ACCOUNTING INFORMATION IN CONDITIONS OF RISK REGARDING FINANCIAL INSTRUMENTS

The fast pace of business and the frequent changes in transactions make it impossible to eliminate risks from the financial market. An entity that transacts with financial instruments may be exposed to certain specific risk categories. Under these conditions, the entity is obliged to provide sufficient information to investors in order to determine the degree of risk related to financial instruments. The main objective of the paper is to identify the aspects that characterize the risk hedging operations and to ascertain their influence on the financial position and performance of a company. The orientation towards principles and not towards precise rules allows the improvement of the professional reasoning in the presentation of the information related to the derivative financial instruments.