Importance The article deals with the theoretical and methodological issues related to the subject of derivative financial instruments. Objectives The paper aims to develop theoretical and methodological guidelines for accounting for derivatives and substantiate the advantages of applying the concept of fair value accounting for financial derivatives. As well the paper's purpose is to develop performance criteria for the use of the named concept. Methods The theoretical basis of the study are works of domestic and foreign scholars on the research problem, as well as international regulations governing the treatment of financial derivatives. The methodological framework is a set of general scientific methods of scientific cognition: observation, comparison, description, analysis and synthesis. Results I determined the specifics of valuation of derivative financial instruments at fair value, justified an application of the concept of fair value accounting as the most objective accounting for derivative financial instruments. As well I propose certain performance criteria for the use of the concept. Relevance The presented recommendations shall allow developing theoretical and methodological guidelines for accounting for derivatives. The obtained results can be used in further research of theoretical and methodological foundations of this area, as well as in the development of methodological tools for the treatment of financial derivatives.
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