Determination the useful life of intangible assets with a negative depreciation
Journal Title: Вісник соціально-економічних досліджень - Year 2018, Vol 4, Issue 68
Abstract
The article analyzes the requirements for the useful lifetime determining of specific intangible assets, such as trademarks and goodwill, which are able to change value over the term of economic life in both directions and thus they can change the sign of accumulated depreciation. The requirements of the regulatory framework of accounting and independent evaluation, which are partially contradictory, that creates a normatively-legal collision between them, are considered. It is shown, that the pattern in market value changes with over time, and, accordingly, the depreciation sign of the investigated assets depends on the of measures implementation for their support and development, supported by appropriate investment of cash flow costs. It has been established, that during of a trademark useful livetime period, it is possible to repeatedly change of depreciation sign on certain periods of its economic life, depending on whether, the measures for its information and advertising support are carried out in sufficient quantities. The factors list, which should be taken into account when a trademark useful lifetime determining is identified and analyzed. Authors proposed, in the most general case, when further efficient use of the trademark is envisaged, to consider it an intangible asset with an indefinite (unlimited) useful lifetime. It is proved that intangible assets of this class are not advisable to depreciate in accounting, since their accumulated depreciation under normal conditions is negative, and when evaluating their value in the general case, the normal profitable activity of an enterprise should be determined with using of market value increasing model over time.
Authors and Affiliations
Yuri Pozdnyakov
Keywords
Related Articles
- EP ID EP533580
- DOI 10.33987/vsed.4(68).2018.65-76
- Views 95
- Downloads 1
STAGES OF SMALL ENTERPRISE LIFE CYCLE: CHARACTERISTICS AND SPECIFICITY OF MANAGEMENT DECISION MAKING
The article analyzes the scientific approaches to determining the essence of «enterprise life cycle» concept. The inconsistency of approaches that consider of an enterprise life cycle as a specific temporary period for o...
CLASSIFICATION AND SYSTEMATIZATION OF THE THREATS TO FINANCIAL AND ECONOMIC SECURITY OF ENTERPRISE
The article investigates the essence of the threat in relation to the financial and economic security of enterprise. The characteristic features and signs of threats to lose the financial and economic security are determ...
TRANS-BORDER CLUSTERS SYSTEM DEVELOPMENT POTENTIAL AS A STRATEGIC PLANNING OBJECT
Essence and internal relations of development potential of trans-borders cluster system as a factor increasing the competitiveness of a European region under conditions of increasing integration processes and demand to i...
TRENDS OF MONETARY POST-KEYNESIANISM IN THE BEGINNING OF XXI CENTURY
The article examines theoretical and methodological principles of the post-keynesian monetary economics. It analyses the views of the representatives of this economic thought on the role of money and monetary policy in...
STATISTICAL ASPECTS OF UKRAINIAN AGRIBUSINESS’ MONITORING
The regular monitoring issues of the agricultural sector are becoming of primary importance in the globalization and transformation context of Ukrainian economy. Therefore, conceptual approaches to the monitoring interpr...