Currency risk management and hedge accounting - comparison of Polish and Ukrainian regulations

Abstract

Management of currency risks in the enterprise becomes necessary when the business entity conducts foreign operations, and settlements with counterparties are conducted in foreign currency. The accounting system performs the role of the information base of the enterprise management system. Accounting information trust depends on the effectiveness of legal provisions that determine the rules of accounting for the enterprise. The article discusses and compares the features of the currency risk management system at Ukrainian and Polish enterprises. Based on the conducted studies of the experience of Polish enterprises, recommendations were made for Ukrainian subjects of foreign trade in the field of justifying the display of financial instruments used to hedge currency risk on accounting accounts.

Keywords

• currency risk
• enterprise management
• hedging
• accounting
• international trade
• Ukraine
• Poland