ABOUT THE PECULIARITIES OF RECOGNITION IN ACCOUNTING AND REFLECTION IN THE REPORTS OF FINANCIAL INSTRUMENTS
The article is related to the issues of recognition and valuation of financial instruments accounting category in Russian accounting system and IFRS. The author considers the definition of financial instruments, their structure and classification, arguments are discussed explaining the reasons why this accounting category is so thoroughly covered by numerous international accounting regulatory documents and standards. The author analyses the key differences and similarities of accounting treatments of financial instruments in Russian and international accounting society and proposes the amendments and additions to existing national Accounting Standards to move them closer to world-wide practices. The author justifies and proves the necessity and relevance of this convergence processes. The article covers the problems of initial recognition of financial instruments in accounting, including the choice of valuation methods according to the financial instrument classification. The issues on fair value measurement are raised, approaches of its usage in Russia and under IFRS are compared and discussed. Subsequent valuation of financial instruments is considered, including the issue of fair value change influence on the company’s financial statements (financial results or capital accounts). Financial instruments devaluation problem is considered, reserves creation process is described, including accounting treatment of devaluation loss and its impact on the company’s accounts.