+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Financial Analytics: Science and Experience
 

The procedure for identifying and recovering losses from impairment of intangible assets

Vol. 10, Iss. 1, JANUARY 2017

PDF  Article PDF Version

Received: 7 November 2016

Received in revised form: 23 November 2016

Accepted: 7 December 2016

Available online: 17 January 2017

Subject Heading: MONITORING OF ECONOMIC PROCESSES

JEL Classification: М41

Pages: 20-28

https://doi.org/10.24891/fa.10.1.20

Ismagilova T.R. Financial University under Government of Russian Federation, Moscow, Russian Federation
t.ismagilova@gmail.com

Importance The article reviews key issues of identifying and recovering losses from impairment of intangible assets in the current circumstances.
Objectives The research articulates practical guidance for treating intangible assets as a key item for corporate governance by providing reliable information on the real value of the intangible assets to all interested users.
Methods The methodological framework relies upon an analysis of financial analysts and experts’ opinions expressed in periodicals, and the Russian and foreign companies’ financial statements prepared under the international and national standards.
Results I examined key phases and difficulties in identifying and recovering impairment losses as they are very important to consider when choosing an option to determine loss in relation to an intangible asset. The article also overviews additional procedures for analysis of intangible assets, which can mitigate the risk of unintentional error when impairment factors are identified. I propose a method to assess future economic benefits from intangible assets concerning market opportunities.
Conclusions and Relevance Under the current economic circumstances, users of financial statements primarily consider how accurately and diligently corporate management measures assets. If the recommendations for identifying and recovering loss from impairment of intangible assets are observed, they will improve the quality of corporate governance and provision of information to interested users. The findings will be helpful for companies, which prepare their financial statements both under the Russian accounting standards and the International Financial Reporting Standards (IFRS).

Keywords: impairment, intangible asset, loss, recovery, likelihood

References:

  1. Vyruchaeva A. Raskrytie informatsii v otchetnosti po MSFO [Disclosures in financial statements under IFRS]. Available at: Link. (In Russ.)
  2. Sheikhametova E.N. [The significance of lease]. Molodoi uchenyi = Young Scientist, 2016, no. 1, pp. 522–528. (In Russ.)
  3. Palamarchuk A.R. [Intangible assets and intellectual property]. Imushchestvennye otnosheniya v Rossiiskoi Federatsii = Property Relations in the Russian Federation, 2011, no. 10, pp. 53–68. (In Russ.)
  4. Shishova L.I. [Issues of the Russian companies’ adoption of the International Financial Reporting Standards]. Vestnik Volzhskogo universiteta im. V.N. Tatishcheva = Vestnik of Volzhsky University after V.N. Tatischev, 2013, no. 4, pp. 3–7. (In Russ.)
  5. Baker S., Klendon T. Obestsenenie gudvila [Impairment of Goodwill]. Available at: Link. (In Russ.)
  6. Anikina N.A., Krymov S.M. [Goodwill as a tool for business value management]. Vestnik Yuzhno-Ural'skogo gosudarstvennogo universiteta. Seriya: Ekonomika i menedzhment = Bulletin of the South Ural State University. Series: Economics and Management, 2010, no. 26, pp. 68–72. (In Russ.)
  7. Ismagilova T.R. [Impairment of intangible assets: the degree of assessment uncertainty during the economic crisis]. Vestnik professional'nykh bukhgalterov = Bulletin of Professional Accountants, 2016, no. 4, pp. 21–23. (In Russ.)
  8. Generalova N.V. [Professional judgment and its use in the preparation of financial statements under IFRS]. Bukhgalterskii uchet = Accounting, 2005, no. 23, pp. 63–68. (In Russ.)
  9. Rzhanitsyna V.S. [Concepts of intellectual property and intangible assets]. Bukhgalterskii uchet = Accounting, 2005, no. 7, pp. 32–37. (In Russ.)
  10. Azgal'dov G.G., Karpova N.N. Otsenka stoimosti intellektual'noi sobstvennosti i nematerial'nykh aktivov [Valuation of intellectual property and intangible assets]. Moscow, MAOK Publ., 2006, 400 p.
  11. Nikolaeva O.E. Strategicheskii upravlencheskii uchet: monografiya [Strategic management accounting: a monograph]. Moscow, LKI Publ., 2008, 304 p.
  12. Galiullina A. Nematerial'nye aktivy v rossiiskoi i mezhdunarodnoi praktike [Intangible assets in the Russian and international practices]. Available at: Link. (In Russ.)
  13. Leont'ev B.B., Mamadzhanov Kh.A. Otsenka nematerial'nykh aktivov vysokotekhnologichnykh predpriyatii [Valuation of intangible assets of high-tech companies]. Moscow, Patent Publ., 2012, 305 p.
  14. Korchagin P. [Marketing services: reputation management]. Problemy teorii i praktiki upravleniya = Theoretical and Practical Aspects of Management, 2011, no. 3, pp. 120–132. (In Russ.)
  15. Kurilova A.A. [Goodwill and its valuation in the Russian and international practice]. Vektor nauki Tol'yattinskogo gosudarstvennogo universiteta = Vector of Science of Togliatti State University, 2014, no. 4, pp. 153–156. (In Russ.)

View all articles of issue

 

ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

Journal current issue

Vol. 17, Iss. 1
March 2024

Archive