Intangible assets of an enterprise: Peculiarities of auditing and display in accounting

Issue 55, 2024

Nazakat Musayeva, Nigar Atakishiyeva, Ulkar Mammadova

Received 01.11.2023, Revised 24.02.2024, Accepted 18.03.2024

https://doi.org/10.54919/physics/55.2024.284ep7

Abstract

Relevance. The research relevance is determined by the rapid development and introduction of intangible assets in enterprises causing issues of their proper accounting and subsequent audit.

Purpose. The research aims to analyse the accounting of intangible assets of the enterprise and to consider the peculiarities of their audit.

Methodology. The analysis method was used to establish that problems in accounting for intangible assets arise at each of its stages, which is ultimately reflected in the final stage of work with intangible assets – audit problems. The deduction method was used to establish that the double-entry accounting system significantly limits the completeness of information on intangible assets.

Results. According to the results of the research, as of 2023, the enterprises of Azerbaijan apply an international approach in the accounting of intangible assets. In addition to characteristic features of intangible assets and their nature, inaccuracies in international standards concerning intangible assets are the root cause of incorrect accounting and create many problems in their accounting and further audit. These problems impede stakeholder information and reduce confidence in financial reporting and subsequent decisions to develop the company’s competitive advantage in the market.

Conclusions. The practical significance of this study is determined the findings of the study help businesses to avoid the most common errors in accounting for intangible assets, improve their management efficiency, minimise risks and make informed decisions to achieve long-term sustainability and success in the market.

Keywords: stakeholder; international standards; audit problems; financial display; financial documentation

Suggested citation

Musayeva N, Atakishiyeva N, Mammadova U. Intangible assets of an enterprise: Peculiarities of auditing and display in accounting. Sci Herald Uzhhorod Univ Ser Phys. 2024;(55):2847-2854. DOI: 10.54919/physics/55.2024.284ep7

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