How can I return to the balance up to 50% of the costs invested in the business through the capitalization of costs?

IP-capitalization implies the conversion of the costs of creating intellectual property into intangible assets on the balance sheet, which subsequently increases the value of the company.

When put on the balance sheet, the asset can be estimated using the cost method or based on the report of an independent appraiser.

1. Increasing the valuation of your company and IP-capital as a result of marketing and advertising activities, expenses will be transferred to assets.

2. The increase in equity in the balance sheet.

3. The creation of intangible assets that can be used for investments, bank loans, etc.

Capitalization benefits

1. The capitalization of marketing, salary, PR, consulting expenses to increase the value of intangible assets.

2. Reduction of expenses of the period, optimization of accounting indicators in the financial statements (increase in profit, etc.)

3. The use of IP to increase the market value of a business in order to confirm a serious partner status, the assessment of IP assets

4. By increasing the authorized capital after capitalization, you will ensure the interest of shareholders along with attracting new investments.

Disadvantages of Capitalization:

Accounting and auditing companies will be reluctant to help you with IP capitalization due to lack of experience and in-depth knowledge.

How to avoid fines in the Russian Federation for not reflecting websites and other intangible assets in the balance sheet of companies?

In connection with the cancellation of the privilege for not reflecting intellectual assets, all Russian companies that have websites, mobile applications and other intangible objects fall into the risk zone of fines.

Starting January 1, 2020, Russia will have to pay income tax on all income generated with the participation of intangible assets (letter of the Ministry of Finance of the Russian Federation of 08.08.2019 N 03-03-07 / 60630), and the assets themselves should be mandatory reflected in the financial reporting system.

According to the Ministry of Finance, the grace period established for 2018-2019 by subparagraph 3.6 of paragraph 1 of Article 251 of the Tax Code, allowing not to reflect intellectual property objects found as a result of the audit, was quite sufficient for business entities to be able to put their accounting systems in order.

In this regard, the extension in 2020 of the preferential subparagraph 3.6 of paragraph 1 of Article 251 of the Tax Code of the Russian Federation is not planned.

Aston Alliance experts ( are ready to help capitalize and reflect mandatory intangible assets on the fly. balance of commercial organizations within 15 days.