DIFFERENCE IN THE REFLECTION OF INTANGIBLE ASSETS UNDER IFRS AND NAS REPORTING ON THE EXAMPLE OF AGRARIAN FORMATIONS

Abstract

Introduction. Over the past ten years, significant changes and improvements have taken place in accounting and auditing, both in legislation and requirements for accounting and auditing. In particular, large enterprises should keep records under International Financial Reporting Standards (IFRS) and ideally reflect their performance in financial statements under IFRS forms. On the Balance Sheet of agricultural formations, one of the main assets is land, but since most enterprises rent it, there is a right to use land plots, which is an intangible asset. It is important for users of financial statements, who are interested in information in the field of land relations, to correctly understand the reflected names of articles and financial indicators in reporting. Problem Statement. Intangible assets are divided into different types and groups, but in the financial statements according to NAS for them there is only one article with the general title “Intangible assets.” In accordance with the requirements of IFRS, an entity has the possibility to divide types or groups of intangible assets into separate items. However, in Ukraine there is a problem of imperfection of financial reporting forms under IFRS, which requires in-depth study and wider disclosure of financial reporting items, including intangible assets. The purpose of the article is to distinguish differences between the reflection of financial indicators on intangible assets in the reporting forms under NAS and IFRS in agricultural formations and outline for users of financial statements advantages and disadvantages. Methods. General scientific methods of cognition and the study of phenomena and processes were used; statistical and economic methods of analysis - when summarizing and presenting information on financial indicators of intangible assets in reporting; comparison - when intangible assets are reflected in the financial statements under NAS and IFRS. Results. The article reflects the stages of formation of IFRS in Ukraine, focuses on the reflection of financial indicators in the NAS and IFRS reporting forms on the example of agricultural formations, their advantages and disadvantages, and characterizes the types of intangible assets. Conclusions. In the process of the research , the opinion was formed that the reflection of intangible assets under IFRS reporting is more detailed and informative than under NAS reporting.