Recognition Of Intangible Assets Research Articles

Issues of accounting for intangible assets under the new standard at the stage of their identification

Subject. Since 2024, the new Federal Accounting Standard (FSBU) 14/2022 – Intangible Assets is mandatory. This article examines the categorical framework of this Standard, as well as the past and international standards in comparison with legal norms. Objectives. The article aims to identify the types of intangible assets to be accounted for in accordance with the new Standard, based on the essence and generic features, the legal content of the types of intangible assets mentioned in the accounting standards in order to identify them, based on their importance in generating economic benefits and participating in the processes of the organization. Methods. For the study, we used the general scientific methods of cognition, a systems approach, logical generalization, analysis and synthesis, and analogy. Results. The study shows that the new Standard is not much different from the old one in terms of defining categories. In contrast to the international similar standard, the domestic standard lacks detailed explanations that are essential for identifying costs as expenses of the period or intangible assets. Conclusions and Relevance. For the reasonable recognition of intangible assets in accounting, it is necessary that the Standard takes into account the norms of the Civil Code of the Russian Federation and other laws that make it possible to distinguish between generic and essential features of intangible assets, which are the results of intellectual activity and means of individualization. The presented results are intended to further develop the methodology and practice of accounting for intangible assets of organizations.

ACCOUNTING IN UZBEKISTAN BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS (as exemplified by intangible assets)

The article is devoted to the consideration of the problems arising in the process of globalization and experienced in adjusting the National Accounting Standards (NAS) in Uzbekistan, including the standard related to intangible assets, in compliance with the International Financial Reporting Standards (IFRS), as well as the solutions proposed thereof. Herewith the author proposes the recommendations worked out for recognition of intangible assets, assessment of book value, the method of calculating amortization, revaluation model, the order of disclosure of information on intangible assets in the financial statements in accordance with international standards (IFRS 38). Moreover, there some considerations on the revaluation model of intangible assets to assess their impact on initial value, amortization, long-term and total assets.

Subsequent measurement of intangible assets in FAS 14/2022: main innovations, problems and ways to solve them

From 2024, the Federal Accounting Standard (FAS) 14/2022 “Intangible Assets” will be introduced without fail. This document significantly changes the regulations provided for by PA 14/2007. In our previous work, we examined the most significant changes in the area of recognition of intangible assets in accounting, as well as in the area of the initial measurement of these assets. In this article, we will analyze the main innovations in relation to the subsequent measurement of the above assets in the accounting of Russian organizations (including healthcare organizations). In addition, we will explore the most important problems that arise in this area and present proposals for their solution. When conducting research, such methods as analysis and synthesis, comparison, grouping method, analogy method, logical approach, systematic approach were used. As a result of the research, the changes we identified in the field of the subsequent measurement of intangible assets are combined by us into several groups. Within these groups, we have identified the main problems caused by future innovations. Also, for each of these problems, we have identified ways to solve them. The results obtained in this article will be useful to a wide range of readers interested in modern problems of accounting, including the subsequent measurement of intangible assets, can be used in the educational process of higher educational institutions, in the practical work of accounting departments, as well as in the development and improvement of relevant regulatory documents on accounting.

Intangible assets: recognition criteria, classification and Evaluation

The article is devoted to the disclosure of the concept of «intangible assets» as accounting objects. The criteria for recognition of intangible assets in accounting are determined, their classification by types and groups is given. The composition of the actual costs of capital investments in intangible assets is disclosed. The evaluation methods are considered for various moments and in accordance with the purpose of the application.

Organization capital and firm risks

PurposeThis paper aims to investigate how organization capital influences different forms of corporate risk. It also explores how the relationship between organization capital and risks varies in the cross-section of firms.Design/methodology/approachTo test the hypothesis, this study employs the ordinary least squares (OLS) regression model using a large sample of the United States (US) data over the 1981–2019 period. It also uses an instrumental variable approach and an errors-in-variables panel regression approach to mitigate endogeneity problems.FindingsThe empirical results show that organization capital is positively related to both idiosyncratic risk and total risk but negatively related to systematic risk. The cross-sectional analysis shows that the positive relationship between organization capital and idiosyncratic risk is significantly more pronounced for the subsample of firms with high information asymmetry and human capital. Moreover, the negative relationship between organization capital and systematic risk is significantly more pronounced for firms with greater efficiency and firms facing higher industry- and economy-wide risks.Practical implicationsThe findings have important implications for investors and policymakers. For example, since organization capital increases idiosyncratic risk and total risk but reduces systematic risk, investors should take organization capital into account in portfolio formation and risk management. Moreover, the findings lend support to the argument on the recognition of intangible assets in financial statements. In particular, the study suggests that standard-setting bodies should consider corporate reporting frameworks to incorporate the disclosure of intangible assets into financial statements, particularly given the recent surge of corporate intangible assets and their critical impact on corporate risks.Originality/valueTo the best of the authors' knowledge, this is the first study to adopt a large sample to provide systematic evidence on the relationship between organization capital and a wide range of risks at the firm level. The authors show that the effect of organization capital on firm risks differs remarkably depending on the kind of firm risk a particular risk measure captures. This study thus makes an original contribution to resolving competing views on the effect of organization capital on firm risks.

Theoretical and legal characteristics of the concept and specialities of virtual assets by the law of Ukraine

This article highlights the theoretical and legal analysis of the distinction between the concept of intangible assets and related concepts. The author of the article analyzed the concepts of understanding the essence of the legal regime of intangible assets, and also outlined the provision that an important step in the recognition of intangible assets is the project of the Law of Ukraine «On Amendments to the Civil Code of Ukraine aimed at expanding the range of objects of civil rights», namely, the introduction of the concept of digital things into the Civil Code.In particular, a digital thing is a subject of the digital environment, which is in circulation only in digital form, and in respect of which civil rights and obligations may arise. Digital things are virtual assets, digital content, online accounts, money and securities that exist exclusively in digital form.As for the concept of virtual assets, a virtual asset is an intangible good that is the object of civil rights, has a value and is expressed as a set of data in electronic form. The existence and liquidity of a virtual asset is ensured by the system of ensuring the turnover of virtual assets.The proposition that the division of things into material and digital things is relevant today is argued. A comparative legal characterization of the following concepts was carried out, in particular the place of virtual assets among virtual property. The concepts of virtual assets and digital content, virtual assets and electronic money are compared. As for distinguishing intangible assets from related concepts, this follows from the features inherent in virtual assets, as well as the peculiarities of legal relations with respect to these assets.

Definition, composition and recognition of intangible assets according to FAS 14/2022

The new Federal Accounting Standard (FAS) 14/2022 “Intangible Assets” makes significant changes to the Russian accounting of these assets of organizations in the non-state sector (including healthcare organizations in this sector). In one of the previous articles, we explored the main innovations of the above standard. In this article, we will analyze in more detail the issues related to the definition, composition and recognition of intangible assets, in accordance with FAS 14/2022. The following methods were used in the research: analysis and synthesis, comparison, grouping method, analogy method, logical approach, systematic approach. As a result of the research, the FAS 14/2022 regulations regarding the definition, composition and recognition of intangible assets (including issues related to the value limit for such recognition) of organizations in the non-state sector (in particular, healthcare organizations in this sector) were analyzed in detail, the main problematic aspects in this area are identified and proposals for their solution are substantiated. In addition, this article provides numerous examples to clarify the requirements of the above standard. The results reflected in this paper will be useful to a wide range of readers interested in the problems of Russian accounting, including accounting for intangible assets. In addition, the results obtained can be applied in the educational process of higher educational institutions, in the practical work of the accounting departments of organizations in the non-state sector (including healthcare organizations in this sector), as well as in the development and improvement of relevant regulatory documents on accounting.

Prospects for accounting for intangible assets: Interpretation of the economic essence and conditions of recognition

Subject. This article discusses the issues related to the regulation of the interpretation and recognition of intangible assets. Objectives. The article aims to identify the prospects for solving the problematic aspects of the interpretation of the economic essence of intangible assets and the criteria for their recognition in accounting and reporting. Methods. For the study, I used a critical analysis, synthesis, comparison, observation, and the analogy approach. Results. The article presents the results of a study of new approaches to the interpretation of the economic essence and recognition of intangible assets in the FSBU Projects – Intangible Assets, developed by the Ministry of Finance of the Russian Federation and the National Non-Governmental Accounting Regulator "Accounting Methodological Center" (NRBU BMTs Fund). Conclusions and Relevance. Each of the Projects under consideration has both advantages and disadvantages with regard to the interpretation of the economic essence and the regulation of criteria for the recognition of intangible assets. Both the Projects are a step forward with regard to the regulation of these issues compared to PBU 14/2007. The results obtained have both practical and theoretical areas of application in the field of financial accounting.

Accounting for the recognition of intangible assets and the results of their valuation and revaluation

Subject. This article deals with the issues of valuation and accounting of intangible assets. Objectives. The article aims to disclose the organizational, methodological, and technical aspects of accounting for intangible assets and develop methodological recommendations for accounting for the results of revaluation of the value of intangible assets in accounts of organizations. Methods. For the study, we used analysis and synthesis, modeling, abstraction, etc. Results. The article reveals the organizational and methodological aspects of accounting for the recognition of intangible assets, the results of their valuation and revaluation, and it substantiates the methods and technical aspects of reflecting operations based on the results of revaluation of intangible assets in accounts. Conclusions and Relevance. To ensure the objectivity and reliability of intangible asset accounting data, federal and international accounting standards should be followed, and intangible assets should be clearly classified for accounting purposes into homogeneous groups. The results of the article can be applied both in the theory and practice of financial accounting.

Can the FASB Regain Its Mojo?

SYNOPSIS In recent years, the FASB has concerned itself with simplification of accounting standards, rather than prioritizing the improvement of financial reporting for the benefit of investors. While companies grow more complex and larger, and place more investments in intangible assets, financial reporting has not kept pace. This is making financial statements less relevant than ever. In its nearly 50-year history, FASB has responded well to the needs of investors when circumstances demanded an effective response. This was evidenced by its relatively speedy, experimental approach to inflation accounting in the late 1970s. Contrast that to its slow-motion response on intangible asset recognition and disclosures, a project languishing over 20 years. FASB's agenda has become clogged as the board devotes more of its attention and resources to the Private Company Council's needs. An open question: can the FASB regain its former intense focus on investor needs and put aside simplification efforts?

Primena principa konzervativizma nasuprot primeni koncepta fer vrednosti - primer srpskog tržišta kapitala

The characteristic of striving towards the application of the new valuation concept, as opposed to the application of traditional accounting principles, modern financial reporting prompted the authors of this paper to address the importance of the application of traditional accounting principles, especially the principle of prudence (conservatism), and the concept of fair value for the accounting information relevance. The most important business decisions in the entity are made on the basis of information produced by the accounting information system, based on which we see how important it is for this information to be up to date. The relevance of the information of the accounting system of first-class importance is the basis of evaluation, which is the subject of research in this paper. More precisely, the paper examines the methods of measurement after initial recognition of fixed assets on the example of a group of business entities operating on the Serbian capital market. The results of empirical research are of a twofold nature. Namely, for measurement after initial recognition of intangible assets, plant and equipment, as well as other property, plant and equipment, the concept of historical cost and the traditional accounting principles immanent to it are primarily used. For measurement after initial recognition of buildings, land, investment property and biological assets, the concept of fair value is more often used. In other words, using a practical example, we have shown that the combined basis of financial reporting is the dominant feature of modern financial reporting of entities operating in the Serbian capital market.

Do soccer player registrations meet the accounting concepts behind the recognition of intangible assets A discussion of the European context

Do soccer player registrations meet the accounting concepts behind the recognition of intangible assets A discussion of the European context

Do soccer player registrations meet the accounting concepts behind the recognition of intangible assets A discussion of the European context

Do soccer player registrations meet the accounting concepts behind the recognition of intangible assets A discussion of the European context

상장기업 무형자산 시장가치 측정 및 영향요인 분석: 지분이 인수된 기업을 중심으로

In this study, the market value of intangible assets of companies that acquired shares from 2011 to 2019 was measured through three models(OIVSUBts/SUB, OIVSUBtc/SUB, OIVSUBsc/SUB) using transaction price, market capitalization, and book value. Also, the OIVSUBsc/SUB of all listed companies was calculated for comparison purposes. As a result of the analysis, it was found that the degree of recognition of intangible assets was discriminated according to the purpose and target of the equity acquisition, and the kinds of investment. This phenomenon suggests that if more faithful to the recognition and evaluation of intangible assets, it would have made it possible to provide more relevant and meaningful information for corporate valuation. And, the size of the OIVSUBsc/SUB by year ranged from 0.8093 to 9.1730, and it has increased with the recent year. This is analyzed that management activities are appropriately transformed in knowledge economy environment. These research results can be provided as data to improve awareness of intangible assets, financial and accounting reporting system. And the three model and concept of measuring the market value of intangible assets used in this study is expected to be used as a useful tool for research in the field of intangible assets.

Pengakuan Aset Tak Berwujud Dan Perbandingan Metode Garis Lurus Dengan Metode Saldo Menurun Dalam Menentukan Pajak Penghasilan

The purpose of this study is to analyze the recognition of intangible assets and to compare the straights line method with the declining balance method in determining income tax. The method in this research is evaluation and qualitative research type. From the results of the research, it was identified that the company has intangible assets in the form of a personnel information system worth IDR 35,000,000, all costs used to obtain the system are recognized as intangible assets according to the criteria for intangible assets according to PSAK 19. Amortization calculation results in 2019 using the straight-line method amounted to IDR 8,750,000. So that the commercial comprehensive income generated is IDR 27,425,574,392. Meanwhile, the declining balance method resulted in amortization of IDR 17,500,000 and the resulting comprehensive commercial profit of IDR 27,416,824,392. After the fiscal reconciliation was carried out, the Income Tax amounted to IDR 6,285,027,465 using a straight line as the amortization calculation. Meanwhile, Income Tax with amortization costs uses the declining balance method of IDR 6,282,964,965. There is a tax savings of IDR 2,062,500 if you use the Decreasing Balance Method. So that the declining balance method is very suitable to use when economic conditions are sluggish like today due to the impact of Covid-19. The tax savings can be used to increase the company's capital to run business operations.

The Operating Returns to Acquired Intangible Assets

There is a long-standing debate on the recognition of intangible assets. Proponents of recognition argue intangibles are a key source of value and profitability, while opponents note that recognizing intangibles involves considerable measurement uncertainty. Using a broad sample of business combinations in the U.S. from 2003 to 2014, we find that the recorded values of acquired intangibles are a significant predictor of future operating income at one-, three-, five-, and seven-year horizons, using both in- and out-of-sample tests. Further, the predictive ability of intangibles dominates that of acquired tangibles, with goodwill being more important, but identifiable intangibles contributing as well. However, in cross-sectional tests we find that the predictive ability of intangibles weakens in settings where the relevance and measurement reliability of intangibles are lower. These results are informative to policy makers considering whether the costs of identifying and valuing intangible assets are justified.

The value relevance of accounting information including intangibles A comparative applied study of Companies Listed in the Egyptian stock market based on ownership structure

This study aims to examine the value relevance of accounting information for companies listed in the Egyptian stock market and the incremental increase in the explanatory power of accounting numbers resulting from the recognition of intangible assets and RD i.e. the less concentrated the firm’s ownership structure, the higher the value relevance of accounting information represented by the positive significance of earnings and book value of equity. In contrast, high concentrated ownership structures showed lower levels of value relevance with earnings numbers becoming more significant. Intangibles did not show any significance or value relevance in either of the two ownership structures.

CRITERIA FOR RECOGNITION OF INTANGIBLE ASSETS ON BALANCE STATEMENT

Здійснено порівняння підходів до трактування поняття нематеріальних активів у нормативно-правових документах, оцінено вплив наукових розробок на практику відображення нематеріальних активів в обліку та звітності підприємств. Встановлено, що для визнання кожного окремого нематеріального активу на балансі потрібно спершу з'ясувати, чи отримуватиме підприємство економічні вигоди від використання такого активу та чи може бути такий актив достовірно оцінений. З'ясовано, що облік і документальне оформлення нематеріальних активів залежить від природи виникнення або від джерела появи активу на підприємстві. Подано перелік витрат, що входять до первісної вартості нематеріальних активів для потреб їх відображення на балансі. Охарактеризовано зміст та вимоги до оформлення первинних документів, які є підставою для визнання і відображення нематеріальних активів на балансових рахунках бухгалтерського обліку. Зазначено підходи до встановлення строку корисного використання об'єкта нематеріальних активів. Розглянуто групування нематеріальних активів у системі рахунків бухгалтерського обліку. Висвітлено основні моменти щодо практичного вибору підприємством методу нарахування амортизації нематеріальних активів. Розглянуто послідовність перенесення інформації про первісну (переоцінену) вартість та суму накопиченої амортизації нематеріальних активів до статті Нематеріальні активи балансу підприємства. Запропоновано комплексний підхід до визнання нематеріальних активів на балансі, що задовольняє інформаційні потреби користувачів фінансової звітності.

The Shift in Corporate Credit Rating Standards: The Case of R&D Expenditure

This study contains exploratory examination on the change in the relation between corporate credit ratings and R&D expenses. Using U.S. firms with a credit rating from 1987 to 2013, we find that the negative relation between credit ratings and R&D expenditures in early periods has become weaker over time. The positive association between R&D expenditure and future performance is decreasing in recent periods, discarding the potential explanation on our finding that better R&D profitability would induce rating agencies to assess R&D expenditures more positively. This finding is also not explained by the change in sample composition and the recognition of intangible assets.

Business Model of Jamu as Indonesian Traditional Herbal Medicine in New Economy

. Many firms in New Economy tend to depend more on intangible resources (i.e. knowledge and information) than tangible resources as in Old Economy. This shifting has made many firms favour the information technology for their daily business conducts today. The fast spreading of information leads to the fiercer competition than before. The great recognition of intangible assets somewhat calls for the notion of a new business model. Some enterprises and researchers expect this effort may generate more value for today's competition through combining all assets in proper judgments. Jamu, Indonesian traditional herbal medicine, also cannot avoid the impact of New Economy competition. Jamu enterprises need to preserve the traditional value in the midst of the modern lifestyle. Then, the urgency to maintain Jamu competitive advantage is felt necessary. To provide the new business model of Jamu that is deemed as appropriate in New Economy's competition is the aim of this study. Through analysing various literature, the authors heavily consider Product Service System (PSS), specifically the product-oriented type to construct a new business model for Jamu.