№ 12/2021

Fìnansi Ukr. 2021 (12): 99–113https://doi.org/10.33763/finukr2021.12.099

SCIENTIFIC SUPPORT OF INSTITUTIONAL REFORMS

SVYRYDENKO Maryna ¹, KUCHERIAVA Maria ²

¹Тне Secretariat of the Cabinet of Ministers of Ukraine
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-2948-1234

Institutional provision of preparation of transfer pricing documentation: international experience and directions for development in Ukraine

The article considers the essence of amortization in accordance with national and international standards of accounting and financial reporting, analyzes scientists’ approaches. The process of amortization in the context of economic life cycle of the intangible asset is studied. The purpose and features of the impairment process of intangible assets are outlined. Signs of impairment of the intangible assets for each of the common classes are identified. The inexpediency of applying amortization to non-standard accounting intangible assets, which are not the property of the enterprise in the classical sense, is substantiated, instead it is proposed to test them for impairment. The author's definition of the concept of “amortization of the intangible assets” is given. Four levels of legal regulation of amortization of the intangible assets are considered. The comparative aspect of the requirements of national and international standards for amortization is studied. The peculiarities of the amortization policy of 30 domestic enterprises are generalized and the negative tendency of the indicators of the state of intangible assets is revealed. Areas of management of fully amortized intangible assets are proposed, which include preventive measures and the algorithm for selecting measures ex post facto. The essential characteristics of the intangible assets that should be taken into account when formulating amortization policy are identified. The advantages and disadvantages of different methods of amortization of intangible assets are analyzed and the choice of amortization parameters for different classes of the intangible assets is recommended. The issue of amortization of the rights of permanent use of land as part of intangible assets is studied. The basics for estimating the liquidation value of the intangible assets are determined. The impact of accounting estimates for intangible assets on taxation is summarized.

Keywords:intangible assets, amortization, impairment, amortization policy, amortization method, break-up value, useful life.

JEL: H29

Svyrydenko M. . Institutional provision of preparation of transfer pricing documentation: international experience and directions for development in Ukraine / M. Svyrydenko, M. Kucheriava // Фінанси України. - 2021. - № 12. - C. 99-113.

Article original in Ukrainian (pp. 99 - 113)

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