Accounting policy as a tool for forming management reporting (Management Accounting) in the public sector

Abstract

Abstract. The relevance of this study is determined by the growing role of management information in the public administration system under conditions of limited budgetary resources, increasing transparency requirements for public institutions, and the digital transformation of managerial processes. At the same time, management reporting in the Ukrainian public sector lacks clear regulatory framework, which leads to fragmentation of information support for managerial decision-making and limits the analytical potential of financial and budgetary reporting. The purpose of the article is to substantiate the role of accounting policy as a tool for forming a management reporting system in the public sector and to develop methodological approaches to its integration with internal management analytics. The methodological framework of the research is based on the methods of scientific abstraction, analysis and synthesis, comparative analysis, systems approach, generalization, and structural-logical modeling. The study employs regulatory and legal acts in the field of public sector accounting and reporting, materials from scientific publications, as well as analytical data from financial and budgetary reports of public institutions. As a result of the study, the sources of management reporting formation in budgetary institutions are systematized and the mechanism of their integration within the accounting policy framework is substantiated. It is established that accounting policy ensures the transformation of regulated financial and budgetary information into management-oriented indicators through the definition of analytical dimensions, valuation methods, internal aggregation forms, and procedures for information detailing. A model for using financial and budgetary reporting forms within the management analytics system is proposed, and the concept of a special appendix to the accounting policy aimed at regulating internal management reporting is developed. The practical value of the obtained results lies in the possibility of applying the proposed approaches in the activities of budgetary institutions to standardize management reports, enhance the consistency of information flows, strengthen control over the use of budgetary funds, and substantiate managerial decisions.