and will be used in subsequent reporting periods. Dr 44— Cr 79 — determination of the financial result as a negative difference. On January 1 of each year, the balance of retained earnings as of December 31 of the previous year is transferred to the balance of unused designated funding for further use, Reserves and provisions The Association establishes provisions for future expenses and payments for vacation and bonus payments to employees, The amount of provisions at the balance sheet date is equal to the amount of expected expenses related to vacation and bonuses. Avacation reserve is also created, which is determined monthly as the product of the actual salary accrued to employees and a percentage (coefficient). The balance of collateral is reviewed at each balance sheet date and, if necessary, adjusted (increased or decreased). If there is no likelihood of assets being disposed of to settle future liabilities, the amount of such collateral is subject to reversal (paragraph 17 of NAR(S) 11). The Association establishes provisions for other expenses when it has a present obligation as a result of past events, and itis probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the obligation can be made. Provisions are used to reimburse only those expenses for which they were established. The Association creates a provision for employee bonuses, namely 100% of the salary. Information about operating segments. A distinguishable part of an entity that engages in the production and/or sale of a particular type (or group) of products (goods, works, services) is considered to be an operating segment only if discrete financial information is available that allows management to make decisions about resources to be allocated. ‘As at 31.12.2023, there were no reportable segments, Materiality. An omission or misstatement is material if, individually or in the aggregate, it could influence the economic decisions that users make on the basis of the financial statements. Materiality depends on the size or nature of the omission or misstatement, which is evaluated in the circumstances. It may be the size or nature of an item or a combination of items that is determinative.ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) 4, Notes to the financial statements 4.1, Property, plant and equipment and intangible assets Table 4.1 (UAH thousand) 2023. is y lelliel 3 2a. te a) z@ 25 fr lee] ai| = tweotteance | SEE] FE #2 | £| ga i 5 & Sel 8 = SerncamountaxctTenery® | goa | acaa| niga | asea| 112| a7a| 1000] a7on7 rial eae oe zai | —apisa | —ag%0a | saxo | 58 | 095 | moa | e002 Deprecition etary aa | (Waeay| “aez7)| seas) | saa) Tes) Gna) asa) | Woes) Revenue or 291 of 788 of of of sel asa take Disposals or3001 of 0a) of oe} 8} of 3} a} Bepesitionandamertzatonter 731 aon] wean] cra] ea] on] ma] moma) The Book ake ww Dear rial (ae Tats | ans [agnor | seco | a] SS | HE | ease Denreiation tof esember3 tesa | assza)| caasa| ans] a7a| cma] asa] wom9 Disposals or 2022 =] 63) [ts Depreciation nd amortiationfor | (473.9) (2292)| a7sa)| asm] 2] cea] esi] 147 The Book wake ww Deca tial eae] qa | amas [agnor] ato | ee | ess | wae | 7a Deorecation asf December sis rea) | cazasa)| aza.y| 00a) aror| cons | (298)| (7286 Dipole or2003 aia | — 148 Hd Depreilnan aRaTOn Tr Dene ass | aes asoe] azo] -| 7m] stoa The book vale a a December wes =| ssst90 =| asa | 100] ozrao | ane] aearas eo eee ate | 1,865.60 | 2,220.08 | 345.20 44.20] 308.97 28345| 5,157.5 The property, plant and equipment and intangible assets listed in Table 4.1 are owned by the Association, are not pledged, and are not temporarily out of use due to conservation or reconstruction or withdrawal from operation for sale, The Association is not limited in the ownership, use and disposal of its own fixed and intangible assets. During 2023, the Association did not change the depreciation method and did not change the useful life. The residual values and useful lives are reviewed periodically. ‘As at 31.12.2023, capital investments in progress are accounted for, namely “Starlink Internet Satellite Disk Kit" in the amount of 5 units for a total cost of UAH 227 thousand. ‘As at the balance sheet date of December 31, 2022, the Association performed an impairment test of property, plant and equipment and capital investments, as a result of which management recognized that the value in use of property, plant and equipment and capital investments exceeded their carrying amounts. Accordingly, no impairment losses were recognized for the year ended December 31, 2023.ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) ‘As at 31.12.2023, the amount of concluded agreements for the purchase of property, plant and equipment in the future is UAH 39 thousand, As at 31.12.2023, the cost of property, plant and equipment in operation and fully depreciated amounted to UAH 3,435 thousand, Property, plant, and equipment in the amount of UAH 391.8 thousand were acquired through targeted financing in 2023, Disposals of property, plant and equipment in the reporting period amounted to UAH 1,542.7 thousand, including the ‘write-off of the residual value of property, plant and equipment in the amount of UAH 436.9 thousand, 4.2. Long-term financial investments accounted for using the equity method Investments accounted for under the equity method include financial investments in a subsidiary of DEinternational LLC, a resident of Ukraine, 34, Yevhenia Chykalenko St., 01024. Kyiv, Ukraine, with a share of 100% as at 31.12.2023. The investment in the subsidiary is accounted for using the equity method, which as of 31.12.2023 amounted to UAH (0.0 thousand. The calculation was made on the basis of the subsidiary's financial statements as at 31.12.2023, a ‘As of 31.12.2023, the Association assessed the value of inventories for compliance with the requirements of National ‘Accounting Regulation (Standard) 9 “Inventories”. The carrying value of inventories does not exceed their net realizable Inventories value. Table 4.2 (UAH thousand) 2023 2022 Materials 5 Fuel 34 Tz Spare parts 653 a3 (Other inventories 7] 765 4.8, Current accounts receivable Table 4.3 (UAH thousand) Tine Tile 2023 2022 1 | Receivables for goods, works and services = 2 | Receivables rom settlements with the budget '3__| Other current receivables, including Bai 733 advances for goods, works, services 2212. 713: from acerued income 09) 00 other receivables 20 20 Total: 223.2 713.3 ‘Accounts receivable for goods (works, services) are current debts from operating activities with a term of less than 12 calendar months. 4S, Prepaid expenses Table 4.4 (UAH thousand) Tine Tile 2023 2022 7 2 2 4 a _| Prepaid expenses 2261 waz “Total deferred expenses 226.4 423.7 ‘Account 39 is used to recognize and record deferred expenses. Revaluation occurs at the end of the month. 46, Cash and cash equivalents Table 4.5 (UAH thousand) ne Tile 2023 2022 7 2 z 4 a [ Cash en hand :ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) 4.7. Non-current assets held for sale, institutions of Ukraine. sal groups. Tine Tile 2023 2022 72__ | Settlement accounts In Ulrainian Banks 2a54d 35a Tn Ukrainian hryvnia 2,454.4 325.1 In foreign currency 09) 0.0 S| current accounts in German banks Taasos: 160775 in foreign currency 14,4608, 16,0776 4_| Short-term deposits ne : In Ukrainian hryvnia : "Total cash and cash equivalents 169152 164027, ‘Assets classified by the Association as cash and cash equivalents have no restrictions on their use and are kept in banking Table 4.6 (UAH thousand) ne Title of the item 2025 2022 1 _| Non-current assets held forsale, disposal groups o 300) Total: ° 80.0 ‘As at 31.12.2023, there were no non-current assets held for sale. 48, Owner's equity Table 4.7 (UAH thousand) Tine Title of the Rem 2025 2022 1 _| Positive exchange rate differences 1826 30285 2 _[ Negative exchange rate differences 586.1 4625 Total: 1258.5, 2556.8 Financial result is defined as the difference between positive and negative exchange rate differences of the Association. On January 1 of each year, the balance of retained earnings as of December 31 of the previous year i balance of unused designated funding for further use, 48, Collateral and targeted financing is transferred to the Table 4.8 (UAH thousand) Tine Title of the fem 2023 2022 1 z 2 4 1__| Project financing 12857 FRECHE 2 _| Provision for the following vacation payroll expenses for employees 31267 7528 '3 _| Provision of the folowing expenses or the payment of Bonuses to employees 4,037.3, 0.00 4 _| Provision of other expenses and payments (logistics services) 5065) 0.00 S| Subsicies 7022.0 T2194 6_| Membership fees 14558, 3795 Totals 76,2340 75091.2 4,10, Deferred income Table 4.9 (UAH thousand) Tine Title of the Rem 2023 2022 rl 2 3 4 1 | investments in property, plant and equipment 16023 2s, 2 [investments in intangible assets a7 35.2 '3 [Investments in low-value non-current tangible assets 0.00) 0.00 Total 7620.1 2963ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) 4.11. Other operating income, other income Table 4.10 (UAH thousand) Tine Tite ofthe Rem 208 2022 1 z z < 1 | Other operating income 310286 275359 Reveriues from statutory activities (membership ees) 5552.3 4,934.4 Subsidies and grants 20,3096 75,4605 Project financing 2.8467 3,288.0 (Other financing 136 0.00) Exchange rate differences 19847 30293 Recognition of income from special-purpose financing on an amortization 625.68 ‘147 basis 2 _| Other income 368 370) Recognition of income from write-off of property, plant and equipment 436.9 37.0 Total 3865.5 Wsn9 4.12, Other operating expenses and other expenses Table 4.11 (UAH thousand) ine Tite ofthe Rem 2028 2022 1 z 2 < 1. | Administrative expenses, inluding 30,1701 249682 1 _| Salaries and relates accruals. 8420.1, 9,182.0 1.2 | Other personnel costs (vacation allowance) 5525 4042 13 Utilties and other operating services 2697 2202 1.4 | Taxes (unified social tax) 1831.5 78434 ‘LS _| Expenses for maintenance of property plant and equipment 00 65 1.6 | Fees (design, information services, legal services) 35733 a729.4 ‘17 _| Rental of premises, marketing services 32725 ais [8 __| Expenses for maintenance of premises and office supplies 75 1182 1.9 | Postal services| 312 aa 1.10 _| Consumables and program maintenance 14026 7430.1 1.11_| Printed publications 35 363, 2.12 | Costs of printing materials 2597 a2. 2.13 | Expenses for business trips 7415.0 ea8.4 1.14 | Fleet maintenance costs 3480 2353 2.15 | Expenses for events 558.4 7182.2 1.16 | Representation expenses 87, S78 1.17__| Bank commission ToL. 3230 1.18 | Depreciation and amortization 625.7 147 2.19 | Exchange rate differences 60.0 462.6 1.20 | Other administrative expenses 0.00) O 2, | Other expenses 436.9 369) 2.1 _| Other expenses: 436.3 370) 2.2 | Including expenses from equity participation 0.00, 00 Tota 730/607.0 75,0065 4,13, Transactions with related parties In accordance with the National Accounting Regulation (Standard) 23 “Related Party Disclosures", related parties of the Association are considered: = enterprises controlled or significantly influenced by other persons; enterprises and individuals who directly or indirectly exercise control over an enterprise or significantly influence its activities, as well as close family members of such an individual. The list of related parties is determined by the organization, taking into account the substance of the relationship, not just the legal form (the prevalence of essence over form).ASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) ‘As of 31.12.2023, the Association’s related parties include: ~ DINK eX, is an Association of German Chambers of Commerce and Industry, as defined by the Statute of the Association “German-Ukrainian Chamber of Commerce and Industry", namely Article 1, Section 4. The Chamber shall be recognized by the Association of German Chambers of Commerce and Industry (hereinafter referred to as “DIHK e.V.”) as a German Chamber of Commerce. The Chamber shall operate on the basis of trustful cooperation with the DIHK e.V. and will apply for permanent membership in the DIHK e.V. as soon as all the prerequisites for this are created. Article 10. Clause 7. The nomination of the Chairman is made by the Association of German Chambers of Commerce and Industry (DIHK e.V.} and elected by the General Meeting of Members for the term of his contract with DIHK e.V. for the provision of staff, for a maximum period of five years. The re-election of the same candidate as the Chairman of the Management Board at the suggestion of the DIHK e.V. is permissible. Premature dismissal of the Chairman of the Management Board shall take place at the General Meeting of Members with the approval of the State Insurance Company of Ukraine, — DEinternational LLC is a subsidiary acquired on the basis of the Share Purchase Agreement No. 14/12/2018 on the terms of purchase of 100% of the Company's corporate rights; 46.1, key management personnel of the Association and DEinternational LIC (Chairman of the Board and Attorney); 46.2. permanent members of the Association in the number of 159 enterprises and organizations. in 2023 and 2022, the Association had the following transactions with its related parties: (UAK thousand) Tie Spernione mas 08 Tocaion_of German Chane of isominneiicom subsidy vases | 263757 Toulincome: | a7 51598 | 253757 Deinteratina uc | Aeeement or Provo of sees, contact saenas | gaeia Touiepenss| Semis | aime Tie Operaons oa 38 neratonal Ce | Recounts pyale under a sublease agreement a7, a3 Tora acount pay o7[ 82 In 2023, remuneration to key management personnel (2 persons) amounted to UAH 823 thousand; in 2022 (1 person} UAH 1,046 thousand, 4.14, Risk management policy ‘The main categories of the Association’s financial instruments are as follows: cash and cash equivalents, financial assets and financial liabilities, special-purpose financing, provision for vacation, bonuses and other expenses, current accounts payable for goods, works, services, current liabilities for payroll, etc The main risks arising from the use of the Association’s financial instruments are currency risk, liquidity risk and concentration tisk. Currency risk Currency risk is the risk that the Association’s financial results will be adversely affected by changes in exchange rates related to the Association's operations. The Association is approximately 99% funded by foreign donors. Funding is received and stored in foreign currency, The Association conducts significant transactions denominated in foreign currency, and therefore the currency risk may be significant, The Association does not use any derivative financial Instruments to manage its foreign currency risk. Liquidity tisk Liquidity risk isthe risk that the Association will not be able to meet its financial obligations to third parties arising from its operations. The organization closely monitors and manages its liquidity position. The Association carries out detailed budgeting and cash forecasting, which helps to ensure that it has sufficient cash to meet payment obligations. ‘As at 31.12.2023, all financial liabilities of the Association based on contractual payments were payable within one toASSOCIATION “GERMAN-UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY” NOTES TO THE FINANCIAL STATEMENTS OF SMALL ENTITY for the year ended December 31, 2023 (in thousands of Ukrainian hryvnias) ‘three months. Concentration risk During the year ended December 31, 2023, funding provided by the DIHK e.V. accounted for 73% of all contributions received by the Association in the form of cash transfers. To manage this concentration risk, the Association is taking steps to obtain new additional funding from other organizations. 4,15, Events after the balance sheet date ‘Apost-balance sheet event isan event that occurs between the balance sheet date and the date the financial statements are authorized for issue by management that has affected, or is likely to affect, the financial position, results of operations, or cash flows of the entity. No events occurred after the date of the financial statements that would have a significant impact on the financial position of the Association and require their measurement or disclosure in the financial statements, Head Perau Rainer Erikh (signature) (initials, surname) Chief Accountant, Inna Banha (signature) (initials, surname)MGI Ukraine 01133, Kyiv, Ukraine 44A Yevhena Konovaltsia St., off. 733 Tel.: +38 044 299 98 90 office@pspaudit.ua | www.pspaudit.ua