ACCOUNTING OF NON-FINANCIAL ASSETS IN THE MANAGEMENT OF PUBLIC SECTOR ENTITIES

Abstract

Introduction. The article examines the economic nature and main purpose of non-financial assets, the classification of non-financial assets according to different approaches, the relationship between public sector accounting and the management of non-financial assets. Methods. Methods of induction, deduction, comparison and synthesis have been used in the study of the economic essence and in the elaboration of the author’s definition of «non-financial assets». Methods of analysis, comparison and synthesis have been applied in the study of the classification of non-financial assets and in the elaboration of author’s proposals for the treatment of non-financial assets in the management of public sector institutions. Results. As a result of the study, an author`s interpretation of the economic essence of non-financial assets has been defined, taking into account domestic and international practices, the classification of non-financial assets has been systematized and generalized. It is also identified the characteristics and impact of accounting for non-financial assets on the management of public sector entities. Discussion. The treatment of non-financial assets is important for the effective management of both public institutions and the public sector as a whole. This is why further research on the relationship between accounting and management of public sector institutions based on accounting information as well as the identification of major normative regulatory areas for the disclosure of non-financial assets of public institutions in sub-accounts is warranted.