New FAS 14/2022 "Intangible Assets".

Effective July 14, 2022, new FAS (Federal Accounting Standards) on intangible assets went into effect.

The new reporting forms require companies to locate and value intangible assets such as:

  • 1. Intellectual property rights (patents, trademarks, copyrights, etc.).
  • 2. Research and development expenses.
  • 3. Costs of staff education and other types of training.
  • 4. Costs of creating and developing new brands or technologies.
  • 5. Advertising and marketing expenses.

These assets are seen as essential assets that allow companies to create a competitive advantage and generate revenue over the long term.

New FAS 14/2022, Intangible Assets, introduces a number of changes from the previous version.

The main changes are:

  • 1. Definitions for certain categories of intangible assets, such as software, rights to use the results of intellectual activity, etc. have been clarified.
  • 2. New requirements for recognition of expenses for creation of intangible assets have been introduced. So, now to recognize the expenses for the rights to the results of intellectual activity, it is necessary to have the right to use them in the accounting records.
  • 3. The requirements for methods of assessment of intangible assets have been improved, including marketing expenses, which should now be recognized as part of intangible assets.
  • 4. New requirements for providing additional information about intangible assets in the statements were introduced.

These changes will help make reporting on intangible assets more objective and accurate, as well as improve the management of these assets in organizations.