Importance Proper grouping of structural elements of financial instruments in the accounting system is significant for reliability and transparency of financial statements, for analytical procedures of owners, investors, creditors and other users and their effective use to ensure stable operation of the company at present and in future. Objectives The study aims to analyze the concept of financial instruments and their classification features based on economic literature, Russian accounting methodology and its regulatory framework, as well as International Financial Reporting Standards, to clarify the object of accounting in order to identify the concepts of financial instruments and their specific elements. Methods Using general scientific methods, the paper shows weaknesses of statutory regulation and methodological support when forming financial instruments in the national accounting system. Results The offered definition of financial instruments in the accounting aspect interprets their nature not as a contract, but as a complex object of accounting. Financial instruments represent a set of financial facts of business life, having individual distinguishing features that relate to origination and flow of funds at their recognition. Conclusions and Relevance A contract is a prerequisite for subsequent emergence of financial facts of business life. It should be viewed as an essential feature of financial instruments, rather than as an object of accounting, as it affects the accounting methodology for financial instruments.
Keywords: financial assets, financial liabilities, equity instruments, contract, business life
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