Theoretical Aspects of Hedge Accounting in Non-Financial Institutions: Problematic Field and Potential Effects
The paper contains the results of a study of problematic aspects and potential effects associated with the use of hedge accounting by non- financial institutions. The relevance of the study is because hedge accounting allows to ensure that income and expenses for the object and hedging instrument ma...
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| Format: | Article |
| Language: | Russian |
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Government of Russian Federation, Financial University
2022-11-01
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| Series: | Учёт. Анализ. Аудит |
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| Online Access: | https://accounting.fa.ru/jour/article/view/483 |
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| _version_ | 1849395207005536256 |
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| author | P. I. Pan’kov |
| author_facet | P. I. Pan’kov |
| author_sort | P. I. Pan’kov |
| collection | DOAJ |
| description | The paper contains the results of a study of problematic aspects and potential effects associated with the use of hedge accounting by non- financial institutions. The relevance of the study is because hedge accounting allows to ensure that income and expenses for the object and hedging instrument match but its use is the choice of the organization. Therefore, the works’s aim is to conduct a comprehensive study of the effects and problems associated with the use of hedge accounting and develop recommendations for assessing the need for usage in non-financial organizations. The author identified the following tasks for this goal achievement: studying the practice of applying hedge accounting by Russian companies; analysis of potential effects from the use of this toolkit; consideration of problematic aspects related to the application of hedge accounting; method development for determining the need for its use in non-fi institutions. The theoretical and methodological basis of the study are the provisions of IFRS and US GAAP in terms of accounting for derivatives and hedging, fair value assessment and disclosure, literature on their practical application, as well as reporting by Russian companies compiled in conformity with IFRS. In the work’s course, the author revealed that only half of the hedger companies from the considered sample apply hedge accounting. For understanding motives of organizations to use this toolkit or abandon it, the author identified the potential positive effects associated with it and problematic aspects. Also, they proposed a methodology for determining the need for its use, which would be useful for consulting companies when they provide services in risk hedging. |
| format | Article |
| id | doaj-art-0e7d5f97a6e945bcae3f0206e029247e |
| institution | Kabale University |
| issn | 2408-9303 2619-130X |
| language | Russian |
| publishDate | 2022-11-01 |
| publisher | Government of Russian Federation, Financial University |
| record_format | Article |
| series | Учёт. Анализ. Аудит |
| spelling | doaj-art-0e7d5f97a6e945bcae3f0206e029247e2025-08-20T03:39:44ZrusGovernment of Russian Federation, Financial UniversityУчёт. Анализ. Аудит2408-93032619-130X2022-11-0195223310.26794/2408-9303-2022-9-5-22-33427Theoretical Aspects of Hedge Accounting in Non-Financial Institutions: Problematic Field and Potential EffectsP. I. Pan’kov0Euphrosyne Polotskaya State University of PolotskThe paper contains the results of a study of problematic aspects and potential effects associated with the use of hedge accounting by non- financial institutions. The relevance of the study is because hedge accounting allows to ensure that income and expenses for the object and hedging instrument match but its use is the choice of the organization. Therefore, the works’s aim is to conduct a comprehensive study of the effects and problems associated with the use of hedge accounting and develop recommendations for assessing the need for usage in non-financial organizations. The author identified the following tasks for this goal achievement: studying the practice of applying hedge accounting by Russian companies; analysis of potential effects from the use of this toolkit; consideration of problematic aspects related to the application of hedge accounting; method development for determining the need for its use in non-fi institutions. The theoretical and methodological basis of the study are the provisions of IFRS and US GAAP in terms of accounting for derivatives and hedging, fair value assessment and disclosure, literature on their practical application, as well as reporting by Russian companies compiled in conformity with IFRS. In the work’s course, the author revealed that only half of the hedger companies from the considered sample apply hedge accounting. For understanding motives of organizations to use this toolkit or abandon it, the author identified the potential positive effects associated with it and problematic aspects. Also, they proposed a methodology for determining the need for its use, which would be useful for consulting companies when they provide services in risk hedging.https://accounting.fa.ru/jour/article/view/483hedge accountingderivativeshedging instrumenthedged itemifrsus gaap |
| spellingShingle | P. I. Pan’kov Theoretical Aspects of Hedge Accounting in Non-Financial Institutions: Problematic Field and Potential Effects Учёт. Анализ. Аудит hedge accounting derivatives hedging instrument hedged item ifrs us gaap |
| title | Theoretical Aspects of Hedge Accounting in Non-Financial Institutions: Problematic Field and Potential Effects |
| title_full | Theoretical Aspects of Hedge Accounting in Non-Financial Institutions: Problematic Field and Potential Effects |
| title_fullStr | Theoretical Aspects of Hedge Accounting in Non-Financial Institutions: Problematic Field and Potential Effects |
| title_full_unstemmed | Theoretical Aspects of Hedge Accounting in Non-Financial Institutions: Problematic Field and Potential Effects |
| title_short | Theoretical Aspects of Hedge Accounting in Non-Financial Institutions: Problematic Field and Potential Effects |
| title_sort | theoretical aspects of hedge accounting in non financial institutions problematic field and potential effects |
| topic | hedge accounting derivatives hedging instrument hedged item ifrs us gaap |
| url | https://accounting.fa.ru/jour/article/view/483 |
| work_keys_str_mv | AT pipankov theoreticalaspectsofhedgeaccountinginnonfinancialinstitutionsproblematicfieldandpotentialeffects |