Conceptual foundations of management accounting in public sector institutions

Abstract

Importance: in public sector institutions, budget accounting is used to ensure public goals, but for more effective functioning, it is necessary to introduce management accounting tools, which contributes to solving not only operational tasks, but also to developing strategies and tactics of the institution's activities. The conceptual foundations of management accounting in the process of identification, measurement, accumulation, analysis, preparation, interpretation and presentation of financial and production information contribute to the adoption of operational and strategic decisions by the management of the organization. Purpose: in order to establish differences and individualize the management accounting of budgetary institutions, we will consider the key categories of management, budget and financial accounting. Based on the accounting data, the subject has the opportunity at an early stage to identify possible future problems that will entail negative consequences, ensuring the economic security of the institution. Research design: the research part is based on the results of an expert survey. The respondents were specialists in the accounting field, grouped into three focus groups: an accounting specialist of a budget institution, an accounting specialist of a commercial organiza-tion, research workers (teachers). The evaluation of the effectiveness of the study is based on a comparative analysis of the data in aggregate for all experts and between different focus groups of specialists. The theoretical basis of the research includes author's scientific works in the field of managerial, budgetary and financial accounting. Results: based on expert opinion, we have proved the relevance of the functioning of management accounting in public sector institutions, where budgeting is the most popular tool. In the course of the study, we considered the key dif-ferences between the main categories of managerial, budgetary, financial accounting, assessed the barriers to the use of managerial accounting in public sector institutions. Based on the results of the study, the author's concept is introduced – management accounting of budgetary institutions. Our research is based on theoretical knowledge, the opinion of experts in various fields. Thus, the results obtained largely assessed the relevance of the conceptual foundations of management accounting, in general, and in particular for public sector institutions. The advantage of accounting is its formulation on the basis of individualized organizational and economic characteristics of the institution. Evaluation of the results of the study of the conceptual foundations of budgetary institutions showed that management ac- counting is as important for them as for commercial organizations.