The beginning date of application of the standard is the accounting period of 2024, with early application permitted.
Simultaneously with the adoption of the new standard, RAS 14/2007, "Accounting of intangible assets", will be discontinued with effect fr om 1 January 2024.
Before adopting the new standard, we recommend the following actions:
What does this mean in practice?
For accounting purposes, intangible assets are to be classified by type (electronic computer programmes (ECPs); databases; inventions; utility models; industrial designs; production secrets (know-how); selection achievements; licences and permits) and group.
The unit of accounting for intangible assets is an inventory item.
An inventory object of intangible assets is a set of rights to it arising in accordance with contracts or other documents confirming the existence of the organisation's rights to such an asset.
A complex object that includes several protected results of intellectual activity (e.g., a multimedia product, a single technology) may also be recognised as an inventory object of intangible assets.
Under the new standard, an entity has the right to independently set a value lim it on the attribution of an item to either IA or expenditure for the period upon completion of capital expenditures related to the acquisition, creation of the assets (paragrath 7 FAS 14/2022).
The standard introduces the concept of residual value - the amount that an organisation would receive if the item were disposed of. The residual value of an IA is deemed to be zero, except in the following cases:
(paragraph 36 FAS 14/2022).
Depreciation elements such as the residual value, useful life and depreciation method should be reviewed systematically (at least at the end of each year) for changes and, if necessary, adjusted (paragraph 42 FAS 14/2022).
Under paragraphs 52-54 of FAS 14/2022, the effects of a change in accounting policy arising from the adoption of the new standard should be recognised retrospectively - as if the standard had been applied from the start of the acquisition of IA.
However, an organisation has the option not to restate comparative amounts for periods prior to the reporting period, but to reflect the changes in carrying amounts resulting from the adoption of the standard through the organisation's retained earnings.
Prospective application of the standard, without incoming adjustments at the beginning of the year is only possible for organisations that have the right to apply simplified accounting methods, including simplified (financial) reporting (paragraph 55 of FAS 14/2022).