Intangible assets are property that does not have a physical form, but represents an enterprise. In addition, they, like fixed assets, are aimed at making a profit in the course of financial activities. The accounting of this group of funds is somewhat different from the collection of information about the rest of the property. We will get acquainted with the features of its organization and the structure of the assets themselves in this article.
What is intangible assets? What applies to them? A novice accountant is probably tormented by such questions. If the image of material property emerges immediately, how can one imagine something else?
Let us analyze the main conditions for assigning funds to the group of intangible assets. So, representatives of this category must meet the following criteria:
The enterprise itself, in order to use intangible assets in its activities, must have the right of ownership to them.
With the growth of scientific technologies, the number of types of intangible forms of property increases. A dozen years ago, only exclusive copyrights were included here, but now the group has about 7 categories, which include:
It should be borne in mind that, as an intangible asset, it is not the result of research and intellectual work that is recognized, but the exclusive right to use it for commercial purposes.
The results of intellectual activity are also intangible assets. What applies to them? Predominantly patent or copyright assets. The first category includes rights arising in the scientific and design field. It:
The second category includes property created on the basis of the objective ideas of a certain author. These are works of art, software, databases, topologies of integrated circuits and other assets.
The main difference between copyright and patent law lies in the way it is recognized, which in this case resembles the relation of the part to the whole. If a patent is issued for any invention and protects the work itself, then copyright is assigned only to the form of expression of the subjective view of different owners on the same idea.
It would seem that what is common between the costs and assets of the enterprise? In some cases, they may be reflected in the composition of intangible assets. To do this, it is enough to meet several conditions:
Funds that meet these criteria can be confidently included in intangible assets. All further modification costs accounting policy, stamps, seals and other documents are classified as general business expenses.
The classification of intangible assets provides for the formation of such property as goodwill. It is considered only if there is a sale of the enterprise. Goodwill is understood as the difference between a market company and a company with an established reputation (positive or negative). It turns out that goodwill has its own price, which means that it is sold and bought in the same way as any other property.
In the case of the formation of a positive business reputation, they speak of additional amount a premium that must be paid to the seller because the presence of goodwill will bring economic benefits to the new owner in the future. The negative characterization of the company in the market can lead to problems and difficulties that hinder activity and profit. This is due to poor management, the lack of an established sales system, marketing plan, regular customers and connections, and for other reasons. This situation reduces the cost of the enterprise and requires a discount from the seller.
It has already been clarified what intangible assets are, what applies to them, what are their specific features. Realizing that this property is equated to fixed assets, the question should be asked: is it depreciable? Since NMAs do not have a physical form, how will they wear out? Basically, depreciation takes the form of obsolescence. When determining the amount of deductions, one should rely on the following rules:
Account 05 is used to collect accumulations of depreciation amounts. This is a passive accounting account: credit is accrued, and debit is written off. When drawing up a balance sheet credit balance used in the calculation of the NMA indicator.
Different types of intangible assets require an individual approach to their evaluation and depreciation. The linear method is universal for any property, regardless of its useful life, the amount of profit generated and other indicators. The method is often resorted to in cases where it is impossible to determine the exact operating period, and it is difficult to predict the receipt of possible economic benefits in the future. The method assumes a uniform distribution by months total amount depreciation.
They are used for intangible assets, the profit from which will be the largest in the first years of operation. The amounts are unevenly distributed but remain constant over one period. For the calculation, an acceleration factor is used, which is regulated by accounting policy. The indicator of residual or market value is multiplied by a fraction: the numerator is the coefficient, the denominator is the period of the remaining operation, defined in months.
The production method is the most flexible approach, depending on the financial result obtained. The amounts are calculated in direct proportion to the volume of manufactured / products sold with the participation of NMA.
In order for a property to be registered, it is necessary to know exactly the value of its value. Like others fixed assets, intangible assets are reflected in accounting at the cost of the original, identified on a certain date. The composition of the actual amount that had to be spent on the manufacture or acquisition of intangible assets includes:
If it is difficult to evaluate self-made intangible assets, a comparative analysis should be carried out with similar products on the market.
In the future, the company has the right to revaluate property in accordance with the instructions of the accounting policy. In the event of a decrease in the price of an intangible asset, the initial cost changes. The difference between the market and actual cost is written off to the financial results of the enterprise.
After determining the initial cost, it is necessary to establish the useful life of intangible assets. The duration of the property rights to the possession of intangible assets is taken as a basis. In other cases, they rely on possible term making a profit. The main intangible assets are divided into two categories:
If everything is clear with the second type, then for the first it is recommended to stop at 20 years. The determination of the operating period must necessarily be based on an analysis of the possible profit, since the period is used to calculate depreciation.
To collect and group information about property that does not have a material form, two accounts are used: 04 and 05. The latter, as already known, is created to accumulate depreciation. Account 04, on the other hand, collects all data on the types, costs and processes taking place with intangible assets. This is an active inventory account, the debit balance of which is reflected in financial reporting. In addition, the company uses accounts 19.2 and 48 to characterize VAT and the sale of intangible assets.
A prerequisite for the organization of accounting of intangible assets is the maintenance of analytical accounts for each group or individual units of property. The following sub-accounts can be used as an example:
Data analytical accounting must be specified in annual reporting(Form No. 5) in the section characterizing the composition of intangible property.
Knowing what intangible assets are, what relates to them, we can assume with which accounting accounts account 04 will interact. Based on the characteristics of an active account, debit operations characterize the acceptance of intangible assets for accounting through purchase, receipt, exchange. 04 and 08, 50-52, 55, 75-76, 87-88 become interconnected accounts. The write-off of intangible assets in particular cases of sale, liquidation, exchange leads to an entry in the credit of account 04. In this case, there is an interaction with the debit of accounts 06, 48, 58, 87.
The act of acceptance of intangible assets is a document on the basis of which the receipt of property is recorded. The procedure for reflecting intangible assets differs depending on the method of obtaining them:
Property of this type can be written off from account 04 in cases of sale, gratuitous transfer, liquidation or redirection to the capital of other enterprises. These are the main reasons why intangible assets are retired. Regardless of the write-off method, the 48th account with an active-passive structure is used. The debit records the value of the initial cost of intangible assets, the amount of VAT on them, as well as disposal costs. The loan indicates the accumulated depreciation, as well as the amount of income from the sale or other benefits.
Turnovers on account 48 allow you to highlight the financial result from the process: income in the event that the turnover on the loan exceeds the turnover on the debit and vice versa. The data is written off to the appropriate account - 80, 84, 83, 98 (depending on the reason for the exit of intangible assets from the balance).
Characteristics of a business transaction |
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Income from the sale of intangible assets is attributed to the increase in the authorized capital. |
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The loss from the realization of the property right is attributed to the reduction of the initial capital. |
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Income from gratuitous receipt of intangible assets is not included. |
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On account uncovered loss a patent for industrial purposes was donated. |
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A positive difference is reflected between the contractual and book value of intangible assets to be transferred as a contribution to the capital of a third-party company. |
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Income from investing intangible assets in another organization is written off in equal shares to the authorized capital. |
Intangible assets are no less important for the success of the enterprise than other types of non-current assets. It is this type of ownership that becomes a unique advantage in the market for the company over competitors.
Every business operates for its own benefit. It cannot profit from nothing, therefore it has certain economic resources. Such resources are necessary for investments, purchases, sales and other manipulations from which financial benefits are expected in the future. Economic resources in science are called assets. They need to be taken into account, monitor their turnover, compare indicators, and so on. There are several types of them, we will talk about them below.
These are all rights to the property that the enterprise has (fixed assets, stocks, financial contributions, requirements monetary nature to legal entities and individuals). The concept of tangible assets or assets in general is used to refer to any kind of property. it economic concept includes 4 types:
Accounting for intangible assets is based on the principle of current and non-current assets. Circulating assets are endowed with a property that implies their constant use in the production process or other activities of the enterprise. Non-current are reflected in accounting documents, even if they have already been withdrawn from the economic management of the enterprise (turnover). Tangible assets are accounted for by specially trained people - accountants. They see where the funds are spent, for what and how much profit the company received from this. 
Production economic resources can be own, rented and located in free use. Tangible assets acquired under the rights of financial leasing are not defined as own, but as being under the control of this company.
To this species assets include goodwill, that is, the goodwill of the company, objects of intellectual labor ( intellectual property- IS). The owner of IP has the exclusive right (IP) to the object of intellectual work:
Depending on the type of activity, there different types accounting. Also the financial analysis depends on the system of taxation applied to the enterprise. In small firms, the director himself often keeps records; it is not uncommon to seek help from specialists working in an incoming mode.
In recent years, outsourcing services have become popular. Specialists of this orientation clearly and promptly monitor various changes in legislation and, therefore, are aware of all innovative introductions. This means that such a specialist will be able to provide high-quality and qualified support in accounting for production assets or taking into account the tangible assets of other enterprise resources. 
Outsourcing services are not neglected by large companies either, since an employee working in a regular mode does not always have time to attend all advanced training courses or relevant seminars.
When the work is in the hands of professionals, the manager can be sure that the documentation is in order at his enterprise. This means that he can effectively plan his day and respond to weak points in time.
MPA, or material exploration assets, are needed to carry out exploration work and processes for evaluating natural resources (fossil deposits and others). The funds spent on the search are material in nature (expression):
In accounting, tangible exploration assets have a separate line (balance sheet) where they are recorded. There is also a separate account for non-current assets (their investments). The firm determines the types of search costs. The remaining tangible and intangible assets are accounted for by type ordinary activities. Non-current assets refer to a separate subsoil plot for which there is a license, and are hereinafter referred to as “exploration assets”. 
Search costs are attributed to the creation (acquisition) of an object and are called MPA, and all others are intangible search economic resources:
Funds of a tangible nature and intangible, related to search, are accounted for on different sub-accounts. The accounting unit that takes into account the tangible and intangible assets of search areas is determined taking into account fixed assets and does not material resources respectively.
Performing an assessment of tangible economic assets, apply the method of calculating net worth (book value). It is the simplest, but has its drawbacks. There are other methods as well.
To obtain a net value that takes into account tangible production assets, all short-term and long-term liabilities of the company are subtracted from the currency value on the balance sheet. So, includes the cost of equity of the company. This is the value of the net asset value. 
The main drawback in this calculation is the lack of reflection of the potential profit that can be obtained from assets. In the presence of a high inflation rate, the result of this technique quickly ceases to be realistic. In addition, when assessing fixed assets using this method, the initial cost of tangible assets becomes less by the amount of depreciation. This analysis of the value of funds in the balance sheet, which is taken into account and is called residual, differs significantly from the market value.
Another drawback is found when accounting for tangible assets by this method is that the book value includes assets with a high estimate. This is due to their repeated re-evaluation. At the same time, liquidity turns out to be small, since assets are difficult to sell or their sale is impossible. Such economic resources do not have market valuation, although included in the book value of the firm.
The assets of the organization according to their content are simply classified into 3 groups - tangible, intangible and financial. Tangible assets (MA) are any property of an enterprise that is of a physical and tangible nature and is used in commercial activities for profit. A distinctive feature is the ability to give them a monetary value.
Tangible assets are the company's resources expressed in physical and property form used in production or non-production activities. They can be fully or partially spent in the manufacture of goods for final consumption or transfer their value to finished products in the form of depreciation in the process of wear and tear.
As an example, stocks of raw materials, materials, equipment, finished products, buildings and premises can be mentioned. The level of MA security determines the stability of the enterprise, the continuity of the production process and, ultimately, a positive financial result. Also importance has a structure of material resources and the share of each type in the total value of assets.
Assets are usually divided in a simplified form into 2 groups:
Non-current assets include buildings land, equipment, transport. All this property is called fixed assets if it is used in the main activity - the production of products, the performance of work or the provision of services. In addition to fixed assets, MA are also considered investments in tangible assets, as well as prospecting MA - equipment, vehicles, buildings and other property used for the development of deposits and the search for minerals.
Current assets include stocks of raw materials and materials, finished products, fuel, work in progress. These are those resources that fully transfer their value to finished products (or services) as a result of one production cycle, as well as stocks of the products themselves and goods purchased for resale.
In accounting, assets are reflected in sections 1 and 2 of the balance sheet.
| FIXED ASSETS | CURRENT ASSETS | ||
|---|---|---|---|
| Intangible assets | 1110 | Stocks | 1210 |
| Research and development results | 1120 | Value added tax on acquired valuables | 1220 |
| Intangible search assets | 1130 | Accounts receivable | 1230 |
| Tangible Exploration Assets | 1140 | Financial investments (excluding cash equivalents) | 1240 |
| fixed assets | 1150 | Cash and cash equivalents | 1240 |
| Profitable investments in material values | 1160 | Other current assets | 1260 |
| Financial investments | 1170 | ||
| Deferred tax assets | 1180 | ||
| Other noncurrent assets | 1190 | ||
| TOTAL for Section I | 1100 | TOTAL for section II | 1200 |
It can be seen from the table above that MAs are included in lines 1140, 1150, 1160, 1190, 1210, 1260. Also, if accounts receivable(line code 1230) has a natural expression, i.e. the counterparty must deliver goods for a certain amount, then such an asset can be classified as tangible.
According to the speed of transformation into money, assets are classified into absolutely liquid, realized quickly, slowly and difficultly. It is on the first two groups that the business reputation of an organization most often depends, which characterizes the quality and deadline for fulfilling obligations under concluded agreements and the market value of the business for investment purposes.
The solvency and condition of the enterprise are influenced by the turnover rate of MA, the duration of turnover, the average balance, the value per 1 ruble of revenue and profit.
If the share of circulating liquid resources in the MA structure is insufficient, the enterprise may experience difficulties in fulfilling obligations and problems with solvency.
Another important issue is the optimization of the size of stocks, especially those that are not subject to long-term storage. If they are large, additional costs may arise (rent of warehouses, special equipment). Such costs may not be appropriate for a small enterprise in the absence of its own premises, since the cost will be too high and lead to a lack of profit. Insufficient stocks can lead to production downtime, which translates into a decrease in revenue.
In order to maintain the optimal quantity, check the availability and quality of equipment and materials, it is necessary to conduct an inventory regularly. Terms and frequency are set by the company independently, according to the length of the production cycle. Express assessment can be done according to the balance sheet data in the reporting periods.
When assessing the balance, the following points should be taken into account:
To obtain a stable profit, it is necessary to control the volume and intended use of tangible assets, optimize their structure and ensure replenishment and renewal in time.
Tangible assets are tangible, used in the main activities of the company more than a year, are not subject to sale (sale).
From the point of view of accounting, tangible assets are divided into current (used in one production cycle) and non-current (used over several production cycles). Reliable accounting of tangible assets is possible with established consumption rates (materials, components, raw materials), high-quality measuring equipment, and an efficient supply system.
The availability of tangible assets allows the company to efficiently and continuously produce products, provide comfortable working conditions for staff, and consistently make a profit.
The total amount of tangible assets at the enterprise depends on the turnover, product features, delivery times, business efficiency as a whole. The assessment of the security of the enterprise with tangible assets is carried out using the materialization coefficient.
The indicator reflects the ratio of tangible assets and the total value of the company's assets, calculated in financial terms. For example, small companies operate on rented premises, manufacture goods using the “Just in time” method, ordering a minimum amount of raw materials.
The methodology for accounting for such assets on the company's accounts, as well as the specifics of depreciation, are established in accordance with PBU (accounting regulations) issued by the Ministry of Finance of the Russian Federation. International companies apply IFRS (International Financial Reporting Standards), which are established by the non-governmental Financial Reporting Standards Board.
Valuation and accounting of assets depends on the source of their receipt.
The order of reflection of material circulating stocks is determined by IFRS-2 "Inventories". Inventories, in accordance with the standard, include assets in the form of raw materials and materials for use in the production of products and services or held for sale in the normal course of business or used in the production process for such sale. Consequently, circulating stocks are goods purchased and held for resale in the broadest sense of the word. If land, real estate, machinery and machinery are purchased for resale, they are included in current inventories and accounted for as goods. Inventory includes raw materials and supplies finished products, unfinished production.
IFRS-2 applies to inventories to be measured at historical (original) cost. Inventories covered by this standard must be valued at the lower of cost and net realizable value.
Potential net selling price – the estimated selling price under normal market conditions, less the costs of work and possible selling expenses associated with the sale.
Cost of inventory includes the costs of acquiring, processing and other costs associated with bringing the inventory to its present location and bringing it to the state in which it is now.
Acquisition costs(transport and procurement costs) include the purchase price, import duties and other non-refundable taxes, costs for intermediaries and consultants, transport, forwarding, and other costs directly attributable to the purchase of goods, materials and services. Trade discounts, chargebacks and other similar amounts are deducted from these costs.
Processing costs include direct labor costs and other similar direct costs, as well as systematically allocated fixed and variable production overheads.
Fixed production overheads for each unit of output are allocated based on the production capacity of the enterprise under normal operating conditions. The amount of these costs, included in the cost of a unit of output, remains unchanged when the volume of production decreases and even when it stops. But variable overhead costs are fully allocated to the output in a given reporting period.
Other costs are included in the cost of material current assets only if they are directly related to the processing of this asset.
The cost of inventory should not include:
All these expenses are included in the expenses of this reporting period.
The standard allows the use of the normative method of determining the cost of inventories and the method of retail prices for the convenience of accounting, if, when applying them, the deviations from the actual values of the cost are small and one can say about the approximately correct value of the cost. The standard cost should be reviewed regularly and revised as necessary.
The retail price method is used in retail trade by adding a certain margin to the purchase price of goods, which in Russian conditions is called a trade margin.
Inventory cost calculations. IFRS 2 establishes that the cost of those inventories that cannot be considered as fungible, as well as goods and services produced for use in special projects, is determined individually for each such stock.
Inventories that differ from the definition discussed above are valued at weighted average cost or using the FIFO (first in, first out) formula. Average cost calculated periodically or as each regular delivery arrives. Since 2005, it is not allowed to use an alternative approach to determining the cost using the LIFO formula (last receipt - first issue to expense). Each entity is required to apply the same cost formula for all inventories that have the same use characteristics. For different characteristics and use of stocks, different cost formulas can be applied.
Average actual cost incoming working stocks consists of their invoice cost paid to the supplier upon purchase, transport and procurement costs. Transport and procurement costs vary depending on the size of the consignment, changes in the geography of suppliers, the type of transport used, methods of loading and other factors. The invoice value of material assets also changes. Therefore, in practice, the actual procurement cost is determined as a weighted average based on all incoming batches and actual supply conditions for the reporting period.
Evaluation of material assets at purchase prices. The definition of "purchase prices" is ambiguous. Purchase prices include contract prices with discounts and discounts, and the so-called invoice prices, that is, the cost of material assets arising from the supplier's invoice. Invoice prices are determined by agreement with the inclusion of the cost of various additional services, transport costs.
Valuation by FIFO and LIFO methods. FIFO is a method of valuing material assets at their original cost. With this method, the rule is applied: “the first batch for income - the first for consumption”, that is, the consumption of material assets is estimated at the cost of their acquisition in a certain sequence: first, the cost of the material is written off as an expense at the price of the first purchased batch, then the second, third, and so on in order until the total amount of material is exhausted. The order of evaluation does not depend on the actual sequence of spending of batches of received materials.
Inventories are shown in the balance sheet for separate items in accordance with their classification based on the method of use in the production of products (works, services) and other activities.
As of the end of the reporting year, inventories are reflected in the balance sheet depending on the accepted method of valuation of inventories when they are disposed of.
AT financial statements The following provisions of the organization's accounting policy are subject to disclosure:
Inventories in Russian legislation are regulated by the Accounting Regulation "Accounting for inventories" (PBU 5/10), approved by order of the Ministry of Finance of the Russian Federation dated 09.06.01 No. 66n.
The following assets are accepted for accounting as inventories: used as raw materials, materials, etc. in the production of products intended for sale (performance of work, provision of services); used for the management needs of the organization.
According to IFRS-2, the measurement and reflection in accounting and reporting of the value of inventories should be carried out at the lower of two estimates: at cost or at market price. In this case, the cost price serves as the main initial base valuation stocks. It should include the purchase price of goods, the cost of delivery, storage and processing. Thus, the methodology for determining the cost of inventory of Western firms corresponds to the methodology for determining the actual cost Russian standard. Distinctive feature PBU 5/01 is the inability to apply the market price, with the exception of inventory items received free of charge.
In the Soviet accounting system, full cost all costs were included: both production and general business, the new Russian accounting system inherited the same approach.
According to world practice, IFRS includes only production costs, both direct and indirect, in the cost of sales. Their sum shows what the company costs to produce products. The costs related to the management of the organization, the depreciation of management buildings, the costs of maintaining the management apparatus, support services are not directly related to the production process, and therefore their mixing with production costs (account 20 debit, account 26 credit) is unacceptable.
Evaluation of exchanged objects fixed assets is made at the carrying amount of the transferred item plus or minus the amount of cash that was paid or received in this transaction. Neither profit nor loss in the operation of such an exchange is determined.
Fixed asset costs. The commissioning and accounting of fixed assets, in particular machinery and equipment, require additional costs to maintain them in an acceptable working condition. These costs in accounting:
a) are capitalized and increase the initial cost of fixed assets;
b) are written off as expenses of the reporting period;
c) represent the cost of replacing certain items of property, plant and equipment.
Repair costs and other costs to existing items of property, plant and equipment may be capitalized and added to the carrying amount of assets when they increase the originally calculated productivity or significantly improve the condition of the item.
Revaluation of fixed assets. The standard provides for two approaches to the revaluation of property, plant and equipment. The main one is that fixed assets should be accounted for at their original cost less accrued depreciation. Revaluation is possible only when the recoverable amount for this item may be lower than its carrying amount. The amount of depreciation is recognized as an expense of the given reporting period.
An alternative approach is that property, plant and equipment should be systematically revalued to fair (real) value (usually market value) at the revaluation date so that their carrying amount does not differ materially from their fair value at reporting date. At the revaluation date, the amount of accumulated depreciation is also adjusted. An increase in the book value of an object as a result of revaluation is reflected in the capital account, a decrease is written off as an expense and reduces the amount of reported profit.
Book value of any item of property, plant and equipment should be reduced if it is greater than its recoverable amount and expensed in the current reporting period, unless it can be written off against a previous revaluation to equity.
Disposal and write-off of fixed assets carried out when it is decided that they will no longer be used and no economic benefits can be expected from their disposal, such as sale, exchange or lease. Unused property, plant and equipment held for disposal must be carried at either their carrying amount or their possible selling price, whichever is the lower. The difference between the sum of net proceeds and the book value of the object, that is, its residual value net of accumulated depreciation charges arising from its disposal or disposal, is recognized as profit or loss for the reporting period. There are no gains or losses in the exchange of one fixed asset for another.
The depreciation procedure for property, machinery and equipment is determined by IFRS-16 Property, Plant and Equipment. This order largely coincides with general rules depreciation, established by IFRS-4 "Accounting for depreciation", but there are some differences. First of all, the standard introduces the concept of a category of property as a combination of assets that are similar in nature and use in the operations of an enterprise.
Amortized cost items of fixed assets is determined by the book value, reduced by the residual (liquidation) value. Liquidation value of an object, if it is significant, is determined as of the date of acquisition and start of operation and is subsequently not specified when prices for this object change. But if an entity uses an alternative method of valuing property, plant and equipment, in which items are revalued at fair value minus the accumulated depreciation, a new assessment of the salvage value is established after each revaluation of the object.
The useful life of the object and, consequently, the rate of its depreciation - can be revised under the influence of the modernization of the object; changes in repair and economic policy; market conditions; technical and technological changes. In connection with the revision of useful lives and for other reasons, the depreciation method itself may be revised.
IFRS 4 Accounting for Depreciation, while allowing entities to choose a depreciation method, does not suggest the use of any specific methods. On the contrary, IFRS-16 points out the depreciation methods that can be applied. These include the straight-line accrual method ( linear method), the declining balance method, and the product sum method.
Disclosures in the notes to the financial statements carried out by type of fixed assets. The standard stipulates that, according to the type and method of use, fixed assets should be combined into at least the following groups: land plots, land and buildings, equipment, ships, aircraft, auto vehicles, furniture and other accessories, equipment of administrative premises.
Methods for estimating the book value before deducting depreciation are disclosed.
Under the approach set out in IFRS 16, fixed assets held for the permanent use of an entity are used in more than one production cycle.
According to the Accounting Regulation "Accounting for fixed assets" (PBU 6/01), approved by order of the Ministry of Finance of the Russian Federation dated March 30, 01 No. 26n, fixed assets as a set of material assets used as means of labor in the production works or provision of services or for the management of an organization for a period exceeding 12 months, includes buildings, structures, working and power machines and equipment, computers, vehicles, tools, production and household inventory, accessories and other fixed assets. Consideration of property, plant and equipment depends on the accounting methods used (See Table 2).
IFRS 16 provides that “the useful lives of property, plant and equipment should be reviewed periodically and, if assumptions differ materially from previous estimates, the depreciation charge is adjusted for the current and future periods.” Thus, with regard to changing the useful life of fixed assets, IFRS provides for a more flexible accounting policy than Russian legislation.
The form of financial lease arises if the lease relationship meets one of the following requirements:
In April 1998, the IASB approved IAS-36 "Impairment of an Asset", which prescribes the accounting and disclosure of information about the loss (decrease) in the value of individual assets due to changes in their actual fair value (recoverable amount). The requirements for assessing the recoverability of assets and recognizing impairment losses set out in IFRS-6 Property, Plant and Equipment, IFRS-22 Business Combinations, IFRS-28 Accounting for Investments in Associates, IFRS-31 Financial Statements of Participation in a Joint activities”, with the release of IFRS-36 is no longer valid. It replaces the impairment accounting and disclosure requirements of all previous standards and applies to the impairment procedures for all assets.
IAS 36 does not address the impairment of inventories, deferred tax assets, assets arising from work contracts, and assets arising from most financial assets and employee benefit schemes.
Accounting for impairment of assets increases the truthfulness and objectivity of reporting information, allows users to obtain real data to assess the financial position of the company and the financial results of its activities
Impairment of an asset in contrast to depreciation, which distributes the repayment of the value of an asset over its useful life, is the process of depreciating individual assets so that they are recognized in the balance sheet at an amount not exceeding their real recoverable amount.
Impairment losses are recognized in the reporting period in which the excess of the asset's carrying amount over its recoverable amount is revealed, and are reflected in the income statement. They reduce the company's income and negatively affect financial results.
Reimbursable amount estimated by calculating the net selling price and value in use of the asset. The refundable amount is recognized as equal to the greater value of one of the two mentioned indicators. It is necessary to estimate the recoverable amount for each individual asset (group of assets) in all cases when it can reasonably be assumed that the carrying amount is partially impaired and the asset is already worth less; The recoverable amount of intangible assets and goodwill with an amortization period of more than 20 years must be assessed annually at the end of the reporting period.
Identification of assets whose value is declining, should be carried out at each reporting date to identify signs that indicate the possibility of an impairment of the value of assets. If there is no such indication, preparers are not required to make a formal estimate of the recoverable amount.
IFRS 36 suggests considering a number of indications that an asset may be impaired from external and internal sources of information.
The features listed above are not exhaustive. options arising in the actual activities of commercial organizations. Preparers of financial statements should comprehensively analyze the sensitivity of assets to various indicators that determine possible reduction their cost. If previous calculations have shown that the recoverable amount of an asset is much greater than its carrying amount, and nothing has happened in the current period that would affect this difference, it is safe to say that there are no reasons for the possible impairment of the asset.
There are indications that the asset's value may be depreciated, which, regardless of the recognition of an impairment loss, should cause a review and adjustment of the remaining useful life, salvage value, and possibly the depreciation method.
If the estimated recoverable amount is more than the calculated net selling price of the asset and the value of the asset, this means that the asset is not impaired and the second amount does not need to be calculated. When an asset is held for sale and future cash flows are expected from that transaction, the asset's recoverable amount can and should be limited to its net selling price.
net selling price best determined on the basis of a sales contract between independent, knowledgeable parties or based on current prices in an active market. In the absence of information on current prices, you can use the price of the last transaction, if after its completion there was no significant change in the economic situation. Net realizable value is determined by adjusting the market or other fair price of the asset by the incremental costs that are directly attributable to the disposal of the asset. They are deducted when calculating the net selling price.
Value in use of an asset is determined based on an assessment of future inflows (inflows) or outflows Money from the continued use of the asset in economic activity and from its final elimination.
There are so-called accrued liabilities, the amount of which is not known in advance, for example, interest on a loan, the repayment periods of which may vary under the influence of various circumstances.
IAS 37 defines it as follows: "A liability is a current obligation of an entity arising from past events that is expected to settle as a result of the disposal of resources embodying economic benefits from the entity."
reserves are obligations with an indefinite time and amount of reimbursement. In this sense, reserves appear to be rather conditional values, because there is an ambiguity in the maturity of the reserved obligation. Provisions are explicitly measured liabilities that must be clearly distinguished from accounts payable and other precise commitments.
The conditions for accruing reserves as assessed liabilities are reduced to three:
A reliable estimate of the liability is a sine qua non for the accrual of a provision. The definition of the reserve states that it is created with an unspecified amount. But without evaluation it is impossible to recognize any item in the balance sheet. A provision cannot be accurately measured, so IAS 37 states that the amount recognized as a provision should be the best estimate of the cost to settle the current liability at the balance sheet date. The best estimate is the amount that the company would have to pay to settle the liabilities at the balance sheet date. More accurate is the assessment of individual obligations. Others are valued based on statistical methods, the "expected value" described in the standard.
The standard stipulates that only those expenses are closed on the reserve account, to cover which it was created. The use of accrued reserves for other purposes is not allowed.
Contingent asset is the result of past events, but such an asset would qualify for recognition only if certain future events occur or not. Moreover, the occurrence of these events in the future is not obvious: they may or may not occur - for example, a lawsuit filed by a company, the possibility of winning which is assessed by experts as uncertain. A contingent asset is not recognized in the balance sheet until there is clear evidence that it qualifies for asset recognition. But in this case, it ceases to be a conditional asset.
A contingent asset is not recognized in the financial statements in accordance with the prudence principle, since its recognition would require the recognition of the corresponding income, which may never be received by the company.
Contingent liability arises from past events, but the reality of its existence will be confirmed by the occurrence or non-occurrence of certain events in the future, the company's ability to influence which is significantly limited or completely absent.
The Company does not recognize contingent liabilities in its financial statements, but is required to disclose a contingent liability in the notes if the prospect of its eventual settlement is not too remote.
