1.2 Information base an audit of intangible assets

Information base audit of intangible assets. Under information base audit of intangible assets is understood the totality of the information studied, analyzed and evaluated by the auditor in forming an opinion about the credibility of financial statements under section intangible assets and the establishment of the organization complies with applicable accounting treatment of intangible assets from operations applicable in the Republic of Kazakhstan regulations.

As sources of information when checking operations intangible assets are used:

• Data accounting policy for accounting and taxation;

• documents confirming the rights to intangible assets - contracts for the assignment of exclusive rights; license and copyright agreements; agreements on transfer of know-how; contracts for performing research and development; agreements on the creation of works; security and registration documents; constituent documents; Company sales contracts, etc.;

• primary documentation for accounting transactions of intangible assets - a card Intangible Assets Accounting (Form number IA-1); act of acceptance and transfer of intangible assets; act on the internal displacement of intangible assets; the act of writing off of intangible assets; inventory cards Intangible Assets Accounting, etc.;

• Primary documents for registration inventory of intangible assets and their implementation - inventory lists; collation statements; order to establish a commission to evaluate and write-offs of intangible assets; order appointing a permanent inventory commission, etc.;

• registers synthetic and analytical accounting: General Ledger; Journal-order number 13 on the loan account 04 "Intangible Assets", Journal-order number 10 on the credit account 05 "Intangible Assets", Journal-order number 16 on the loan account 08 "Investments in non-current assets", Gazette number 17 and 18 , Worksheet for calculation of depreciation (in general ledger); magazines-warrants (statements) by the debit and credit accounts 04, 05, 08, 91, as well as accounts of the costs, magazine-order sectional analytical indicators on these accounts, report on transactions, turnover balance sheets accounts by 04 and 05 (in automated form);

• Financial Statements of the organization - form number 1 "Balance Sheet"; form number 2 "Profit and Loss"; form number 5 "Appendix to the Balance Sheet"; explanatory note;

• tax ledgers, book purchases and sales;

• tax returns and payments;

• other documents, certificates, calculations, etc.

1.3 The concept of intangible assets and their classification

In the current economic conditions in Kazakhstan and abroad have received widespread use intangible assets. This is due to the speed and scale of technological change, the spread of information technology, active investment activities, the desire to gain recognition in the domestic and global markets, development and integration of international financial markets. Recently, in the property business organizations share of intangible assets increased steadily. Although these assets and are an integral part of all assets of the enterprise, their use in economic activity differs significantly from the use of material objects, as they have no real form.

As an economic category intangible assets represent a collection of objects of long-term use (over 1 year) with no material form, but necessary for companies and organizations for the effective implementation of economic activity. They have value and ability to bring economic benefits, i.e. income.

Hallmarks of assets are:

- no material real (physical) form;

- a long period of use - more than 12 months;

- possibility of identifying, i.e. allocation of the total mass of the property of the enterprise;

- ability to generate revenue organization.

Intangible assets are not the patents, trademarks, utility models, etc., but only the right to use them.

Classification of intangible assets is as follows:

1. Intellectual property;

2. Right to use natural resources;

3. Deferred costs;

4. The price firm.

Intellectual property is divided into two types: adjustable patent rights (industrial property) and regulated by copyright.

Patent law protects the content of the work. For industrial property protection necessary by their registration to the established procedure in the relevant bodies. List of objects protected by patent law, exhaustive. The objects governed by patent law include:

1. Invention, if it is new, and is industrially applicable, or known apparatus, method, but has a new application;

2. Industrial design - art-design solution products, determining its appearance;

3. Utility model - constructive implementation of components;

4. The trademark and service - indications serving to distinguish respectively homogeneous goods and services of different legal entities or individuals;

5. Appellation of origin - the name of a geographic feature, used to designate a product special properties which are exclusively or mainly determined and (or) human factors;

6. Corporate name - individual name of the entity;

7. "Know-how" - the information of technical, institutional, professional or commercial character having commercial value due to unknown third parties.

Legal regulation of objects of copyright in accordance with the Law "On Copyright"

The objects governed by patent law include:

1) a computer program, as well as preparatory materials received during the development of the program;

2) Database;

3) the topology of integrated circuits;

4) other works of science, literature and art;

5) license giving the right to engage in certain activities, if they are granted for a period exceeding one year.

Right to use natural resources constitute the right to use the land, mineral resources and the right to geological and other information about the subsurface.

Deferred costs - administrative expenses, research and development activities.

Organizational expenses consist of expenses of the organization during its creation to registration. Price firm - the difference between the value of the firm as a single integral property and financial complex having a certain reputation, and the carrying value of the property of the company.

Kazakhstani and international accounting standards by - different approaches to the definition of an intangible asset. For example, IAS 38 requires compliance with three fundamental attributes of an intangible asset. This is, firstly, identifying, secondly, affiliated companies and third, the ability to provide economic benefits.

If an intangible asset associated with any tangible asset, such as software or an image having a carrier, the object can be put on record as either intangible or tangible assets.

The current standard requires an intangible asset for making a one-time accounting of the following conditions:

1) The lack of object material form;

2) the initial value of the object can be measured reliably;

3) the possibility of separation or separation (identification) of the object from other assets;

4) organization is not supposed to resell (within 12 months or the normal operating cycle, if it exceeds 12 months) of the object;

5) object is intended for use for a long time, i.e., the useful life of more than 12 months;

6) is able to bring economic benefits (income) in the future;

7) organization exercises control over an object, including a duly executed documents proving the existence of the assets and rights of the organization on the result of intellectual activity or means of individualization.

Thus, the latter formulation significantly softens documentation requirements for intangible assets, giving priority to demand accountability of the intangible asset. However, we should not forget that under the Civil Code of RK most objects IA must register.

These general requirements of local and international accounting standards impose restrictions on intangible assets are initially recognized. For example, IFRS allows put on record only those trademarks and copyrights, which were acquired or organization established outside specialists, in the case of the creation of these assets by the organization of their registration is not possible.

Servicing rights, licenses, quotas, franchises, and confidential knowledge may be recognized IFRS as assets if they meet the general requirements of the standard. IFRS also possible registration customer base (customer lists), market share, marketing rights, etc., if, for example, customer lists purchased from outside and there is a legal guarantee customer retention and market share.

Expenditure on promotion and training possible to put on record in accordance with IAS 38, if there is a legal guarantee for securing the company employees.

Intangible assets are recorded at historical cost. The initial cost of an intangible asset is the amount calculated in monetary terms, equal to the amount of payment when purchasing organization, creating asset and bringing it into a condition suitable for the intended purpose. Upon entry in the authorized capital of the intangible asset shall be registered on the basis of monetary valuation, and intangible assets acquired by the organization donated - at market value.

In accordance with IAS 38, an intangible asset shall be measured initially at cost, and the standard considers various cases of acquisition of an intangible asset: a separate purchase, as part of a merger, purchase through government subsidy, the acquisition in exchange or in part exchange for other intangible assets, or other assets . Procedure for determining the cost is determined depending on the type of acquisition.

Under IFRS, the useful life of an asset is determined based on many factors, such as the expected life of the asset, the typical lifetime of the asset, etc. The depreciation method is selected based on the expected pattern of consumption of economic benefits. The standard contains the assumption that the useful life of an intangible asset will not exceed 20 years. In addition, the depreciation method and useful life of an intangible asset should be reviewed at least at each financial year end. Intangible asset with an indefinite useful life should be tested for impairment annually.

Thus, intangible assets could include the following objects:

1) intellectual property (exclusive rights to results of intellectual activity):

2) the exclusive right of the patent for invention, industrial design, utility model;

3) the exclusive copyright in computer programs, databases;

4) property right or copyright holder for integrated circuits;

5) the exclusive right of the owner of the trademark and service mark, appellation of origin;

6) the exclusive right of the patent for breeding achievements.

7) Goodwill

Organizational costs (costs associated with the formation of a legal entity, recognized in accordance with the constituent documents part of the contribution of participants (founders) in the authorized (share) capital) do not apply to intangible assets.

In intangible assets do not include the intellectual and business skills within the organization, their skills and ability to work, because they are inseparable from their carriers and can not be used without them.