Debts on liabilities, in respect of which the statute of limitations has expired, following paragraph 14.1.11. Tax Code of Ukraine, is one of the signs of bad debts.

In accordance with paragraph 15 P (S) BU 15 "Income" and paragraph 5 P (S) BU 11 "Liabilities" the amount of the obligation, that is not repayable, is recognized as income.

In other words, bad debts, that are subject to write-off in accounting and attribution to income, will be debts that will not be repaid due to the expiration of the statute of limitations.

The Civil Code of Ukraine sets both a general statute of limitations of three years (Article 257) and a particular statute of limitations (Article 258), shortened or longer than the general one.

The particular statute of limitations is applicable only in cases expressly provided by law.

According to the provisions of paragraph 4 of the second part of Article 258 and Article 681 of the Civil Code of Ukraine to the requirements in connection with the defects of the goods sold is a statute of limitations of one year.

And part eight of Article 269 of the Civil Code of Ukraine provides for six months for filing lawsuits arising from the supply of goods of improper quality.

However, this is not the same term. Still, two different terms, as the first of them (annual) applies to contracts of sale (Article 655 of the Civil Code of Ukraine), and the second (six months) - supply contracts (Article 265 of the Civil Code of Ukraine, Article 712 Central Committee of Ukraine).

The difference between them is also that the law does not provide for the possibility of protecting the violated right in case of omission, including for valid reasons, the six months for filing a lawsuit.

Therefore, the legal nature of the contract concluded by the parties is essential for its compliance with the characteristics of the contract of sale or supply.

As for suppliers (sellers) ' claims to recipients (buyers) for recovery of the value of the goods, which the latter refused to pay concerning its improper quality, such disputes apply the general statute of limitations. These requirements are related to payments for the goods.

Concerning the requirements for collecting penalties (fines, penalties), the statute of limitations is one year.

And when recovering the number of damages caused in connection with the payment of penalties (fines, penalties), the general statute of limitations is applicable.

According to the rules of the first part of Article 259 of the Civil Code of Ukraine, the parties are allowed by agreement to increase both the general and special statutes of limitations established by law.

The condition on increasing the statute of limitations may be included in the contract of sale, supply, provision of services, etc. concluded by the parties. In a separate document or letters, telegrams, telephonograms, and other documents exchanged between the parties must indicate agreement between parties to increase the statute of limitations.

Part two of the Central Committee of Ukraine's mentioned article prohibits the reduction of the statute of limitations established by law.

The above also applies to the terms of the contract related to the change of the statute of limitations, which due to the requirements of part two of Article 260 of the Civil Code of Ukraine is not allowed (for example, the statute of limitations is not from the date of delay, but from the date determined by a countdown of a particular period from the date of filing a lawsuit in the commercial court).

The condition of the agreement concluded by the parties that the latter is valid until the full fulfillment of obligations is not a condition for increasing the statute of limitations, as the last by its legal nature is a certain period of time (part one of Article 251, Article 256 of the Civil Code) specific day and also pops up at a certain point in time.

Summing up, we can say that the objective statute of limitations will form a reliable income for the Company