Ukrzaliznytsia is unprofitable under IFRS – acting CEO

16:37, 23.01.2015 1 min read

State Railways Administration of Ukraine Ukrzaliznytsia is unprofitable according to the financial indicators of international financial reporting standards (IFRS).

This was reported by Ukrzaliznytsia acting CEO Maksym Blank in a press conference at Interfax-Ukraine.

"Profit, calculated under Ukrainian accounting standards, is primarily targeted at government fiscal objectives. We show it to pay taxes, thus being the donor of the budget," he said, while adding that under IFRS, Ukrzaliznytsia operations are unprofitable.

Blank also said that the valuation of the railways' fixed assets have been underestimated in the range of 10 to 15 times for many years.

According to the press release, Ukrzaliznytsia's revenue in 2014 was UAH 50.1 billion, expenses - UAH 50.6 billion, UAH 40.5 billion was used for transportation, and the loss from passenger traffic, as previously reported, was about UAH 8 billion.