accounting procedure for the operations of all legal entities registered in Ukraine,
regardless of their legal forms and forms of ownership.
According to certain objects of accounting regulations governing the accounting
of transactions with franchising includes P(S) of Accounting 8 "Intangible assets",
P(S)of Accounting 10 "accounts Receivable", P(S)of Accounting 11 "Liabilities",
P(S)of Accounting 15 "Income", P(S)of Accounting 16 "Expenses", instructions on
the application of the chart of accounts of assets, capital, liabilities and business
operations of enterprises and organizations.
These provisions determine the procedure for recognition, evaluation,
methodological basis for the formation of accounting information and its disclosure in
the financial statements of the relevant object of accounting. Instruction on the
application of the chart of accounts of assets, capital, liabilities and business operations
of enterprises and organizations establishes the purpose and procedure of accounting
for summarizing by double-entry information on the availability and movement of
assets, capital, liabilities and facts of financial and economic activities of enterprises,
organizations and other legal entities.
Today, more and more business entities are switching to accounting and reporting
according to international standards.
Thus, International financial reporting standards (IFRS) and International
accounting standards (IAS) can be added to the list of legal documents that regulate
the accounting of transactions with franchising activities.
When forming the accounting policy of the enterprise, it is important to determine
the provisions contained in the Tax code of Ukraine [13] regarding the taxation of
transactions with franchising activities. It should be noted that the implementation of
franchising operations has an impact on such taxes of the enterprise as: income tax,
value added tax, single tax.
When reflecting operations on franchising it is necessary to consider features of
accounting of transactions with franchising at the franchisor and the franchisee.
Reflecting the operation of the franchise from the franchisor the model of their
accounting should be designed, which structurally consists of the following steps:
- creation of franchising object;
- creating a brand;
- implementation and reflection of operations under the franchise agreement.
When creating a franchising object should take into account the requirements of
P(S) of Accounting 8 "Intangible assets" in accordance with which an intangible asset
is a non-monetary asset that has no material form and can be identified [14].
Therefore, in order to classify skill and knowledge as an intangible asset, it is
necessary that it meets the following conditions:
• non-monetary asset;
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