• has no material form;
• can be identified.
According to P (S) of Accounting 8 "Intangible assets" non – monetary assets are
all assets except cash, cash equivalents and receivables in a fixed (or certain) amount
of money [14]. Consequently, there are no questions about the non-monetary nature of
skill and knowledge, nor about the absence of material form.
The main international standard that regulates accounting of intangible assets is
IFRS 38 "Intangible assets". According to IAS 38 "Intangible assets" an asset is
identified, if it:
a) can be separated, i.e. it can be separated or detouched from the entity and sold,
transferred, licensed, rented or exchanged individually or together with a related
contract, identifiable assets or liability, regardless of whether the entity intends to do
so, or
b) arises as a result of contractual or other legal rights, regardless of whether they
can be transferred or separated from the business entity or from other rights and
obligations [11].
Such object of accounting as skill and knowledge can be separated from the
business entity, because it can be sold, its right to use can be transferred. So skill and
knowledge is an intangible asset, because it meets all the conditions of a certain
accounting provision.
Creating skill and knowledge the company incurs such costs as: wages, materials,
deductions from wages, obeying third-party organizations, etc. Such transactions are
recorded in the debit account 154 "Acquisition (creation) of intangible assets", as these
costs are capital investments in the development of an intangible asset. These
operations are executed by the corresponding primary documents. Once an intangible
asset is developed it should be credited to the balance sheet of the enterprise.
In Ukraine, the capitalization of an intangible asset is completed with such a
document as the Act of entering into economic circulation of the object of intellectual
property rights as part of intangible assets (f. NA-1).
The next step is to create a trademark.
According to P (S) of Accounting 8 "Intangible assets", the trademark meets all
the characteristics of the intangible asset and the recognition criteria, it is an intangible
asset, non-monetary asset and it can be identified, and the business entity has the
intention, technical ability and resources to bring the asset to a state in which it is
suitable for sale or use, there is a possibility of obtaining future economic benefits,
there is information to reliably determine the costs associated with the development of
an intangible asset. However, in contrast, paragraph 9 P (S) of Accounting 8 "Intangible
assets" indicates that the cost of improving the business reputation of the enterprise,
the cost of publications and the cost of creating trademarks (trademarks) are not
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