Key Trends in Upgrading Finance Accounting of Public Sector in View of Using Ipsas Standards

Abstract

The article studies key trends in upgrading finance accounting in public sector built with regard to principle peculiarities of economy in state entities. By analyzing the structure of drawing-up the report on results of finance operations published in IPSAS 1 standard ‘Providing Finance Accounting’ factors were found that influence accounting of public sector. The author researched the following notions: service potential, future economic benefits of public sector, exchange and non-exchange operations as basic factors affecting the structure of report on results of finance operations. Apart from that, draft report models on results of finance operations were developed and offered for use as they take into account key peculiarities of economic entities of public sector proceeding from classification of work by useful (service) potential and future economic benefits. It was found out that nature of asset acquisition by exchange and non-exchange operation can simplify the approaches to estimation of economic resource by using either just value or factual cost value. In the process of research the author specified characteristis of models for drawing up the report on results of finance operations by nature of costs and by their functional purpose depending on national specific features of conducting budget accounting in the concrete country.

Keywords

• public sector
• service potential
• future economic benefits
• exchange operation
• non-exchange operations