Classification of financial instruments: accounting and control aspect

Olha Lukova

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2021, vol. 28, issue 10

Abstract: The global derivatives market is expanding rapidly. An important reason for the emergence and turnover of a significant number of financial instruments is the process of money saving. This process is the main one to influence the entire course of economic reproduction. An example of the implementation of the process of accumulation, movement, distribution and redistribution of monetary capital within and through the financial market is a variety of financial instruments. The purpose of the study – supplement the classification of financial instruments for accounting and its expert verification. In the course of the research the following set of methods was used: dialectical – for cognition of the substantive features and essence of financial instruments; analysis and synthesis – for studying the completeness of the classification of their types; induction and deduction – for deepening and supplementing the classification features of financial instruments; monographic – for systematising knowledge about the types of financial instruments, their identification as objects of accounting and reporting; systematisation - when filling the identified gaps in the grouping of financial instruments and developing a comprehensive classification of them for accounting and its expert verification. The study of individual types of financial instruments and existing methods of their grouping identified a significant number of options for classifying the latter. It is established that not all existing classification features should be used in accounting, as the current arsenal of accounts and reporting forms does not allow recording such detail. Therewith, some of the most common ways of grouping financial instruments leave some of their types outside the classification groups. To eliminate the identified shortcomings, it is proposed to supplement the classification of financial instruments with new features “by the profile of the enterprise” and “by the regularity of transactions with financial instruments”. The classification of financial instruments has been improved, which differs from the known ones by the allocation of new classification features “by the profile of the enterprise” and “by the regularity of transactions with financial instruments”, based on an in-depth analysis of the specific features of disclosure of information about them in the reporting and allows identifying potentially risky accounting transactions that require expert verification It consists in identifying incomplete classification groups of financial instruments, their supplementation, and the development of new ones, which together are designed to establish a generalised accounting and reporting vision of the essence of financial assets, financial liabilities and equity instruments for their full coverage by the provisions of the accounting policies of enterprises

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2021
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