Features of the formation and use of accounting policies of public sector entities

Abstract

In the current economic environment, public sector entities play an important role in ensuring the country's economic stability and development. Their activity, in particular, is characterized by issues in the accounting of public sector entities. The purpose of the article is to study the features and problems of the formation and use of accounting policy of public sector entities and to develop recommendations for its improvement. In the course of the research, methods of analyzing legislative and regulatory documents, studying scientific literature, analyzing the practices of formation and use of accounting policies of public sector entities, as well as methods of induction, deduction, and a systems approach were used to develop recommendations for improving the accounting policies of public sector entities.

The interpretation of the terms 'public sector' and 'public sector in the economy' has been studied. The importance of public finance management has been analyzed. Accounting in the public sector has been defined as a component of information support, which is a fundamental element of the public finance management system. The features of accounting in the public sector have been systematized. The common and distinctive characteristics of accounting in the public sector of the economy and in budgetary institutions have been examined. It has been determined that one of the main components of accounting in the public sector is the accounting policy of a public sector entity. The influence of specific aspects of a public sector entity’s activity on the choice of accounting methods has been summarized. The problems of forming and using the accounting policy of public sector entities in Ukraine have been investigated.

It has been proven that addressing the issues of forming and implementing accounting policies for public sector entities in Ukraine requires a comprehensive approach, which includes developing a unified methodology for forming accounting policies, enhancing the qualifications of accounting staff, improving the control system, and ensuring adequate funding. The stages of developing and implementing a unified methodology for forming accounting policies in Ukraine's public sector have been proposed. The implementation of a unified methodology will contribute to improving the quality of financial reporting, ensuring its reliability and comparability, as well as enhancing public financial management