Intellectual property rights in Latvia: issues of valuation and accounting

Nowadays, when the economic development of countries is more and more influenced by knowledge-based, innovative entrepreneurship, particular attention is paid to the application and protection of intellectual property. Enterprises can acquire intellectual property rights in various ways externally and such rights can also be generated by enterprises internally: they launch and subsequently produce new or improved products and services (research and development) and ensure the protection of intellectually intensive products (patents, trademarks, computer software, etc.). Thus, it is important to study the valuation and accounting of intellectual property rights. The aim of the research is, on the basis of the studies of intellectual property rights accounting policy in Latvia, to identify the shortcomings related to the valuation and accounting of intellectual property rights and to develop recommendations for their elimination. The following research tasks are subject to the aim: to study IPRs concept, regulatory framework and statistical data, to valuate accounting policy for IPRs; to identify shortcomings related to the valuation and accounting of IPRs; to develop recommendations for the elimination of identified shortcomings. The results of research enable to draw a conclusion that the requirements of the laws and regulations of Latvia do not prevent from the capitalization of intellectual property rights as intangible assets; however, it is necessary to revise and improve some requirements. In the conclusion of research, the authors have elaborated recommendations for the elimination of identified shortcomings.