Franchising: accounting

Abstract

The article considers the essence of franchising as a form of cooperation between economic entities, in which one party (the franchisor) undertakes to transfer to another party (franchisee) for compensation for a specified period or without, the complex of exclusive rights to use a trademark, trade names, services, process and/or specialized equipment, know-how, commercial information, as well as other objects of exclusive rights protected by law. Identified the need and advisability of entering into a franchise agreement. Proposed order account the reflection of economic processes associated with franchise relations in the system of accounts in accordance franchisor and franchisee, depending on the conditions of payment for the right to use an intangible asset. Pinning this method of accounting for franchise operations in the accounting policy will allow to improve the quality of their execution and accounting, as well as to ensure timely monitoring of their implementation