The accounting system of the risks inherent in foreign economic operations

Abstract

In the article, the author proves the necessity of disclosure of the risks of loss and accidental loss in the financial statements. At present this information is reflected in the accounts of neither buyer nor seller. Hence it is suggested that an accounting system for the risks should be established. This system would include: suggested stages, decision making process for recording in accounting and financial reporting the risks that are inherent in export and import transactions, the method of accounting the risks of loss and accidental loss, and accounting entries.