Substantiation of the Essence of Intangible Assets in Accounting

Economic subjects in Ukraine started to use intangible assets in their financial and economic activity more often, but still less than in other countries of the world. One of the reasons is a difficulty in understanding the essence of an intangible asset as an object of accounting. The goal of the article is to identify the essence of intangible assets for accounting in accordance with regulatory documents on accounting of intangible assets. The article justifies essence of intangible assets, identifies contradictions of main aspects of the essence of intangible assets for organisation of accounting. It generalises the definition of the "intangible asset" term and "identification" notion, systemises criteria of acknowledgement of intangible assets and justifies features of classification of intangible assets for accounting. In order to eliminate detected contradictions in regulatory documents and interpret clearly main general provisions with respect to organisation of accounting of intangible assets, the article offers: to give a justified definition of the intangible asset; to introduce addenda to the Regulations (standard) of Accounting No. 8 "Intangible Assets" with respect to identification of objects of intangible assets; to identify criteria of acknowledgement of intangible assets; to generalise main features of classification of intangible assets in accordance with Regulations (standard) of Accounting No. 8 for accounting and financial reporting. Solution of these issues is important for effective and proper organisation of accounting and formation of information on intangible assets and authenticity of financial reports.