MODELS FOR GENERATING ACCOUNTING INFORMATION REGARDING EXPENSES AND REVENUE FROM FINANCIAL OPERATIONS OF ENTERPRISES

Abstract

The magnitude and dynamics of the financial expenses and revenue of enterprises directly affect the financial results reported for specific periods, as well as numerous financial ratios used to analyze and evaluate their activities. Accounting data regarding expenses and revenue arising from financial operations play a pivotal role in calculating various business analysis indicators that are crucial both for internal management decision-making regarding activities and for enabling external users of financial reports to make informed economic decisions. The successful practical execution of such analyses requires the rational organization of accounting information support through the application of effective models for generating accounting information regarding the enterprise's various types of financial expenses and revenue. In the context of the modern economic reality, enterprises in Bulgaria are entitled to establish and implement their own specific systems for the accounting of expenses and revenue from financial operations, while complying with the mandatory rules of the prevailing accounting regulations, specific characteristics of their activities, and concrete needs for accounting information to ensure effective management. The primary objective of the article is to justify the importance of accounting information regarding expenses and revenue arising from financial operations conducted by enterprises, and to present scientifically grounded and practically applicable models for their accounting treatment. To achieve this objective, four key tasks are addressed: - examining the organizational and methodological aspects of generating accounting information on expenses resulting from the financial operations of enterprises; - presenting suitable models for the accounting treatment of various types of financial expenses; - investigating the organizational and methodological issues involved in accounting for revenue from financial operations; - proposing specific models for generating accounting information regarding the various types of financial revenues arising within enterprises. In methodological terms, the objective and tasks of the study are achieved on the basis of the application of accounting-specific approaches – a system of accounts and double entry on them, which are elements of the accounting method. The article pays special attention to issues regarding the accounting treatment of expenses and revenues arising from foreign currency transactions. This focus stems from the fact that these matters are currently highly topical and significant for Bulgarian enterprises, given that the euro became the country's official currency at the beginning of 2026, resulting in new requirements for the accounting of foreign currency transactions.