DATABASES AS EMERGING ASSETS: CONCEPTUAL PRINCIPLES AND CHALLENGES OF REFLECTION IN ACCOUNTING AND REPORTING
DOI:
https://doi.org/10.37332/Keywords:
accounting, reporting, databases, data assets, recognition, evaluation, accounting and reporting standardsAbstract
Brukhanskyi R.F., Spilnyk I.V., Spilnyk P.M. DATABASES AS EMERGING ASSETS: CONCEPTUAL PRINCIPLES AND CHALLENGES OF REFLECTION IN ACCOUNTING AND REPORTING
Purpose. The aim of the article is to study the conceptual principles, analyse the problematic aspects and challenges of recognizing, assessing and reflecting of databases as emerging assets of the digital economy in the accounting and reporting system.
Methodology of research. The work uses a set of general scientific cognition methods (observation – to assess the role of databases in the modern economy; comparison – to identify the differences between databases and other intangible assets; generalization and systematization – to identify the essential characteristics of databases as accounting objects; formulation of conclusions from the conducted research; logical and cause-and-effect analysis to identify problematic aspects of accounting recognition and disclosure of information in reporting, as well as a critical review of current regulatory legal acts, the practice of their application and scientific publications related to the problem) based on a deductive approach. In general, the study is of a theoretical and analytical nature and was carried out using desk methods, which allowed us to make certain generalizations and substantiate proposals for improving standardization, developing the theory and improving the practice of accounting and reporting.
Findings. The role of databases in the realities of the modern economy was analysed in order to achieve the specified goal; the advantages and main essential characteristics associated with them were systematized; based on the results of comparison with other intangible assets, their fundamental differences were revealed. In the course of studying and critically examining the norms regulating the accounting of documents, the current practice of displaying databases in the accounting and reporting system, as well as publications of scientists and practitioners related to the problem, based on logical and cause-and-effect analysis, a number of problematic aspects were identified for recognizing databases as independent accounting objects, which lead to further challenges in the possible application of accounting procedures to them. Based on the sources studied, the possibilities of applying different approaches to assessing the value of data assets were analysed and a comparative assessment of scenarios for choosing its methods was carried out, taking into account the economic context (the reason for its implementation). The logical conclusion of the consideration about the imperfection of traditional accounting approaches to atypical new objects was summarized in the article. The possible options for its elimination were proposed and prospects for further scientific exploration were identified.
Originality. The work is a new contribution to the conceptual substantiation of databases as an independent type of new intangible assets that have specific features compared to traditional accounting objects. For the first time, the essential characteristics of databases as an economic resource were systematized, their key differences from other intangible assets were determined, and problematic aspects of their recognition and reflection in financial reporting were identified. Based on a critical analysis of accounting regulatory documents and related publications, the methodology for accounting for databases was improved, in particular by differentiating methods for their assessment according to the purposes of use and economic context. The problematic aspects identified during the study and possible further challenges for the relevant reflection of new digital assets have led to a proposal for the need to develop separate special or radical revision of the current accounting and reporting regulatory documents.
Practical value. The considered provisions and proposals can be taken into consideration when improving (developing) regulatory documents governing accounting in order to eliminate gaps and ambiguities in the application of accounting standards for the recognition, evaluation and application of accounting procedures for databases, and, consequently, to improve the accounting methodology and improve the information value of financial and other reporting. At the same time, the study contributes to the theoretical substantiation of the development of data asset policy in the practice of corporate governance.
Key words: accounting, reporting, databases, data assets, recognition, evaluation, accounting and reporting standards.
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