THE CHARACTERISTICS OF INCOME AND EXPENCES ACCOUNTINGBY PUBLIC SECTOR ENTITIES

Abstract

Introduction. The up-to-date model of the accounting system in the institutions of general government management sector is formed according to the schemes of its modernisation and it is defined at the legislative level. The new chart of accounts and national standards of accounting regulations in public sector that changed the established accounting techniques for the execution of budget income and expenditure in budget institutions, and other business transactions according to the peculiarities of their activity have been realized. The economic classification of expenditures has been changed, the operations are divided into exchange and non-exchange according to public finance statistics and international accounting standards for the public sector. Significant changes in accounting method of income and expenses made this issue up to the improvement of income and expenses accounting methods for public sector entities. Methods. The author created the data basis of original financial documentation of 15 distribution enterprises in Ukraine over the period of 2012-2017 to provide the informative basis of empirical research studies. The data source on the condition of normative regulation of income and expenditure accounting by public sector entity, analitical activities of controllers in Ukraine was the data basis of legislative acts of Verkhovna Rada of Ukraine. Research methodology is based on theoretical insights into the problem and scientific instrumentation that contained the critical content-analysis of original financial statements of public sector enterprises in Ukraine, comparative analysis of normative documents of Ukrainian legislative acts and experience of Ukrainian scientists and experts in the field of organization, procedure of income and expenditure accounting according to exchange and non-exchange operations. Results. The article examined the theoretical, organizational and methodological aspects of income and expenses accounting for the exchange and non-exchange operations of the public sector entities. The basic features of accounting methodology of income and expenses according to new rules of financial institutions are determined. Further research can be focused on improving the methodology of income and expenses accounting for the exchange and non-exchange operations by financial institutions for effective management of public finances.