The role of intangible assets in the financial management system

The article examines the transformation of financial management in the knowledge economy, where intangible assets (IAs) are becoming companies' primary source of value. The key challenges associated with accounting, valuation, and integration of these assets into financial strategies are analyzed, including the gap between book and market value, rapid obsolescence of technologies, and the lack of unified standards. The examples of leading companies demonstrate how innovative tools (artificial intelligence (AI), blockchain, cybersecurity) help optimize the management of IAs. The article argues that the effective use of IAs requires the harmonization of technological, legal, and managerial decisions and the formation of new accounting standards that can consider the dynamics of the digital era. The article identifies and critically examines key challenges in IAs management, rapid technological obsolescence, and the lack of unified accounting standards. Traditional financial frameworks, designed for tangible assets, struggle to capture the dynamic nature of IAs, leading to significant valuation discrepancies. The study argues that effective IAs utilization requires harmonizing technological, legal, and managerial solutions. For example, Ukraine’s updated accounting standards (P(S)BO 8), which align with IFRS (IAS 38), provide more straightforward guidelines for capitalizing R&D costs, yet gaps remain in addressing digital asset amortization. The article concludes that the evolution of financial management in the digital age hinges on adaptive regulatory frameworks capable of capturing IAs' dynamics. Policymakers must prioritize the development of IA-centric accounting standards, cybersecurity infrastructure, and international cooperation, particularly in harmonizing Ukrainian practices with EU directives. By bridging these gaps, companies can transform IAs from abstract concepts into measurable drivers of resilience, competitiveness, and sustainable growth in an increasingly intangible-dominated global economy.