ACCOUNTING PRESENTATION OF THE EFFECTS OF THE FLUCTUATION OF EXCHANGE RATES IN INTERNATIONAL COMMERCIAL BUSINESS

Abstract

The problems related to the accounting presentation of the effects of the fluctuation of exchange rates are of extreme importance for enterprises specialized in conducting international commercial business. These effects have a significant impact on the financial results of the realized international activities and on key indicators for business analysis, among which profitability, efficiency based on costs, efficiency based on revenues, etc. This determines the need to provide sufficiently detailed accounting information to analyze the effects of changes in exchange rates when conducting international commercial transactions and the influence of the exchange rate differences on the financial results of these transactions.
In the study of the issues in the article the normative and systemic approaches are applied. The legal requirements currently in force in the Republic of Bulgaria regarding the accounting of cash, receivables and liabilities in foreign currency, the recognition and reflection of exchange rate differences in the implementation of international commercial transactions are discussed.
The possibilities for making improvements in the processes of creating and using accounting information for the effects of the fluctuation of exchange rates in the international commercial business of Bulgarian enterprises are investigated. Guidelines for improving the organization of the system for synthetic and analytical accounting of the costs and revenues of foreign exchange operations and their influence on the financial results of the international commercial transactions realized by the enterprises are proposed. An approach to applying alternative combinations of exchange rates is presented, which can be used for management purposes in comparing actual international commercial transactions with those previously planned.
The proposed approaches for providing detailed accounting information for the effects of the fluctuation of exchange rates can be applied in the practice of enterprises developing international commercial business. The practical applicability of these approaches is shown on the basis of factual numerical data for a real international commercial transaction.
The conducted research gives reason to summarize that an effectively organized system for synthetic and analytical accounting of the effects of the fluctuation of exchange rates is of key importance as an information source in the decision-making processes in the management of the international commercial business of Bulgarian enterprises in the conditions of the modern global economic environment.