ACCOUNTING POLICY OF THE BUDGETARY INSTITUTION: FEATURES OF THE FORMATION IN MODERN CONDITIONS

Abstract

This article examines the specific features of developing the accounting policy of budgetary institutions in the context of the modernization of the national accounting and financial reporting system, its harmonization with international public sector accounting standards, and the influence of political and economic factors. The study defines the role and significance of accounting policy in the organization of accounting within budgetary institutions. The concept of “accounting policy” is analyzed as presented in key regulatory and legal documents governing accounting. The requirements of normative acts regarding the content of accounting policy in budgetary institutions are critically reviewed and compared. Potential errors that management should avoid when drafting accounting policy are identified. The research outlines seven stages in the development of accounting policy, beginning with familiarization with the regulatory framework, determination of the sections of the accounting policy order, preparation of a draft, coordination with the institution’s head, approval, and culminating in agreement of the approved order with the chief administrator of budgetary funds. A structural model of accounting policy for budgetary institutions is proposed, encompassing four elements: management, organization, methodology, and technique. The rationale for a precise definition of these elements is provided, taking into account the scope and specificity of institutional activities. Detailed managerial, organizational, methodological, and technical aspects are emphasized to ensure comprehensive coverage of the accounting process and the timely, complete, and detailed provision of information to management for effective decision-making. The necessity of approving appendices to the accounting policy is substantiated, with particular attention to the working chart of accounts, procedures for closing analytical accounts, and the working scheme of account correspondences. Finally, the article identifies the principal grounds and requirements for amending an approved accounting policy in budgetary institutions.