Accounting for Intangible Assets: Thinking It Through

With the modern corporation investing more in intangible assets, the issue of appropriate accounting for these assets is very much at the fore and formally on the agendas of accounting standards boards. Some commentators advocate that internally generated intangible assets should be booked to the ba...

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Veröffentlicht in:Australian accounting review 2023-03, Vol.33 (1), p.5-13
1. Verfasser: Penman, Stephen
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description With the modern corporation investing more in intangible assets, the issue of appropriate accounting for these assets is very much at the fore and formally on the agendas of accounting standards boards. Some commentators advocate that internally generated intangible assets should be booked to the balance sheet, just like tangible assets. This paper explains that this apparently straightforward solution is not so simple. There are subtleties that, when recognised, indicate that such accounting would often make both balance sheets and income statements less informative. In response, the paper outlines an accounting for intangible assets that preserves, indeed enhances, the information conveyed by both the balance sheet and the income statement and satisfies the financial reporting objective of providing information to investors about ‘the amount, timing, and uncertainty of future cash flows’.
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source EBSCOhost Business Source Complete; Access via Wiley Online Library
subjects Accounting procedures
Cash flow
Financial reporting
Intangible assets
title Accounting for Intangible Assets: Thinking It Through
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