ACCOUNTING OF TRANSACTIONS WITH FINANCIAL INSTRUMENTS: IMPACT ON TAX CALCULATIONS

Abstract

In the conditions of the need to strengthen economic international relations between partners, the process of adaptation to the development of a market economy, general financial globalization and the immediate need for international investment cooperation, all together with the updated configuration of the domestic financial market, as well as - the improvement of all processes of economic transactions with financial instruments, in particular, there is the issue of methodological aspects of accounting and tax legislation, namely the comparison of the planned value for the determination of financial results with the actual indicators of their amount. An objectively and correctly determined methodological aspect of the influence of financial instruments on tax differences is adopted in making relevant and justified and effective management decisions. The article highlights the aspect of the influence of financial instruments on tax differences, analyzes the Appendix RI to the tax reporting on income tax, because it is in it that the interpretation and summation of the total amount of differences that have an impact on the financial result is presented. The validity of the statement has been proven - the basis of the correct method of accounting for transactions with financial instruments is the definition - which business model the economic entity applies when accounting for financial instruments, relying both on the peculiarities of its economic activity and, in fact, on its professional judgment. Choosing a business model based on amortized cost, the subject will hold this financial instrument for successive repayment, which may also cause tax differences to arise, however, depending on the repayment terms; choosing the business model at fair value through other comprehensive income, it is clear that the entity will hold the financial instrument for/or repayment or sale, which - accordingly, at the same time will affect the tax reporting and trigger the emergence of tax differences; if the business entity applies the business model of accounting for financial instruments at fair value through profit or loss, then, absolutely precisely, these processes will have an impact on the profit before taxation in the business process, which indicates the existing tax differences.