Download the document (English)
 IP_ACCOUNTING.pdf (77 kB)
Choose a language
Up to date on: 29.1.2008
Provided by: Hungarian Patent Office
1 | 2 | 3 | 4 | 5 | 6 | 7

STUDENTS HANDBOOK - Intellectual Property Accounting and Controlling

Intellectual Property Accounting and Controlling

„The accounting profession itself is increasingly aware of the necessity to confront the knowledge-driven economy and recognizes that reporting systems have to be developed that reflect the increasing importance IP has.”

Roya Ghafele, Associate Economic Officer, WIPO (2007)

The periodic accounts statement of a company provides a numbers-based understanding of its performance.  The analysis of its reports indicates whether it is meeting its objectives, in terms of return on investment, profits and market share.  Accounting continuously documents the financial situation of a company and hence affects its valuation as a business.

In today’s increasingly knowledge-driven economy, the key economic resources underlying wealth production are no longer based on competitive advantages in access to and use of land, labour and/or capital.  Rather competitive advantages relate to access to and use of intangible assets, especially IP.  In recent years, changes in regional accounting standards to address this issue are beginning to appear. Harmonisation of these standards and changes are a goal for the near future.

Chart of accounts

A Chart of accounts is a list of all accounts tracked by a single accounting system, and should be designed to capture financial information to make good financial decisions. Each account in the chart is assigned a unique identifier, typically an account number. Each account in the Anglo-Saxon chart is classified into one of the five categories: Assets, Liabilities, Equity, Income and Expenses.

The overview of the chart of account is pictured by the following figure.


1 | 2 | 3 | 4 | 5 | 6 | 7