Certain aspects of methodology for accounting of intangible assets

Abstract

Introduction. In today’s competitive environment; there is an urgent need to find new approaches to managing an enterprise and its intangible assets in order to ensure the stability and development of domestic enterprises. For effective management of the enterprise; there is a need to conduct research aimed at improving the accounting methodology in accordance with the present requirements and to increase the formation of quality information and accounting support of the management system; etc. Objective. The study is aimed at studying such elements of the accounting method as double-entry; the balance sheet; reporting by disclosing their nature; determining the impact on accounting and the formation of reporting indicators in the IAs and goodwill in accordance with the requirements of the applicable law. Methods. Analysis and synthesis are used to identify the current state of the study of the elements of the accounting method. Scientific abstraction and historical methods have been used to outline the problems investigated by scientists arising in the theoretical and practical area of accounting for IAs. Groupings; tables; graphs are used to classify IAs and goodwill and to establish the interconnection of the accounting method elements; etc. Results. The problems of accounting and reporting of intangible assets through the prism of such elements of accounting method as accounts; double-entry; the balance sheet; reporting are revealed. It is emphasized that the balance sheet as an element of the method should be understood not only as a form of reporting but first and foremost as a model for ordering accounting objects and summarizing information on the facts about the economic activity. Not all intangible assets are reflected in the accounts and respectively in the balance sheets of domestic enterprises. This applies both to recognized intangible assets under PAS 8 and internally generated assets that do not meet the recognition criteria but which increase the value of the enterprise. It is stated that the internal goodwill should be reflected in the financial and management accounting of the enterprise because of its existence during all current activities of the company; and not only at the moment of its realization. Keeping current records of goodwill at the enterprise will reduce the gap between its market and book value to a minimum. The impossibility of simultaneous attribution of intangible assets transactions to two types of activities; which is disclosed in the financial statements; is proved. It is noted in the Statement of Cash Flows that the information on the sale of intangible assets should be recorded as an operating activity. The revision of the definition of «investment activity» was emphasized. Prospects. It is necessary to conduct research in the field of improving the methodology of domestic accounting in general; including intangible assets through the study of approaches to the accounting methodology.