INNOVATION PROCESS AS THE OBJECT OF ACCOUNTING

• Main Author: O. Prokopishyna
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2012-12-01
• Series: Економіка розвитку
• Subjects: innovation; innovation process; accounting
• Online Access: http://www.ed.ksue.edu.ua/ER/knt/ee124_64/e124pro.pdf

The paper argues that back-to-back accounting and analytical processes of information generation and processing can support and ensure effective decision-making upon innovations. So, in the paper distinct accounting procedures distinguishing spheres of financial and management accounting are proposed; to ground the sequence of accounting procedures execution the concept of innovation life cycle is used. Proposed accounting procedures are systematized by such stages of innovation life cycle as development, testing, market entry, growth, satiety, decline and degradation/ renovation. As on all stages of innovation process accounting procedures are concentrated on expenses and revenues in this paper it has been proposed to introduce in enterprise accounting practice distinct accounts for accumulating innovation processes expenses and sales of innovative products that allow detailed analytical accounting and raise effectiveness of enterprise accounting system.