ACCOUNTING AND AUDITING ASPECTS OF FINANCIAL INSTRUMENTS FOR PRICE RISK INSURANCE

Abstract

Abstract. The article examines the accounting and auditing aspects of the use of financial instruments for hedging price risks in the context of increasing volatility in commodity, currency and financial markets. The relevance of the topic is due to the need to increase the transparency of financial reporting and ensure reliable reflection of hedging transactions in the accounting system of enterprises in various industries. The purpose of the study is to generalize theoretical provisions and approaches to the recognition, assessment and disclosure of information about financial instruments used to minimize price risks, as well as to identify key areas for improving audit procedures in this area. The paper analyzes the economic essence of hedging instruments, outlines the features of their classification and evaluation in accordance with the requirements of international and national financial reporting standards. Approaches to documenting price risk hedging transactions, determining fair value and reflecting the results of revaluation in financial reporting are substantiated. The specifics of the audit of transactions with financial instruments are disclosed, in particular, assessing the risk of material misstatement, checking fair value measurement methods, testing internal control and analyzing the compliance of accounting policies with the requirements of standards. Typical errors in the reflection of price risk insurance instruments are identified and directions for improving the quality of audit procedures are proposed, taking into account the digitalization of accounting systems and the use of analytical tools. Thus, proper accounting organization and independent audit of price risk insurance financial instruments contribute to increasing the reliability of financial reporting, reducing information asymmetry and strengthening the financial stability of enterprises in an unstable economic environment.