Subject Reforming the national accounting system for purposes of market economy and IFRS, the accounting community faces the issue of linking the principles of accounting for financial instruments. Whether conditions for placing and raising resources meet market requirements is the matter of judgment, which shall be individually addressed and stipulated in accounting policies. Therefore, it is difficult obtaining respective evidence to confirm the estimate, thus fueling the risk of material misstatements in financial reporting. Objectives The study represents my own interpretation of the technique used to evaluate whether properties of financial instruments meet market economy requirements, illustrating loan transactions. Methods Reasonable, reliable and reasoned recommendations are given because the normative and comprehensive approach is used to examine the market economy compliance of loan transactions, including general and special methods of research, such as observation, classification, instrumental techniques for grouping, comparison and generalization. Results The article discusses the procedure for analyzing whether financial instruments meet market requirements while the national accounting system is reformed, and illustrates loan transactions. For purposes of the market economy compliance test of loans, I proposed standards, materiality tests and the degree of estimation. I determined how credit institutions are involved in the analysis of financial instruments in terms of their compliance with market requirements and related risks for purposes of accounting and financial reporting. Conclusions and Relevance The convergence of the national accounting system and IFRS makes financial institutions more competitive worldwide. On the one hand, risks grow when materiality standards and criteria are not stipulated by laws for testing purposes. On the other hand, the non-existent standards and criteria give a general view of the variability of input data, their sources, and models that can be used for the analysis, however, considering the business specifics.
Druzhilovskaya T.Yu. [Conceptual framework for financial reporting: A critical analysis of new approaches]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting,2017, no. 10, pp. 596–610. (In Russ.) URL: Link
Druzhilovskaya T.Yu., Romashova S.M. [Issues of accounting for income under the Russian and international accounting standards]. Bukhgalterskii uchet v byudzhetnykh i nekommercheskikh organizatsiyakh = Accounting in Budgetary and Non-Profit Organizations,2016, no. 2, pp. 2–11. URL: Link (In Russ.)
Alekseeva G.I. [Fixed assets accounting under the Russian accounting standardization]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting,2019, no. 6, pp. 618–635. (In Russ.) URL: Link
Tomshinskaya I.N., Kuznetsov N.A. [The comparison of the fixed assets accounting methodology as per IFRS and the Russian GAAP]. Sovremennaya ekonomika sotsial'nye vyzovy i finansovye problemy XXI veka: materialy Mezhdunarodnoi konferensii [Proc. Sci. Conf. Contemporary Economy: Social Challenges and Financial Difficulties of the 21st Century]. St. Petersburg, Peter the Great St. Petersburg Polytechnic University Publ., 2017, pp. 539–544.
Tomshinskaya I.N., Aleshkina D.A. [The use of financial reporting to find accounting offences]. Sovremennaya ekonomika sotsial'nye vyzovy i finansovye problemy XXI veka: materialy Mezhdunarodnoi konferensii [Proc. Sci. Conf. Contemporary Economy: Social Challenges and Financial Difficulties of the 21st Century]. St. Petersburg, Peter the Great Polytechnic University of St. Petersburg Publ., 2017, pp. 533–539.
Gordeeva O.G., Serebryakova T.Yu. [On the impact of IFRS on results of financial analysis of organizations]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2017, no. 5, pp. 902–918. (In Russ.) URL: Link
Trofimova L.B. [Institutional analysis of regulatory and legislative frameworks for comparison of balance sheet items of investment property from the standpoint of IFRS and RAS]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2018, no. 7, pp. 808–821. (In Russ.) URL: Link
Sozonov A.S. [IFRS for small and medium-sized businesses in the world: A review, evaluation, and prospects of application]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2017, no. 5, pp. 281–293. (In Russ.) URL: Link
Breslavtseva N.A., Karashchenko V.V., Proskurina V.A., Mar'yanova S.A. [Accounting of financial instruments and investments in accordance with IAS and accounting regulations: methodological problems and distinctions]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2014, no. 5, pp. 2–8. URL: Link (In Russ.)
Alekseeva G.I. [Specifics of first-time adoption of International Financial Reporting Standards]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2014, no. 39, pp. 2–14. URL: Link (In Russ.)
Konyakhin A.N. [Chart of accounts during the preparation of the first financial statements to the IFRS]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2013, no. 8, pp. 9–16. URL: Link (In Russ.)
Borisov A. [Approaches to determining the market compliance of financial liabilities as part of IFRS 9]. MSFO i MSA v kreditnoi organizatsii = IFRS and ISA in Credit Institution, 2019, no. 1, рр. 53–62. (In Russ.)