Accounting Policy of Public Sector Enterprises in Bulgaria – Present Situation and Prospects

Abstract

Basics of research: The study presents a problem in the field of public sector accounting. The accounting policy is part of the financial statements of budget organizations, presenting the applied accounting policies and other explanatory information.Purpose: To present a standardized model of accounting policy, according to the International Public Sector Accounting Standards and the applied model of accounting policy of budget organizations in Bulgaria. Based on a comparative analysis to outline the differences between the two models and propose guidelines to improve public sector accounting with regard to accounting policy issues.Methods: The research methodology is based on a systematic approach with the application of the methods of analysis, generalization, graphical presentation of the achieved results.Findings & Value added: The content of the survey is useful for potential investors who are interested in the activities of the public sector. It provides knowledge on the accounting policy standardized under the International Public Sector Accounting Standards and its development, according to the current accounting legislation for budget organizations in Bulgaria.The established differences require the adoption or synchronization of IPSAS in Bulgaria as a financial reporting framework for the public sector. An empirical study of the accounting policy of the ministries in Bulgaria has been made. The results indicate deviations from the generally accepted approaches to presenting accounting policies.