Accounting treatment of intangible assets

Gorgieva-Trajkovska, Olivera and Koleva, Blagica and Georgieva Svrtinov, Vesna (2015) Accounting treatment of intangible assets. Proceeding of 11-th International Scientific Conference of Young Scientists, "The Economy of Bulgaria and European Union: Competitiveness and Innovations", UNWE Sofia, Faculty of Finance and Accountancy. pp. 238-246. ISSN 978-954-8590-35-8


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The accounting for fixed assets is, in many cases, a straightforward exercise, but it isn’t always so when it comes to the issue of intangible fixed assets and recognizing such assets on the balance sheet. IAS 38, In¬tan¬gi¬ble Assets, outlines the accounting re¬quire¬ments for in¬tan¬gi¬ble assets, which are non-mon¬e¬tary assets which are without physical substance and iden¬ti¬fi¬able (either being separable or arising from con¬trac¬tual or other legal rights). In¬tan¬gi¬ble assets meeting the relevant recog¬ni¬tion criteria are initially measured at cost, sub¬se¬quently measured at cost or using the reval¬u¬a¬tion model, and amortized on a sys¬tem¬atic basis over their useful lives (unless the asset has an in¬def¬i¬nite useful life, in which case it is not amortized). In today’s emerging economy of knowledge, even some banks have concluded that “soft” assets (like computer programming know-how and information infrastructure) can be a better credit risk than “hard” assets (like buildings). But how should the “soft assets” be valued? There are arguments that balance sheets ignore certain intangibles, but the reporting issues of trying to recognize them are, in my mind, insurmountable. It appears that the assets that really count are the ones accountants can’t count yet. This paper focuses on the nature, recognition and treatment of intangible assets, according the requirements International Financial reporting Standards. Key words: intangible, assets, recognition, valuation, standards

Item Type: Article
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Economics
Depositing User: Olivera Trajkovska
Date Deposited: 18 Dec 2015 08:37
Last Modified: 18 Dec 2015 08:37

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