Subject. The article considers the practice of disclosing information about financial risks in the annual consolidated financial statements of the largest companies in the world and Russia, in terms of capitalization. Objectives. The aim is to disclose information on types of financial instruments that have a significant impact on the financial activities of the organization; to reflect the nature and extent of risks faced by organization when operating in the financial market, and the impact of financial instruments on these risks. Methods. The methodological basis of the study rests on the institutional theory of contracts, the Conceptual Framework for Financial Reporting that for the first time recognized the need to reflect contractual rights and obligations in reporting as an object of accounting and analysis, which became the theoretical basis for generating information about reporting of derivatives in financial statements when analyzing risks and minimizing them when using derivatives. Results. We assumed that to sufficiently and adequately meet the requirements of IFRS 7 in terms of disclosure of information about risks inherent in a business, heads of any organization should carry out a number of events outlined in the article. Conclusions. The analysis of financial risks, their nature, and the degree of influence on the financial position of the reporting organization can significantly increase the transparency of financial statements for external stakeholders, strengthen their trust in the management of the organization and, as a result, contributes to making more balanced and responsible investment decisions.
Keywords: analysis of requirements of IFRS 7, financial risk, derivative financial instrument, risk hedging
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