Accounting of payments under a commercial concession agreement

Abstract

In accordance with the Program for the Development of Federal Accounting Standards, Federal Accounting Standard 14/2022 “Intangible Assets” entered into force on January 1, 2024. At the same time, many questions arise about the application of this standard in various and frequently encountered situations, in particular, when concluding commercial concession (franchising) agreements, under which lump-sum payments and royalties are paid. Using the example of various practical situations, the article considers the procedure for recording non-exclusive rights to use the trademark of another franchisor organization in the accounting of a franchisee organization. During the research, such methods as analysis and synthesis, the method of comparison, grouping, analogy, logical and systematic approaches were used. The research results obtained in this article can be applied in the practical work of modern organizations, in the educational process of higher educational institutions and in the development and reform of regulatory documents on accounting, reporting and auditing. The results presented in this paper will also be useful to a wide range of readers interested in modern problems of accounting, reporting and auditing at the domestic and international levels.