engleski

Accounting effects of financial instruments subsequent measurement in Croatian banking sector

In Croatian banking sector, financial instruments take the most significant portion of total assets of banks. Therefore, financial instrument recognition and measurement have a serious impact on financial position and profitability of banking sector in Croatia. Since financial instruments are the most dynamic part of financial markets, the focus in this paper is on financial instruments and their recognition and measurement in accounting records and financial statements. The initial hypothesis of the paper is that current accounting treatment of financial instruments can significantly affect bank’s financial position and income and in situation of unreliable valuation of financial instruments the financial position and income of bank may be distorted.This paper presents how valuation of financial instruments can affect on bank’s financial position and income as well as consequences which may appear from such valuation.

financial instruments; financial position; profitability; Croatian banking sector

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