Methodical Support for Accounting of Operations with Hedging Instruments and Items

Oksana Oliynyk () and Valentyna Ksendzuk ()
Additional contact information
Oksana Oliynyk: Zhytomyr State Technological University, Zhytomyr, Ukraine
Valentyna Ksendzuk: Zhytomyr State Technological University, Zhytomyr, Ukraine

Oblik i finansi, 2015, issue 4, 29-37

Abstract: The article is devoted to formation of methodical support for accounting of hedging operations. It is proposed to identify the financial instruments by the purchase value in the off-balance accounting, and the expenses connected with the operation – to represent on the account of deferred charges till the moment the expenses and incomes from the operations with hedging instruments are identified. The features of purchase and use of the hedging instruments are discussed concerning their types, and their effect is analyzed on assessment and representation on the bookkeeping accounts. It is shown that it is reasonable to reassess the hedging items on the separate account 'Reassessment of hedging items' opened within the main account for accounting of the hedging items. If the change of the hedging item fair value is considered to be within financial incomes and expenses in view of the division into efficient and inefficient parts of financial instrument value, then the principles of accounting and financial reporting are complied with, and the true information is given to the groups of the users concerned. The methodical support is drawn up for accounting representation of the hedging operations on the level required for management decision-taking in more efficient planning, analysis, control of company operations.

Keywords: hedging; financial instruments; hedging items; accounting; risk management (search for similar items in EconPapers)
JEL-codes: G22 M41 (search for similar items in EconPapers)
Date: 2015
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.afj.org.ua/pdf/322-metodichne-zabezpech ... ami-hedzhuvannya.pdf (application/pdf)
http://www.afj.org.ua/en/article/322/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2015:i:4:p:29-37

Access Statistics for this article

Oblik i finansi is currently edited by Valeriy Zhuk

More articles in Oblik i finansi from Institute of Accounting and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Serhiy Ostapchuk ().