Transformation of Inventory Accounting in Terms of Harmonization of Public Sector Accounting Systems with International Standards

The article investigates accounting procedures for inventory in public sector institutions. The analysis of the most important aspects of accounting for inventories is being held, which are reflected in Instructions for inventory accounting No. 125, Regulation on inventory accounting in budgetary institutions, National regulation (standard) of accounting in the public sector 123 ‘Inventory’, International standard of accounting in the public sector 12 ‘Inventory’, particularly, the recognition of inventory procedure, its expected useful economic life, classification and evaluation of the inventory, methods of disposal. The criteria for determining the initial and the balance value of inventories were examined. Special attention is paid to methodological and methodical aspects of accounting for inventories under the Regulation, which entered into force on 01.01.2014. This Regulation is transitional regulatory document towards the transformation of inventory accounting in the public sector in terms of harmonization of national accounting system with international standards.