Improving the Accounting of Construction and Repair Expenses in State Higher Education Institutions

The article investigates the improvement of accounting for construction and repair expenses in state higher education institutions on the basis of the real annual financial statements of a large public university - the Nizami National Pedagogical University of Uzbekistan - for 2021–2025 (twenty-five reporting forms). Using dynamic, structural and ratio analysis together with two-factor chain-substitution analysis, the study establishes that repair expenditures contracted from UZS 16.1 billion to UZS 1.9 billion over five years, that the repair intensity ratio fell from 23.1 per cent to 1.4 per cent, and - as verified through three independent reporting sources - that UZS 25.8 billion of capital repair expenditures were recognised as period expenses without being capitalised. The root cause of the identified problems is shown to be the absence of a verifiable practical criterion for identifying capital repairs. As improvement solutions, the article proposes a three-element recognition criterion, a classification decision sheet, a capitalisation entry scheme, an integral index for assessing construction and repair expenditures (IAEI), an asset register, and mechanisms for disclosing deferred maintenance - all formulated in a form ready for implementation within an organisation’s accounting policy and internal control instruments.