It has been analysed the world experience of accounting reform in order to use it in Ukraine.The priority conditions of its use in Ukraine are identified. They are as the following: criteria and structure of admission of institutional units to general government; implementation of the international normative framework - the method of accounting and preparation of financial reporting on its basis that will promote the best approaches to solving the mentioned strategy.

Introduction. Improvement of  the information reliability in the accounting system will enable business entities to plan their activities strategically, to provide the politicians the information as for the efficient use of budget funds,to reflect the real economic situation through a number of features of account process (registration or recognition of expenses at the time of implementation, consideration of all resource flows, the possibility to obtain information on the status of assets and liabilities, consideration of non-cash transactions.

The purpose of the article is to outline the prerequisites of accounting reform on the basis of international experience (to determine the criteria of institutional units to the general government, the method of accounting and financial reporting). This will reduce terms of conduction of reform.

Method (methodology). General scientific and special methods of cognition have become the methodological basis of the study. In particular, we have applied the method of causal relationship, method of abstract and logical sequence, method of synthesis, method of comparison, analysis and synthesis method in order to study the  ways of reforming public sector accounting in Ukraine and in the world. The advantages and disadvantages of the method of accounting are determined.

Results. The results of the accounting reform of the public sector in different countries are shown. The transition to the accounting recognition of revenues and expenses on an accrual basis, the introduction of international accounting standards in the public sector (IASPS) of relevant IPSAS have become the basis of this reform. It has been investigated the presence of criteria for classifying institutional units to the general government. It has been determined their composition (state (budgetary) institutions; government off-budget funds; bodies with independent status; local governments, municipal (budgetary) institutions; public corporations and enterprises (excluding Ukraine). To ensure a transparent, credible and objective information in the accounting it is advisable to apply a regulatory framework which is compatible with international practice approaches. The gradual transition from the use of the cash method, modified cash, modified accrual method to the accrual method accounting has become the basis of the normative framework. The use of accrual method provides all transactions and the events at that very moment when they occurred but not from the moment when there has been a revenue or payment of cash or cash equivalents (that take place while applying the cash method). Accounting procedures reflect the nature of operations and economic events. As a result of this fact there is the increaseof validity, neutrality, timeliness, completeness and comparability of accounting data. Financial reports enable users to evaluate the performance of the organization, its financial position, cash flow dynamics. They show how public authorities have financed its activities and fulfilled its requirements. They also provide an opportunity to assess the financial state of the public sector of the country on any date and its changes.

For the gradual transition for the use of accrual method in the public sector it is necessary to determine its nature in the following regulatory documents: the Budget Code of Ukraine, the Law of Ukraine "On Accounting and Financial Reporting in Ukraine", all accepted N(S)PAPS. It  will enable to implement this very proposal at the legislative level.

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