COVENANT OBLIGATIONS IN ACCOUNTING STATEMENTS

Abstract

Credit and other agreements often provide for obligations to commit any actions or abstain from them. Such obligations are called covenants. If these conditions are not met, one of the parties to the transaction may incur financial losses due to significant changes in the terms of the contract. The article presents the results of the covenant study, examines their essence and types, and provides recommendations on the formation of accounting policy in terms of their accounting.