| Issue |
SHS Web of Conf.
Volume 92, 2021
The 20th International Scientific Conference Globalization and its Socio-Economic Consequences 2020
|
|
|---|---|---|
| Article Number | 02057 | |
| Number of page(s) | 10 | |
| Section | Behavioral Economics and Decision-Making | |
| DOI | https://doi.org/10.1051/shsconf/20219202057 | |
| Published online | 13 January 2021 | |
Accounting for innovations in value management of companies in the context of globalization
Kyiv National University of Trade and Economics, Department of Accounting and Taxation, Kyiv, 19, Kyoto str., Ukraine
* Corresponding author: s.semenova@knute.edu.ua
Research background. Given that innovations have a great impact on gaining competitive advantage and long-term growth of the company’s value, it is important to find ways to fully and correctly reflect them in the accounting and reporting system to provide users with the necessary information to make effective decisions.
Purpose of the article is to characterize the accounting of innovations in the value management system of the enterprise and determine the form of integrated reporting on innovations to assess their impact on the value of the company and make effective decisions.
Methods. The methodological basis of the study consists of informal content analysis of information, systematic approach, deductive method, comparison, abstraction, grouping and systematic generalization.
Findings & Value added. The disadvantage of the current accounting system is the attribution of investment in intangible innovations to the company’s costs, which is not considered and is not reflected as a long- term competitive advantage. Thus, not taking into account the intangible non-accounting factors of generating the value of the company, which are associated with innovation, intellectual capital, can significantly underestimate the book value of the company compared to its market value. The value of the company stated in the financial statements may be significantly lower than its market value due to the failure to take into account in the system of accounting for the interaction of innovation with intellectual, environmental and social capital, which is the source of domestic goodwill. Innovation accounting requires the allocation of appropriate facilities and the formation of integrated reporting to provide comprehensive information for decision-making in the management of the company’s value.
Key words: accounting / innovations / value management / reporting
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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