Choosing a method of accrual and accounting for intangible assets’ value amortization

Abstract

Subject. The article considers new accounting regulations on amortization of intangible assets presented in the new Federal Accounting Standard FSBU 14/2022 – Intangible Assets. Objectives. The purpose of the study is to define organizational and methodological recommendations on accounting for amortization of intangible assets. Methods. The study draws on general scientific methods, like analysis, synthesis, modeling, abstraction, and comparison. Results. The paper presents requirements, start time and termination of amortization of intangible assets, the aspects of choosing methods of accrual in the accounting policy of organizations. We offer organizational and methodological recommendations for practical application of methods to calculate amortization of intangible assets, and recommendations for accounting treatment of amortization of the said assets. Conclusions. To ensure the reliability of accounting data and financial statements, the accounting policy of organizations should describe a chosen method of calculating amortization of intangible assets, time of start and termination. It is crucial to approve and attach to the accounting policy primary documents for amortization of various groups of intangible assets, and use the proposed organizational and methodological recommendations on accounting treatment of intangible assets’ amortization.