The Current Financial Crisis and Its Potential Impact on Internally Generated Intangible Assets

Rossen R. Petkov

Abstract


Many experts consider that the lack of accounting for internally generated intangible assets is, among other
factors, to be blamed for the current financial crises. The current accounting regulators have not taken the
initiative towards creation of new accounting standard to identify or to allow the capitalization, recognition
and/or disclosure of these assets. This failure to properly identify, measure, and/or recognize the activities
associated with intangible assets, appear at a time when the accounting standards are in the process of regulatory
adjustments due to different view and ideas originating by the SEC, FASB and IASB. This paper explores some
of the conceptual issues related to the initial identification of internally generated intangible assets. In addition,
we propose an approach to recognize these assets in the financial statements using a hypothetical business
combination approach.


Full Text: PDF DOI: 10.5539/ijbm.v6n3p37

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the 'ccsenet.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.