Lecture

NON-MATERIAL FIXED ASSETS

1. Concept and characteristic of non-material assets

Non-material assets are assets, which have no physical expression, but nevertheless represent essential value for the enterprise.

Objects of non-material assets should correspond to the following conditions:

1) absence of material (physical) structure;

2) possibility of identification, singling out by the organization from other kinds of property;

3) usage in production manufacturing, when performing work or rendering services or for administrative needs;

4) use of them for a long time, that is during the term of paying usage, with duration over 12 months or a usual operational cycle if it does not exceed 12 months;

5) ability of bringing to the organization economic profit (income) in the future;

6) absence of the organization intention to resell them;

7) availability of properly processed documents, which confirm the existence of the asset and the exclusive right of the organization for the results of intellectual activity (patents, certificates, other guard documents, the contract of concession (purchase) of the patent, trade mark, etc.).

As non-material assets are incorporeal by nature the important criterion of reference of this or that object to the given category of property is also its alienability. With reference to non-material assets alienability means the possibility of transferring an object as such into the property of another person.

Intellectual and business qualities of a citizen, his (her) qualification and ability to work cannot be acknowledged as non-material assets since they cannot be alienated from the citizen and transferred to other people.

2. Structure and classification of non-material assets

Objects of the intellectual property, business reputation of the organization (goodwill), organizational charges belong to non-material assets (fig. 1).

The intellectual property. The generalized concept of "the intellectual property” includes “the rights concerning literary, art and scientific products, performing activity, inventions, discoveries, industrial samples, trade marks, service marks, company names and commercial designations, protection against unfair competition, and also all other rights concerning intellectual activity in industrial, scientific, literary and art areas”.

In economic activity of the enterprise the intellectual property can be used in economic activities of the enterprise as "non-material assets”.

The following rights belong to objects of the intellectual property: the exclusive right of a patent holder to the invention, the industrial sample, useful model, selection

NON-MATERIAL FIXED ASSETS