• Svitlana Levytska
  • Nataliia Sushko
Keywords: budgetary institutions, stocks, net realizable value, revaluation, accountancy


The article is devoted to the accounting of stocks by the budget institutions and bases on the results of the implementation of the National Public Sector Accounting Standards.The aim of the research is to determine and substantiate the features of the stock reevaluation methodology for the higher education institutions during the period of their accounting. It is proposed to clarify certain provisions of accounting procedures normative regulation in the process of determining the net realizable value of inventories. Carrying amount of inventories is the value at which stocks are included in the balance sheet, that is recognized alternatively by original, restorative (revalued) and fair value (depending on the nature of the previous transactions). Original cost of inventories is the value of inventories at the time of posting, which is identified as the cost of purchased inventories, the cost of the manufactured inventory, the fair value of the inventories that are received on a royalty-free basis. Revalued cost is the current cost of purchased inventories (their revalued value). Fair value is the cost of inventories that are received free of charge by the institution of higher education (from the supplier, benefactor / patron in the process of economic activity) and determined at the level of existing market prices for similar stocks. The discrepancy between the conditions of the recognizing a net realizable value of inventories taking into account financing the activities of higher education institutions is studied. There is a clear status of procurement regulation for budget institutions (including higher education institutions). Procurements are based on their value (in most cases, the smallest from offered by the suppliers), on the reputation of the supplier, acceptable terms of the delivery. As a result, the non-active market is not considered for the stock of higher education institutions (that is planned for purchasing). Taking into account the above, the organization of carrying out calculations of the balance of reserves of budgetary institutions on the reporting date is specified. Peculiarities of determining the net realizable value of inventories according to the principles of international accounting standards for the public sector are revealed, as well as the alternatives to the application of the mentioned approaches in the accounting practice of domestic state institutions of higher education.
The problematic issues of documenting transactions of the book value for stocks in the cases are determined: their receipt without payment to the supplier, the revaluation of balances of stocks at the balance sheet date. Certain procedures for determining the net realizable value of inventories are proposed, using the data on the market value of analogues in order to ensure the reliability of the valuation (which contributes to the principles of rational and targeted use of budget funds spent on the purchase of material resources of budgetary institutions).
The results of the study will ensure both reliability and objectivity of the accounting information on the indicators of stocks in the forms of financial reporting. They will increase the functional role of professional judgment, objectivity of data on the need for state financing of operations with stocks too.