Methodological principles for forming accounting policies of public sector entities: control and efficiency

Methods. The methodological framework of the study relies on a set of general scientific and specialized research methods. In particular, analysis and synthesis were used to examine scholarly approaches to defining the essence of accounting policy; induction and deduction – to develop generalizations and draw conclusions; comparison – to juxtapose the features of accounting policy in the public and private sectors; a systems approach – to study accounting policy as an integral component of the management of budgetary resources; as well as generalization and abstraction – to identify promising directions for further development. Generalization and induction underpinned the conclusions and practical recommendations. Results. The study systematizes the regulatory and methodological foundations for forming the accounting policy of public-sector entities and outlines its dual purpose: ensuring public accountability and supporting managerial decision-making. Differences in approaches to shaping accounting policy in the private and public sectors are identified. The features of object-by-object presentation of accounting policy elements for public-sector entities are examined. The analysis also reveals fragmented methodologies and inconsistent practices across principal spending units, as well as limited digital integration of accounting processes. Novelty. The paper advances a conceptual interpretation of public-sector accounting policy as a strategic management instrument that combines regulating and organizational functions and focuses on decisions that materially affect financial reporting. An integrated approach to object-byobject presentation is developed with clear criteria for selection and disclosure. A three-vector model of modernization is substantiated – normative, organizational-methodological, and innovationtechnological. Practical value. The results can be used to design and update orders on accounting policy within systems of principal spending units and subordinate institutions, to unify decisions, and to reduce the risk of reporting errors. The proposed steps toward digital integration enhance transparency, comparability, and traceability while lowering administrative costs. The materials may be applied in professional development programs for public-sector accountants and in preparing methodological guidelines for gradual harmonization with IPSAS.