What is the unit of accounting for intangible assets. Intangible assets. Intangible assets on the balance sheet are
Accounting intangible assets in accounting and tax accounting is quite specific. This is due to the special nature of such objects. Even the criteria themselves under which an object is recognized as an intangible asset differ in accounting and tax accounting. We’ll tell you how to accurately evaluate such an object, draw up documents on it and write it off as expenses.
Intangible assets in tax accounting
Intangible assets are objects that do not have a physical form, they are created as a result of intellectual activity and the company has documents confirming exclusive rights to such an object. Accounting for intangible assets in tax accounting varies depending on its value. Below are the general characteristics of such an asset.
Criteria for classification as intangible assets
Requirements for objects that are recognized as intangible assets in tax accounting are established in Tax Code. An intangible asset must be recognized as an object that meets all the criteria at once:
- the company has exclusive rights to an object of intellectual property and this is confirmed by documents (certificates, patents, agreements on the alienation of exclusive rights;
- it will be used in the company’s activities (for the production of products (performance of work, provision of services), for the management needs of the organization);
- term beneficial use object – more than 12 months;
- the use of the facility may bring economic benefits.
We have provided examples of intangible assets in the table below. The business reputation of the company, as well as the intellectual and business qualities of employees, their qualifications and ability to work do not apply to intangible assets.
What refers to intangible assets in tax accounting
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No. |
Name |
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The exclusive right of the patent holder to an invention, industrial design, utility model, selection achievements |
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Exclusive right to a trademark, service mark, appellation of origin and trade name |
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Possession of know-how, secret formula (process), information regarding industrial (commercial, scientific) experience |
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Exclusive right to audiovisual works (cinematographic works, television, video films and other similar works) |
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Research, development and technological work that has produced a positive result, provided that the organization has recognized the exclusive rights to this result as an intangible asset and not other expenses |
Write-off of the value of intangible assets
Depending on its value, an intangible asset may or may not be depreciable. This criterion establishes the procedure for writing off costs as expenses.
If an intangible asset that meets all the above criteria cost the company less than 100 thousand rubles, then it is not recognized as depreciable. All costs associated with its purchase or creation can be taken into account for income tax:
- at a time on the date of putting the intangible asset into operation;
- evenly throughout the period of use of the intangible material.
Intangible assets more expensive than 100 thousand rubles. will need to be expensed through depreciation. The Tax Code allows the use of two methods for this - linear and non-linear. The accrual procedure is the same as for fixed assets. You need to choose a method yourself and indicate it in accounting policy. Only objects from 8-10 depreciation groups (use life more than 20 years) need to be depreciated exclusively using the straight-line method.
It may be difficult to determine the useful life of intangible assets. You need to proceed from the validity period of the exclusive right to the object (according to the contract, patent). If it is impossible to determine the period based on these data, then it is considered to be 10 years. And for some objects in this case the period can be set independently, but not less than two years. Such objects include:
- exclusive rights to an invention, industrial design, utility model; Computer programs, databases; topologies of integrated circuits; breeding achievements; audiovisual works;
- possession of know-how, secret formulas or processes, information about industrial, commercial or scientific experience.
A special case applies to writing off the cost of intangible assets, for which the company pays in periodic payments. There is no need to depreciate it; write it off as other expenses.
R&D costs are also written off in a special manner: either through depreciation, or gradually over two years for other expenses.
Intangible assets in accounting
The procedure for accounting for such assets in accounting is prescribed in PBU 14 “Accounting for intangible assets.” The following information is based on data from this document.
Criteria for classification as intangible assets
Intangible assets in accounting are, just like in tax accounting, objects that fall under certain criteria. In accounting, the criteria are as follows (see table).
Accounting for intangible assets in accounting: criteria
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No. |
Criterion |
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The useful life of an intellectual property object is more than 12 months |
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The object can be used in the production of products (when performing work, providing services) and bring economic benefits or be used to achieve the goals of creating a company |
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The actual (initial) cost of the object can be reliably determined |
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An intellectual property object can be separated (selected, identified) from other assets |
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The company has confirmation of exclusive rights to the object and the economic benefits it can bring |
If an object that falls under the conditions specified in the table appears in the company, an intangible asset registration card is issued for it. This is a document that puts an asset into operation; it also records all the basic data on use, basic characteristics and disposal.
A company that uses unified documents uses a card in the form of NMA-1. It must be compiled in 1 copy. Organization of accounting for intangible assets is impossible without this document.
Depreciation of intangible assets
Unlike tax accounting V accounting value Intangible assets must be written off exclusively through depreciation. That is, the cost of the object does not matter.
PBU 14 allows you to calculate depreciation on intangible assets in three ways:
- linear;
- reducing balance method;
- by writing off the cost in proportion to the volume of products (works).
The company must choose a specific method independently and write it down in its accounting policies.
Reflection on accounts
The cost of tangible assets and intangible assets are recorded in different accounts. Information about the value of intangible assets is reflected in account 04. The correspondence of accounts will be as follows (table).
Accounting for intangible assets in accounting: entries
Accounting for depreciation of intangible assets must be kept on a special account - 05. Accrue depreciation using the following entry: Debit 05 Credit 04.
Intangible assets are property that does not have a physical form, but represents for the enterprise. In addition, they, like fixed assets, are aimed at generating profit in the course of financial activities. Accounting for this group of funds is somewhat different from collecting 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.
Specific signs
What are intangible assets? What does this mean? A novice accountant is probably tormented by such questions. If the image of material property emerges immediately, then how can one imagine something else?
Let us analyze the main conditions for classifying funds into the group of intangible assets. So, representatives of this category must meet the following criteria:
- lack physical fitness;
- used in the production and sales processes of the enterprise or for management needs;
- be in circulation for 12 months or more;
- bring profit in the present or forecast time;
- comply with legal documentation requirements;
- have the opportunity to transfer ownership to another individual or legal entity.
In order to use intangible assets in its activities, the enterprise itself must have ownership rights to them.
Classification of intangible assets by type
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:
- The right to use natural resources.
- Property rights.
- Commercial designations (use of brand, name).
- Property objects in the industrial sector.
- Copyright.
- Goodwill.
- Other intangible assets (in particular, some costs).
It is worth considering that what is recognized as intangible material is not the result of research and intellectual work, but the exclusive right to use it for commercial purposes.
Intellectual property
The results of intellectual activity are also intangible assets. What does this mean? Predominantly patent or copyright assets. The first category includes rights arising in the scientific and design field. This:
- new inventions;
- industrial designs;
- technical models;
- names and trademarks.
The second category includes property created on the basis of the objective views of a specific author. These are works of art software, databases, integrated circuit topologies and other assets.
The main difference between copyright and patent law is the method of its recognition, which is reminiscent of in this case relation of part to whole. If a patent is issued for any invention and protects the work itself, then copyright is assigned only to the form of expressing the subjective view of different owners on the same idea.
Costs of organizing a legal entity
It would seem that what is common between the costs and assets of an enterprise? In some cases, they may be reflected as part of intangible assets. To do this, it is enough to meet several conditions:
- expenses must be incurred during the preparation of documents when creating an enterprise until its registration with the regulatory authorities;
- they are aimed at paying legal consultants, paying registration fees and other costs for legal opening legal entity;
- the amount of expenses must be included in authorized capital organizations.
Funds that meet these criteria can be confidently included in intangible assets. All further expenses for changing accounting policies, stamps, seals and other documents are classified as general business expenses.
Goodwill
The classification of intangible assets provides for the formation of such property as business reputation. It is considered only if the company is sold. Goodwill is understood as the difference between the market and the company, taking into account the accumulated reputation (positive or negative). It turns out that goodwill has its own price, which means it is bought and sold in the same way as any other property.
In the case of the formation of a positive business reputation, they speak of additional amount premium that must be paid to the seller because the presence of goodwill will bring economic benefits to the new owner in the future. Negative characteristics of a company in the market can lead to problems and difficulties that hinder activity and profit. This happens due to poor management, lack of an established sales system, marketing plan, regular customers and connections, and other reasons. This situation reduces the value of the enterprise and requires a discount from the seller.
Rules for calculating depreciation
It has already been clarified what intangible assets are, what relates to them, and what their specific characteristics are. Having realized that this property is equivalent to fixed assets, one should ask the question: is it depreciable? Since intangible assets do not have a physical form, how will they wear out? Basically, depreciation takes the form of obsolescence. When determining the amount of deductions, you should rely on the following rules:
- Assess the cost and useful life of intangible assets.
- Depending on the specific situation and the provisions of the accounting policy, calculate the amount using one of three methods: linear, reducing balance, production.
- Deductions are made from the 1st day of the month following the acceptance of the asset for registration.
- Not on NMA commercial organizations depreciation is not charged.
To collect accumulated depreciation amounts, account 05 is used. This is a passive account. accounting: credit is accrued, and debit is written off. When drawing up a balance sheet, the credit balance is used to calculate the intangible asset indicator.
Characteristics of depreciation methods
Different types of intangible assets require an individual approach to their assessment 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 used in cases where it is impossible to determine the exact operating period, and predicting possible economic benefits in the future is difficult. The method assumes an even distribution of the total depreciation amount across months.
Used for intangible assets, the profit from which will be greatest in the first years of operation. The amounts are distributed unevenly but remain constant during one period. For calculations, an acceleration coefficient is used, which is adjusted accounting policy. The residual or market value indicator is multiplied by a fraction: the numerator is the coefficient, the denominator is the remaining service life, determined in months.
The production method is the most flexible approach depending on the financial result obtained. The amounts are calculated directly proportional to the volume of manufactured/sold products with the participation of intangible assets.
Historical cost of intangible assets
To register property, you must know exactly its value. Like others fixed assets, intangible assets are reflected in accounting at their original cost, identified as of a certain date. The actual amount that had to be spent on the production or acquisition of intangible assets includes:
- accounts payable directly related to the creation/purchase of property;
- the net value of the asset itself.
If there are difficulties in assessing independently produced intangible assets, you should carry out comparative analysis with similar products on the market.
In the future, the enterprise has the right to revaluate property in accordance with the instructions of its accounting policies. If the price of an intangible asset decreases, the original cost changes. The difference between market and actual costs is written off to the financial results of the enterprise.
Service life of intangible equipment
After determining the initial cost, it is necessary to establish the useful life of intangible assets. The duration of the property rights to own intangible assets is taken as a basis. In other cases, they rely on the possible period of profit. Basic intangible assets are divided into two categories:
- with an indefinite operational life;
- With limited time use.
If everything is clear with the second type, then for the first it is recommended to stop at 20 years. Determining the operating life must necessarily be based on an analysis of possible profit, since the period is used to calculate depreciation.
Accounting for intangible assets
To collect and group information about property that does not have a material form, two accounts are used: 04 and 05. The latter, as is already known, is created for accumulation depreciation charges. Account 04 collects all data on the types, costs and processes occurring with intangible assets. This is an active inventory account, the debit balance of which is reflected in financial statements. In addition, the enterprise uses accounts 19.2 and 48 to characterize VAT and the sale of intangible assets.
A prerequisite for organizing accounting for intangible assets is maintaining analytical accounts for each group or individual units of property. The following subaccounts can be used as an example:
- 04.1 "Intellectual Property".
- 04.2 “Right to use natural resources.”
- 04.3 “Deferred costs”.
- 04.4 "Goodwill".
- 04.5 "Commercial designations".
- 04.6 “Other objects of intangible assets.”
Data analytical accounting must be indicated in annual reports(Form No. 5) in the section characterizing the composition of intangible property.
Correspondence with other accounts
Knowing what intangible assets are and what relates to them, we can assume which accounting accounts account 04 will interact with. Based on the characteristics of the active account, debit transactions characterize the acceptance of intangible assets for accounting through purchase, receipt, exchange. The interconnected accounts become 04 and 08, 50-52, 55, 75-76, 87-88. 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, interaction occurs with the debit of accounts 06, 48, 58, 87.
Accounting for receipt of intangible assets
The act of acceptance of intangible assets is a document on the basis of which the receipt of property is recorded. The order of reflection of intangible assets differs depending on the method of their preparation:
- Purchase is the acquisition of assets for a fee agreed upon between the seller and the buyer. Expenses that must be included in the initial cost are collected in the debit of account 08. After intangible assets are ready for commissioning, the data is written off to account 04 by posting Dt 04 Kt 08.
- Barter is a mutually beneficial and equivalent exchange between entities economic relations. The accountant records account assignment Dt 08 Kt 60/76, which characterizes the receipt of intangible assets through the fulfillment of obligations to the other party to the exchange. If the process is accompanied by an additional payment or additional expenses, they are reflected in the debit of account 08. After calculation and start of use, the posting is similar to the first point: Dt 04 Kt 08. The transfer of intangible assets is recorded in the credit of the inventory or inventory accounts and the debit of account 46, 47 or 48.
- In the process of organizing an enterprise, intangible assets can be received from the founders. An example of wiring design looks like this: Dt 04 Kt 75.1.
- When transferring intangible assets into the possession of a company free of charge, the amounts are credited to account 87.3 at the current market value of the object. Account 04 is debited.
- A prerequisite is the allocation of VAT, which occurs on accounts 68 “VAT” and 19.2. The process of acquiring intangible assets is accompanied by posting Dt 19.2 Kt 60/76 or other current accounts. After the assets are accepted for accounting, the amount of VAT is written off in equal shares over six months: Dt 68 “VAT” Kt 19.2.
- VAT on intangible assets acquired for economic and other needs outside of production is taken into account somewhat differently. The tax is covered by own sources financing: Dt 29, 88, 96 Kt 19.2.
- Acquired intangible assets for production needs, exempt from VAT, include the tax amount in the initial cost.
Disposal of intangible assets in accounting
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 disposed of. Regardless of the write-off method, the 48th account with an active-passive structure is used. The debit records the amount 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 make it possible to isolate the financial result from the process: income in the event that credit turnovers exceed debit turnovers and vice versa. The data is written off to the appropriate account - 80, 84, 83, 98 (depending on the reason for the intangible asset leaving the balance sheet).
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 sale of property rights is attributed to the reduction of the initial capital. |
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Income from the gratuitous receipt of intangible assets is included. |
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To account for the uncovered loss, a patent for production purposes was transferred free of charge. |
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Reflects a positive difference between contractual and book value Intangible assets subject to transfer 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 successful operation of an enterprise than other types of non-current assets. It is this type of ownership that becomes a unique advantage in the market for a company over its competitors.
In their activities, companies often face the issue of accounting and valuation of intangible assets. What should be classified as intangible assets, and what can be immediately written off as expenses? How to determine the cost of this great invention of a genius programmer from the IT department?
What is an intangible asset in accordance with PBU 14/2007
First you need to understand what kind of beast this intangible asset is. Let’s agree that we will abbreviate the intangible asset as intangible assets. The main secrets about intangible assets are disclosed in the Accounting Regulations 14/2007. It says that an intangible asset is a company's property that has the following characteristics:
- Brings or will bring in the future economic benefits. For example, a company’s website attracts new customers and thus increases the company’s revenue;
- Is separate from other property. For example, the development of an update for a computer program is not a separate intangible asset, but is included in the cost of the program itself;
- Will be used for more than 12 months;
- Has a cost. For example, if an employee of a company is engaged in the development of intangible assets, then the costs of his work can be recognized as the initial cost. wages;
- The company does not plan to sell the asset within 12 months;
- The asset does not have a tangible form or, more simply put, cannot be touched.
An important and distinguishing feature of an intangible asset is the presence of exclusive rights to it. If you purchased a new computer and a license for the operating system, this does not mean that you purchased intangible assets - you only purchased the right to use the operating system. But if suddenly you decide to become the second Bill Gates and make a new super-mega system - then this is NMA. We boldly put it on the balance sheet and keep records in accordance with all the rules for accounting for intangible assets.
What can be classified as intangible assets and what cannot
Intangible assets include:
- works of science, literature and art;
- inventions, utility models and industrial designs;
- computer programs and databases; production secrets (know-how);
- brand and business reputation;
- trademarks and service marks;
- appellations of origin of goods.
Intangible assets are not:
- expenses associated with the formation of a legal entity (organizational expenses);
- the intellectual and business qualities of the organization’s personnel, their qualifications and ability to work, unfortunately for the employer and fortunately for the employee, cannot be separated from the employee himself;
- research, development and technological work that does not produce a positive result is written off as R&D;
- other assets that do not meet the characteristics of intangible assets we discussed earlier.
Procedure for accounting for intangible assets
From the point of view of assessing intangible assets, there are initial and subsequent ones. But only in accounting. Indeed, in tax accounting, the initial value of a company’s intangible assets cannot be changed. The procedure for determining the initial cost of intangible assets depends on their method of entry into the organization. Intangible assets can be purchased, created on your own, received as a gift, or received as a contribution to the authorized capital.
For example, if intangible assets were purchased for a fee, then the initial cost of the acquired intangible assets consists of all actual expenses associated with the purchase:
- amounts under the agreement for the acquisition of the exclusive right to intangible assets with the copyright holder;
- customs duties and customs fees;
- non-refundable amounts of taxes, government, patent and other duties paid in connection with the acquisition of intangible assets;
- remuneration to intermediaries who help acquire intangible assets;
- information and consulting services related to the acquisition of intangible assets;
- other expenses directly related to the acquisition of intangible assets and providing conditions for using the asset for the intended purposes.
If you still have the ability or resources to create your own intangible asset, then in addition to those listed above, to determine the initial cost, you can also include the following expenses:
- the cost of materials used to create intangible assets;
- services of third-party organizations under contract agreements facilitating the creation of intangible assets;
- expenses for remuneration of employees that are directly related to the creation of intangible assets, as well as insurance premiums;
- costs of maintaining and operating assets that are involved in the creation of intangible assets, as well as depreciation of these assets.
If you received an intangible by way of donation, then the initial cost will need to be estimated. To do this, you need to enter into an agreement to conduct an assessment with an independent appraiser.
If intangible assets have been received as a contribution to the authorized capital, then the initial cost can be determined by the founder. The founder can indicate his decision on the value of the asset in the minutes of the meeting of company participants.
When the intangible asset is ready for operation, it is necessary to draw up a corresponding act and issue an order, which will determine the useful life of the intangible asset. If you have acquired exclusive rights, then such a period will be specified in the contract. If you created an intangible asset on your own, then the service life will be equal to the period during which you plan to receive income. In tax accounting, different rules apply. If the useful life of intangible assets cannot be determined, then it is set equal to 10 years, but it cannot be less than 2 years.
The cost of intangible assets, as we found out earlier, may change, but only in accounting. Subsequent valuation of intangible assets may arise due to revaluation or depreciation. At the same time, we should not forget that revaluation of intangible assets is a right, not an obligation. But if you decide to revaluate, then you need to do it regularly in the future so that the value of intangible assets in accounting does not differ significantly from their current market value.
To carry out a revaluation, you can contact an expert company that carries out the assessment of intangible assets. Revaluation of intangible assets will increase the company's capitalization. Report on independent assessment It will not be superfluous when concluding an agreement for the alienation of exclusive rights in order to assess that the value of the intangible asset corresponds to the market value. Or, if the company is damaged material damage in case of illegal use of intangible assets, the expert will help determine the amount of such damage.
An assessment of the market value of intangible assets may also be required when transferring intangible assets “for lease”, when concluding a license agreement or when calculating the amount of royalties, when transferring intangible assets as collateral to a bank. Depreciation of intangible assets is used in international accounting standards. For those who still apply Russian standards, it is not necessary to check intangible assets for depreciation.
Accounts for accounting for intangible assets and postings
Accounting for receipt (purchase, acceptance) of intangible assets
In the balance sheet, intangible assets are reflected in the section Non-current assets in line 1110 “Intangible assets” at their residual value, which is calculated by subtracting the amount of depreciation accrued as of the reporting date from the original cost. Accounting for intangible assets is carried out on account 04. Depreciation of intangible assets is accrued on account 05.
For the advanced, let's look at the most popular transactions for accounting for intangible assets.
SituationWirings
| Situation | Postings |
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When purchasing an intangible asset |
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When registering intangible assets |
Dt 04 “Intangible assets” – Kt 08 “Investments in non-current assets” |
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When creating intangible assets on our own |
Dt 08 “Investments in non-current assets” - Kt 70 “Settlements with personnel for wages” Dt 08 “Investments in non-current assets” - Kt 69 “Calculations for social insurance and provision" Dt 08 “Investments in non-current assets” - Kt 71 “Settlements with accountable persons” Dt 08 “Investments in non-current assets” - Kt 76 “Settlements with various debtors and creditors” Dt 08 “Investments in non-current assets” - Kt 60 “Settlements with suppliers and contractors” Dt 08 “Investments in non-current assets” - Kt 02 “Depreciation of fixed assets”, 05 “Depreciation of intangible assets” |
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Upon receipt of an intangible asset as a contribution to the authorized capital |
Dt 08 “Investments in non-current assets” – Kt 75 “Settlements with founders” |
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When receiving intangible assets as a donation |
Dt 08 “Investments in non-current assets” – Kt 98 “Deferred income” Dt 98 “Deferred income” – Kt 91 “Other income and expenses” (for the amount of accrued depreciation) |
Accounting for amortization of intangible assets
To compensate for the gradual loss of value of intangible assets, depreciation is charged. Depreciation groups of intangible assets are distributed similarly to fixed assets into 10 groups. The method for calculating depreciation must also be used as specified in the accounting policy.
The most difficult thing, as a rule, in the issue of depreciation is determining the useful life. The deadline can be set according to depreciation group, take it from the contract or install it yourself. Accounting entries depreciation calculations look like this:
Accounting for disposal of intangible assets
After the expiration of their useful life, intangible assets are no longer reflected as assets on the balance sheet, but do not cease to be the property of the company. Moreover, after the expiration of the term, if the intangible asset continues to bring profit to the company, the term and cost can be revised. Before the expiration of the useful life of intangible assets, you can sell, donate or transfer to the authorized capital. In this case, ownership of the intangible asset is terminated, the asset itself and its depreciation are written off from the balance sheet.
If the intangible asset was transferred for use under a license agreement, then the intangible asset remains on the balance sheet and continues to be depreciated. The disposal of intangible assets is formalized by an act. A special form of such an act. The company has the right to use its own developed form. The main thing is that it is clear from the document what asset is leaving the balance sheet, and what is the basis for write-off. The act should also indicate the main characteristics of the intangible asset, the residual value and the amount of accrued depreciation.
Example of accounting for an intangible asset
On April 1, 2018, the head of the company set the task for his IT department to develop mobile app on IOS to improve customer service. The task was completed within 2 months. 2 IT department specialists worked on completing the task wages 30,000 rubles. To create an account in the App Store, the company paid 6,500 rubles. The company had no other expenses when creating intangible assets. By order of the manager, the useful life was set at 2 years. Let's consider how this project will look like this in accounting:
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Wiring |
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Costs for creating an account in the App Store are taken into account |
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Salary accrued and Personal income tax of employees for April, involved in the project |
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Insurance premiums were calculated from the salaries of employees for April involved in the project |
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Salaries and personal income tax for May employees involved in the project have been calculated |
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Insurance premiums were calculated from the salaries of employees for May involved in the project |
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The act of putting the intangible asset into operation was signed |
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In the period from 07/31/2018 to 06/30/2020 monthly |
Depreciation of intangible assets accrued |
What is an intangible asset accounting card?
To record intangible assets, they usually use an intangible asset registration card in the form of intangible asset-1. Wherein this form is not at all mandatory. As with the disposal of intangible assets, you can use your own developed form. The main thing is that it reflected the main characteristics of the asset, such as:
- accounting account
- initial cost
- useful life
- depreciation amount
- depreciation rate
- document on the basis of which the intangible asset is accepted for accounting
- information about the disposal of the object
- other information.
If we summarize all of the above, it will become obvious that NMA is not a terrible beast at all, but rather friendly and useful. Accounting for intangible assets is very similar to accounting for fixed assets. By reflecting intangible assets on the balance sheet, you increase the company’s capitalization and make reporting more attractive to investors and clients.
For questions regarding the accounting of intangible assets, you can contact the Formula company. The company helps to keep records, prepare documents, pay wages, send reports to the tax office, respond to all requests from government agencies, register entrepreneurs and companies, defend interests in court and, in general, makes the life of entrepreneurs a little more beautiful by putting things in order in accounting and getting rid of paperwork .
The formula is the same reliable accounting for entrepreneurs (go to
What are intangible assets? These are objects that do not have a material, physical form, intended for use in the production process, provision of services, or performance of work. Intangible assets (IMA) are the result of intellectual activity, and IMA is not the result of the activity itself, but the exclusive right to use this result.
In the article we will analyze the accounting of intangible assets when they enter the organization. What are intangible assets? What are the methods for entering intangible assets into an organization? What entries reflect the receipt of intangible assets?
The concept of intangible assets
For intangible assets the following basic rules are followed:- they are intended for long-term use over 1 year;
- not intended for sale;
- must bring economic benefit;
- the value of objects can be reliably determined.
Intangible assets include the exclusive right to:
- Computer programs, databases;
- inventions, utility models, industrial designs;
- topology of integrated circuits;
- breeding achievements;
- know-how, so-called production secrets;
- trademarks;
- brand names;
- commercial designations;
- business reputation of the organization.
The following may serve as supporting documents:
- evidence;
- patents;
- agreement on alienation of exclusive rights;
- license agreement.
Accounting for intangible assets upon admission to an organization
An intangible asset can enter an enterprise in several ways:- purchase of intangible assets;
- creation of intangible assets on our own or with the involvement of third-party services;
- contribution to the authorized capital of the organization;
- free receipt.
Purchase of intangible assets
Upon receipt by an organization, intangible assets are taken into account at their original cost, also called actual cost. Fixed assets are also taken into account in the same way. This cost consists of the cost of the exclusive right to intangible assets and its use in accordance with the contract, patent and other documents, as well as all associated costs (payment of various types of duties, customs duties, related taxes, services of third parties, information and consulting services, etc.) minus VAT. VAT is allocated from the sum of all costs and sent for reimbursement from the budget.VAT is not subject to the sale and transfer of the exclusive right to computer programs, databases, inventions, utility models, industrial designs, topologies of integrated circuits, know-how, as well as the rights to use them.For accounting of intangible assets, account 04 “Intangible assets” is intended; the debit of this account reflects the receipt of the object, and the credit its disposal and write-off.
Just as in the case of fixed assets, before getting to account 04, all costs for the acquisition of intangible assets are collected in the debit of account 08 “Investment in non-current assets”, after which, from the credit of account 08, they are recorded in the debit of account 04 .
For these purposes, a separate subaccount 5 “Acquisition of intangible assets” is opened on account 08, the debit of which reflects all costs.
Example:An organization acquires the exclusive right to a trademark under an alienation agreement.
The costs are as follows:
How to accept an intangible asset for accounting, how should the entries be made?
- The cost, according to the agreement, amounted to 590,000 rubles, including VAT of 90,000 rubles. (the right to a trademark is subject to VAT).
- A fee of 12,000 rubles was paid for registration of the agreement.
- For making changes to the register of trademarks, a fee of 2000 rubles was paid.
Postings when purchasing an intangible asset for a fee:
Creation of an intangible asset
In addition to the fact that an intangible asset can be acquired for a fee, that is, purchased, it can also be created on behalf of an organization on its own or with the involvement of third-party services.In this case, the intangible asset is taken into account in a similar way at its historical cost, consisting of the cost of all expenses associated with the creation of the intangible asset.
Expenses in addition to paying duties and fees can also include remuneration of their employees involved in the creation of an intangible asset, as well as insurance premiums accrued to them, the cost of services of third-party organizations, expenses for research and other equipment used in the process of creating intangible assets, as well as depreciation accrued on them.
In a similar way, all costs are collected by debit of account 08, after which one posting to total amount sent to account 04 (posting D04 K08).
Capital contribution
Postings for accepting intangible assets for accounting in this case have the form:- D08 K75 - reflects the initial cost of the intangible asset.
- D04 K08 - intangible asset accepted for accounting.
Free admission
If an asset is received free of charge under a gift agreement, then the object is valued at its market value on the date of acceptance.Postings upon gratuitous receipt of intangible assets:
- D08 K98 - reflected market price intangible object.
- D04 K08 - intangible assets object is accepted for accounting.
- D20 (44) K05 - depreciation has been accrued.
- D98 K91/1 - accrued depreciation is reflected in other income.
"Russian Tax Courier", 2008, N 5
At the end of last year, the Russian Ministry of Finance approved a new accounting standard on accounting for intangible assets PBU 14/2007. From January 1 current year organizations are required to keep records of intangible assets according to the new rules, since this document comes into force starting with reporting in 2008.
Order of the Ministry of Finance of Russia dated December 27, 2007 N 153n (hereinafter referred to as Order N 153n) approved PBU 14/2007 “Accounting for intangible assets”, which replaced PBU 14/2000. The new document is another step towards bringing Russian accounting standards closer to International Financial Reporting Standards. After all, many new rules for accounting for intangible assets repeat the provisions of IAS 38 “Intangible assets” of IFRS.
In addition, part four has been in effect since 2008 Civil Code. Legal relations in the field of intellectual property are now regulated by the provisions of Section. VII "Rights to the results of intellectual activity and means of individualization" of the specified part. From this year, organizations have the right to recognize as intangible assets and take into account according to the rules of PBU 14/2007 only those objects that comply with the requirements of these civil legislation standards.
PBU 14/2007 applies to commercial and non-profit organizations (for intangible assets accepted for accounting since 2008). Only credit organizations And budgetary institutions has the right not to apply this document. Let us recall that PBU 14/2000 was applied only by commercial organizations (with the exception of credit institutions).
How to accept an object for registration as an intangible asset
In general, PBU 14/2007 retains the same conditions that must be met at once in order to accept an object for accounting as intangible assets. But some innovations also appeared.
Thus, the first mandatory condition (clause "a" clause 3 of PBU 14/2007) is the ability of the asset to bring economic benefits to the organization in the future (inflow Money, including increased revenue or cost savings). The asset must be used in the production of products, in the performance of work or provision of services, as well as for the management needs of the organization. There are two innovations in this subclause. Firstly, an object is accepted for accounting as intangible assets if it is intended for use in commercial activities or for management needs. In paragraphs "g" clause 3 of PBU 14/2000 was specifically about the use of the asset. Secondly, a condition has appeared for recognition of an object as an intangible asset by non-profit organizations. These business entities may include in intangible assets objects intended for use in activities aimed at achieving the goals of creating an NPO (including business).
Another condition is control over the object, which the organization acquires when two requirements are met (clause “b”, clause 3 of PBU 14/2007): the organization has the right to receive economic benefits from the object and the access of other persons to such economic benefits is limited. That is, the organization must have documents for intangible assets, properly executed and indicating both the presence of the asset itself and the organization’s right to it, including documents confirming the transfer of the exclusive right without a contract.
This is followed by a condition on the possibility of separating or separating (identifying) the object from other assets (clause "c" clause 3 of PBU 14/2007) and on the use of the asset for a long time - more than 12 months or the normal operating cycle (clause "d" "). As before, to include an object in intangible assets, the organization’s intention to use it is important. Let's say an object is supposed to be sold. Then it is included in the inventory as a product. If there is no such intention, the object can be classified as intangible assets (subject to the simultaneous fulfillment of other conditions). Unlike PBU 14/2000, the new standard defines a period during which the organization should not have the specified intention - the next 12 months or the normal operating cycle, if it exceeds 12 months (paragraph "d").
Since 2008, an organization that acquires an intangible asset and plans to sell it in a year has the right to take it into account as an intangible asset.
An object is reflected as part of intangible assets only if its initial cost can be reliably determined (clause “e”, clause 3 of PBU 14/2007).
The list is completed by the condition that the object has no material form (clause “g”, clause 3 of PBU 14/2007). This condition was also contained in PBU 14/2000.
Composition and accounting unit of intangible assets
According to clause 4 of PBU 14/2007, intangible assets include the results of intellectual activity, means of individualization, business reputation and production secrets (know-how). Previously, production secrets (know-how) were recognized as intangible assets only in tax accounting (clause 6, clause 3, article 257 of the Tax Code of the Russian Federation). Now organizations will be able to bring together accounting and tax accounting for such property.
Reference. New terms
In PBU 14/2007, instead of the concept of “intellectual property objects” (used in PBU 14/2000), new terms are used - “results of intellectual activity” and “means of individualization”. The same terms are used in part four of the Civil Code.
The results of intellectual activity include exclusive and related rights to literary, artistic and scientific works, programs for electronic computers and databases, inventions, industrial designs, utility models, production secrets.
Means of individualization are brand names, trademarks, service marks.
Organizational expenses are not taken into account as part of intangible assets. Let us recall that organizational expenses are expenses associated with the formation of a legal entity and recognized in accordance with constituent documents part of the contribution of participants (founders) to the authorized (share) capital of the organization. Based on PBU 14/2000, organizations had to account for such expenses in account 04 “Intangible assets” and write them off by depreciation within 20 years.
According to Order No. 153n, since 2008 transitional provisions have been provided for organizational expenses. As of January 1 of the current year, organizations must write off the remaining amounts of such expenses to account 84 “Retained earnings (uncovered loss).” The adjustment is made during the inter-reporting period. As a result, the indicators financial statements for 2007 at the end of the period for intangible assets and retained earnings will not correspond to the same indicators in the financial statements for 2008 at the beginning of the period. Changes that affected the indicator of retained earnings (uncovered loss) are reflected in the statement of changes in capital (Form No. 3). It will be included in the financial statements for 2008. The reasons for the discrepancies must be disclosed in explanatory note to the financial statements for the current year.
Example 1. As of January 1, 2008, the accounting records of Alpha LLC include organizational expenses, the residual value of which is 7,645 rubles. The amount of retained earnings is 500 thousand rubles.
After Order No. 153n came into force, Alpha LLC wrote off organizational expenses. The following entry was made in the accounting records on December 31, 2007:
Debit 84 Credit 04
- 7645 rub. - the residual value of organizational expenses is written off.
This entry did not affect the annual financial statements of Alpha LLC for 2007, since it was issued after the reporting was compiled.
In the balance sheet for the first quarter of 2008, the indicator for the item “Intangible assets” in the column “At the beginning of the year” turned out to be less than the same indicator reflected in the balance sheet for 2007 in the column “At the end of the reporting period” by 8 thousand rubles.
The indicator for the item “Retained earnings (uncovered loss)” also decreased by the same amount and amounted to 492 thousand rubles. (500 thousand rubles - 8 thousand rubles).
In the statement of changes in capital (Form No. 3), the balance of retained earnings as of January 1, 2008 will not correspond to the same indicator as of December 31, 2007. Changes in the amount of retained earnings are reflected in the inter-reporting period - between December 31, 2007 and January 1, 2008 .
In the explanatory note to the reporting for 2007, in the section on accounting policies, it is necessary to indicate that in 2007 the organization included organizational expenses among intangible assets, and since 2008, the residual value of these assets is written off from the organization’s retained earnings. A similar provision is included in the explanatory note to the reporting for 2008. No changes need to be made for 2007 and previous years.
The accounting unit for intangible assets remains the inventory item. This is, in particular, a set of rights arising from one patent, certificate, or assignment of rights. The main feature by which one inventory object is identified from another is the performance of an independent function. The norms of PBU 14/2007 allow that a complex object, including several protected results of intellectual activity, is recognized as an inventory object of intangible assets.
Initial assessment of intangible assets
Intangible assets are accepted for accounting at their historical cost, which is determined by the organization on the date of their acceptance for accounting (clause 6 of PBU 14/2000 and clause 6 of PBU 14/2007). The new standard refers to the historical cost of an intangible asset as its actual cost.
Purchased intangible assets
Almost nothing has changed in calculating the initial cost of assets acquired for a fee. The expenses that formed the initial cost of intangible assets in accordance with clause 6 of PBU 14/2000 have been completely transferred to clause 8 of PBU 14/2007. The actual (initial) cost of intangible assets is formed by:
- amounts that an organization pays on the basis of an agreement on the alienation of the exclusive right to a result of intellectual activity or to a means of individualization to the right holder (seller);
- customs duties and customs fees;
- non-refundable taxes, government, patent and other duties paid in connection with the acquisition of the exclusive right to an intangible asset;
- remuneration to the intermediary organization and other persons through whom the intangible asset was acquired;
- expenses for information and consulting services for the acquisition of intangible assets;
- other expenses directly related to the acquisition of intangible assets and providing conditions for their use for the planned purposes.
Intangible assets created by the organization
PBU 14/2007 does not contain conditions for the recognition of created intangible assets, since they repeat the requirements of paragraphs. "b" clause 3 of this document. As for the actual costs of creating intangible assets by an organization, the new standard talks in more detail about the costs that can be included in the initial cost of the created object (Table 1).
Table 1. Costs included in the initial cost of the object
| Expenses for the creation of intangible assets that are included to the original cost of the object |
|
| according to clause 7 of PBU 14/2000 | according to clause 9 of PBU 14/2007 |
| Cost of material resources spent when creating intangible assets | - |
| Labor costs | Labor costs for employees, directly involved in the creation intangible asset or when performing R&D By employment contract |
| Expenses for services third party organizations by counterparty (co-performer) contracts | Expenses for payment for work performed or services provided to third parties according to orders, contract agreements, contracts author's order or contracts for execution R&D |
| - | Contributions for social needs, including UST |
| - | Expenses for operating scientific- research equipment, installations and structures, other fixed assets and other property, depreciation of fixed assets funds and intangible assets, used directly in the creation of intangible assets |
| Other costs of creation, production of intangible materials | Other expenses directly related to creation of an intangible asset and provision conditions for its use in the planned purposes |
| Patent fees | Expenses provided for in clause 8 of PBU 14/2007 |
PBU 14/2007 expanded the list of expenses that are not taken into account in the initial cost of intangible assets acquired and created by the organization itself. In addition to refundable taxes and general expenses it included:
- expenses for research, development and technological work carried out in previous reporting periods and recognized as other expenses;
- expenses on loans and credits received (exception - when intangible assets relate to investment assets).
Intangible assets contributed to the authorized capital, received under an exchange agreement or a gift agreement
The procedure for calculating the initial cost of intangible assets received under an exchange agreement remains the same. The norms of clause 14 of PBU 14/2007 fully comply with the norms of clause 11 of PBU 14/2000.
When making an intangible asset as a contribution to the authorized capital, its initial cost is determined in the amount monetary value, agreed upon by the founder (clause 9 of PBU 14/2000 and clause 11 of PBU 14/2007). The new standard states that this procedure also applies in the case of contributions to the authorized capital of open joint-stock companies by a state or municipal property.
Suppose an organization receives an intangible asset free of charge under a gift agreement. Then the initial cost of the object is determined based on the market value on the date of its acceptance for accounting (clause 10 of PBU 14/2000 and clause 13 of PBU 14/2007). The following must be taken into account. First, you need to calculate the current market value of intangible assets. We are talking about the amount of money that could be received as a result of the sale of the property on the date the current market value is determined. Secondly, the current market value can be established based on an expert assessment. Thirdly, the current market value is determined on the date the object is accepted for accounting not as intangible assets (on account 04), but as investments in non-current assets, that is, at the time this property is reflected on account 08.
Important point: PBU 14/2007 allows the inclusion in the initial cost of intangible assets received as a contribution to the authorized capital, under an exchange agreement and a gift agreement, the same expenses that are taken into account in the initial cost of intangible assets upon their purchase and creation. These are the expenses referred to in clauses 8 and 9 of the said document.
Intangible assets of reorganized enterprises
PBU 14/2007 establishes the procedure for assessing intangible assets received during the privatization of state and municipal property through the transformation of a unitary enterprise into an open one Joint-Stock Company(there were no such standards in PBU 14/2000). The actual (initial) value of the intangible asset in this case is determined in the manner prescribed for the reorganization of the enterprise in the form of transformation.
Let us recall that the procedure for the formation of opening balance sheet indicators of reorganized companies is set out in the Guidelines for the preparation of financial statements during the implementation of reorganization, approved by the Order Ministry of Finance of Russia dated May 20, 2003 N 44n. In paragraph 13 Guidelines it is stipulated that as of the date state registration of a new (reorganized) organization in the introductory accounting statements, the value of the property is established on the basis of the transfer act and the data in the final accounting statements of the reorganized enterprise. It turns out that intangible assets can be reflected in the transfer act both at the residual value (the original cost minus the amount of accrued depreciation) and at the revalued value, taking into account depreciation. In addition, PBU 14/2007 allows the inclusion in the initial cost of intangible assets received as a result of reorganization in the form of transformation, costs associated with the transfer of an intangible asset and bringing it to a state suitable for use. These are the costs listed in clause 8 of PBU 14/2007.
Subsequent assessment of intangible assets
PBU 14/2007 has a new section devoted to the rules for the subsequent assessment of intangible assets. Now the initial cost of an intangible asset at which it was accepted for accounting may change. This is allowed in two cases: if the organization revaluates an intangible asset and if its impairment is detected.
The appearance of this section is due to the desire of specialists from the Ministry of Finance of Russia to bring Russian accounting provisions closer to International standards financial statements. In particular, PBU 14/2007 tried to introduce the same approach to assessing intangible assets that is used when preparing financial statements under IFRS. Thus, according to clause 17 of the new standard, commercial organizations have the right to revalue intangible assets at current market value. Current market value is determined solely by data from an active market for similar intangible assets. PBU 14/2007 does not provide definitions of the terms “current market value” and “active market”. Let's turn to International Financial Reporting Standards. In paragraph 8 of Standard IAS 38 “Intangible Assets,” an active market is understood as a market in which the goods being transferred are homogeneous, willing sellers and buyers can usually be found at any time, and price information is publicly available.
IAS 38 does not define the term "current market value". At the same time, the concept of “fair value” is actively used. Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction.
Each organization must approve in its accounting policy the value at which it will reflect groups of similar intangible assets in the financial statements - at the original or revalued value. If homogeneous groups of intangible assets are reported at historical cost, the organization does not revalue these objects. If homogeneous groups of intangible assets are reflected in the reporting at a revalued value, the organization is obliged to carry out revaluation at least once a year (at the beginning of the reporting year).
Revaluation of intangible assets should be carried out regularly so that the value of the objects indicated in the financial statements does not differ significantly from their current market value (clause 18 of PBU 14/2007). The revaluation is considered to be carried out between 31 December of the previous year and 1 January of the reporting year. Therefore, when preparing annual reports for the past year, the results of the revaluation are not taken into account, but data on it are given in the explanatory note to the financial statements of the previous reporting year (clause 20 of PBU 14/2007).
Please note: when preparing financial statements for the current year, the results of revaluation are taken into account when generating data at the beginning of the reporting period. At the beginning of the reporting year, the value of intangible assets in the reporting is indicated taking into account the results of the revaluation. When carrying out a revaluation, not only the initial cost of this asset is recalculated, but also the amount of accrued depreciation on it (clause 19 of PBU 14/2007).
Based on the norms of PBU 14/2007 in accounting, the revaluation of intangible assets is reflected by the following entries:
Debit 04 "Intangible assets" Credit 83 subaccount "Revaluation of intangible assets"
- the amount of additional valuation of the initial cost of intangible assets is reflected;
Debit 83 subaccount "Revaluation of intangible assets" Credit 05 "Depreciation of intangible assets"
- the amount of accrued depreciation on a revalued asset has been increased.
The revaluation amount will be reflected in additional capital only if:
- revaluation of an intangible asset is carried out for the first time;
- intangible assets, which were already undervalued in previous years, are overvalued;
- an intangible asset that was discounted is overvalued. In such a situation, account 83 reflects only the amount of revaluation that exceeds the amount of the previous depreciation of intangible assets.
When an intangible asset is disposed of, the amount of its revaluation is transferred from account 83 " Extra capital" to account 84 "Retained earnings (uncovered loss)" of the organization.
Organizations reflect the depreciation of intangible assets as follows:
Debit 84 Credit 04
- the amount of depreciation of the original cost of intangible assets is taken into account;
Debit 05 Credit 84
- the amount of accrued depreciation on the discounted asset was reduced.
If in previous years an intangible asset was overvalued, the amount of depreciation on it is reflected in accounting as follows:
Debit 83 subaccount "Revaluation of intangible assets" Credit 04
- additional capital is reduced by the amount of depreciation of intangible assets, but within the limits of its revaluation for previous years;
Debit 05 Credit 83 subaccount "Revaluation of intangible assets"
- the amount of accrued depreciation was reduced within the limits of the additional valuation for previous years.
Clause 22 of PBU 14/2007 provides for testing intangible assets for impairment. Organizations can carry out such a check at their own request in the manner prescribed by IFRS, in particular IAS 36 “Impairment of Assets”. In the financial statements, the organization is required to indicate the value of intangible assets impaired in the reporting year, as well as the amount of impairment loss in the current year.
Useful life and depreciation of intangible assets
As before, when accepting an intangible asset for accounting, the organization establishes its useful life (clause 17 of PBU 14/2000 and clause 25 of PBU 14/2007). The new standard only clarifies that this period must be determined not in years, but in months.
An important point: since 2008, all intangible assets are divided into two groups - with a definite and indefinite useful life. Moreover, from clause 23 of PBU 14/2007 it follows that depreciation is accrued only for intangible assets of commercial organizations with a certain useful life.
Let us recall that until 2008, for intangible assets for which it was impossible to determine the useful life, depreciation was accrued over 20 years (clause 17 of PBU 14/2000). According to the new rules, intangible assets with an indefinite useful life are not depreciated. Non-profit organizations also do not charge depreciation on intangible assets (clause 24 of PBU 14/2007).
Let us note one more innovation. According to clause 27 of PBU 14/2007, the organization is obliged to annually check the useful life of an asset to determine whether it needs to be updated. Previously, PBU 14/2000 did not provide for the ability to change the useful life of intangible assets established when accepting objects for accounting.
Useful life is the period during which the organization expects to use the asset in order to obtain economic benefits (clause 25 of PBU 14/2007). If the duration of this period changes, the organization is obliged to change the useful life of the asset (clause 27 of PBU 14/2007). An organization must review its useful life for intangible assets both with a definite useful life and with an indefinite one. It is likely that those factors that indicated the impossibility of determining the useful life of the asset will cease to exist after some time. This means that the organization will be able to classify this object as an intangible asset with a certain useful life and depreciate it.
When the useful life is revised, the monthly depreciation amount will also change. What to do in such a situation? Clause 27 of PBU 14/2007 states that adjustments arising in connection with this are reflected in accounting and reporting at the beginning of the reporting year in the manner prescribed for reflecting changes in estimated values.
Reference. Business reputation of the company
The procedure for accounting for an organization's negative business reputation has changed. Let us recall that goodwill is the difference between the amount paid by the seller when acquiring an organization as a property complex and the sum of all its assets and liabilities on the balance sheet as of the date of its purchase.
According to PBU 14/2007, business reputation arises in connection with the acquisition of both the organization as a whole and its part.
If the above difference is positive, the buyer reflects it in the accounting records as an intangible asset and amortizes it on a straight-line basis over 20 years. In the event of a negative difference (the so-called negative business reputation), PBU 14/2000 prescribed that negative business reputation should be included in deferred income and evenly written off to other income. According to the new rules, PBU 14/2007 allows it to be immediately included in other income in full.
Example 2. The accounting records of Sigma LLC include the exclusive right to computer program, the initial cost of which is 600,000 rubles. The useful life established for this asset is 10 years. Depreciation is calculated using the straight-line method. The amount of monthly depreciation is 5,000 rubles. As of January 1 of the reporting year, the amount of accrued depreciation amounted to 180,000 rubles. (RUB 5,000 x 36 months).
The management of Sigma LLC plans to not use this software. Thus, the useful life of this intangible asset will be reduced from 10 to 5 years. The amount of monthly depreciation for the new useful life is 10,000 rubles. (RUB 600,000: 60 months).
The organization recalculated the amount of depreciation accrued as of January 1 of the current year. It amounted to 360,000 rubles. (RUB 10,000 x 36 months).
In the accounting records of Sigma LLC, between December 31 of the previous year and January 1 of the reporting year, the following entry was made:
Debit 84 Credit 05
- 180,000 rub. (RUB 360,000 - RUB 180,000) - additional depreciation amount accrued for the period actual use intangible asset.
Data at the beginning of the reporting year were adjusted in accordance with PBU 14/2007.
Methods of depreciation of intangible assets
The cost of intangible assets with a certain useful life is repaid through depreciation. Depreciation on intangible assets is still accrued in three ways - linear, reducing balance method and write-off method in proportion to the volume of production (work).
Let us recall that according to the rules of PBU 14/2000, the organization chose the depreciation method independently, regardless of any conditions. PBU 14/2007 stipulates that the organization chooses the depreciation method for intangible assets based on the calculation of the expected consumption of future economic benefits from the use of the asset, including the financial result from its possible sale. If an organization cannot make a reliable calculation from the use of intangible assets, depreciation should be calculated using the straight-line method.
According to clause 16 of PBU 14/2000, when calculating depreciation, the annual amount of depreciation charges was first calculated, and then distributed evenly throughout the reporting year in the amount of 1/12 of the annual amount. PBU 14/2007 stipulates that the useful life of intangible assets is established in months, and the amount of depreciation is calculated separately for each month. Despite these amendments, the amount of depreciation charges at linear method and the method of writing off the cost in proportion to the volume of production will not change.
With the reducing balance method, previously the annual amount of depreciation was calculated based on the residual value of intangible assets at the beginning of the year and the depreciation rate calculated based on the useful life of this object. This procedure was established in paragraph 16 of PBU 14/2000.
PBU 14/2007 specifies other rules for calculating the amount of monthly depreciation. It is equal to the product of the residual value of intangible assets at the beginning of the month and a fraction, the numerator of which is the coefficient established by the organization (but not more than three), and the denominator is the remaining useful life in months.
Example 3. LLC "Delta" acquired and began to use in the production of products an intangible asset, the initial cost of which was 1,000,000 rubles. The useful life of the object is 5 years (60 months). Depreciation is calculated using the reducing balance method.
In accordance with PBU 14/2007, the amount of monthly depreciation for this intangible asset is equal (the organization applies a coefficient of 2):
- 1st month - 33,333.33 rubles. (RUB 1,000,000 x 2: 60 months);
- 2nd month - 32,768.36 rubles. [(RUB 1,000,000 - RUB 33,333.33) x 2: 59 months].
The monthly depreciation amounts are given in table. 2.
Table 2. Monthly depreciation amounts calculated according to PBU 14/2007 (fragment)
| Month | Initial price | Depreciation | Residual price | Depreciation amount cumulative total |
| 1 | 1 000 000,00 | 33 333,33 | 966 666,67 | 33 333,33 |
| 2 | - | 32 768,36 | 933 898,31 | 66 101,69 |
| 57 | - | 1 694,92 | 1 694,92 | 35 593,22 |
| 58 | - | 1 129,94 | 564,97 | 36 723,16 |
| 59 | - | 564,97 | 0,00 | 37 288,14 |
| 60 | - | 0,00 | 0,00 | - |
As we see, new order calculating depreciation using the reducing balance method, which is set out in PBU 14/2007, allows you to completely write off the initial cost of an intangible asset.
Let us note one more innovation: clause 30 of PBU 14/2007 allows organizations to change the method of calculating depreciation when “the calculation of the expected receipt of future economic benefits from the use of intangible assets has changed significantly.” However, the standard does not explain what changes are being discussed and what changes are considered significant. This means that each organization has the right to determine this independently.
Write-off of intangible assets
Based on PBU 14/2000, the value of an intangible asset was written off if the organization stopped using it (clause 22). Both the original cost and the amount of accrued depreciation were subject to write-off. The new PBU 14/2007 establishes that it is necessary to write off the cost of intangible assets and the amount of accumulated depreciation in the case when it is disposed of or is not capable of bringing economic benefits to the organization in the future. Moreover, paragraph 34 provides specific cases of disposal of intangible assets:
- termination of the organization’s exclusive rights to the result of intellectual activity or to a means of individualization;
- transfer (sale) under an agreement on the alienation of the exclusive right to the result of intellectual activity or to a means of individualization;
- transfer of the exclusive right to other persons without a contract (including in the order of universal succession and when foreclosure on a given object of intangible assets);
- termination of use due to obsolescence;
- transfer in the form of a contribution to the authorized (share) capital (fund) of another organization, mutual fund;
- transfer under an agreement of exchange, gift;
- making a contribution under a joint venture agreement;
- identifying shortages of assets during their inventory, etc.
Income and expenses from the write-off of intangible assets are still reflected in other income and expenses.
Clause 36 of PBU 14/2007 establishes the procedure for determining the date for writing off intangible assets from accounting. When setting this date, you should be guided by the rules for recognizing income or expenses.
Although PBU 14/2007 lists cases of write-off of intangible assets and establishes a procedure for determining the date of write-off of intangible assets from balance sheet, the procedure for disposal of intangible assets has not essentially changed.
What information is disclosed in the financial statements
PBU 14/2007 significantly expanded the amount of information that organizations are required to present as part of their financial statements.
As before, the accounting policies reflect:
- methods for valuing intangible assets not acquired for cash;
- useful life periods of intangible assets accepted by the organization (for individual groups);
- methods for determining depreciation on intangible assets;
- methods of reflecting depreciation charges for intangible assets in accounting.
In addition, in accordance with paragraph 40 of PBU 14/2007, the reporting additionally indicates the established coefficient for calculating depreciation using the reducing balance method, as well as changes in the useful life and methods of depreciation of intangible assets.
Information on certain species Intangible assets, which now need to be deciphered in the financial statements based on PBU 14/2007, are given in table. 3.
Table 3. Information disclosed in financial statements
| Information reflected in the financial statements | |
| according to PBU 14/2000 | according to PBU 14/2007 |
| Initial cost and amount accrued depreciation by type intangible assets at the beginning and end of the reporting year | market value taking into account the amounts accrued depreciation and impairment losses at the beginning and the end of the reporting period |
| - | The amount of accrued depreciation for intangibles assets with a definite useful life use |
| - | Actual (original) cost or current market value of intangible assets with an indefinite useful life, as well as factors indicating the impossibility reliably determine the useful life such intangible assets, highlighting significant factors |
| The cost of write-offs and receipts, other cases of movement of intangibles assets |
|
| - | The cost of revalued intangible assets, as well as the actual (initial) cost, amount of revaluation and depreciation |
| - | Cost of intangible assets subject to impairment in the reporting year, as well as recognized loss from impairment |
| - | Remaining useful life of intangible assets in activities aimed at achieving goals non-profit organizations |
| - | Name of intangible asset with fully repaid value, but not written off from accounting and used to obtain economic benefits |
| - | Name, actual (initial) cost or current market value, useful life use and other information on intangible assets, without knowledge which is impossible for interested users assessment of the financial position of the organization or financial results its activities |
O.A. Kurbangaleeva
Journal expert
"Russian tax courier"
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