TREATMENT OF INTANGIBLE ASSET ACCORDING TO INTERNATIONAL ACCOUNTING REGULATION

2020 ◽  
Author(s):  
Ana Milijić ◽  
Keyword(s):  
Financial Reporting ◽  
Intangible Assets ◽  
Intangible Asset ◽  
International Accounting ◽  
International Accounting Standards ◽  
Accounting Regulation ◽  
Embedded Knowledge ◽  
Basic Source ◽  
Business Conditions ◽  
High Degree

Rigidity of the financial reporting model in contemporary business conditions the era of the „knowledge economy” influenced the creation of significant differences between the market and book values of companies. Characteristic of enterprises in the „new” economy is the high share of knowledge and other intellectual resources in the structure of total assets, which are at the same time the basic source of competitiveness of enterprises. Given the changing habits of consumers who are inclined to buy products on the market that identify a high degree of „embedded” knowledge, companies base their business on investing in R&D and investing in various types of intellectual property and protecting them. Due to certain limitations of financial reporting when identifying and measuring intellectual resources in an enterprise, users of financial statements are unable to get a realistic picture of the value of assets and the corresponding investments when it comes to certain types of intangible assets. Blurred financial reality can lead to irrational decisions, stagnation in business and major financial crashes, which is often the practice of large companies listed on the world stock market due to the overestimation / undervaluation of their book value. The aim of this paper is to explain the treatment of intangible assets through international accounting standards concerning the identification, recognition and measurement of intellectual resources and intangible assets, to analyze their limitations and to point out possible directions for their further development in order to provide reliable and credible reporting on assets and capital of economic entities.

scholarly journals VALUATION OF INTANGIBLE ASSETS IN BUSINESS VALUATION: ROLE, CLASSIFICATION, METHODS

2021 ◽  
Vol 71 (4) ◽  
Author(s):  
Vitalina Delas ◽  
Dmytro Nesterov
Keyword(s):  
Financial Reporting ◽  
Intangible Assets ◽  
Accounting Standards ◽  
Evaluation Process ◽  
Specific Area ◽  
Fair Value ◽  
Intangible Asset ◽  
International Accounting ◽  
International Accounting Standards ◽  
Business Valuation

The article notes the essence of “business” and “company” as well as their aim for investment and decision-making purposes. It also defines the essence and objectives of business evaluation as well as importance of the valuation of the business for their confident activity. The need of standardization of evaluation process was mentioned. The aim of business valuation is mentioned considering targeted environment. The functions of business evaluation are considered and their brief description is given. The factors that need to be used when evaluating a business are listed. The characteristic of fair value of business was noted and the basic methods used for its estimation in world practice is considered according to their classification. The issue of intangible assets valuation today is very controversial, but as the same time the importance of intangible assets and their role in assessing the value of business grows every year, and it was considered in the article. The process of estimation of intangible assets in explained due to some characteristics according to the article and the procedure for accounting of intangible assets in accordance with International Accounting Standards is determined as well as the procedure of fair value estimation of both internal generated and purchased intangible assets. There were also indicated concepts of revaluation and impairment of intangible assets due to the correct estimation of their useful life and economic utility. Also in the article was mentioned when the amortization of the intangible asset should begin. The methods of intangible assets valuation were determined and details for each method were characterized as well. The intangible assets were indicated due to the ability to identify them. The concept of goodwill associated with unidentifiable intangible assets, its accounting in accordance with international accounting standards and the importance of its evaluation to determine the fair value of the business. But the area of goodwill which cannot be detected based on International Financial Reporting Standards is still pourly researched. According to this issue, recommendations for further research of this specific area were given.

scholarly journals Dilemmas of Financial Reporting as the Reliable Information Source of an Entity Performance Results

Equilibrium ◽  
2012 ◽  
Vol 7 (2) ◽  
pp. 77-95
Author(s):  
Joanna Zuchewicz
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Information Source ◽  
Accounting Standards ◽  
Global Market ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Reports ◽  
Economic Entity ◽  
Basic Source

The objective of the hereby paper is to indicate, on the one hand, the need for transformations in financial reporting as the basic source of information about the financial situation of an economic entity indispensable in the decision making process by its users, and on the other to provide the analysis of the adopted reporting reconstruction directions validity, as suggested by international financial community. On the basis of comments and reservations presented by practitioners and the analysis of research conducted by scientific circles the thesis is put forward by the Author that the suggested extension of information scope to be disclosed in obligatory financial reports proposed by the authorities responsible for the preparation of international accounting standards will not increase the usefulness of information they include and will not influence higher security of business transactions. The paper is divided into there interrelated parts. The first presents the overview of critical opinions expressed by financial circles regarding accounting as the system generating information about the achievements of entities operating at the global market. The second refers to an entity stakeholders and their information needs. Irrespectively of opinions about the primacy of investors and their rights in making investment decisions it is of great importance to meet the needs of the remaining interest groups by means of providing both reliable and useful information in financial statements. The final part of the paper presents an outline of undertaken and suggested restructuring directions in financial reporting proposed by IASB and FASB, as the institutions responsible for preparing international accounting standards. This part also discusses the selected suggestions by Polish researchers regarding the form and content of particular components included in a financial statement.

scholarly journals Lobbying na Regulação Contábil: Evidências do Setor Petrolífero

2014 ◽  
Vol 25 (65) ◽  
pp. 124-144 ◽  
Author(s):  
Odilanei Morais dos Santos ◽  
Ariovaldo dos Santos
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Status Quo ◽  
International Accounting ◽  
International Accounting Standards ◽  
Discussion Paper ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
International Accounting Standards Board

Este trabalho tem como objetivo identificar os fatores determinantes à submissão de cartas comentários, como estratégia de lobbying no contexto da regulação contábil, à audiência pública do Discussion Paper Extractive Activities do International Accounting Standards Board IASB).Os resultados mostram o tamanho como fator determinante, em todas as modelagens utilizadas, indicando que grandes empresas petrolíferas possuem maior probabilidade para realizar lobbying. Essa propensão é verificada para posicionamentos essencialmente desfavoráveis às propostas apresentadas pelo IASB, o que implica em considerar que a revisão/substituição do International Financial Reporting Standard -IFRS6 será um processo complexo e sujeito a pressões por parte das empresas petrolíferas para manter o status quo.

scholarly journals International Financial Reporting Standards and Orientation of Vietnam: “Roadmap & International Experience”

2018 ◽  
Vol 7 (4) ◽  
pp. 167
Author(s):  
Ha Thi Thuy Van ◽  
Vu Thi Kim Anh ◽  
Nguyen Dang Huy
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Asia Pacific ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Advantages And Disadvantages ◽  
The World

Currently, the Ministry of Finance is implementing Decision 480/QD-TTG dated 03/18/2013 of The Prime Minister on approving the Strategy Accounting - Audit 2020, Vision 2030 and implementing the Resolution 35/NQ-CP of the Government dated 16.05.2016 related to the support and development of enterprises by 2020. Accordingly, the development and improvement the legal framework of Financial Reporting standards in Vietnam is one of the key tasks and urgent needs to be developed to meet the requirements of the economy in the period of integration. The system of International Accounting Standards, including the International Accounting Standards (IAS) and the standards of international financial reporting (IFRS) was issued, adjusted, updated and replaced by The International Accounting Standards Board. International Accounting Standards is an important condition to ensure that companies and organizations around the world can apply uniform accounting principles in the work of preparing and presenting financial statements. Currently, many countries around the world such as USA, Japan and European countries, Asia Pacific are approaching IFRS convergence trend. In the trend of globalization of accounting, Vietnam will not be outside the process of integration with the system of International Financial Reporting Standards. This article will review the process of formation and development of IFRS, the IFRS trends and the advantages and disadvantages of applying IFRS in Vietnam. 

An investigation of the level of compliance with international accounting standards (IAS 1) by listed firms in Bahrain Bourse

2016 ◽  
Vol 9 (2) ◽  
pp. 254-276 ◽  
Author(s):  
Fatema Ebrahim Alrawahi ◽  
Adel Mohammed Sarea
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Annual Reports ◽  
International Accounting ◽  
International Accounting Standards ◽  
Content Type ◽  
Listed Firms ◽  
Financial Reporting Standards ◽  
Industry Type ◽  
Regulatory Bodies

Purpose This study aims to investigate the association between seven firm-specific characteristics and the level of mandatory compliance with International Accounting Standards (IAS) 1 by firms listed on Bahrain Bourse. Design/methodology/approach A disclosure index is used to measure the extent of compliance with IAS 1. Each of the 36 sampled firms’ annual reports were examined against the index for the financial year ending December 31, 2013. Findings The results reveal an overall compliance of 83 per cent. Regression results report that only audit firm size, profitability and industry type have a positive and significant association with IAS 1 disclosure requirements. Practical implications This study should be particularly relevant to regulatory bodies in Bahrain for strategizing and encouraging compliance with IAS 1 by listed firms. Originality/value Additionally, the study contributes to financial reporting literature relating to the Gulf Cooperation Council countries, mainly Bahrain. Bahrain is a financial hub, and it is interesting to examine how it presents its financial statements to investors and the degree of its compliance with International Financial Reporting Standards since its adoption in 2007.

scholarly journals DEVELOPMENT OF INTERNATIONAL FINANCIAL FISCAL STANDARDS IN ACCORDANCE WITH THE ROLE OF IASB

2019 ◽  
Vol 3 (2) ◽  
Author(s):  
‏​‏​‏​​‏​‏​​‏​‏​‏​‏​‏​‏ Ali Murtadha Shaheen
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Trading Volumes ◽  
International Accounting Standards Board

The objective of the research is to demonstrate the role of International Accounting Standards Board in the development of International Financial Reporting Standards to support the efficiency of international capital markets from 1973 to 2011, and then to measure the impact of the application of IFRS in accordance with the role of the International Accounting Standards Board. There have been differences in the market, volumes of the first and second markets and in the share price index, refer to market value, trading volumes yet trading volumes appropriate according to the software over International Financial Reporting Standards between the training on monetary statements of agreement stock companies.  

scholarly journals Ontwikkelingen in het conceptual framework

2013 ◽  
Vol 87 (9) ◽  
pp. 355-364
Author(s):  
Dick Van Offeren ◽  
Joop Witjes ◽  
Tim Verdoes
Keyword(s):  
Conceptual Framework ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
Financial Accounting ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
Reporting Framework ◽  
International Accounting Standards Board

De International Accounting Standards Board (IASB) heeft recent het conceptual framework-project als kernproject aangemerkt. Het oorspronkelijke Framework for the preparation and presentation of financial statements (framework 1989) was aan een fundamentele herziening toe. Samen met de Financial Accounting Standards Board (FASB) heeft de IASB de eerste fase van het Conceptual framework for financial reporting (framework 2010) voltooid. In deze eerste fase worden twee onderwerpen besproken. Dit zijn het doel van financiële verslaggeving en de kwalitatieve kenmerken van financiële verslaggeving. Wij bespreken deze twee onderwerpen en gaan in op de verschillen tussen het framework 2010 en het framework 1989. Wij benadrukken het verschil in toepassingsgebied van de twee frameworks. Het framework 2010 is gericht op het ruimere begrip financial reporting, financiële verslaggeving en het framework 1989 was beperkt tot financial statements, jaarrekeningen.

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