Proceedings of The 5th International Conference on Opportunities and Challenges in Management, Economics and Accounting
The need of adaptation of Financial Statements in Public Sector in Bulgaria to IPSAS
Daniela Feschiyan and Radka Andasarova
This article outlines the main outcomes and conclusions from a theoretical, methodological and empirical study of the objective necessity for improvement information contained in financial statements in the public sector by adapting to the requirements of International Public Sector Accounting Standards (IPSAS). The paper summarizes a comparative analysis of the contents of financial statements of public sector entities in Bulgaria and standardization status of EU member States. The application of the International Public Sector Accounting Standards (IPSAS) by entities in Bulgaria, as a statutory basis of accounting for the preparation and presentation of the annual financial statements, is the appropriate way forward towards the creation of reliable and transparent accounting information for the purposes of financial and supervisory reporting. The change in financial reporting would enhance public administration efficiency and effectiveness and would facilitate control over the results of budget-financed entities.
Keywords: accounting system; annual report; standardization; public finances; transparency.