Roi D.V.Baikal State University of Economics and Law, Irkutsk, Russian Federation roydv@mail.ru
Importance Franchise deals have a number of advantages, but franchise partners often face difficulties in accounting because of imperfect legislation. This fact determines the relevance of the research. The subject of the study is to review legal aspects of franchising and to identify the specifics of franchise operations accounting. Objectives The aim of the study is to examine franchising as a form of civil-law relations, to study the adaptation of franchising in Russia as a commercial concession, and to research the specifics of accounting for franchising transactions. We have used scientific methods, such as analysis and synthesis, and the comparison method. The works of domestic and foreign scientists dedicated to the study of accounting problems and the civil law served as the methodological basis of the research. Results Using the comparative analysis of IAS 38 "Intangible Assets", Russian Accounting Regulation 14/2007 "Accounting for intangible assets", the civil legislation of the Russian Federation, and foreign and domestic experience of franchise accounting, we have analyzed the legal characteristics of a commercial concession agreement and studied the specifics of franchisor and franchisee accounting. We proposed an organization of analytical accounting for franchise operations at party to the franchise agreement. Given the franchise agreement specifics, we have presented recommendations on accounting records of the franchisee and the franchisor using specific examples. Conclusions We have concluded that the franchisor's income can be considered as income generated by the main activity and other income. The findings of the study may be useful for a wide range of readers: scientists, bachelors, masters, graduate students, professors, practicing accountants and auditors. The practical significance of the study is that the findings and recommendations will improve the method of recording franchise operations and strengthen their legal status.
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