Hedging instruments to ensure the economic security of economic entities: Methodological background. Part 2

Subject. This article discusses the use of hedging instruments in the process of minimizing the risks of changes in market conditions and their impact on the economic security of economic entities. Objectives. The article aims to define hedging as a process of minimizing market risks and their distribution among participants in market transactions and describe the impact of hedging on the valuation of financial accounting items. Methods. For the study, we used the provisions of general economic theories of positive and normative economics, theories of accounting and analysis, theories of finance, the concept of sustainable development of the organization and the concept of constructive obligation. Results. The article defines the method of special accounting for hedging instruments, the use of which makes it possible to reliably reflect in the Statement of Financial Position of the organization the impact of the risk of changes in market conditions and their minimization when allocating these risks among the participants of an exchange transaction in the financial market. Conclusions. Derivative financial instruments are subject to financial accounting and reporting, and the special hedge accounting method is a business model for the use of hedging instruments that includes elements of hedging.