FINANCIAL RISK INSURANCE: ACCOUNTING AND DISCLOSURE OF
INFORMATION ON DERIVATIVE FINANCIAL INSTRUMENTS UNDER IFRS 9

Nataliia SKRYPNYK

Chernivtsi Applied College of Technologies and Design, Chernivtsi

https://orcid.org/0000-0003-2180-5863

Mykola SKRYPNYK

Chernivtsi Institute of Trade and Economics of SUTE, Chernivtsi

https://orcid.org/0000-0003-3597-6188

DOI: http://doi.org/10.34025/2310-8185-2025-4.100.05

Keywords: financial risk insurance, derivative financial instruments, derivatives, IFRS 9, accounting for financial instruments, hedging.

Summary

Relevance. Problem statement. In the context of globalization of financial markets and increasing volatility of economic processes, issues of effective financial risk management are becoming particularly relevant. The implementation of IFRS 9 «Financial Instruments» has fundamentally changed approaches to accounting and disclosure of information about derivative financial instruments used for risk insurance. The relevance of the study is determined by the need to improve the methodology for accounting for derivatives and disclosure of information about them in the financial statements of Ukrainian enterprises in the context of adaptation to international standards.

The aim of the study is a comprehensive analysis of theoretical foundations and practical aspects of financial risk insurance through the prism of IFRS 9 requirements for accounting and disclosure of information on derivative financial instruments, as well as the development of recommendations for improving accounting practices.

Methodology. The study employed general scientific and special methods: systems analysis – to study the essence of financial risks and mechanisms of their insurance; comparative analysis – to examine various scientific approaches to the classification of derivatives; generalization method – to formulate conclusions regarding accounting approaches under IFRS 9; graphical method – to visualize the classification and accounting of derivative instruments; tabular method – to systematize information about types of risks and instruments for their insurance.

Results. The article analyzes the evolution of approaches to financial risk insurance and systematizes the views of domestic and foreign scholars on the issues of derivatives accounting. The key provisions of IFRS 9 regarding classification, initial and subsequent recognition of derivative financial instruments have been studied. A scheme for accounting of derivative instruments according to three measurement categories has been developed. Recommendations have been proposed to expand disclosure of information about hedging of financial risks in notes to financial statements, taking into account the requirements of IFRS 7. Critical aspects of implementing the expected credit loss model for derivative instruments have been identified.

Practical significance. The developed recommendations can be used by enterprises in forming accounting policies regarding derivative financial instruments, as well as by auditors when verifying the reliability of disclosure of information about financial risks and instruments for their insurance.

Prospects for further research. Further scientific research should be directed to the development of industry-specific methods for accounting of derivatives, improvement of reporting forms on risk hedging, and study of international experience in applying IFRS 9 in the practice of financial risk insurance.

Biographies of authors:

Nataliia SKRYPNYK,

Chernivtsi Applied College of Technologies and Design

Candidate of Economic Sciences, Associate Professor

Lecturer of accounting disciplines, specialist of the highest category

Mykola SKRYPNYK,

Chernivtsi Institute of Trade and Economics of SUTE

Candidate of Economic Sciences, Associate Professor

Associate Professor Department of Finance, Accounting and Taxation

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