On The Recognition And Measurement Model Of The Value Of Self Created Intangible Assets Under The Knowledge Economy

The ways of obtaining intangible assets are mainly two kinds of external and self created assets, including intangible assets donated by external units to enterprises, purchased by enterprises, and invested by foreign units and other forms. Self created intangible assets refer to those acquired by the enterprises themselves, such as self created patents, trademark rights, proprietary technology, etc.

For foreign intangible assets, enterprises confirm the value of the gram assets according to the evaluation value or the current market price of the intangible assets according to different situations. This method is consistent with the principle of objectivity and objectivity. However, for the intangible assets developed by ourselves, there are many deficiencies in the existing system and criteria for the recognition and measurement of the value of the assets. This deficiency is increasingly prominent in the rapid development of the knowledge economy. This issue will be discussed in this paper.

First, the recognition and measurement principles of the existing intangible assets 1, the principle of confirmation. At present, China's recognition of an intangible asset project must meet the following two conditions: first, the role of the project in promoting the economic benefits of enterprises and the ability to play such a role can be proved; second, the cost of obtaining the project can be measured reliably.

These two conditions apply to both external and self created intangible assets.

In addition, due to the uncertainty of the value of intangible assets, in order to follow the principle of prudence, the cost of intangible assets can only be measured and recognized as intangible assets only if conditions can be determined to obtain intangible assets.

In accordance with the above recognition principles, the proprietary technology and self created goodwill created by enterprises can not be recognized as intangible assets of enterprises because of their undetermined expenditures. The trademarks, patents and expenses of the enterprises can be determined, so they can be recognized as intangible assets of enterprises.

"2 principles of measurement", the existing accounting standards for enterprises, stipulate that "intangible assets developed by oneself should be accounted for according to the actual expenditure in the course of development."

The newly promulgated "Limited by Share Ltd accounting system" stipulates the accounting treatment of intangible assets: "the intangible assets that are self developed and applied in accordance with legal procedures shall be accounted for as intangible assets in accordance with the registration fees and lawyers' fees collected according to law.

The expenses incurred in the development process shall be included in the current cost. "

China's "accounting standards for enterprises - intangible assets (Draft)" advocates that "the cost of patent and trademark rights acquired by enterprises in accordance with the law and the cost of intangible assets should be determined according to the registration fees, lawyers' fees and other related expenses obtained in accordance with the law."

It is not difficult to see that our current guidelines and systems deal with the development costs arising from the process of creating intangible assets, which are all cost oriented without taking into account the cost of intangible assets.

In dealing with such a system, on the one hand, it is considered that the research and development projects may succeed or fail; on the other hand, it is difficult to distinguish the costs from other expenses, that is, the cost can not be reliably measured.

In order to stabilize and simplify accounting, the total cost of R & D is not paid as intangible assets.

Only when the trial is successful and the patent right and trademark right are obtained according to law, will the registration fee and lawyer fee be applied as the cost of intangible assets.

Two, the challenge posed by knowledge economy to the recognition and measurement principles of current self created intangible assets. Knowledge economy is an economy built on the production, distribution and use of knowledge and information. It is based on knowledge, and develops knowledge as a capital investment to become the most important part of production factors.

Undoubtedly, intangible assets, which are mainly based on knowledge and intelligence, have been widely and profoundly influenced by the knowledge economy, mainly manifested in the following two aspects: first, the contents of intangible assets become more colorful.

In addition to traditional intangible assets such as patents, trademarks, copyrights, know-how and goodwill, intangible assets such as ISO9000 quality system certification, environmental management system certification, and the right to use green food logo are added. Secondly, the proportion of intangible assets in enterprise assets has increased significantly.

In the era of knowledge economy, the proportion of intangible assets of knowledge form in enterprise assets has significantly improved, or even occupies a dominant position.

The impact of knowledge economy on intangible assets will inevitably affect its recognition and measurement. The current recognition and measurement principles of self created intangible assets show many deficiencies under the conditions of knowledge economy, mainly in the following aspects: 1, the scope of recognition of intangible assets is too narrow.

According to the existing guidelines and systems, only a few proprietary intangible assets such as patents and trademarks should be confirmed, and the recognition of self created goodwill and non patented technology will not be recognized because of the uncertainty of their cost.

With the development of science and technology and the advent of the era of knowledge economy, new intangible assets such as ISO9000 quality system certification, environmental management system certification, and the right to use green food emerge in endlessly.

In addition, in the knowledge economy environment, innovation ability becomes capital, knowledge is also commercialized, and human capital plays the most important role in the development of enterprises. Therefore, knowledge economy and human assets should be recognized as new intangible assets.

2, the measurement of intangible assets violates the objectivity principle, resulting in serious distortion of accounting information.

In the traditional agricultural and industrial economy, fixed assets, including fixed assets and current assets, play an important role in the development of enterprises.

In contrast, the proportion of intangible assets represented by patents and trademark rights is very small, and some of them even do not.

Under such circumstances, accountants, in line with the principle of importance and prudence, do not recognize the intangible assets created by enterprises, such as proprietary technology. Some confirm them, but the valuation does not exceed the initial cost. If patents and trademark rights are only determined by registration fees, lawyers' fees and other related expenses obtained according to law, all research and development expenses will be included in the current profits and losses.

In this way, because the proportion of intangible assets is small, it will not have much impact on the authenticity of accounting residence.

In the knowledge-based economy environment, the proportion of intangible assets in the assets of enterprises has increased, and some of them have taken the lead. Compared with this, the proportion of fixed assets in the assets of enterprises is becoming smaller and smaller.

For example, Netscape, which has only a dozen employees, has no traditional fixed assets and production base, but has created a market value of US $2 billion in less than a year.

Under such circumstances, if the accountant still holds the banner of the principle of conservatism, it will doubtless make sure that the intangible assets are not confirmed or not exceed the initial cost, so that the accounting value of the enterprise assets will be seriously deviated from the actual value, causing serious distortion of accounting information and violating the accounting principles of objectivity and importance.

If the above Netscape company keeps accounts on the basis of current assets recognition and measurement principles, I am afraid that the book assets are only tens or millions of dollars at best.

3, violating the principle of consistent accounting.

We know that, according to the current system and standards, the intangible assets including outsourced goodwill shall be recognized and measured by market value or assessment value, while the principle of non recognition or non exceeding the initial cost of self created intangible assets shall be measured.

In contrast, the differences in the recognition and measurement of the same carrying assets from different sources result in their book value differences, and therefore violate the consistent accounting principle.

In a knowledge-based economy environment, this contradiction is more prominent.

4 is not conducive to giving play to the enthusiasm of employees.

In the environment of knowledge economy, human assets play an important role in the development of enterprises. "The competition of enterprises is actually the competition of talents".

Human assets, as an intangible asset, should be recognized and measured, so that the employees, who are the carriers of human assets, become the owners of corresponding assets and reflect their value in the distribution of business results.

Only in this way can we effectively bring into play the initiative and creativity of employees.

Under the principle of recognition and measurement of intangible assets, this can not be realized, so it will inevitably damage the enthusiasm of employees.

Three, how to establish the recognition and measurement model of self created intangible assets in the knowledge economy environment? Knowledge is the main product in the era of knowledge economy.

In order to overcome the shortcomings of the existing principles of recognition and measurement of intangible assets, the recognition and measurement of self created intangible assets can follow the following models: 1, intangible assets, whether external or self created, should be accounted for to meet the requirements of consistent accounting principles.

2, after confirming the intangible assets, different ways should be adopted to measure the difference.

For intangible assets such as patent right, trademark right, ISO9000 quality system certification, environmental management system certification and so on, which can only be confirmed after approval by the relevant departments, the most cosmetic accounting value should include not only the registration fees and other related expenses, but also the research and development expenses.

In the accounting process, in order to prevent the development project from failing, the cost of research and development before the corresponding intangible assets are formally acquired can be considered as a long-term asset processing first, and a "research and development cost" subject should be added to account for the development, then the qualification should be revised to the cost of the corresponding intangible assets. If the research and development fails, the cost will be converted into the current profits and losses.

For non patented technology, since the approval of the relevant departments is not necessary, the initial entry value should be based on the R & D expenses, and the specific operation can be referred to the above procedure.

For goodwill, because it is inseparable from the assets of the enterprise, the cost of the formation can not be accurately drawn by itself. The value of its entry can be determined by employing intermediary agencies.

The confirmation and measurement of the value of human assets is a major problem to be solved by the human resource cost accounting, which is being extensively discussed. The specific method is undetermined.

3, after the recognition and measurement of the intangible assets, it should be evaluated periodically, and the book value should be adjusted according to the evaluation value, so as to truly reflect the value of intangible assets.

The evaluation should be carried out by the corresponding evaluation institutions according to the law, and the present value method of earnings should be the most reasonable method of evaluation.

In accounting treatment, the value of assessment exceeds the original value of entry and can be included in the capital reserve of enterprises.