The Impact of Federal Accounting Standard 14/2022 “Intangible Assets” on the Financial Statements of Commercial Enterprises

Abstract

The relevance of this study deals with the fact that public joint-stock companies have been preparing financial statements in accordance with international standards for many years. However, it is the concept, which evaluates administrative and economic operations at fair and market value, allows users to assess the status of enterprises and holding companies in accordance with economic conditions of the market. Federal Accounting Standard (FAS) 14/2022 “Intangible Assets”, which was mandatory, adopted starting from January 2024 in the Russian Federation, significantly changes the accounting rules, adapting them to IAS 36 “Intangible Assets”. Although, some significant issues are still pending. The purpose of the study aims to analyse the innovations in Russian accounting system and their compliance with international standards, as well as to estimate the impact of these changes on commercial enterprises. In recent years, the Russian accounting practice has undergone significant changes aimed to be harmonised with International Financial Reporting Standards (IFRS). The introduction of new federal accounting standards, among which was Federal Accounting Standard (FAS) 14/2022, related to the accounting of intangible assets, has become one of the key elements of this transformation. It deserves special attention. This article examines the impact of these innovations on accounting processes in commercial enterprises, it compares Russian and international standards, determines key issues and provides practical recommendations. The fundamental methods of the study employed are grouping, synthesis and comparison, as well as analysis and synthesis with implication of structural approach, systematic and logical analysis. The results of the research are offered in the form of practical recommendations for commercial enterprises that maintain financial records in accordance with Federal Accounting Standards (FAS) and Financial Reporting Standards (IFRS). They also contain explanations of elements of Federal Accounting Standards (FAS) 14/2022. These results will be useful for accountants and financial specialists, as well as for students and university tutors interested in the current trends in accounting and financial reporting.

Keywords

• fsbu 14/2022
• ias 36
• accounting regulations 14/2007
• intangible assets
• accounting and reporting
• ifrs transformation