Methodological aspects of accounting for the execution of public-private partnership contracts in the context of the innovation vector of the economy

Abstract

The involvement of the business environment in the creation and reconstruction of socially significant facilities contributes to the investment process and increases the efficiency of the use of public resources. The institutionalized system of such pooling of resources, which is becoming more widespread in the Republic of Moldova, is a public-private partnership. The basis of this system is the redistribution of powers to state ownership while preserving the title owner’s rights. Depending on the depth of penetration of these powers, the degree and financial participation of the business environment in a public-private partnership changes, which leads to a variety of its models and forms, each of which requires an adequate accounting mechanism. In order to argue about the need to use a unified methodological approach and apply different accounting models for compliance with the terms of the concession agreement and lease, developed on the basis of the IFRS provisions, the author of the article conducts research on the following aspects: methodological aspect – disclosure of the legal and economic interpretations of the concession agreement and leasing through the lens of their comparison; institutional aspect – consideration of the modern legislative base and main trends in public-private partnership in Moldova; applied aspect – a proposal for a mechanism of accounting for the execution of a concession agreement based on the provisions of IFRS.

Keywords

• public-private partnership
• concession agreement
• accounting methodology
• reliability concept
• accounting model