PECULIARITIES AND PROBLEMAL ASPECTS OF FORMATION OF ACCOUNTING POLICY OF THE BUDGET INSTITUTION

Accounting policy and its in-depth study have recently shown that this issue is specific compared to others, because its correct and structured content is the correct organization of accounting. The main purpose is to study the peculiarities of the formation of the accounting policy of the budgetary institution, consideration of its main content, identification of problematic aspects, controversial issues regarding the need for its formation and use in accounting. The term «accounting policy of a budgetary institution» can be interpreted as a set of methods of accounting, which is independently developed by the budgetary institution in an administrative document agreed with the chief administrator of budget funds or a higher-level public sector entity. Accounting and its direct management in a budgetary institution is somewhat special and different when compared to commercial enterprises. This is due to the fact that the budgetary institution must comply not only with general legislation, but also with the budget. The latter should be considered a priority in accordance with the articles of the Budget Code. The formation of accounting policy a responsible task, because with the help of so-called «rules» builds an effective and efficient organization of accounting. The content of the accounting policy must meet the established requirements, contain information on valuation methods, as well as the organization of accounting. The content of the accounting policy of a state institution should not duplicate the norms according to National accounting regulations (standards) in the public sector and Methodical recommendations, but the administrative document should reflect all the selected options, as well as its features and reasons for application. This will include aspects such as methods for estimating the disposal of inventories or setting the useful lives of noncurrent assets. Thus, the study of the development, formation and application of accounting policies of the budgetary institution remains one of the most discussed issues among economists. The content of administrative document on accounting policy should comply not only with the general legislation, but also not contradict the articles of the Budget Code, which significantly complicates the process of its formation. In addition, it should not be forgotten that a large number of issues mentioned in the accounting policy are agreed with both the management of the institution and its chief administrator of budget funds. Of course, there are contradictory points, but a welleducated accountant, using professional judgment, can justify each paragraph of administrative document on accounting policy in favor of their own institution. Therefore, the formation of accounting policies is considered essential for the successful conduct of economic activities of the budgetary institution. In the course of the study it was proved that the creation of an effective accounting system is possible through the rational formation of accounting policies. Therefore, the primary priority of the budgetary institution will be the study of accounting policy as part of the management system of the public sector. Particular attention should be paid to the role of the accountant in the budgetary institution, because it depends on him whether the implementation of positive changes. Also, the main direction of further development will be to find ways to overcome these problematic aspects of accounting policy, which will improve accounting and make sound management decisions.