МОДЕРНИЗАЦИЯ БУХГАЛТЕРСКОГО УЧЁТА И ФИНАНСОВОЙ ОТЧЕТНОСТИ В БЮДЖЕТНЫХ ОРГАНИЗАЦИЯХ

Modern economic development of the Republic of Kazakhstan requires improving the system of accounting and financial reporting in the public sector. All over the world, the requirements for the actions and reporting of public authorities are changing. These requirements are based on increased responsibility for effective financial management in order to make the transition from cost management to results management and results-based medium-term budgeting. At this time, the accounting reform is an objective necessity related to the ability to perform one of the tasks set by the President – the creation of a transparent and clear system of managing financial resources and balance sheet of the assets and liabilities of the state [1]. The goal of the reform is to improve the efficiency, responsibility, accountability and transparency of public Finance management with the creation of a strategic, transparent and integrated budget process that, from planning to execution, would be a single financial reporting system used by civil society in evaluating government actions. The application of International financial reporting standards for the public sector (hereinafter referred to as IFRS) is conditioned by the need to assess the effectiveness of Executive authorities in managing public finances, control over the effective use of funds and assets, and aggregate financial information for the entire public administration sector. Creating an accounting system that meets international standards by implementing international financial reporting standards for the public sector will provide better information needed for making management decisions [2].

The current system of accounting and reporting in the public sector does not fully ensure the proper quality and reliability of the information generated in it, and also significantly limits the possibility of useful use of this information. Therefore, it seems that the main goal of the transition to IFRS is to bring the accounting system in the public sector in line with the requirements of a competitive economy, providing access to all interested users to information that represents the objective dynamics of the financial situation and performance of public institutions, as well as the consolidated report of the public sector. Annual Government financial reports prepared in accordance with IFRS can serve as a demonstration of government accountability for managing public resources and performing tasks related to the budget process [3].

As the practice of switching to international financial reporting standards in the real sector of the economy has shown, reports compiled according to international standards provide a clear picture of the financial position, results of financial activities and cash flows of economic entities. Entities that comply with the principles of IFRS have significantly increased opportunities to attract additional sources of capital, as well as partners that will help them ensure economic growth and prosperity. In turn, entities using IFRS get access to information about the financial condition of potential partners, and additional tools are available to improve their choice.

International accounting practice defines four main methods of accounting in the public administration sector.

The cash accounting method consists of simply registering cash flows, receipts and Disposals of cash, assets in the form of cash, to budgets, or cash from the Treasury or the state. The main advantage of the cash accounting method is its simplicity and availability. It provides information about cash flows. At some point one of registration and cash flows became insufficient, because it does not allow to fully track the execution of the budget. At the same time, there are certain politically important assets and liabilities. They also need to be evaluated and put on the balance sheet, primarily because they are important for investors, attracting funds, and mobilizing financial resources.

Modified cash method. There is a fixation of cash flows, but at the same time there is an estimated public debt on the balance sheet and budget loan loans on the balance sheet. And part of the calculations that arise in the course of budget execution has also been evaluated. This accounting was adjusted, and it turned out that there is still a range of assets and liabilities that can also significantly affect the liquidity and solvency, including wage obligations. In many countries, wage obligations are equated with sources of financing budget deficits. In this case, the state works on debt from its employees or borrows money from investors, the difference is small. Therefore, there was a need to evaluate all assets and liabilities.

Modified accrual method. When assets and liabilities were evaluated, it became clear that they could not be fully evaluated. If we use the accrual method, it means that we need to evaluate all the state's obligations. All-natural resources must be evaluated to some extent, because this is also a state asset, and it is owned by the state. The modified accrual method is generally the same as accrual methods, i.e. transactions are recognized when the value of assets arises or changes. This is the standard method.

Accrual method – an accounting method in which transactions and other events are recognized upon their completion in the reporting period in which they occurred, regardless of the actual receipt or payment of funds. The accrual method is more progressive. In the accrual method, transactions are recognized when the economic value of assets and liabilities arises or changes. All its advantages are contained in the reports [4].

If we compare the reports that can exist according to the cash accounting method, this is a standard report on budget execution under the domestic budget legislation. There are no inventories, debt balances, assets, or liabilities in these statements. There is a simple registration of cash flows, receipts, Disposals, revenues, expenses, and sources of deficit financing. All cash receipts and Disposals are registered – this is the reporting on budget performance. With the accrual method, transactions are structured so that they can be used to build balances. There is a concept of balances and reserves, plus operations: income and expenses, operations that are not related to changes in balances and assets and liabilities. Transactions with non-financial assets, financial assets, and liabilities are those transactions that actually change assets and allow you to move from balances at the beginning of the period to balances at the end of the period. The most important advantage of the accrual method is that it makes it possible to evaluate all assets and liabilities, and to evaluate transactions in accordance with their economic nature. When using complex models, such as the accrual method, there must be some standardization in accounting, and information must be disclosed on what principles the state follows when reporting on its activities. At the same time, the main drawback of statistical standards is that statistical reporting is never subject to audit, it is impossible to check it, and it is impossible to assess the quality of statistical data: they involve a lot of assumptions. This is why investors do not use statistical reports, and the international Federation of accountants has started to develop international standards for financial reporting in the public sector. They are based on international financial reporting standards for business, but have a number of features for the state. Reporting on these standards is subject to verification.

Taking into account the practice of implementing IFRS in economic entities of Kazakhstan, which has continued for more than ten years, the reform of the accounting system of state institutions for the transition to IFRS is carried out in stages. To achieve these goals, the following measures are being implemented:

1) the regulatory framework for the transition to IFRS has been developed;

2) qualified personnel are trained and trained as part of the transition to IFRS [5].

Taking into account that the most important factor of the reform is the training of accountants of state institutions in the new accounting methodology based on the accrual method, their training is conducted locally. In order to implement the program of transition of public institutions to accrual accounting on software accounting under the new methodology there is a need to use in state bodies and subordinate institutions of a software product is developed in accordance with the requirements of regulatory legal acts, and in the presence of software rework in accordance with the new requirements for the organization of accounting on an accrual basis.

Currently, the economy of the Republic of Kazakhstan is a highly developed information system, built and functioning in accordance with international requirements, is a unified accounting system that includes various aspects of it. Accounting is the most important factor that ensures the unity and functionality of the global accounting system, as a source of data for further accumulation, systematization and generalization in accordance with the set tasks [6].

The information function of financial reporting in the economy is based on the financial results of organizations that are necessary for a wide range of interested users of information both inside and outside the institution. High-quality reporting is also necessary for the development of the capital market, since it is used to make decisions about the allocation of limited resources, which often determine the development of the economy for decades to come. Based on this, today one of the important topics was the issue of accounting reform in the public sector and the procedure for transferring public services to IFRS. The goal of the reform is to harmonize the two systems into uniformity and then move to the main final step of forming a consolidated balance of assets and liabilities of the state as a whole [7].

The adoption of IFRS by the Government will improve not only the quality, but also the comparability of financial information contained in the reports of public sector entities around the world.

 

 Sources used

  1. The order No. 393 of the Ministry of Finance of the Republic of Kazakhstan dated August 3, 2010 "on approval of accounting Rules in state institutions".
  2. The order of MF of the RK dated 7 September 2010 № 444 "On approval of accounting policy" registered in the Ministry of justice of the Republic of Kazakhstan № 6505, dated September 22, 2010.
  3. The order of MF of the RK from June, 15th, 2010 № 281 "On approval of chart of accounts of accounting of public institutions", registered in Ministry of justice of the Republic of Kazakhstan No. 6314 of 29 June 2010.
  4. The order of MF of the RK from 27 April 2011 No. 219 "About modification and additions in the order of MF of the RK from February 24, 2011 № 95 "On some issues of state regulation of the accounting system and financial reporting in public institutions" registered in the Ministry of justice of the Republic of Kazakhstan No. 6965 dated May 20, 2011.
  5. Shchuko L. P. Depreciation of property of organizations, accounting for depreciation of fixed assets of budget organizations. – 5th edition, revised and expanded. - Moscow-SPb.: Gerda, 2018. – 427 p.
  6. Grossi G. Public Sector Accounting. – London: Routledge, 2013. – Р.
  7. Lakis, Kamarauskene, I. The reform of the accounting of the public sector: the problems of consolidation of accounts // Economic and legal Sciences. Accounting. – 2012. – № 13. – pp. 77-80.