Research report on intangibles
20 Nov 2008
The Australian Accounting Standards Board (AASB) has published Initial Accounting for Internally Generated Intangible Assets, a discussion paper addressing the inconsistent accounting treatments for intangible.
- Discussion Paper (PDF 677k) – it is copyrighted by the Commonwealth of Australia and posted here with permission
- AASB Press Release (PDF 32k)
A key conclusion of the intangibles research report: From a technical conceptual perspective, internally generated intangible assets should be required to be initially measured at fair value to enhance the decision-usefulness of financial reports. An option to adopt cost as an alternative to fair value should not be allowed. On balance, we also think that this view can be justified on practical grounds. However, we acknowledge the views of some against our conclusion. Accordingly, before our conclusion is considered for implementation, we think that further investigation of the perceived practical impediments is warranted. |