Risks in ?onditions of Uncertainty

Abstract

The category of "risk" and the associated concept of "uncertainty", the probability, the consequences of risk are used in the regulations on accounting. However, their content is largely undefined. The formation of accounting information occurs in conditions of uncertainty, which is related to objective external factors affecting all economic risks and factors, which arise directly from the accounting system. The consequences of such risks can have a strong impact on the performance of the accounting (financial) statements and, therefore, to make managerial decisions. The paper discusses the economic nature of the emergence of risks in the accounting of insurance companies as a result of transformation of financial statements under IFRS. The necessity of reserve funds under the accounting risks. Made recommendations to improve accounting and accounting (financial) statements of the insurer in terms of disclosure of accounting risks for the purpose of transparency to attract investors. Transparency reporting will allow investors to make their own decisions about their future investments with risks.

DOI: 10.5901/mjss.2015.v6n3s7p107