The influence of accounting problems on the reliability of financial statements of banks in conditions of instability

Abstract

The purpose of the article is to study accounting problems that affect the reliability of financial statements of banks in conditions of instability, and to develop recommendations for overcoming them. Methods. The research uses a systematic approach, methods of analysis, synthesis and generalization to assess the effectiveness of financial reporting and accounting processes in banking institutions of Ukraine. The results. The main principles of accounting (prudence, full coverage, autonomy, consistency, continuity, accrual, the predominance of substance over form, a single monetary measure) and their application in the banking sphere were studied. For banking institutions, taking into account the specifics of their activity, the list of accounting principles in banks has been supplemented, and the article states that their consolidation at the regulatory and legal level would contribute to increasing clarity and specificity in the methodological base for accounting of financial instruments and operations of banking institutions. Key problems have been identified, including the growth of credit risk, the loss of the market value of assets and the low level of automation of accounting processes. Improvement of the regulatory framework, harmonization of regulatory requirements of the NBU with international standards, implementation of modern ERP-systems for automation of accounting processes and application of artificial intelligence for financial data analysis are proposed. Emphasis is also placed on the need to improve staff qualifications through specialized training, especially on IFRS and the calculation of reserves for expected losses. Particular attention is paid to the improvement of asset and liability valuation methods, including the application of approaches to the fair value of assets under IFRS 13 and the development of special methods for the valuation of collateral in war zones. Conclusions. These measures will contribute to increasing the efficiency of accounting procedures and reporting of banking institutions. They will ensure their sustainability, transparency, competitiveness at the international level and strengthening of confidence on the part of investors and regulators, despite difficult economic and social conditions.