Changes in accounting - December 2023

FAS 14/2022 “Intangible Assets”

From 01.01.2024 intangible assets will have to be accounted for according to the new standard FAS 14/2022 “Intangible Assets”

From 01.01.24 organizations are obliged to apply the new FSAS 14/2022 “Intangible Assets” instead of the previously effective Accounting Rules 14/2007. It is also possible to start applying the standard early (from 2023)

Briefly the innovations of the standard:

• the company itself sets a limit on the value of intangible assets in its accounting policies, taking into account the materiality of the information about them. The standard may not be applied to assets below the limit.
• licenses may be accounted for as part of intangible assets
• the concept of “improvement of intangible assets” has been introduced (analogy with modernization of fixed assets)
• costs of acquisition and creation of IA, including R&D, are accounted for as capital expenditures in accordance with FAS 26/2020
• impairment testing of fixed assets is mandatory for all companies, except for companies with simplified accounting and reporting procedures
• useful life is determined for each object individually taking into account the factors listed in clause 31 of FAS 14/2022; the list of factors is open
• when recognizing NMA, the elements of depreciation are determined: method, term, and residual value. The elements of depreciation are subject to verification
• start and end dates of depreciation (possible variants: it starts from the date of recognition of NMA in accounting or from the first day of the month following the month of recognition, respectively, it stops – when NMA is written off from accounting or from the first day of the month following the month of writing off)

FAS 26/2020

As of 01.01.24, amendments to FAS 26/2020 “Capital Investments” are mandatory. The main change is that capex should include not only expenditures for the purchase and creation of fixed assets, but also intangible assets. The following expenses have been added to the list of expenditures to be attributed to capex: acquisition of tangible assets for the creation and improvement of intangible assets; purchase of rights to be used as intangible assets; creation of intangible assets, including R&D; improvement of intangible assets; purchase of rights (extension, reissuance, confirmation) to engage in certain types of activities under a license.

FAS 28/2023 “Inventory”

From 01.04.2025 organizations are obliged to apply the new standard 28/2023 “Inventory”. The standard specifies the procedure for correct actions when conducting an inventory. One of the innovations is the possibility of using modern technical means when conducting an inventory.

Negative Notices

From 01.10.2023, organizations and private entrepreneurs have the option of submitting notifications of calculated amounts of tax with negative amounts. Negative notifications are formed when an advance payment is less than the advance payment for the previous period. This may be necessary in order to dispose of an amount of overpayment under the unified taxation system before the deadline for submitting a declaration.

Storage conditions for accounting documents and databases

From 01.01.2024 clause 25 of FSAS 27/2021 comes into effect: now an economic entity is obliged to store accounting documents, data contained in such documents, to place databases of the said data on the territory of the Russian Federation.