Accounting in Social Sector Organizations: Methodological Issues and Areas for Improvement

Research Objective. To systematize scientific approaches developed within the methodological framework of accounting in public and non-profit organizations operating in the social sector of the Republic of Kazakhstan (hereinafter RK). By comparing domestic and international accounting practices, the study aims to identify current issues in the sector and propose relevant recommendations.

Research Methodology. The study employed a systematic and comparative analysis of the regulatory and legal framework governing the public and social sectors of the Republic of Kazakhstan, as well as international public sector accounting standards (IPSAS), the British Charities SORP, and Canadian accounting standards (CPA Canada). In addition, comparative, functional, and content analysis methods were applied to examine the works of domestic and foreign scholars addressing issues of accounting in the social sector.

Originality / Value of the Study. The uniqueness of the research lies in the consistent systematization of various approaches and principles that form the conceptual foundation of accounting in non-profit organizations within the social sector. The systematization of methodological approaches to accounting in this field contributes to the development of practical methods and standards aimed at optimizing accounting processes in institutions.

Research Results. The study of major schools and conceptual frameworks of accounting in the social sector allowed the identification of accounting objects and subjects. A system of comprehensive methods and approaches was proposed to ensure the completeness of information and data necessary for effective managerial decision-making.

1. Dossaeva, A. Zh., & Esaydar, U. S. (2020). Bukhgalterskiy uchet v gosudarstvennykh organizatsiyakh: Uchebnoe posobie [Accounting in public organizations: A textbook]. Karaganda: TOO «Medet Group». [in Russian].

2. Qazaqstan Respublikasy Qarzhy ministriniń (2025, mamyr 12). «Memlekettik mektemelerde bukhgalterlik esepke aludy zhurgizu kagidalaryn bekitu turaly» №223 buyrygy. Adilet [website]. Retrieved shilde 6, 2025, from https://adilet.zan.kz/kaz/docs/G25E0000223 [in Kazakh] (Electronic source)

3. Qazaqstan Respublikasy (2025, nauryz 15). «Kazakhstan Respublikasynyn Byudzhet kodeksi» №171VII. Adilet [website]. Retrieved shilde 6, 2025, from https://adilet.zan.kz/kaz/docs/K2500000171 [in Kazakh] (Electronic source).

4. Qazaqstan Respublikasy Qarzhy ministriniń (2025, Sáuir 24). «Esep sayasatyn bekitu turaly» №191 buyrygy. Adilet [website]. Retrieved July 6, 2025, from https://adilet.zan.kz/kaz/docs/G25E0000191/history [in Kazakh] (Electronic source).

5. Liapis, K., & Spanos, P. (2015). Public accounting analysis under budgeting and controlling process: The Greek evidence. // Procedia Economics and Finance, 33, Pp. 103–120. https://doi.org/10.1016/S22125671(15)01697-4.

6. Manes-Rossi F., Cohen S., Caperchione E., Brusca I. (2016). The Gordian knot of public sector accounting and the role of the International Public Sector Accounting Standards // International Review of Administrative Sciences 82 (4), Pp. 718-723. https://doi.org/10.1177/0020852316665048.

7. Schmidthuber L., Hilgers D., Hofmann S. (2019). International Public Sector Accounting Standards (IPSASs): A systematic literature review and futureresearch agenda // Financial Acc & Man. 2022 (38) Pp.119–142 https://doi.org/10.1111/faam.12265.

8. Carlin, T. M. (2005). Debating the impact of accrual accounting and reporting in the public sector. Financial Accountability and Management, 21(3), 309-336. https://doi.org/10.1111/j.0267-4424.2005.00223.x

9. Liguori, M., Sicilia, M., & Steccolini, I. (2012). Some like it non financial … Politicians’ and managers’ views on the importance of performance information //Management Review, 14 (7), Pp. 903–922. https://doi.org/10.1080/14719037.2011.650054

10. Jones, R., Lande, E., Luder, K., & Portal, M. (2013). A comparison of budgeting and accounting reforms in the national governments of France, Germany, the UK and the US. //Financial Accountability and Management, 29 (4). Pp. 419-441 // https://doi.org/10.1111/faam.12022.

11. 11.Maslova, T. S. (2007). Teoreticheskie aspekty organizatsii i metodiki bukhgalterskogo ucheta byudzhetnykh uchrezhdenii [Theoretical aspects of organization and methodology of accounting in budgetary institutions]. Bukhgalterskii uchet v byudzhetnykh i nekommercheskikh organizatsiyakh, 6(174), 6–16.

12. Bekova, R. Zh., & Dossaeva, A. Zh. (2022). Formirovanie uchetnoi informatsii bukhgalterskogo ucheta v gosudarstvennykh uchrezhdeniyakh [Formation of accounting information in public institutions]. Bukhgalterskii uchet i audit, (3[56]), 66–77. https://doi.org/10.55871/2072-9847-2022-56-3-66-77.

13. Spanova B., & Nakipova G., Mukatay. A, Jazykbayeva B. (2020). «Non-profit sector in Kazakhstan: influence analysis and development opportunities», Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), 2784-2802 // https://doi.org/10.9770/jesi.2020.7.4(14).

14. Dzhanshanlo, R. E., & Kogut, O. Yu. (2020). Kontseptual’nye osnovy formirovaniya integrirovannoi otchetnosti [Conceptual foundations of integrated reporting formation]. Central Asian Economic Review, 1(130), 111–123.

15. International Public Sector Accounting Standards (IPSAS) // URL: https://www.iasplus.com/en/standards/ipsas (қарау уақыты: 16.07.2025). (internet resource).

16. International Federation of Accountants (IFAC). (2021). 2021 financial statements. Retrieved July 16, 2025, from https://www.ifac.org/publications/2021-financial-statements.

17. Charities SORP. (2019). Accounting and Reporting by Charities: Statement of Recommended Practice (FRS 102). // URL: https://assets.publishing.service.gov.uk/media/5e6102c286650c513b442f14/charitiessorp-frs102-2019a.pdf. (қарау уақыты: 16.07.2025). (internet resource).

18. FRC. (2018). UK Financial Reporting Standards and SORP update.

19. Updated SORP charities encouraged to respond to consultation and be ready for change (2025). // URL: https://www.gov.uk/government/news/updated-sorp-charities-encouraged-to-respond-to-consultationand-be-ready-for-change (қарау уақыты: 16.07.2025). (internet resource).

20. Sultanova, B. B. (2015). Sovershenstvovanie sistemy bukhgalterskogo ucheta v Respublike Kazakhstan [Improvement of the accounting system in the Republic of Kazakhstan]. Journal of Economic Research & Business Administration, 85(3), 49–52.

21. 21.Khasenova, M. (2020). Teoriya i metodologiya bukhgalterskogo ucheta [Theory and methodology of accounting]. Retrieved July 16, 2025, from https://keu.edu.kz/attachments/article.pdf

22. Qazaqstan Respublikasy. (2007, February 28). «Bukhgalterlik esep zhane karzhylyk eseptilik turaly» Qazaqstan Respublikasynyn Zany No. 234 (2017 zhyldagy ozgeristermen). Adilet [Website]. Retrieved July 6, 2025, from https://adilet.zan.kz/kaz/docs/Z070000234_/links.

23. Qazaqstan Respublikasy Qarzhy ministrligi. (2025, April 16). Memlekettik mekemelerdin bukhgalterlik esepke alu shottaryn bekitu turaly buiryq No. 170. Adilet [Website]. Retrieved August 1, 2025, from https://adilet.zan.kz/kaz/docs/G25E0000170.

24. Accounting Standards for Not-for-Profit Organizations (ASNPO). (n.d.). Accounting Standards for Not-for-Profit Organizations (NPO Standards). Retrieved August 1, 2025, from https://www.iasplus.com/enca/standards/part-iii-asnpo

25. Qazaqstan Respublikasy. (2023, April 20). «Aleumettik kodeksi» Qazaqstan Respublikasynyn Kodeksi No. 224-VII. Adilet [Website]. Retrieved August 1, 2025, from https://adilet.zan.kz/kaz/docs/K2300000224.

26. Qazaqstan Respublikasy. (2015, November 12). «Memlekettik audit zhane karzhylyk bakylau turaly»Qazaqstan Respublikasynyn Zany No. 392-V. Adilet [Website]. Retrieved August 1, 2025, from https://adilet.zan.kz/kaz/docs/Z1500000392.

27. International Federation of Accountants (IFAC). (n.d.). IPSAS 42: Social Benefits. Retrieved September 8, 2025, from https://www.ifac.org/_flysystem/azure-private/publications/files/IPSAS-42-Social-Benefits.pdf.

28. International Federation of Accountants (IFAC). (n.d.). IPSAS 23: Revenue from non-exchange transactions (Taxes and transfers). Retrieved August 1, 2025, from https://www.ifac.org/_flysystem/azureprivate/publications/files/ipsas-23-revenue-from-non-3.pdf.

29. Qazaqstan Respublikasy Qarzhy ministrligi. (2013, Kantar 31). «Ulttyq karzhylyq eseptilik standarty» Qazaqstan Respublikasy Qarzhy ministrining buirygy No. 50. Adilet [Website]. Retrieved September 1, 2025, from https://adilet.zan.kz/kaz/docs/V1300008328.

30. International Federation of Accountants (IFAC). (2015). IPSAS 35: Consolidated financial statements. Retrieved September 1, 2025, from https://ifacweb.blob.core.windows.net/publicfiles/2025-04/B08_IPSAS_35.pdf.

31. Nurpeisova, A. A. (2019). Analiz finansovogo obespecheniya sotsial’noi sfery Respubliki Kazakhstan v sovremennykh usloviyakh. Evraziiskii Soyuz Uchenykh (ESU), 12(69), 86–90.

32. Saparbaeva, S. S., Zhumagalieva, Zh. M., & Turebekova, B. O. (2021). Osobennosti razvitiya natsional’nykh i mezhdunarodnykh sistem bukhgalterskogo ucheta v usloviyakh garmonizatsii ekonomicheskikh protsessov. Statistika, uchet i audit, 80(1), 31–37. https://doi.org/10.51579/1563-2415.2021-1.05.

33. Scannell, S., & Tawiah, V. (2024). A thematic literature review on International Public Sector Accounting Standards (IPSAS). Public Organization Review, 24, 1053–1075. https://doi.org/10.1007/s11115024-00773-1.

34. Mook, L. (2014). An integrated social accounting model for nonprofit organizations. https://doi.org/10.1108/S1041-706020140000017008.

35. Hall, M., & O’Dwyer, B. (2017). Accounting, non-governmental organizations and civil society: The importance of nonprofit organizations to understanding accounting, organizations and society. Accounting, Organizations and Society, 63, 1–5. https://doi.org/10.1016/j.aos.2017.11.001.

36. Kulmukhametova, A. A. (2012). O reforme bukhgalterskogo ucheta v gosudarstvennom sektore Respubliki Kazakhstan. Retrieved September 4, 2025, from https://cyberleninka.ru/article/n/o-reformebuhgalterskogo-ucheta-v-gosudarstvennom-sektore-respubliki-kazahstan.