What to do if your property or documents has been destroyed during the war in Ukraine?

Many enterprises have lost property and documents as a result of active warfare. Consider what to do in such a situation.

Conducting an inventory

If the property of the company has suffered as a result of military action, it is necessary to record the damages caused. For this purpose, an inventory is carried out. With the help of an inventory, you can document and confirm the existing assets and their condition. It is also possible to record destroyed assets and documents.
If you have access to the property and can do an inventory, you need to create an Order to conduct an inventory within the destroyed/damaged facilities. Next, you need to assemble a committee and take an inventory.
If there is no access to the damaged property, you need to conduct an inventory after the end of active hostilities, when access to the property will be safe. So, you don't need to conduct an inventory under shelling.
You should do an inventory when access to company property becomes unobstructed and safe. The inventory must be taken on the first day of the month following the month in which access to the property became secure. The results of the inventory refer to the current accounting period.

How to create a commission, take an inventory and to document everything?

As we wrote above, before starting an inventory, the head of the enterprise must create an Order to conduct an inventory within the destroyed/damaged objects. The same order creates an inventory commission. The commission must include:

• chief accountant,
• materially liable person,
• a specialist in the field responsible for the equipment to be decommissioned,
• other members of the commission.

You have to prepare the results of the inventory with the following documents:

Based on the inventory data, the head of the company must make a decision such as:

• to write off property that is not subject to further use,
• to carry out work on the liquidation of destroyed facilities,
• on valuation and acceptance of precious metals, scrap, components and materials that will remain after the liquidation of the property.

The results of the inventory refer to the reporting period in which the inventory was completed.

What to do if primary documents and accounting documents are destroyed?

If with the assets of the company destroyed primary documents and accounting registers, it is necessary to act in accordance with the recommendations of the Ministry of Finance (letter № 31-11410-07-10/18732 from 29.06.2016). In other words, to write off destroyed fixed assets, IA, Low-value Non-Current Tangible Assets, inventories, it is necessary to use the indicators of the Balance (Statement of financial status) for the previous reporting year.
If as a result of military operations, primary documents were lost, it is necessary to submit a notification to the tax authority at the place of registration after the end of martial law. The notification is prepared in any form and notes in it:

• the circumstances under which the documents were lost,
• for what tax period were the documents that are destroyed,
• a generalized list of the lost documents.

A notification can be submitted in paper form or electronically using the payer's electronic office.
Submission of the notice relieves the taxpayer from restoring such documents and imposes a moratorium on inspections.

Who will compensate for damage?

By now, the methodology of damage compensation is only being formed. Therefore, we recommend fixing the destruction and property damage as much as possible. If possible, you should involve independent experts for photo and video fixation of damages.