Special aspects of the reporting of capital in the budgetary entities

Abstract

The national and international accounting standards state that the equity of an entity is the residual interest in the assets of the entity that remains after deducting all of its liabilities. For that reason in the accounting theory could also be found the terms “net worth” and “net assets” which are used as synonyms. The term “equity” is not used adequately in this wording in respect of the budgetary entities because of some specific characteristics these entities possess. The purpose of this paper is, based on the legislative framework now in force in Bulgaria and the characteristic features of the public sector entities, to present the specific features of the capital reporting in these organizations.

Keywords

• net assets
• budgetary entities
• disposable capital