CHOOSING THE METHOD OF AMORTIZATION OF INTANGIBLE ASSETS TO STIMULATE INNOVATIONS OF COMPANIES

Abstract

Russian companies still pay insufficient attention to amortization of intangible assets and the choice of their accrual method. The main purpose of this article is analyzing accounting methods for amortization of intangible assets, the advantages and disadvantages of each of them, as to consider their differences and preferences for use in accordance with the Russian and international accounting systems. In conclusion, it is concluded that the depreciation of intangible assets in the domestic economy has not reached the proper level of development. The article substantiates the need to improve the company’s accounting policy by using the optimal choice of depreciation methods to increase the competitiveness of its products with high added value and the financial independence of this company. Conclusions are drawn about the dependence of the choice of the depreciation method and the growth rate of income of such a company, and recommendations on the use of international standards are presented.