A brief overview of IFRS 38 standard intangible assets. IFRS: "standard - intangible assets"

IAS 38: Intangible Assets

Purpose of this standard IAS 38- determine the procedure for accounting for intangible assets for which there are no specific instructions in other standards. This Standard requires an entity to recognize an intangible asset when, and only when, certain criteria are met. The standard also sets out how to measure the carrying amount of intangible assets and requires certain disclosures about intangible assets.

This IAS 38 Standard shall be applied in accounting for intangible assets, except for:

Intangible assets subject to the requirements of another IFRS standard;

Financial assets as defined in IAS 32 "Financial instruments: presentation of information";

Recognition and measurement of exploration and evaluation assets;

The costs of developing and extracting mineral resources, oil, natural gas and similar non-renewable resources.

This Standard applies to, among other things, advertising, training, start-up costs, and research and development costs. The purpose of research and development is to obtain new knowledge. accounting reporting unification corporation

Intangible assets

Businesses often expend resources or incur obligations in acquiring, developing, maintaining, or improving intangible resources.

Identifiability

According to the definition of an intangible asset, such an asset must be identifiable so that it can be distinguished from goodwill. Goodwill - (English goodwill-goodwill, good will) is the difference between the market and indexed book value of the firm (company). The cost of goodwill characterizes those not shown in the balance sheet intangible assets in the form of the reputation of the company, the marketing positions it has won in the market, the development of the internal technology of activity and other intangible assets that, however, can provide additional profit. Future economic benefits may result from the cumulative effect between identifiable assets acquired or from assets that do not individually qualify for recognition in financial reporting.

An asset satisfies the identifiability criterion if it:

Is separable, i.e., can be detached or separated from the entity and sold, transferred, licensed, leased or exchanged individually or together with a related contract, asset or liability, whether or not the entity intends to do so;

Is the result of contractual or other legal rights, regardless of whether these rights can be transferred or separated from the enterprise or from other rights and obligations.

The control

The ability of an entity to control the future economic benefits of an intangible asset usually results from legal rights that can be exercised in judicial order.

Market and technical knowledge can lead to future economic benefits.

Recognition and measurement

For an item to be recognized as an intangible asset, an entity must demonstrate that the item meets:

Definition of an intangible asset;

Recognition criteria.

This requirement applies to the initial costs of acquiring an intangible asset or creating it on its own and subsequent costs of its improvement, partial replacement or maintenance.

An intangible asset is recognized if and only if:

It is probable that the entity will receive the expected future economic benefits from the asset;

The cost of an asset can be measured reliably.

An intangible asset is initially measured at cost.

Separate purchase

The cost of a separately acquired intangible asset includes:

The purchase price of the intangible asset, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates;

Any cost directly attributable to preparing an asset for its intended use.

Examples of direct costs are:

Employee benefit costs that are directly attributable to bringing the asset to working condition;

Payment costs professional services directly related to bringing the asset to working condition;

The cost of verifying that an asset is working properly.

Examples of costs that are not included in the cost of an intangible asset are:

* costs associated with the introduction of new products or services;

Maintenance costs commercial activities in a new location or new category clients;

Administrative and other general overhead costs.

Internally generated goodwill

Internally generated goodwill is not recognized as an asset.

Expense recognition

The cost of an intangible item should be recognized as an expense when incurred unless:

They are included in the cost of an intangible asset that meets the recognition criteria;

The related item was acquired in a business combination and cannot be recognized as an intangible asset. In this case, it is part of the amount allocated to goodwill at the acquisition date.

Revaluation Model

After initial recognition, an intangible asset shall be carried at a revalued amount, being its fair value at the revaluation date less any subsequent accumulated amortization and any subsequent accumulated impairment losses. For the revaluation purposes required by this Standard, fair value must be determined using active market data. Revaluation should be carried out with such regularity that at the end of the reporting period book value asset did not differ materially from its fair value.

The revaluation model does not allow:

Conduct revaluation of intangible assets that were not previously recognized as assets;

Make initial recognition of intangible assets in amounts other than cost.

The revaluation model is applied after the initial recognition of an asset at cost.

Term beneficial use

Accounting for an intangible asset depends on its useful life. An intangible asset with a finite useful life is amortized, while an intangible asset with no certain period useful life is not subject to depreciation.

Many factors are considered in determining the useful life of an intangible asset, including the following:

The intended use of the asset by the business and the ability of the other management team to effectively manage the asset;

The normal product life of that asset and publicly available information on estimated useful lives of similar assets that are used in a similar way;

Technical, technological, commercial and other types of obsolescence;

The stability of the industry in which the specified asset operates and changes in market demand for products or services produced by the asset;

Anticipated actions of competitors or potential competitors;

The level of costs to maintain and maintain the asset required to generate the expected future economic benefits from that asset, and the entity's ability and willingness to meet that level of cost;

The period of control over the asset and legal or similar restrictions on the use of that asset, such as the expiration dates of the related leases;

The dependence of the useful life of the relevant asset on the useful life of other assets of the enterprise.

The useful life of an intangible asset can be very long or even indefinite.

Depreciation period and depreciation method

The depreciable amount of an intangible asset with a finite useful life should be allocated on a systematic basis over its useful life. Depreciation should start from the moment the asset becomes available for use. Depreciation charged in each period shall be recognized in profit or loss, unless this Standard or another Standard permits or requires it to be included in the carrying amount of another asset.

residual value

The residual value of an intangible asset with a finite useful life is assumed to be nil unless:

There is a third party obligation to purchase the asset at the end of its useful life;

There is an active market for this asset and:

Residual value can be determined using data from this market;

There is a high probability that such a market will exist at the end of the asset's useful life.

The depreciable amount of an asset with a finite useful life is determined after deducting its residual value. A non-zero residual value implies that the entity expects to sell the intangible asset before the end of its economic life.

Analysis of the depreciation period and depreciation method

The amortization period and depreciation method of an intangible asset with a finite useful life should be reviewed at least at the end of each financial year.

Intangible assets with an indefinite useful life

An intangible asset with an indefinite useful life is not subject to amortization, but an entity shall test an intangible asset with an indefinite useful life for impairment by comparing its recoverable amount with its carrying amount annually and whenever there is an indication that the intangible asset may be impaired.

Termination and disposal

An intangible asset is derecognised:

upon his departure;

When no future economic benefits are expected from its use or disposal.

The gain or loss arising from the derecognition of an intangible asset is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset.

Most accountants who deal with IFRS have had difficulty recognizing and measuring intangible assets more than once. The difficulty lies in the fact that the international standard IFRS 38 "Intangible Assets" (hereinafter - IFRS 38) differs from RAS 14/2007 1, despite the fact that the specified Russian normative document was adopted in pursuance of the Reform Program accounting in accordance with IFRS in 2007. This leads to the recognition of intangible assets in one accounting and non-recognition in another, which, accordingly, distorts the financial statements. Whatever way the accountant prepares IFRS statements (using transformation or on the basis of parallel accounting), special attention should be paid to this area.

CONFESSION

Recognition of an intangible asset under IAS 38

To recognize an object as an intangible asset, it is necessary that the object:

a) met the definition of an intangible asset;

b) met the recognition criteria.

Definition of intangible assets

IAS 38 defines intangible assets as identifiable non-monetary assets that do not have a physical form.

The main characteristics of intangible assets, according to British standards, are:

a) identifiable;

b) the presence of control by the enterprise;

c) the ability to deliver future economic benefits;

d) lack of physical form.

Identifiability

An intangible asset must be identifiable in order to separate it from goodwill.

Goodwill (goodwill) is the difference between the purchase price of a company and the fair value of its identifiable net assets. Goodwill generated internally, or arising from an acquisition or business combination, should not be recognized as an intangible asset.

An intangible asset can be distinguished from goodwill if the asset is separable, as evidenced by the company's ability to sell, transfer, lease or exchange it for another asset. And also in the case when it arises from contractual or other legal grounds, regardless of whether the relevant rights can be separated from other rights and obligations and from the enterprise as a whole. So, for example, fishing licenses, various kinds of permits and preferences granted by the state cannot be transferred by the enterprise, except for the sale of the business as a whole, but at the same time, since the relevant rights arise from the provisions of the law, these assets meet the requirements of identifiability .

The control

The Company controls an asset if it is entitled to the future economic benefits underlying it and may restrict third parties from receiving those benefits. As a rule, the possibility of control is linked to the existence of legal rights that can be exercised in court. At the same time, the possibility of enforcement of rights in a judicial proceeding is not necessary condition for control, since the company can control the economic benefits in some other way.

For example, suppose a company has produced a scientific development that is used in the production of goods. Although the invention has not been patented, it will generate income for the inventor's company.

In many cases, control is the "marker" that distinguishes intangible assets from intangible resources, such as investments in development and training of personnel, and most likely allows you to improve the company's performance in the future. However, as a rule, a company cannot demonstrate that it has sufficient control over the economic benefits arising from staff development. For the same reason, lists of clients compiled by the company itself, market share, customer loyalty, etc. are not recognized as intangible assets, since the company is unlikely to be able to exercise control over the action external factors, such as the behavior of staff, the reaction of competitors and customers.

Future Economic Benefits

Future economic benefits from the asset may include revenue from the sale of goods or services, cost savings, or other benefits that result from the use of the asset.

Lack of fitness

The absence of physical form is a necessary but not sufficient condition for the recognition of an intangible asset.

Assume that an asset combines tangible and intangible elements. The question arises: how to account for such an asset? On the one hand, it must be accounted for in accordance with IFRS 16 “Fixed Assets”, and on the other hand, in accordance with IFRS 38 “Intangible Assets”. In this case, it is necessary to decide which of these elements is more important for the operational characteristics of the object. For example, software for machine with computer controlled, which cannot work without this particular software, is an integral part of this machine and is accounted for as a fixed asset. The same applies to operating system computer.

If the software is not an integral part of the related hardware, it is accounted for as an intangible asset.

Criteria for recognition of intangible assets

The criteria for recognition of intangible assets are:

– the likelihood of future economic benefits associated with the asset;

- the possibility of a reliable assessment of the value of the asset.

An entity should estimate the likelihood of future economic benefits flowing based on management's best estimate of the economic conditions that will exist over the useful life of the intangible asset.

As a rule, the possibility of a reliable valuation of an intangible asset does not cause difficulties if the asset was acquired by a company (as an individual asset or in the process of a business combination) 2. To assess the value of internally created intangible assets, the standard establishes additional criteria.

Recognition of intangible assets in accordance with PBU 14/2007. Comparative analysis PBU 14/2007 and IFRS 38

In order to recognize an object as an intangible asset in accordance with RAS 14/2007, the following conditions must be met at a time:

a) the absence of material-material (physical) structure. Is important but not prerequisite according to IAS 38;

b) the possibility of identification (separation, separation) by the organization from other property.

Note that in Russian accounting business reputation (goodwill) should be taken into account as intangible assets. According to IFRS, the identification condition is directly related to
with a distinction between an asset and goodwill that does not relate to intangible assets;

c) use in the production of products, in the performance of work or the provision of services, or for the management needs of the organization. This condition is directly related to the receipt of future economic benefits, which is in line with IAS 38;

d) use for a long time, i.e., a useful life of more than 12 months or a normal operating cycle if it exceeds 12 months. According to IAS 38, this condition is optional and is determined by the organization itself;

e) the entity does not expect to resell the property within 12 months or the normal operating cycle, which is in principle consistent with IAS 38 3;

f) the ability to bring economic benefits (income) to the organization in the future. Complies with IAS 38;

g) the availability of properly executed documents confirming the existence of the asset itself and the organization's exclusive right to the results of intellectual activity, which is not a condition, according to IAS 38, when recognizing intangible assets.

In table. 1 lists the company's assets that may be classified as intangible assets in accordance with RAS and IFRS.

Table 1

Intangible assets

It should be noted that, in accordance with civil law 4, an exclusive right (intellectual property) to the results of intellectual activity arises only in cases provided for by the Civil Code of the Russian Federation and other laws.

The list of relevant laws is limited and includes:

– Law of the Russian Federation of September 23, 1992 No. 3523-I “On the legal protection of programs for electronic computers and databases”;

- Law of the Russian Federation of September 23, 1992 No. 3520-I "On Trademarks, Service Marks and Appellations of Origin";

- Law of the Russian Federation of September 23, 1992 No. 3526-I "On the legal protection of topologies of integrated circuits".

If the obtained intellectual result or other intangible resource owned by the company is not subject to legal protection in accordance with these laws, it is impossible to speak of the existence of exclusive rights to the results of intellectual activity. From the point of view of reporting prepared in accordance with RAS, this leads to the impossibility of recognizing as intangible assets a number of objects recognized as intangible assets in accordance with IFRS. Such objects, in particular, include broadcasting licenses, airport landing rights, import quotas, Internet sites (if they are not considered as databases), rights to access limited resources, etc.

As part of intangible assets, according to RAS, organizational expenses are taken into account, i.е. expenses associated with the formation of a legal entity, recognized in accordance with the constituent documents as part of the contribution of participants to the authorized (share) capital of the organization. IAS 38 assumes that legal and secretarial expenses incurred in setting up a legal entity are recognized in the income statement when incurred.

An important point is that as soon as an intangible asset does not meet the definition of an intangible asset (identifiability, control, future economic benefits), then it should be recognized as an expense as it arises.

According to PBU 14/2007, as well as IFRS 38, the intellectual and business qualities of the organization's personnel, their qualifications and ability to work are not included in the intangible assets, since they are inseparable from their carriers and cannot be used without them.

Differences in the recognition of intangible assets according to IFRS and RAS are given in Table. 2.

table 2

Differences in the recognition of intangible assets accounted for under IFRS and RAS

GRADE

Initial measurement of intangible assets under IAS 38

Initially, intangible assets are valued at actual cost. IAS 38 establishes approaches to determining the actual cost depending on the method of acquisition of an intangible asset.

The standard considers the following acquisition methods:

a) a separate purchase;

b) acquisition in the course of a business combination;

c) purchase through a government grant;

d) creation of intangible assets.

Separate purchase

The cost of an intangible asset includes:

- the purchase price;

– import duties;

– non-refundable taxes included in the purchase price;

– payment for legal services;

– costs directly attributable to preparing the asset for its intended use;

– deductions such as discounts and refunds.

Expenses are derecognised in the cost of an asset when the asset is brought to a condition necessary for its use in accordance with management plans. In particular, the carrying amount of an asset does not include expenses incurred from the time the asset is ready for use to the time it begins actual operation, as well as initial operating losses incurred due to a temporary lack of demand for products.

Example 1

The Soft company acquired the rights to the software product from the Micro company for $18,000. The registration costs for the acquired rights amounted to $1,000, and $0.500 was paid to the legal company Jurist for drawing up a rights assignment agreement. Every 6 months Soft pays a maintenance fee of $150. actual use software product was started 14 months after the initial registration, at which point $300 had been paid to maintain the registration.

The cost of an intangible asset will include the following costs:

– cost of rights in the amount of $18,000;

– expenses for initial registration in the amount of $1,000;

- expenses for legal services in the amount of $500 thousand.

The costs of maintaining the registration are not included in the actual cost as they are not necessary to bring the asset to the condition required to start using it.

Acquisition in a business combination

If an intangible asset is acquired in a business combination, the cost of the intangible asset is determined as its fair value at the acquisition date. In a business combination, those assets that were not recognized in the acquired company may be recognized as intangible assets if:

– the asset meets the recognition criteria;

– the fair value of the intangible asset can be measured reliably.

If the fair value of an asset cannot be estimated, then the asset is not recognized separately but included in goodwill.

For example, quoted prices in an active market provide the most reliable estimate of the fair value of intangible assets. When there is no active market for an intangible asset, the fair value of the intangible asset is the amount that the entity would pay for the asset at the acquisition date in an arm's length transaction between knowledgeable, willing parties, based on the best information available.

When measuring the fair value of an intangible asset, various indirect valuation techniques may also be used if they reflect current operations and practice in the industry to which the intangible asset belongs. When estimating the fair value of intangible assets acquired in the course of a business combination, the data of independent appraisers can be used, but at the same time, it should be borne in mind that the presence of an independent appraiser's valuation in itself is not a basis for separate recognition intangible asset if the criteria for its recognition are established by the standard, are not fulfilled.

Acquisition through government grant

Examples of situations in which an asset can be acquired through a government grant are donated airport landing rights, broadcast licenses, import licenses, government-granted access rights to limited resources. In this case, the entity may recognize the intangible asset at fair value under the standard government grant accounting treatment and recognize the grant at the same time, or, under the alternative accounting treatment, recognize the intangible asset at a nominal amount of 5. In the latter case, the cost of the intangible asset will also include any costs directly related to the preparation of an asset for its intended use.

Asset exchange

When an intangible asset is received in exchange for another non-monetary asset, the actual cost of the intangible asset is measured at the fair value of the asset given up, unless the fair value of the asset received is more readily apparent. When fair value cannot be measured reliably, the cost of the intangible asset is measured by reference to the carrying amount of the asset given up.

Creation of intangible assets

In some cases, the costs are incurred to generate future economic benefits, but this does not result in the creation of an intangible asset that meets the recognition criteria in IAS 38.

Such costs can be treated as internally generated goodwill. Goodwill generated internally is not recognized as an asset.

Sometimes it can be difficult to assess whether an internally created one meets
asset recognition criteria for intangible assets. It is often difficult to determine:

- whether there is an intangible asset that will create future economic benefits, and at what point in time it appeared;

- the value of an intangible asset.

To establish the point at which an internally generated intangible asset can be recognized in the financial statements, the process of creating an intangible asset is divided into two stages.

1. Research stage

Research is understood as original and scientific research undertaken with the aim of obtaining new scientific or technical knowledge. In particular, research includes activities aimed at obtaining new knowledge, searching, evaluating and final selection of applications of research results or other knowledge, searching for alternative materials, devices, products, processes, systems, services, etc.

The costs incurred during the research stage are not capitalized (not included in the cost of future intangible assets), but are recognized as expenses in the period in which they are incurred, since the company cannot demonstrate confidence in obtaining future economic benefits during the research stage.

2. Development stage

Development refers to the application of research results. Typically, the development phase is more advanced than the research phase, and in some cases a company can demonstrate that an asset will generate probable economic benefits.

However, in order to recognize an intangible asset at the development stage, the company must demonstrate (see the diagram below):

a) the technical feasibility of completing the intangible asset;

b) its intention to complete the intangible asset and use or sell it;

c) its ability to use or sell the asset;

d) how the intangible asset will generate probable future economic benefits;

e) the availability of sufficient technical, financial or other resources to complete the development and to use or sell the intangible asset;

f) the ability to reliably estimate the costs associated with the intangible asset during its development.

From the moment when all of the listed conditions begin to be met, the costs associated with the creation of an asset are capitalized. At the same time, previously incurred expenses related to the creation of an asset and recognized in the income statement are not subject to recovery and inclusion in the cost of an intangible asset.

The cost of self-created intangible assets, from the moment the asset is recognized, will include all expenses necessary to create the asset and prepare it for its intended use, which include expenses:

– for materials and services;

– wage workers;

– registration of legal rights;

– depreciation of patents, licenses used to create an asset.

Attribution of expenses when creating intangible assets

Example 2

In January 2008, the Soft company began research in the field of developing a technology for radiation cleaning of grain. In June 2008, the company began to develop a prototype radiation facility. According to the marketing department, the corresponding devices will be in demand on the market immediately after the start of serial operation. Expenses required to complete the project in accordance with the business plan will be financed by bank loan, an agreement on the provision of which has been reached with the bank. Expenses incurred from January to May 2008 amounted to $5,000 thousand, from June to December 2008 - $7,000 thousand.

In accordance with IAS 38, Soft can begin capitalizing the costs of creating an intangible asset from June 2008. Thus, its value as of December 31, 2008 will be $7,000 thousand.

In some cases, a project may consist of only one or the other phase. In this case, the accounting treatment for the relevant phase applies. If an entity cannot separate the research and development phase of an intangible asset, the cost of creating the asset is accounted for as if it were incurred in its entirety during the research phase.

Initial assessment of intangible assets according to PBU 14/2007

Initially, intangible assets are accepted for accounting at their original cost. PBU 14/2007 establishes various approaches for determining the initial cost of intangible assets, depending on the method of acquiring an intangible asset.

The regulation considers the following ways of acquiring intangible assets:

a) Acquisition of intangible assets for a fee.

b) Receipt of intangible assets under a donation agreement.

c) Receipt of intangible assets as a contribution to the authorized (share) capital.

d) Receipt of intangible assets under an agreement providing for the fulfillment of an obligation by non-monetary means.

e) Intangible assets created within the company.

Acquisition of intangible assets for a fee

The initial cost of intangible assets acquired for a fee is the sum of all actual expenses associated with this acquisition, excluding VAT and other refundable taxes. When buying NMA them initial cost is determined in the amount of actual costs, for example:

- amounts paid in accordance with the contract of assignment (acquisition) of rights to the right holder (seller);

– amounts paid to organizations for information and consulting services related to the acquisition of intangible assets;

– registration fees (non-refundable taxes, fees to intermediary organizations, etc.);

– customs duties, patent duties and other similar payments made in connection with the assignment (acquisition) of the exclusive rights of the right holder;

– other expenses directly related to the acquisition of intangible assets.

Expenses on loans and credits received are not expenses for the acquisition, creation of intangible assets, except in cases where the asset, the actual (initial) value of which is being formed, is classified as investment.

All of the above costs, according to IAS 38, are also included in the actual cost of intangible assets, except for credit costs. If the term of payment of an intangible asset exceeds the normal terms of the loan, then actual cost acquisition of an asset is considered equal to its price in the case of a lump sum payment. The difference between this amount and the total payments is recognized as interest expense over the term of the loan unless it is capitalized in accordance with IAS 23 Borrowing Costs.

Also, the provision specifically identifies costs that should not be included in the initial cost of intangible assets. These are general and similar expenses (except when they are directly related to the acquisition of assets), which meet the standard.

Example 3

The cost of the software is $500,000 if paid in one lump sum or $900,000 if paid in installments over two years. Regardless of the payment method chosen, the carrying amount of the intangible asset will be $500,000 under IAS 38 and $900,000 under RAS 14/2007. If the company chooses the second payment method, the amount of $400,000 will be treated as interest as part of the company's expenses, which will be shown in the IFRS income statement.

PBU 14/2007 recognizes goodwill as an intangible asset. Its value is determined as the difference between the purchase and book value. Goodwill (goodwill) in international standards is not an intangible asset. It can only be a separate asset in the balance sheet in cases where the company was acquired or in a business combination. This asset is valued as the difference between the purchase price and the fair value of the assets.

Obtaining intangible assets under a donation agreement

The initial cost of intangible assets received by an organization under a gift agreement (free of charge) is determined based on their market value on the date of acceptance for accounting.

IAS 38 considers the method of obtaining intangible assets free of charge through a government grant. It proposes to measure intangible assets in two ways: at fair value with simultaneous recognition of the grant, or at face value. International Standard does not cover the case where the donor is another company.

Receipt of intangible assets as a contribution to the authorized (share) capital

Intangible assets may be contributed by the founders (participants) as a contribution to the authorized (share) capital of the organization. The initial cost of such intangible assets is their monetary value, agreed by the founders (participants) of the organization. IAS 38 does not consider this option, and therefore does not prohibit its use. However, one should not forget that the intangible assets contributed must be measured at fair value.

Receipt of intangible assets under an agreement providing for the fulfillment of an obligation by non-monetary means

Intangible assets can also be acquired under an agreement providing for payment in non-monetary means (in particular, under an exchange agreement). In accordance with PBU 14/2007, the cost of the transferred property is recognized as the initial cost of such intangible assets. This value is set based on the price at which the organization, in comparable circumstances, usually determines the cost of similar goods (values).

The initial cost of intangible assets received under agreements providing for the fulfillment of obligations by non-monetary means is equal to the value of the property that was transferred in exchange. And the cost of this property corresponds to the price at which, in comparable circumstances, the organization determines the cost of similar goods (values).

If this price cannot be determined, then the cost of received intangible assets is determined based on the price at which similar intangible assets are usually purchased.

The difference between the value of intangible assets received and the value of transferred assets is reflected as non-operating income or expenses.

If there was an additional payment during the exchange and the fair value of intangible assets cannot be determined (according to IAS 38), then the cost of intangible assets is adjusted for the amount of paid Money or their equivalents.

Example 4

You can exchange $100,000 in cash and a fixed asset with a book value of $200,000 for a trademark. If a trademark cannot be measured at fair value, its cost is considered to be $300,000.

If the company recognizes a loss in the transaction, then an impairment loss is recognized on the transferred asset, and the carrying amount after impairment is assigned to the new asset; if profit, the carrying amount of intangible assets is charged to the revaluation reserve and is not recognized as profit in the income statement.

Example 5

Soft owns software with a book value of $50,000. Soft trades it for a Micro franchise with a market value of $75,000. Soft must record an increase in the book value of the franchise received by $25,000. .and attributed to the revaluation reserve (such income is not recognized as profit in the income statement, as it should be done in Russian accounting):

Dt "NMA" (franchise) - $ 25 thousand.

CT "Revaluation reserve" (capital) - $ 25 thousand.

Micro needs to record a decrease in the carrying amount of the software received by
$25 thousand and attributed to ():

Dt “Impairment loss” (IPL) – $25,000

CT "NMA" (software) - $ 25 thousand.

In Russian accounting, there is no account to which the “Impairment loss” account would correspond, which complicates the preparation of financial statements both through transformation financial statements compiled according to Russian standards, and when conducting parallel accounting (Russian and international). Account "Revaluation reserve" corresponds to account 83 "Additional capital", but the procedure for its accounting differs according to IFRS and RAS.

Created within the company NMA

An intangible asset created internally is considered to be created if:

- the exclusive right to the results of intellectual activity obtained in the course of the performance of official duties or on a specific assignment from the employer belongs to the employing organization;

- the exclusive right to the results of intellectual activity obtained by the author (authors) under an agreement with a customer who is not an employer belongs to the customer organization;

- a certificate for a trademark or for the right to use the appellation of origin of goods is issued in the name of the organization.

The initial cost of an internally created intangible asset is determined as the sum of the actual costs of its creation, manufacture (expended material resources, wages, services of third-party organizations under counterparty (co-executive) contracts, patent fees associated with obtaining patents, certificates, etc.), except for value added tax and other reimbursable taxes (except for cases stipulated by the legislation of the Russian Federation).

Under IAS 38, the first step is to determine whether an internally generated intangible asset qualifies for recognition. After recognizing an intangible asset, the company divides the process of creating an asset into two stages:

- research stage;

- development stage.

The cost of intangible assets created within the company includes costs that entered the development stage, and costs that were not recognized in previous periods in the income statement - this is a significant difference between Russian and international accounting for intangible assets.

According to Russian standard, all R&D costs, in case of a positive result and documented R&D results, are included in the initial cost of the created intangible asset.

Example 6

The company is developing a new production technology that will reduce production costs. During 2006 (12 months), the costs associated with this development amounted to 50 thousand rubles per month. From 01/01/2007, the production technology began to meet the criteria for recognition of intangible assets (according to IFRS 38). In 2007, the process of finalizing the new technology and its preparation for use took place, the costs of which amounted to 450 thousand rubles. As of the end of 2007, the intangible assets were documented.

Accounting under IAS 38:

2006

Dt “Expenses for the creation of intangible assets” (OPU) - 600 thousand rubles.

CT "Payment for the acquisition of necessary materials or services, etc." - 600 thousand rubles.

2007. (450 thousand rubles)

Dt "NMA" (production technology) - 450 thousand rubles.

CT “Payment, accounts payable for the purchase of necessary materials or services, etc.” - 450 thousand rubles.

Accounting according to RAS:

2006. (50 thousand rubles x 12 months = 600 thousand rubles)

Dt 08-8 "R&D performance" - 600 thousand rubles.

CT
600 thousand rubles

2007. (450 thousand rubles)

Dt 08-8 "R&D performance" - 450 thousand rubles.

CT 70, 60, 69, 10, 02 “Payment, accounts payable for the purchase of necessary materials or services, etc.” -
450 thousand rubles

Dt 04 "NMA" - 1050 thousand rubles.

CT 08-8 "Implementation of R&D" - 1050 thousand rubles.

1. The Accounting Regulation "Accounting for Intangible Assets" (PBU 14/2007), approved by Order No. 153n1 of the Russian Ministry of Finance dated December 27, 2007, replaced PBU 14/2000.

2 See IFRS 3 Business Combinations.

3. IAS 38 Intangible Assets does not apply to assets that are classified as intangible assets held for sale in the course of ordinary activities, which are accounted for in accordance with IFRS 2 Inventories, IFRS 11 Construction Contracts. IFRS does not specify the specific number of months of use of intangible assets.

4. Art. 138 Civil Code RF.

5. See IAS 20 Accounting for Government Grants and Disclosures state aid».

Topic: IAS 38 Intangible Assets

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1. IAS 38 Intangible assets 3

1.1. Basic definitions of the terms of the standard and criteria for recognition of an element in financial statements 3

1.2. Methods for valuation of intangible assets in financial statements 5

1.3. Disclosures in financial statements 10

2. Features of constructing a cash flow statement in accordance with IFRS 12

2.1. Key concepts, purpose and principles of IFRS 7 12

2.2. Classification of cash flows by type of activity of the company 14

2.3. Operational Reporting Methods 15

3. Problem 21

References 23

IAS 38 INTANGIBLE ASSETS

Basic definitions of the terms of the standard and criteria for recognition of an element in financial statements

Accounting for intangible assets (hereinafter - intangible assets) according to international standards financial reporting is governed by IAS 38 Intangible Assets. Current edition IAS 38 was adopted in 2004 and must be applied in accounting for intangible assets for annual periods beginning on or after March 31, 2004.

The purpose of this Standard is to define the accounting treatment for intangible assets for which there is no specific guidance in other Standards. The standard also sets out how to measure the carrying amount of intangible assets and requires certain disclosures about intangible assets.

IAS 38 gives the following basic concept, intangible asset - it is an identifiable non-monetary asset that does not have a material form. Examples of intangible assets under IAS 38 are patents, copyrights (for example, for software), licenses, intellectual property (for example, technical knowledge derived from research and development), trademarks, including brands and titles of publications, motion pictures and video films.

First of all, a company recognizes intangible assets on the basis of criteria common to all assets. They are set out in the Principles for the preparation and presentation of financial statements in accordance with IFRS. Like any asset, an intangible asset is recognized and included in the company's balance sheet if two conditions are simultaneously met: 1) it is highly probable that the company will receive economic benefits from the use of the asset in the future; 2) the value of the asset can be measured reliably.

This Standard requires an entity to recognize an intangible asset when, and only when, certain criteria are met. From the point of view of recognition of intangible assets, the main difficulty lies in the need to identify such assets and evaluate their value. An intangible asset must be identified as an independent object of accounting, controlled by the organization and bring economic benefits (or there must be reasons to expect them), have a reliable estimate.

Identifiability . An intangible asset must be separable from other company assets. Under IAS 38, an intangible asset is considered identifiable if the following conditions are met: 1) specific future economic benefits from the use of this asset can be reasonably separated from benefits derived from the goodwill of the company; 2) the receipt of an asset is a consequence of a specific business transaction; 3) the asset is separable, i.e. its disposal (lease, sale or exchange) will not result in the disposal of future economic benefits from other assets used in the same income-generating activity.

NMA can be identified in other ways. For example, if it is acquired in a bundle with other assets, it can be separated by its legal rights.

Company control . Control of an intangible asset means that an entity has the right to receive future economic benefits from the use of the asset and has the ability to prevent other entities from accessing the asset. litigation. In the absence of legal rights, it is much more difficult to demonstrate control. An example is the technical knowledge of a company that is protected by patents.

Future Economic Benefits . An intangible asset may be recognized in a company's financial statements if its use will allow future net cash inflow, additional profit, cost reduction, increase in sales, etc. , supported by appropriate justification .

Methods for estimating intangible assets in financial statements

Upon initial recognition, intangible assets are carried at cost. The composition of expenses that can be attributed to the cost of an intangible asset at its initial assessment depends on method of acquiring intangible assets.

A company can acquire intangible assets in different ways: separate acquisition (for a fee); as a result of the exchange; through government subsidies; as part of a business combination; through self-creation within the company.

Separate acquisition of NMA . When purchasing intangible assets, the cost of a separately acquired intangible asset includes: the purchase price of the intangible asset, including import duties and non-refundable purchase taxes, after deducting trade discounts and purchase concessions; any cost that is directly attributable to preparing an asset for its intended use. For example, if an entity has classified information system as an intangible asset, the costs of its implementation and adjustment will also be included in the cost of intangible assets.

Costs associated with the introduction of new products or services (including costs of advertising and promotional activities)), costs associated with doing business in a new location or with a new category of customers (including staff training costs), as well as administrative and other general overheads cannot be charged to the cost of intangible assets. For example, if a company has acquired the rights to use a trademark, then the costs of promoting it in new markets will not form its value.

As a result of the exchange. Upon receipt of intangible assets by exchange, two cases are possible: 1) an exchange for a dissimilar asset is carried out, the asset received is measured at the fair value of the asset transferred plus (minus) the transferred (received) cash; 2) an intangible asset was received in exchange for a similar asset with similar technical characteristics and fair value. In this case, the asset is recognized at the carrying amount of the asset received. Gains (losses) on such transactions should not be recognized.

Acquisition with a government subsidy. In some cases, an intangible asset may be received by a company free of charge or for nominal fee through government subsidies. This can happen when a government transfers or allocates to an enterprise intangible assets such as airport landing rights, radio and television licenses, import licenses or quotas, pollution quotas. environment. In this case, under IAS 20 Accounting for Government Grants and Disclosure of Government Assistance, the intangible asset is measured at fair value or at cost (which may be zero).

In accordance with IFRS 3 Business Combinations n intangible assets, acquired as a result of a business combination should be measured at fair value at the acquisition date. Intangible assets whose fair value can be measured reliably and will reflect the market's expectation of the likelihood that the entity will obtain future economic benefits embodied in the asset should be accounted for separately from goodwill. At the same time, the company is obliged to determine the fair value of the received intangible assets, even if they were not reflected in the accounts of the acquired company. In many cases, there is no market for intangible assets, so the discounted method is often used to determine their fair value. cash flows.

By self-creation within the company. For internally generated intangible assets, IAS 38 introduces additional recognition criteria. The process of creating an intangible asset is divided into two stages - research (research and development) and development (experimental design work).

under research refers to planned work aimed at obtaining new scientific and technical knowledge, activities to choose the scope of the results obtained, as well as the search for alternative materials, devices, products, processes, systems, services, etc.

Expenses incurred during the research stage are not capitalized, but are recognized as expenses in the period in which they are incurred, because the company does not yet have an intangible asset during the research stage and cannot demonstrate assurance of future economic benefits.

Developments- this stage includes: design, construction and testing of prototypes and models; design of tools, templates, molds and dies, the use of which is intended new technology; design, construction and operation of a pilot plant, etc.

The costs arising at the development stage can be included in the cost of the created intangible asset from the moment the following conditions are met: 1) the creation of intangible assets is technically feasible, the company plans to complete the development stage and has the necessary resources for this; 2) the created asset can be used by the company or sold; 3) there is a justification for how the company will receive economic benefits from the created asset; 4) the costs of creating intangible assets during the development phase can be reliably estimated.

All costs incurred prior to the fulfillment of the above conditions and written off as expenses of the period cannot be recovered and taken into account in the cost of intangible assets.

If the project for the creation of intangible assets cannot be divided into stages of research and development, it is fully considered as research, which means that the intangible asset is not recognized in the financial statements. Costs incurred are recognized as expenses of the reporting period.

Subsequent valuation (revaluation) of intangible assets. The need for revaluation of intangible assets is explained by changes in their market prices. The standard provides for two models for subsequent accounting for intangible assets.

Cost accounting model: intangible assets are carried at cost less accumulated depreciation and impairment losses;

Revaluation model: Intangible assets are recorded on the company's balance sheet at fair value, less depreciation and impairment losses (in practice, this model is rarely used, as it is applicable only in an active market). Revaluation should be carried out with such regularity that at the end of the reporting period the carrying amount did not differ materially from its fair value.

Useful life of intangible assets. The useful life depends on: (a) the period over which the entity expects to use the asset; b) on the quantity of products or similar products that the company expects to receive from the use of intangible assets.

When determining the useful life of an intangible asset, a company should take into account the ability to manage an asset, its dynamics life cycle, technological obsolescence, industry stability, competitors' actions, etc.

The maximum useful life of intangible assets is 20 years. If the period is reasonably longer, it can be increased, and vice versa, if any intangible asset is acquired for a long period, and the expected period of its actual operation is less, then the second indicator will be chosen as the useful life.

The useful life of intangible assets is determined when they are taken into account. The useful life of an asset is influenced by both economic and legal factors. Economic forces determine the period during which the entity will receive future economic benefits. Legal factors limit the period during which an entity controls access to these benefits. Factors that influenced the determination of the useful life intangible assets should be disclosed in the notes to the financial statements.

Disclosure of information on intangible assets with certain useful life . Estimating the useful life of intangible assets is a matter of professional accounting judgment. Therefore, disclosure of estimated useful lives or depreciation rates allows users of the financial statements to analyze the policy chosen by management and enables comparisons with other entities.

Disclosure of information on intangible assets with an indefinite useful life . An entity should treat an intangible asset as having an indefinite useful life if analysis of all relevant factors indicates that there is no foreseeable limit on the period over which the asset is expected to generate net cash inflows to the entity. Such intangible assets may include trademarks, trademarks, etc., from which future economic benefits are expected to be received for an indefinite period.

For an intangible asset with an indefinite useful life, disclosure is made of the carrying amount of that asset. In addition, data are provided that allow us to consider that its useful life is not determined. When reporting such data, an entity shall identify the factor(s) that played a significant role in determining the useful life of the asset as uncertain.

Depreciation is charged over the life of intangible assets. Amortized amount is defined as the difference between the original and residual values ​​of an asset. Unlike fixed assets, for intangible assets, by default, the salvage value is assumed to be zero. It may be non-zero where there is an agreement to purchase the intangible asset by a third party to acquire the asset at the end of its useful life or there is an active market for the type of asset to determine the salvage value.

In cases where the useful life of intangible assets cannot be determined, depreciation is not charged.

The standard does not limit the choice of the depreciation method for intangible assets, it only lists the possible ones: linear method, declining balance method, write-off method in proportion to the volume of production.

The depreciation method used by an entity should be consistent with the pattern of the asset's economic benefits to the entity. If such a schedule cannot be determined reliably, the straight-line method should be used. The depreciation period and methods should be reviewed at least at the end of each financial year.

A special approach is provided for goodwill accounting. IFRS 3 requires goodwill (after initial recognition) to be measured at cost less accumulated impairment losses. Under IFRS 3, goodwill is not amortized, but is subject to annual (or more frequent) impairment tests.

Depreciation charges are recognized as an expense unless other IFRSs permit them to be included in the carrying amount of other assets (for example, depreciation charges on a patent for manufacturing products may be included in the carrying amount of inventories). Impairment and P revocation of recognition of intangible assets. Impairment of intangible assets is recognized by the company in accordance with IAS 36 Impairment of Assets. The purpose of testing assets for impairment is to recover their carrying amount.

Intangible assets cease to be reflected in the financial statements in the event of disposal (sales, gratuitous transfer etc.) or when no economic benefits are expected from the use or disposal of the asset. Income (loss) arising from the derecognition of intangible assets is calculated as the difference between the net cash receipts from the disposal of an intangible asset and its balance sheet value is the profit (loss) of the reporting period. In the company's financial statements, it is recognized as income (loss) in the statement of comprehensive income.

Disclosures in Financial Statements

The disclosure requirements for intangible assets in IAS 38 are similar to those for property, plant and equipment, but are more detailed.

The financial statements disclose information for each class of intangible assets. At the same time, information about intangible assets created by the enterprise is given separately. Classes of intangible assets are groups of assets that are similar in purpose and use in the operations of the organization (brands, licenses and franchises, copyrights, related rights and patents, recipes and formulas, intangible assets under development). The balance sheet, cash flow and profit and loss statements generally include summary data, while detailed information is disclosed in the notes to the financial statements.

With the main method of accounting for intangible assets the company must reflect in the reporting: 1) useful life; 2) applied depreciation methods; 3) the cost of intangible assets before deducting accumulated depreciation (taking into account accumulated impairment losses) and the amount of accumulated depreciation at the beginning and end of the period; 4) income statement items that include depreciation of intangible assets; 5) reconciliation of the book value at the beginning and end of the period, reflecting the receipt of intangible assets, any changes in the book value, write-offs and disposals of intangible assets; accrued depreciation; differences from the recalculation of the value of assets in the reporting currency and others; 6) the reasons why the determination of the useful life for individual intangible assets is considered impossible; 7) description, book value and remaining amortization period for all significant intangible assets; 8) availability and book value of intangible assets pledged as collateral for obligations; 9) the amount of research and development costs included in the expenses of the period.

If intangible assets are accounted for at a revalued amount, then the following should be disclosed by asset class: 1) the actual date of the revaluation; 2) book value of revalued intangible assets; 3) the amount of the revaluation amount, indicating changes during the period. In addition, during the revaluation, the amount of the increase in the carrying value of intangible assets at the beginning and end of the period, as well as the methods and significant assumptions used in estimating the fair value of intangible assets, should be disclosed.

Regardless of the method used to account for intangible assets, IAS 38 recommends disclosure of the following: Additional information : 1) description of fully depreciated, but still in use, intangible assets; 2) a brief description of intangible assets, controlled by the company but not recognized as assets because they do not meet the recognition criteria or because they were acquired or created before the entry into force of IAS 38.

FEATURES OF CONSTRUCTION OF A STATEMENT OF CASH FLOW IN ACCORDANCE WITH IFRS

Basic concepts, purpose and principles of IFRS 7

Regardless of the nature of the activity, any company needs cash to operate, pay off obligations, and ensure investor income. A cash flow statement is necessary both for managers to control cash flows, and for third-party investors and shareholders who, based on this report, can draw conclusions about managing the firm's liquidity, its earnings, and the firm's ability to raise significant amounts of cash.

Cash flow information for previous periods often used as a basis for forecasting the size and timing of future cash flows. It is also useful in checking the accuracy of cash flow forecasts and in analyzing relationships between profitability, net cash flows and price changes. The procedure for generating a cash flow statement is governed by IFRS 7 Statements of Cash Flows. The purpose of this standard is to disclose the requirement to present information about historical changes in the company's cash and cash equivalents using the cash flow statement. Thus, the main purpose of this report is to present information about the receipts and payments of cash made by the company in reporting period, and the importance of the report is due to the fact that often the lack of free cash becomes the reason for the bankruptcy of companies.

IFRS 7 provides definitions of terms used in the preparation of the report.

Cash- cash and deposits that can be received by the company on demand.

Cash equivalent- short-term, highly liquid investments (investments) that are easily convertible into a certain amount of cash and are subject to an insignificant risk of changes in value. For example, cash equivalents include securities, uncertificated financial instruments. IFRS 7 Statements of Cash Flows provides a detailed description of cash equivalents.

Cash flows characterize the inflow (income) and outflow (payment) of cash and cash equivalents.

Basic principles

All companies that prepare financial statements in accordance with IFRS are required to present a cash flow statement. This statement must be part of their financial statements for each period in which financial statements were presented.

• The cash flow statement analyzes changes in cash and cash equivalents over a period. Cash and cash equivalents include cash on hand, bank deposits on demand, short-term, highly liquid investments that are easily convertible into a certain amount of cash with little risk of changes in their value.
• Investments are defined as cash equivalents when the maturity is 3 months or less from the acquisition date.
• A bank overdraft facility payable on demand and forming an integral part of the company's cash management is also included in cash and cash equivalents.

Users of financial statements are interested in how an entity creates and uses cash (and cash equivalents). A cash flow statement, used in conjunction with other components of financial statements, provides information that enables users to evaluate changes in an entity's net assets, its financial condition(for example, liquidity and solvency), as well as assess the company's ability to influence the volume and timing of cash flows in order to adapt to changing conditions.

Classification of cash flows by type of activity of the company

In accordance with the specified standard, cash flows during the reporting period are classified into the following areas of activity: 1) operating; 2) investment; 3) financial.

Presentation of information in the cash flow statement by type of activity makes it possible to assess their impact on changes in the financial condition of the organization and the relationship of activities. The same transaction can appear differently in the report. For example, loan repayment - in the group financial activities, and interest on it - in the group of operating activities.

Operating activities in the IFRS system is considered as the main, bringing the greatest income of the company. The amount of cash flows from operating activities is a key element showing the amount of cash flows for repaying loans, maintaining and growing operating opportunities, paying dividends, and new investments.

Cash flows from operating activities are generated mainly in the course of core activities that generate the company's revenue. Thus, they are usually the result of transactions that affect the formation of net income.

Examples of cash flows and cash equivalents from operating activities include:

Investment activities

Separate disclosure of information about cash flows from investing activities reflects the extent to which resources are spent to generate future income and cash flows.

Cash flows from investing activities include:

Separate cash flow disclosures funds for financial activities necessary to predict monetary requirements on the part of those who represent the company's capital.

The types of cash flows from financing activities are:

2.3. Methods for compiling a report on operating activities

To provide information on cash flows from operating activities allows companies to choose one of two possible methods described in IFRS 7 Statements of Cash Flows: direct (encouraged) and indirect (allowed).

direct method, according to which information on the main classes of gross receipts and gross payments is disclosed. The direct method is determining the amount of net cash flow by comparing data on receipts and payments of cash in connection with the conduct of operating activities. The result is adjusted for interest payments and income tax expenses.

The greatest difficulty in the process of constructing a statement of cash flows by the direct method, especially for external analyst, represents its first section, reflecting the cash flow from operating activities.

There are the following dignity this method: 1) the ability to show the main sources of inflow and direction of outflow of funds; 2) the ability to draw prompt conclusions regarding the sufficiency of funds for payments on various current obligations; 3) direct link to the cash plan (budget cash receipts and payments) 4) establishes the relationship between sales and cash receipts for the reporting period, etc.

Information on the main types of cash receipts and payments can be obtained: from the company's accounts; from the balance sheet and income statement, using the adjustment of the relevant items.

In practice, most businesses carry out a huge number of cash flow transactions on a daily basis, so cash flows are quite difficult to analyze and classify. As a result, the credential-based construction method is often too time-consuming, even for in-house accounting services. It is also unacceptable to external users who do not have access to company credentials that are trade secrets.

In this situation, a simpler and more universal way is to use the data of the balance sheet and income statement with appropriate adjustments. The general scheme for constructing a statement of cash flows from operating activities by the direct method is shown in the diagram shown in Table 1.

Table 1.

Scheme for determining cash flow from core activities (direct method)

Indicator

1 + Net sales

2 +(—) Decrease (increase) in receivables

3 + Advances received

4 = Cash received from clients

5 (—) Cost of goods and services sold

6 +(—) Increase (decrease) in inventory

7 +(—) Decrease (increase) accounts payable

8 +(—) Increase (decrease) in deferred expenses

9 + General, selling and administrative expenses

10 +(—) Decrease (increase) in other liabilities

11 = Payments to suppliers and staff

12 (—) Interest expense

13 +(—) Decrease (increase) in accrued interest

14 +(—) Decrease (increase) in reserves for future payments

15 +(—) Non-operating / other income (expenses)

16 = Interest and other current expenses and income

17 (—) Taxes

18 +(—) Decrease (increase) in debt / reserves for tax payments

19 +(—) Increase (decrease) in advances on tax payments

20 = Taxes paid

21 Cash flow from operating activities (p. 4 - p. 11 - p. 16 - p. 20)

disadvantage The considered method is that it does not reveal the relationship between the obtained financial result and the change in the absolute amount of the enterprise's cash.

Using indirect method information on cash flows from operating activities is disclosed by adjusting net profit or loss for depreciation, changes in inventories, receivables and payables, sales proceeds own shares, bonds, received and paid dividends, etc. Thus, when using the indirect method, the net profit (loss) of firms is adjusted taking into account the results of operations of a non-cash nature, as well as changes that have occurred in operating working capital.

Types of non-monetary transactions can be: 1) the acquisition of assets either by incurring corresponding liabilities or by financial lease; 2) acquisition of a company by issuing shares; 3) converting debt into shares.

Cash flow generation algorithm from operating activities by the indirect method includes the implementation of the following stages: 1) Based on the reporting data, the net profit of the enterprise is determined; 2) The sums of cost items that do not actually cause cash flow (for example, depreciation) are added to net profit; 4) Add (subtract) any increase (decrease) that occurred in the items of short-term liabilities that do not require interest payments. The general scheme for constructing a cash flow statement using the indirect method is shown in table 2.

Table 2.

Determination of cash flow from core activities (indirect method)

Indicator

1 Net income

2 + Depreciation

3 - (+) increase (decrease) in accounts receivable

4 - (+) increase (decrease) in inventory

5 - (+) increase (decrease) in other current assets

6 + (-) increase (decrease) in accounts payable

7 +(—) increase (decrease) in interest payable

8 +(—) increase (decrease) in reserves for future payments

9 +(—) increase (decrease) in tax arrears

10 = Cash flow from operating activities

The indirect method shows where the company's profit is specifically embodied, or where "live" money is invested.

In addition to ease of calculation, the main advantage of using the indirect method in operational management is that it allows match between financial result and changes in working capital involved in the main activity. In the long term, this method makes it possible to identify the most problematic “places of accumulation” of frozen funds and, accordingly, outline ways out of such a situation.

In addition, an important factor in choosing a cash flow statement method is data availability. The use of various forms and methods of constructing a cash flow statement allows you to analyze their volumes and structure in several aspects. As a result, the user gets a detailed view of the operating, investment and financial transactions conducted by the enterprise for the period under review. This, in turn, allows him to form a judgment about strengths and weaknesses. this enterprise, its current and potential problems.

The direct method is preferred. It is believed that it provides information for estimating future cash flows, which is difficult when using the indirect method.

When compiling the statement of cash flows, the main types of gross cash receipts and gross cash payments are shown separately.

Currency flows are reflected in the movement statement cash at the date of the movement in the entity's reporting currency. To do this, the foreign currency is recalculated at the exchange rate in accordance with IFRS 21 “The impact of changes exchange rates". Calculated gains and losses on change exchange rates foreign exchange is not considered as a cash flow. Therefore, the result is shown separately from cash flows from operating, investing and financing activities.

Cash flows from extraordinary events should be charged to operating, investing and financing activities and shown separately. This approach allows you to determine the impact of extraordinary circumstances on present and future cash flows. This disclosure is made in accordance with IFRS 8 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies.

Cash as flows of interest and dividends received or paid are disclosed in the statement of cash flows separately as operating, investing or financial. Disclosed in the report are the amounts of interest paid during the period or capitalized in accordance with the alternative option permitted by IAS 23 Borrowing Costs.

Income tax cash flows must be reported separate from other flows and treated as operating activities unless they can be directly linked to financial or investment activity. If it is necessary to link cash flows to a specific transaction related to investing or financing activities, this flow should be attributed to a specific type of activity.

Transactions of a financial and investment nature that do not give rise to cash flows and cash equivalents are not included in the cash flow statement. However, they must be disclosed in the financial statements as they affect the capital structure and assets of the company.

The statement of cash flows must show a reconciliation of the amounts with the relevant items. balance sheet and also discloses the amount of significant cash and cash equivalents that are not available for use. The cash flow statement allows you to assess how the organization is able to create cash and cash equivalents, spread over time and maintain the certainty of their formation. The cash flow statement provides an opportunity to evaluate changes in net assets organization, the ability to influence the amount and timing of cash flows. This is necessary to optimize activities under constantly changing internal and external conditions and opportunities. Cash flow statement information allows users to develop models for estimating, analyzing and forecasting the present value of future cash flows.

TASK

On January 1, 2011, the company entered into a service agreement for 900,000 c.u. (1 USD = 1 USD) for a period of three years. As at the reporting date for 2011, actual contract costs amounted to CU300,000. services were performed for 400,000 c.u. The company estimates that future costs will be CU500,000.

Calculate the amount of income and expenses to reflect them in the company's financial statements for 2011 using various accounting policies.

Decision:

According to IAS 18 Income (Revenue). The types of proceeds are: 1) from the sale of goods; 2) from the provision of services; and 3) from the use by others of the company's assets.

Depending on the type of revenue and the specifics of the transaction, different criteria for its recognition are established.

According to the condition of the task, on January 1, 2011, the company entered into a service agreement, which means that revenue from the provision of services should be recognized depending on the degree of completion of the transaction and if the final result can be reliably estimated. cannot be measured reliably, revenue should only be recognized to the extent of the costs that are reimbursable.

Completion of the provision of services is determined by: 1) reports of work performed; 2) the percentage of services performed in the total volume of services as of the reporting date; 3) the percentage of contract costs incurred as of the reporting date to estimated value total costs according to the estimate determined by the calculation.

Revenue is recognized at general rule in the reporting period in which the services provided for by the contract were rendered.

1. Percentage of services performed to the total volume of services(percentage of completion in the total volume of services).

As of the reporting date for 2011, the company performed services for CU 400,000, and the contract was concluded for a total of CU 900,000.

Income in the reporting period amounted to =400,000 c.u. :900 000 c.u. x 100% = 44.4%.

Costs at the reporting date were CU300,000(actual) + CU500,000(future) = CU800,000.

800 000 c.u. × 44.4% = $355,200 - expenses.

2. Percentage of costs(percentage of costs in total amount estimated costs).

Actual costs under the contract = 300,000 cu The percentage of costs amounted to = 300 000.u. : 800 000 c.u. x 100% = 37.5%.

900 000 c.u. × 37.5% = $337,500 - income.

BIBLIOGRAPHY

1. Ageeva O.A. International Financial Reporting Standards: Textbook. - M.: Publishing house "Accounting", 2008. - 464 p.

2. Vakhrushina M.A., International Financial Reporting Standards: Tutorial. - 4th ed., revised. and additional - M.: Reed Group, 2011. - 656 p.- (National economic education).

3. Kovalev S.G., Malkova T.N. International financial reporting standards in examples and tasks (for accountants) - M.: Finance and statistics, 2009. - 296 p.

4. International accounting and financial reporting standards: Proc. allowance / Ed. L.I. Ushvitsky; A.A. Mazurenko. - Rostov n / a: Phoenix, 2009. - 153 p.

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8.http//www.consultant.ru - Reference and legal system "Consultant Plus".

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Intangible asset - an identifiable non-monetary asset that does not have a physical form. Its defining features are: identifiability, accountability of the company, the ability to bring economic benefits.

An asset satisfies the identifiability criterion if it:

1) is separable, i.e. may be disconnected or separated from the business and sold, transferred, licensed, leased or exchanged;

2) is the result of contractual or other legal rights, regardless of whether these rights can be transferred or separated from the enterprise or from other rights and obligations.

An entity controls an asset if it has the right to receive future economic benefits from the underlying resource and to restrict the access of others to those benefits.

Future economic benefits flowing from an intangible asset may include revenue from the sale of products or services, cost savings, or other benefits arising from the use of the asset by the entity.

Initially, an intangible asset should be measured at cost, whether it was acquired externally or created internally. Subsequent costs of intangible assets are recognized as an expense if they restore the standard technical characteristics of the asset. They are capitalized when it is probable that the company will receive economic benefits in excess of the original rates for the asset.

Separate acquisition of an intangible asset.

Under this method of receipt, the cost of the acquired asset is assumed to be equal to the actual cost of its acquisition, which includes the purchase price, import duties, non-refundable purchase taxes, as well as company expenses directly related to preparing the asset for use (employee benefits, professional fees, arising directly from bringing the asset to working condition, the cost of verifying that the asset is working properly). When forming the initial cost, all discounts provided to the purchaser and compensation received by him are taken into account.

Acquisition in a business combination

In this case, you should be guided by the requirements of IFRS 3 “Business Combinations”, which states that when an intangible asset is acquired as part of the business being acquired, the cost of such an asset is measured at its fair value at the date of purchase. The most reliable estimate of fair value is quoted market prices for acquisitions of similar assets.

Acquisition through a government subsidy

In some cases, an intangible asset may enter the company free of charge or at a nominal cost through a government subsidy. Under IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, an entity may choose one of two acceptable methods of reporting this transaction:

Recognize both the intangible asset and the grant at the fair value of the asset;

Recognize an intangible asset at face value plus any costs directly attributable to bringing the asset to a usable condition.

Acquisition under a barter agreement.

An intangible asset may be acquired as a result of full or partial exchange for other property, including another type of intangible asset. In such a case, the cost of the acquired asset is determined as its fair value, which is assumed to be equal to the fair value of the asset transferred, adjusted for the amount of cash or cash equivalents paid under the transaction.

Creation of an intangible asset within the company

The cost of an intangible asset created by an entity is the amount of the costs incurred to create it to the point that it meets the requirements of IAS 38. It includes all costs that can reasonably and consistently be directly attributable to the creation of the asset and its preparation for use. In particular, the cost of an asset may include:

Costs of materials and services used or consumed in the creation of an asset;

Expenses for remuneration of employees employed in the creation of an asset;

Any costs directly attributable to the asset being created, such as rights registration fees, amortization of patents and licenses used to create the asset, etc.;

Overhead costs that are necessary to create an asset and can be directly related to it.

It is sometimes difficult to assess whether a self-created intangible asset qualifies for recognition. To assess whether a self-created intangible asset qualifies for recognition, an entity divides the asset creation process into two stages:

research stage

No intangible asset resulting from research is recognized. Research costs are recognized as an expense when they are incurred. Examples of research activities are:

Activities aimed at obtaining new knowledge;

Search, evaluation and final selection of areas of application of research results or other knowledge;

Search for alternative materials, devices, products, processes, systems or services;

Formulation, design, evaluation and final selection of possible alternatives to new or improved materials, devices, products, processes, systems or services.

2) development stage.

An intangible asset resulting from development is recognized when, and only when, the entity can demonstrate all of the following:

The technical feasibility of completing the creation of an intangible asset so that it can be used or sold.

The intention to complete the creation of an intangible asset and use or sell it.

The ability to use or sell an intangible asset.

The way in which an intangible asset will generate probable future economic benefits. Among other things, an entity can demonstrate the existence of a market for the product of the intangible asset, or the intangible asset itself, or, if the asset is intended to be used internally, the usefulness of the intangible asset.

The availability of sufficient technical, financial and other resources to complete the development, use or sale of the intangible asset.

The ability to reliably estimate the costs attributable to an intangible asset during its development.

Examples of development activities are:

Design, construction and testing of prototypes and models before production or use;

Designing tools, templates, molds and stamps that involve new technology;

Design, construction and operation of a pilot plant, the scale of which is not economically viable for commercial production;

Design, construction and testing of selected alternatives to new or improved materials, devices, products, processes, systems or services.

Internally generated goodwill

Internally generated goodwill is not recognized as an asset because it is not an identifiable resource (ie it is not separable and does not arise from contractual or other legal rights) that is controlled by the entity and can be measured reliably at cost.

An entity should choose as its accounting policy either cost accounting model , or revaluation model . If an intangible asset is accounted for using the revaluation model, all other assets of the same class must also be accounted for using the same model, unless there is no active market for those assets.

Cost accounting model

Subsequent to initial recognition, an intangible asset shall be carried at cost less any accumulated amortization and any accumulated impairment losses.

Revaluation Model

After initial recognition, an intangible asset shall be carried at a revalued amount, being its fair value at the revaluation date less any subsequent accumulated amortization and any subsequent accumulated impairment losses. For revaluation purposes, fair value must be measured using active market data. Revaluation should be carried out with such regularity that, at the end of the reporting period, the asset's carrying amount does not differ materially from its fair value.

If an intangible asset is revalued, then any accumulated depreciation at the revaluation date:

1) either recalculated in proportion to the change in the gross carrying amount of the asset so that the carrying amount of the asset after revaluation is equal to its revalued amount;

2) either deducted from the gross carrying amount of the asset, and the net amount is recalculated to the revalued amount of the asset.

If an intangible asset that is classified as a revalued intangible asset cannot be revalued because there is no active market for the asset, the asset shall be carried at cost less any accumulated amortization and accumulated impairment losses.

If, as a result of the revaluation, the current value of the asset increases, the amount of the revaluation should be credited directly to the capital account (revaluation reserve). If, as a result of the revaluation, the carrying amount of an asset decreases, the amount of the writedown should be recognized as an expense of the period. If, as a result of previous revaluations, this asset was revalued, the amount of the subsequent write-down is taken to reduce the amount of the previously created revaluation reserve.

A class of intangible assets is a grouping of assets that are similar in nature and how they are used in the activities of an enterprise. Examples of individual classes are:

1) trade names;

2) title data and titles of published publications;

3) computer software;

6) recipes, formulas, models, drawings and prototypes; and

7) intangible assets in the development process.

Depreciation methods:

Straight-line accrual method;

Declining balance method;

Method of units of production.

The depreciation method used should reflect the pattern of the entity's expected consumption of future economic benefits.

The residual value, period and amortization method of an intangible asset are reviewed at the end of each financial year.

Intangible assets with an indefinite useful life are not subject to amortization.

How do companies apply international standards in practice?

Qualitative accounting standards do not necessarily mean that the financial statements of companies will follow them in every point relating to the reflection and disclosure of information. Unfortunately, compliance with mandatory disclosure requirements is not always the same. Whether and to what extent these requirements are met is an interesting question to explore. And such studies were carried out.

This article is based on an ACCA report on this topic. The report is published in English, an open link to the report is available at: https://www.stir.ac.uk/research/hub/publication/14929. Report title: Worldwide application of IFRS 3, IAS 38 and IAS 36, related disclosures, and determinants of non-compliance.

This report examines the application of the three standards IFRS 3, IFRS 38 and IFRS 36 in the accounting practice of European countries and some other countries that have adopted international reporting standards or declare a significant convergence of national standards and IFRS. This ACCA study aimed to analyze whether IFRS are applied consistently in different countries and whether actual comparability of reporting is achieved. The report itself is quite voluminous, so for now I will focus on the conclusions regarding the application of IAS 38 “Intangible Assets”. Of course, there is much more statistical information in the report itself than in this article.

Which companies from which countries were selected for the study

For the study, it was necessary to select companies from countries with different institutional and regulatory regimes, both with developed and emerging stock markets.

The process of selecting companies for the study took place in three stages. First, the largest listed companies in 23 countries were identified. For European countries used the European S&P 350 index, which includes largest companies EU, which are most carefully monitored and analyzed. In addition to the companies present in the S&P 350 index, individual European companies, included in the national indexes of countries with large capitalization.

The largest non-European companies have been identified based on their market value and presence in national markets. stock indices. The sample included the largest companies from the ASFA Index (Australia), IBRX 50 (Brazil), Shanghai SSE 50 Index (China), Hang Seng (Hong Kong), FTSE Bursa Malaysia KLCI (Malaysia), NZX 15 ( New Zealand) and FTSE/JSE RAFI 40 (South Africa).

Thus, it can be said that all selected companies are "blue chips" in their geographic areas. Approximately 17% of the sample consists of British companies (91), 8% French (45) and 7% Australian companies (38). The weight of other countries is much less.

As a result, companies were selected from the following 23 countries (number of companies in brackets): Australia (38), Austria (15), Belgium (11), Brazil (25), China (9), Denmark (13), Finland (21) , France (45), Germany (29), Greece (9), Hong Kong (24), Ireland (18), Italy (20), Malaysia (19), Netherlands (17), New Zealand (11), Norway (17) ), Portugal (17), South Africa (21), Spain (25), Sweden (21), Switzerland (28) and the UK (91). There are 544 companies in total, more than half of which are European companies (397 or 73%).

The report for 2010 was analyzed. All companies represented different sectors of the economy, but none of them belonged to the financial sector (the reports of banks, insurance companies, investment funds etc.)

Application of IAS 38 in accounting practice

Of the total number of companies (544) included in the study 517 companies have at least one type of intangible assets in the statement of financial position(not including goodwill). Notably, 491 out of 517 companies that have at least one intangible asset recognized goodwill arising from acquisitions in the survey year and/or from acquisitions in earlier periods. As expected, it turned out that significant amounts of intangible assets (excluding goodwill) are recognized as a result of business combinations (mergers, acquisitions). Overall, a significant proportion non-current assets companies consists of intangible assets. On fig. 1 shows the percentage share of intangible assets and goodwill in different sectors of the economy.

Rice. 1. Share of intangible assets and goodwill in total assets

The study uses the classification of companies by industry based on the Industry Classification Benchmark (ICB) (see Wikipedia for details). For example, under the name "production of materials" (the English term "basic materials"), the chemical industry, mining (for example, coal, diamonds, gold), production of metals (for example, steel, aluminum), woodworking industry are combined.

The study found that in most industries, the share of goodwill as a percentage of total assets is greater than the percentage of other intangible assets. The percentage of goodwill in companies' assets ranges from 6% (oil and gas) to 26.8% (technology companies), while other intangible assets range from 4% (materials) to 14.1% (technology companies) of value assets.

Rice. 2. Ratio of goodwill and other intangible assets in total assets by country(diagram can be enlarged by clicking on it)

If you look at fig. 2, the predominance of goodwill over intangible assets is clearly visible for almost all countries, with the exception of Italy, Portugal, Spain, Malaysia, Greece and China. Goodwill as a percentage of total assets ranges from 0.63% (in China) to almost 26% (in the UK), and the remaining intangible assets (excluding goodwill) range from 1.63% to 13.51% of total assets ( again in China and the UK respectively).

Thus, intangible assets are among the most significant types of assets in in large numbers companies on the main stock markets peace. Statistics show that in the UK, Belgium, Hong Kong, France, Denmark, the Netherlands and Australia, up to 39% of the total assets of companies take the form of intangible assets (including goodwill). Companies in Malaysia, Greece and China invest in intangible assets the least (ie less than 11% of total assets, including goodwill). Or other companies buy least of all, because most of the intangible assets are recognized precisely when acquiring other companies.

It is interesting to see what classes of intangible assets prevail in the financial statements of companies prepared in accordance with IFRS (Fig. 3). The chart on the left shows the number of companies with different classes of intangible assets on the statement of financial position. The study found that "other intangible assets" represented a separate class of intangible assets in the statement of financial position in 453 out of 517 companies (i.e. 87.6%). Among other intangible assets, companies most often reflect software and trademarks (which is expected), least often - customer lists. The right chart shows the percentage share of different classes of intangible assets in total assets. The class "other intangible assets" represents an average of 5.28% of the total value of the company's assets, which is more than other classes of intangible assets. Even brands and trademarks, rights and licenses are somewhat inferior in value to “other intangible assets”.

Rice. 3. Different classes of intangible assets: frequency of occurrence and value as a percentage of total assets

Compliance with disclosure requirements in IFRS financial statements

IAS 38 requires entities to provide information about intangible assets in explanatory note(openings). In accordance with paragraph 118 of IAS 38, entities must disclose the following information for each class of intangible assets, distinguishing between internally generated intangible assets and other (acquired) intangible assets:

• (a) whether the useful lives are indefinite or finite, and if they are finite, what are the useful lives of the intangible assets,
• (b) depreciation methods used for intangible assets with finite useful lives;
• (c) gross carrying amount and accumulated amortization (together with accumulated impairment losses) at the beginning and end of the period;
• (d) the line item(s) in the income statement that includes amortization of intangible assets, and
• (e) a reconciliation of the carrying amount at the beginning and end of the reporting period.

The study showed that 269 out of 517 companies have internally generated intangible assets, 503 companies reported acquired intangible assets in their financial statements. Not all of them have done the disclosures required by the disclosure standard.

The percentage of companies that disclose all required information on acquired intangible assets is:

• useful lives of intangible assets — 78.5% (83.6%*)
• depreciation method of intangible assets — 83.1% (85.5%)
• book value and accumulated depreciation — 94.0% (96.3%)
• where does the depreciation of intangible assets in the income statement belong - 78.9% (73.6%)
• reconciliation of the book value of intangible assets at the beginning and end of the period — 93.8% (94.4%)

* — % of companies disclosing this information on intangible assets created within companies is indicated in brackets.

As can be seen from the above figures, for acquired intangible assets, a significant (about 21% of 503) part of the companies for which this information is relevant do not disclose the income statement item, which includes the amortization of intangible assets. The analysis showed that only in New Zealand, Norway and Ireland all companies provide this information, while in Australia, Greece, France and South Africa the percentage of companies providing such information is 63%, 67%, 68% and 44% respectively. . When analyzed by industry, the majority of companies in the telecommunications industry (90%) provide this information. And companies involved in the production of consumer goods (consumer goods) quite often do not disclose this information (only 50 out of 73 companies provide).

Also, about 21% of companies do not disclose whether the useful lives of acquired intangible assets are indefinite or finite. Many companies in Belgium, Brazil, China, Greece, Italy, Malaysia and Spain do not provide useful life information for acquired intangible assets (in all these countries, less than 70% of firms provide such information). On the other hand, over 90% of companies in the Netherlands, UK, Norway and Austria disclose this information.

It is interesting to note that not a single company included in the study applies the revaluation model to intangible assets, all companies use the cost method to evaluate intangible assets (cost model). This fact improves the comparability of financial statements under IFRS with the statements of companies from China and the USA, where the revaluation model of intangible assets is not allowed. The IASB may wish to consider whether the revaluation model is appropriate for intangible assets.

For intangible assets with an indefinite useful life, 151 companies indicated that they have at least one such intangible asset. Only 58% (ie 88) of these companies disclose reasons supporting their estimate of indefinite useful life and/or the factor(s) that played an important role in determining that estimate. And such disclosures are required by paragraph 122 of IAS 38.

Study Findings

1. Intangible assets are among the most significant types of assets in a large number of companies in the world's major stock markets. In countries such as the UK, Belgium, Hong Kong, France, Denmark, the Netherlands and Australia, up to 39% of the total assets of companies take the form of intangible assets (including goodwill).
2. Other intangible assets, along with trademarks and licenses, are a common class of intangible assets and represent a significant proportion of the value of a company's assets. But what is hidden under this name "other"? Should companies provide readers with more detailed information?
3. Most of the intangible assets are acquired through business combinations.
4. Not all companies make the disclosures required by the intangible asset disclosure standard.
5. None of the companies uses the revaluation model to account for intangible assets.

In general, while intangible assets make up a significant proportion of a company's assets, the relevant mandatory disclosures are not always fully disclosed.

Intangible assets in IFRS statements of Russian companies

The data in the table below was taken from the 2015 IFRS consolidated financial statements. If desired, anyone can continue this table, and reporting under IFRS, is given by reference. Figures are given in millions of rubles.

*MMK - Magnitogorsk Iron and Steel Works

As can be seen from the table, intangible assets account for 11 to 22% of all assets of Russian telecommunications companies. Companies from other industries (in this case, oil and gas and steel) generally have insignificant amounts of intangible assets as a percentage of total assets.

According to the explanatory notes, most of the intangible assets of telecommunications companies are licenses. For example, Megafon has a book value of 4G licenses of 38,068, which is 61.5% of all intangible assets excluding goodwill. The rest is frequencies, billing and telecommunications software, subscriber base and other intangible assets.

In addition to telecommunications companies, the table presents data for two oil and gas companies(Rosneft and Gazprom) and two steel companies (MMK and Severstal). The percentage of intangible assets in the assets of these companies is small, which is probably why the information in the explanatory notes to the statements is much less than in the statements of telecommunications companies. For example, there is no separate section in the explanatory note regarding intangible assets in MMK's financial statements. The share of intangible assets in the reporting of Sevestali is about 4%, in the IFRS reporting there is a breakdown of the movement of intangible assets by class: mining licenses, software, assets. intelligence-related and other intangible assets. But I did not find the necessary disclosures on the timing and methods of amortization of intangible assets.

In the reporting of Rosneft, out of 48 billion rubles of intangible assets other than goodwill, half (24 billion) are land lease rights and the remaining 24 billion rubles are other intangible assets without explanation of what they are. Although, of course, for Rosneft this small amounts, less than half a billion dollars (24,000,000,000/56 ~430 million dollars)

As for Gazprom's financial statements according to international standards, there is no “intangible assets” line at all, there is only the “goodwill” line. At the same time, there are intangible assets in the reporting under RAS for this period. Most likely, the absence of an intangible asset line in the consolidated financial statements of Gazprom is due to the fact that the value of intangible assets across the Group is extremely insignificant (?).