From January 1, 2024, new rules for accounting for intangible assets (IA) introduced by the Federal Accounting Standard (FAS) 14/2022 "Intangible Assets" become mandatory. The currently applicable Russian Accounting Regulation "Accounting for Intangible Assets" (“PBU 14/2007”) is canceled with the introduction of the new rules.
Compared to PBU 14/2007, the new rules established by FAS 14/2022 add some significant changes:
- Licenses for certain activities and non-exclusive rights are now classified as IA. Means of individualization (logo, trademarks) under FAS 14/2022 are not included into IA if created by an organization independently.
- The value limit of IA is set by the organization independently (for accounting purposes only).
- Depreciation is allowed from the date of acceptance of IA into accounting records, etc.
There are two options for transition to FAS 14/2022: retrospective and alternative:
- The retrospective approach recalculates the comparative figures of the accounting statements for previous years as if the rules of FAS 14/2022 had always been applied. This method will most accurately and reliably reflect information on items of IA;
- In case of the alternative approach recalculation of previous years' figures is not performed (only figures as of January 1 of the year when FAS 14/2022 has become applied are recalculated).
An organization has the right to choose the approach of switching to FAS 14/2022 based on the principles of materiality and rationality of accounting.