Payments to employees in accordance with international practice in the public sector

Abstract

Introduction. Current economic conditions orient Ukraine to integrate into the world community. Relentless process of global integration requires modernization of accounting. Modernization and transition are the only methodological principles of accounting in Ukraine that are carried out in the context of adaptation of International Accounting Standards.

Purpose of the study is to investigate the methodological principles of formation of accounting information on employee benefits in the public sector, to make suggestions to improve the content of National Public Sector Accounting Standards 132 "Employee Benefits" and to propose changes to the structure of the account 65 "Payments to wage".

 Method. In the course of the study the methods of comparison, analysis, synthesis are used in order to identify compliance with National Public Sector Accounting Standards 132 "Employee benefits" to International Public Sector Accounting Standards 25 "Employee Benefits".

 Results. The paper considers methodological principles of formation of accounting information on employee benefits in the public sector. The comparative analysis of International Public Sector Accounting Standards 25 "Employee Benefits" and National Public Sector Accounting Standards 132 "Employee Benefits" has been carried out. We consider the classification of employee benefits for these standards. It has been proposed as a separate group "Other long-term benefits" as required by IPSAS 25 "Employee Benefits". The article specifies the structure of current payments. It has been proposed to delimit the category of "post-employment" and "termination benefits", as stipulated in IPSAS 25 "Employee Benefits".  It has been proposed to rename the account 65 "Payments to wage" to "Payments for employee benefits" and changes in the structure of the account.