PROVISION OF FUTURE EXPENDITURES AND PAYMENTS: METHODICAL ASPECTS OF ACCOUNTING DISPLAY IMPROVEMENT

Abstract

Abstract. In the conditions of instability of the economic situation, the problem of managing business risk is constant in the activity of any enterprise. The activities of economic entities of a market economy are conducted in risk conditions and this precisely determines the use of provisions of future costs and payments as tools for managing the enterprise’s risks. An effective tool for responding to changes in the company's functioning economic environment is risk management. An important role in the information provision of risk management is played by the system of accounting and financial reporting. The article studies and analyzes the classification features of the provision of future costs and payments as well as methodical approaches to their accounting display and directions of their improvement are offered. It is concluded that the existence of a risk management system at an enterprise enables identification of existing risks, determination of the danger level and, using certain methods and techniques of risk management to reduce their negative impact on the financial and economical activity of the enterprise.