№ 7/2018

Fìnansi Ukr. 2018 (7): 118–128

ACCOUNTING AND AUDIT

LEVITSKA Svitlana ¹

¹National University of Water and Environmental Engineering
OrcID ID : https://orcid.org/0000-0001-7803-5586

evaluation of stocks of budget institutions under modernization of accounting

The article is devoted to the accounting of stocks for budget institutions
resulted from the implementation of the National Public Sector Accounting Standards. The purpose of the research is determining and substantiating the features of the methodology for stock valuation during the period of their accounting on the example of state higher education institutions. It is proposed to clarify certain provisions of normative regulation of accounting procedures in determining the fair value and net realizable value of inventories. The article investigates the discrepancy between the conditions of the recognizing the fair value of inventories, taking into account the financing of the activities of higher education institutions. There is a clear statement of procurement regulation for budget institutions (including higher education institutions). Procurements are based on their value (in most cases, the smallest offered by the suppliers), the reputation of the supplier, and acceptable terms of delivery. As a result, the non-active market is not foreseen for the stock of higher education institutions (that is planned for purchasing). Given the above, the organization of carrying out calculations of the balance of reserves of budgetary institutions on the reporting date is specified. Specific provisions of regulatory accounting procedures in determining the fair value and net realizable value of
inventories are clarified. The features of calculation of these indicators according to the principles of international accounting standards for the public sector are disclosed. The problem issues of documenting transactions of the book value for stocks in the cases of their receipt without payment to the supplier and the revaluation of their balances on the reporting date are identified. The author proposes certain procedures for determining the fair value or/and the net realizable value of inventories, using data on the market value of analogues to ensure the reliability of the valuation, which contributes to the principles of rational and targeted use of budget funds spent on the purchase of material resources of budgetary institutions.

Keywords:budgetary institutions, stocks, fair value, net realizable value, revaluation, accounting

JEL: M41

Levitska S. . evaluation of stocks of budget institutions under modernization of accounting / S. Levitska // Фінанси України. - 2018. - № 7. - C. 118-128.

Article original in Ukrainian (pp. 118 - 128)

Download

Downloads :283

1. Ministry of Finance of Ukraine. (2010). National Public Sector Accounting Standards 123 “Stocks” (Order No. 1202, October 12). Retrieved from zakon2.rada.gov.ua/laws/show/z1019-10 [in Ukrainian].
2. Ministry of Finance of Ukraine. (2010). National Public Sector Accounting Standards 101 “Presentation of Financial Statements” (Order No. 1629, December 24). Retrieved from zakon2.rada.gov.ua/laws/show/z0095-11 [in Ukrainian].
3. Ministry of Finance of Ukraine. (2015). Methodical recommendations on the accounting of stocks of public sector entities (Order No. 11, January 23). Retrieved from search.ligazakon.ua/l_doc2.nsf/link1/MF15004.html [in Ukrainian].
4. Ministry of Finance of Ukraine. (2010). National Public Sector Accounting Standards 125 “Changes in accounting estimates and bug fixes” (Order No. 1629, December 24). Retrieved from zakon3.rada.gov.ua/laws/show/z0090-11 [in Ukrainian].
5. Atamas, P. J. (2009). Accounting at budgetary institutions. Retrieved from westudents.com.ua/knigi/50-oblk-u-byudjetnih-py.html [in Ukrainian].
6. Artemenko, N. V. (n. d.). Areas of reforming the budget accounting. Retrieved from vestnik.kpi.kharkov.ua/files//2012/S16.pdf [in Ukrainian].
7. Sushko, N. І., Hіzatulіna, L. V. & Kucenko, O. P. (2009). Accounting and reporting in the budgetary sphere of Ukraine. In M. V. Kuzhel`ny`j (Ed.). Accounting and internal audit in the public sector. Ky`yiv: Ahrarna nauka [in Ukrainian].
8. Doroshenko, O. O. (2012). Reserves of budget institutions: a comparative analysis of modern accounting practices and national public sector accounting standards. Independent auditor, 2, 50–54 [in Ukrainian].
9. Osadcha, O. O. (2011). Accounting of financial results of entities of the state sector of economy of Ukraine. Bulletin of National University of Water Management and Nature Resources Use. Economy, 2 (54), 157–164 [in Ukrainian].
10. Svіrko, S. V., Osadcha, O. O. (2011). Income from entrepreneurial and non-business activities: recognition and accounting in the context of national economic reforms. National university “Ostroh Academy” scientific papers. Economics, 18, 227–235 [in Ukrainian].
11. International Public Sector Accounting Standard 12 “Stocks”. (n. d.). www.iasb.org.uk. Retrieved from www.iasb.org.uk.
12. International Public Sector Accounting Standard 5 “Borrowing Costs”. www.iasb.org.uk. Retrieved from www.iasb.org.uk.
13. Fair value. (n. d.). wikipedia.org. Retrieved from uk.wikipedia.org/wiki [in Ukrainian].
14. Fair value as an economic concept. (n. d.). predmety.in.ua. Retrieved from predmety.in.ua/ekonomichnij-slovnik [in Ukrainian].
15. State Treasury Service of Ukraine. (1997). The procedure for the appraisal of inventories, low-value and short-wearing items of budgetary institutions (Order No. 127/138, December 2). Retrieved from zakon2.rada.gov.ua/laws/show/z0607-97 [in Ukrainian].
16. Asset-Based Approach. (n. d.). wikipedia.org. Retrieved from uk.wikipedia.org/wiki.
17. International Financial Reporting Standard 13 “Fair Value Measurement”. (n. d.). vobu.ua. Retrieved from vobu.ua/ukr/documents/item/msfz-13 [in Ukrainian].
18. Fair value. (2016, August 13). knoow.net. Retrieved from knoow.net/uk/?s=справедлива+вартість [in Ukrainian].
19. Ministry of Finance of Ukraine. (2010). National Public Sector Accounting Standards “Impairment of assets” (Order No. 1629, December 24). Retrieved from zakon0.rada.gov.ua/laws/show/z0092-11 [in Ukrainian].