New accounting standards for the public sector. Approaches for reporting social payments and other specific expenditures in budget organizations

The purpose of this article is to analyse the application of the new requirements of International Public Sector Accounting Standards (IPSAS) for accounting for a large group of expenditures specific to budget organizations, which include the costs of social benefits, collective and individual services, for subsidies, donations, transfers to other budget organizations. The scope and specifics of the expenditures for social payments are discussed in the article. The peculiarities of the application of both approaches for their reporting are analysed - the main approach of the obligatory event and the alternative insurance approach, regulated in the new IPSAS 42 Social benefits. Discussion issues about the working project for reporting of other types of costs related to grants from budgetary organizations are also presented, namely determining the moment of recognition of transfer costs depending on the presence or absence of prior commitment to a third party, as well as announcement of information related to the costs of individual and collective services for the population benefit. It is concluded that the accounting standards for public sector organizations are becoming more principled, more complicated to implement, require more subjective judgments, which as regards to the reporting objects considered, allows to be presented a better financial condition, by the effect of liabilities postponement.