ISSN 2534-9228 (2021) VUZF review, 6(4) Financial risk management in the accounting system Umantsiv Halyna * А ; Novikov Vladyslav B ; Nikolaiets Oleksandra C A, B, C Kyiv National University of Trade and Economics, Kioto 19 st., Kyiv, 02156, Ukraine Received: November 13, 2021 | Revised: November 29, 2021 | Accepted: December 28, 2021 JEL Classification: F37, G10, G32, М41. DOI: 10.38188/2534-9228.21.4.08 Abstract The article is devoted to the study of financial instruments in conditions of economic uncertainty. Based on a study of national and international statistics and theoretical resources related to the restructuring of socio-economic and geopolitical ties, due to the rapid spread of the COVID-19 pandemic, its implications for accounting for financial instruments and disclosure of financial statements in accordance with International Financial Standards Reporting. A combination of factors such as rising unemployment, falling demand for goods, bans and restrictions on doing business, severance of international ties, reorientation of markets to domestic consumption, rising risks of bankruptcy and default have led to the formation of economic uncertainty, which is most threatened by business initiative. Economic uncertainty, which gradually changes from sudden to prolonged, has a direct impact on the business activity of enterprises, in particular, on their financial instruments. The pandemic caused by the COVID-19 virus has become a great challenge for participants in economic relations, who during the years of stability have managed to get used to stable market relations. The pandemic, which humanity has been struggling with for almost two years, has affected the entire system of social relations. At the beginning of the deployment of anti-epidemiological measures, the world economy was not ready to distance the production process. Economic indicators, which are an indicator of the development of individual states, demonstrate the vulnerability of sustainable socio-economic relations that existed before the COVID-19 pandemic. The potential impact of the coronavirus outbreak on financial instruments has been assessed in such areas as increased expected credit losses, modification of financial assets and liabilities, losses under financial guarantee agreements accounted for in accordance with International Financial Reporting Standards, and reduced hedge effectiveness. Keywords: financial instruments, economic uncertainty, pandemic, unemployment. Introduction Since the beginning of the second millennium, the biggest challenge to the existence of human civilization has become the crown viral pandemic. The fundamental principle of business continuity has recently been significantly affected by socio- economic impacts due to quarantine restrictions imposed by governments to curb the spread of the COVID-19 pandemic. The article attempts to assess the effects of economic uncertainty on the * Corresponding author: А PhD, Associate Professor Department Accounting and Taxation, e-mail: h.umantsiv@knute.edu.ua, ORCID: https://orcid.org/0000-0002-5410-1363 B Bachelor's degree in the specialty "Accounting and Taxation", e-mail: v_novikov_foais_18_2_b_d@knute.edu.ua, ORCID: https://orcid.org/0000-0001-6265-2715 C Master's degree in the specialty "International Economics", e-mail: oleksandra.nikolaiets@umginvestments.com, ORCID: https://orcid.org/0000-0003-4832-0014 accounting of financial instruments and analyze the impact of the COVID-19 pandemic on the disclosure of financial statements. Analysis of the recent research and publications has indicated that this topic is of great interest for scientists. We explain that economic uncertainty is gradually moving from the sudden stage to the prolonged scene. Currently, all world institutions are working to reformat international 70