Accounting aspects of contracts for the operation of public water supply assets in WSS operators

• Main Author: Nedyalka Alexandrova
• Format: Article
• Language: Bulgarian
• Published: Knowledge and business 2017-12-01
• Series: Ikonomika i Kompûtʺrni Nauki
• Subjects: intangible assets; assets and liabilities valuation; WSS industry
• Online Access: http://eknigibg.net/Volume3/Issue6/spisanie-br6-2017_pp.19-36.pdf

The article investigates and analyses the nature of the Contracts for exploitation of WSS assets concluded between the Water Supply and Sewerage Associations and operators under the Water Act in order to outline the opportunities for accounting of the assets and liabilities resulting from these contracts. The contracts, as well as the WSS Associations, are new and unique for Bulgarian practice phenomena, affecting the entire water supply sector and their reporting poses considerable difficulties in practice. The article is based on an analysis of the normative requirements of the Water Act, a study of the clauses of the contracts, as well as their comparison with the concession contracts. Based on the analysis of their economic nature and under the requirements of the International Accounting Standards, a model of accounting for the assets and liabilities arising from these contracts is proposed, including their presentation and valuation in the financial statements of the operators.