Recognition Inventories in Governmental Sector Accounting

The Study covers the research of conditions for recognition of inventories in the governmental sector accounting. The comparative analysis has been performed as to the inventories recognition criteria provided by the National Accounting Provisions (Standards) 123 in the public sector - 'Inventories', Accounting Provision (Standard) 9 - 'Inventories', International Accounting Standard 16 - 'Inventories' in the public sector. It has been found that the common characteristic, in accordance with all these regulatory documents, for the recognition of inventory as an asset is the classification of assets by their types. The level of consistency of the National Accounting Provision (Standard) 123 in the public sector – 'Inventories' and the Instructions on Budgetary Institutions Inventories Accounting 125 has been assessed. According to the research done by the author between these two documents there are differences in conditions for recognizing an inventory as an asset by government institutions accounting. Therefore, there is a need to harmonize the definitions and concepts provided in both documents which would make the procedure of forming inventories accounting data and their reflecting in financial statements more understandable.