Bodnar Olena, PhD (Economics), Associate Professor of the Department of Finance, Banking and Insurance, Mykolayiv National Agrarian University, Mykolayiv, Ukraine

ORCID: 0000-0002-0152-4290
e-mail: bodnaroa@mnau.edu.ua

Horka Liudmyla, higher education student, Accounting and Finance Faculty, Mykolaiv National Agrarian University, Mykolaiv, Ukraine

ORCID: 0009-0002-7380-2752
e-mail: ludagorka2@gmail.com

Oreshko Angelina, higher education student, Accounting and Finance Faculty, Mykolaiv National Agrarian University, Mykolaiv, Ukraine

ORCID: 00009-0004-5148-4073
e-mail: angelinaoreshko16@gmail.com

Accounting and Reporting of Financial Instruments in the Banking Sector

Abstract. Introduction. Introduction. This paper examines the theoretical, methodological and practical foundations of the accounting and reporting of financial instruments within the banking sector, in the context of financial globalisation and regulatory transformation. It emphasises the importance of accurately recognising, measuring and presenting financial instruments to ensure the transparency, reliability and comparability of financial information in banks.

Purpose. The study aims to substantiate methodological approaches to improving the accounting for and financial reporting of financial instruments in the banking sector in accordance with international standards (IFRS 7, IFRS 9 and IAS 32). The research focuses on identifying current challenges and defining key areas for improving the quality and analytical value of banking reports.

Results. The nature, categorisation and function of financial instruments in banking activities have been analysed. The regulatory framework governing the accounting and disclosure of financial instruments has been reviewed. The main practical implementation problems of IFRS requirements have been identified, particularly with regard to fair value measurement, the recognition of expected credit losses and the assessment of derivative instruments. The need for the automation and digital transformation of accounting systems, as well as the integration of analytical and artificial intelligence technologies, to improve risk assessment and reporting reliability has been emphasised.

Conclusions. It has been established that the future development of the accounting and reporting of financial instruments in the banking sector depends on the harmonisation of national standards with IFRS, the digitisation of accounting processes, and the strengthening of the professional competence of specialists. The implementation of innovative technologies and analytical tools will enhance the transparency, comparability and efficiency of financial reporting within the banking system.

Keywords: financial instruments; accounting; reporting; banking sector; IFRS; fair value; digitalization.

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