Financial reporting of budgetary institutions as an instrument of state control: from NPSAS to IFRS (IPSAS)

Naida Andrii
PhD (Economics), Associate Professor of the Department of Accounting and Taxation, Odesa State Agrarian University, Odesa, Ukraine, E-mail: andrew.od2017@gmail.com, ORCID: https://orcid.org/0000-0002-6371-1382

Kryukova Irina
Doctor of Economics, Professor, Head of the Department of Accounting and Taxes, Odesa State Agrarian University, Odesa, Ukraine, E-mail: kryukovaia1@gmail.com, ORCID: https://orcid.org/0000-0002-0577-6364

Shatskova Lіubov
PhD (Economics), Associate Professor of the Department of Accounting, Analysis and Audit, Odesa Polytechnic National University, Odesa, Ukraine, E-mail: lyubash18@ukr.net, ORCID: https://orcid.org/0000-0001-8974-6391

Volchek Ruslan
PhD (Economics), Associate Professor, Associate Professor of the Department of Management of Organizations, Associate Professor of the Department of Accounting, Analysis and Audit, Odesa National Economic University, Odesa, Ukraine, E-mail: ruslan1981196@ukr.net, ORCID: https://orcid.org/0000-0002-3741-1458

Received: 23.05.2025    Аpproved: 31.05.2025    Рublished online: 05.07.2025

Cite this article:

Naida A., Kryukova I., Shatskova L., Volchek R. (2025) Financial reporting of budgetary institutions as an instrument of state control: from NPSAS to IFRS (IPSAS). Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Finansova zvitnist bjudzhetnyh ustanov jak instrument derzhavnogo kontrolju: vid NP(S)BODS do MSFZ (IPSAS); za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 5 (330), pp.14-22.

Abstract

The article examines the financial reporting of budgetary institutions as a key instrument for ensuring effective state financial control in the context of ongoing reforms in the public sector accounting system of Ukraine. Special attention is given to the relevance of the transition from the National Public Sector Accounting Standards (NPSAS) to the International Public Sector Accounting Standards (IPSAS), driven by the need for transparency, reliability, and comparability of financial information. The paper provides a theoretical justification for the role of financial reporting as a component of the informational support system for state control over the use of budgetary resources. The authors conduct a comparative analysis of the provisions of NPSAS and IPSAS in terms of the completeness of financial disclosures, the existence of data verification mechanisms, the transparency of the reporting process, the consistency of accounting approaches, and compliance with the principles of sound management of public resources. It is demonstrated that IPSAS, unlike national standards, ensure a higher level of reporting transparency tailored to the needs of a broad range of users, including international financial institutions, state audit bodies, and the general public. The study identifies institutional and regulatory barriers that complicate the transition to IPSAS, such as fragmented regulatory support, a shortage of specialists in international reporting, the absence of adequate IT infrastructure, and the low level of financial autonomy of certain budgetary institutions. Based on the research findings, the authors propose a custom system of indicators for assessing the impact of reporting standards on the quality of state financial control. This system encompasses criteria such as timeliness, accuracy, completeness, comparability, accessibility, and verifiability of financial data. The uniqueness of the proposed system lies in its ability not only to reflect the level of compliance of reporting with key requirements, but also to identify critical risk areas that require regulatory or organizational improvement. Furthermore, the system is designed to introduce mechanisms for internal monitoring of reporting quality within budgetary institutions. Based on the conducted analysis, a model for the phased implementation of IPSAS in Ukrainian budgetary institutions has been developed.

Keywords

financial reporting, budgetary institution, state financial control, NPSAS, IFRS (IPSAS).

JEL classification: H830; M410; M480;DOI: https://doi.org/10.32680/2409-9260-2025-5-330-14-22

UD classification:657.37:336.146

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