Today, each company actively uses an electronic digital signature (hereinafter − EDS) in its work. However, many accountants, having purchased EDS, are faced with the question of its correct reflection in accounting and taxation. Let’s consider this issue more detailed.
Accounting of EDS
EDS purchased can be used for many years. That is why accountants consider it as non-current asset. However, the electronic form of such an asset inclines to believe that it is current asset. In fact, EDS can not be considered as an asset.
The prerequisite for recognition of an asset is the controllability of such a resource and the possibility of obtaining economic benefits from its future use (para. 3 of sec. I of Accounting Standards 1 “General Requirements for Financial Reporting”).
It is possible to substantiate obtaining of economic benefits from EDS using. Thus, EDS is an integral part for drafting agreements, orders, primary documents, reporting, etc. EDS makes it possible to conduct economic activity, the purpose of which is to obtain economic benefits. In addition, electronic document flow clearly contributes to saving both material and labor resources.
But it is difficult to argue the controllability of the resource. Replacing the subscriber will require the manufacture of a new digital signature, and it is impossible to limit the right of the employee to dismiss from work. It is also impossible to sell EDS to another company or exchange it.
Accounting Standards do not include the concept of control, so we refer to paragraph 13 of IAS 38 “Intangible Assets”. Thus, a business entity controls an asset if it is empowered to obtain future economic benefits from the main resource and restrict access of others to those benefits. The ability of the business entity to control future economic benefits from an intangible asset is generally based on legal rights that can be secured by legal process.
Consequently, a company can not guarantee that an official, whose signature an EDS simulates, will not dismiss in the future. Accordingly, there is no control over the future economic benefits promised by the EDS purchased.
EDS is used in the document flow, which can be linked to company management. Therefore, the cost of the acquired EDS will generate administrative costs (para. 18 of Accounting Standards 16 “Expenses”). However, it is incorrectly to reflect them immediately at the same amount in the period of EDS purchase. After all, the expenses for purchasing EDS, carried out in a particular reporting period, belong to the following periods. It is more correct firstly to reflect the entire amount in the account 39 “Expenses of future periods”, and then evenly write off to account 92 “Administrative expenses”.
Taxation of EDS
The basis for calculating the object of taxation of income tax is the rules of accounting (Art. 134 of the Tax Code of Ukraine; hereafter − TCU). The taxpayers with a profit of over UAH 20 million are required to apply the differences provided for in para. III of TCU.
Expenses associated with the acquisition of EDS affect the subject to the income tax. This is the part of the expenses of future periods that were included in the administrative. At the same time, the differences provided by para. III of TCU will not arise.
EDS purchase is subject to the value added tax. Accordingly, in the presence of tax invoice registered in the Unified Register of Tax Invoices, the company has the right to form a tax credit according to the “first event” rule (para. 198.1, 201.10 of TCU).
