IDEAS home Printed from https://ideas.repec.org/a/prg/jnlefa/v2013y2013i3id104.html
   My bibliography  Save this article

Influence of Internally Generated Intangible Assets on Financial Statements Prepared in Accordance with IFRS

Author

Listed:
  • Libor Vašek
  • Marek Filinger

Abstract

This article looks at the very intricate and highly contentious issue of internally generated intangible assets as presented in the financial statements prepared under IFRS, with a special focus on research and development. In the first section, intangible assets are defined and then further classified as either purchased or internally generated; crucial distinction when choosing the right approach. The second section deals with research and development in a greater detail and provides not only a number of answers, but also raises several key questions, e.g. the question of objectivity and possible earnings management. Third section is devoted to measurement issues and in the last section, the reader finds excerpts from financial statements of different companies from various industries which illustrate the fact that some useful information is clearly missing. The conclusion suggest an easy, yet very efficien solution in tune with the ongoing convergence process between IFRS and U.S. GAAP, namely to move IAS 38 in the direction of U.S. GAAP and to forbid any capitalisation of development costs.

Suggested Citation

  • Libor Vašek & Marek Filinger, 2013. "Influence of Internally Generated Intangible Assets on Financial Statements Prepared in Accordance with IFRS," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2013(3), pages 10-23.
    • Handle: RePEc:prg:jnlefa:v:2013:y:2013:i:3:id:104
    DOI: 10.18267/j.efaj.104
    as

    Download full text from publisher

    File URL: http://efaj.vse.cz/doi/10.18267/j.efaj.104.html
    Download Restriction: free of charge
    File URL: http://efaj.vse.cz/doi/10.18267/j.efaj.104.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.efaj.104?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jan Molín, 2012. "Selected Consequences of Unlawful Conduct in Accounting in the Context of Current Legal Regulations of the Czech Republic [Vybrané důsledky protiprávního jednání v oblasti účetnictví v kontextu ned," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2012(2), pages 55-65.
    2. AfDB AfDB, . "Annual Report 2012 (Arabic Version)," Annual Report, African Development Bank, number 462.
    3. AfDB AfDB, . "Annual Report 2012," Annual Report, African Development Bank, number 461.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kimouche Bilal, 2022. "Intangible Assets, Goodwill and Earnings Management: Evidence from France and the Uk," Folia Oeconomica Stetinensia, Sciendo, vol. 22(1), pages 111-129, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tarek Roshdy Gebba & Mohamed Gamal Aboelmaged, 2016. "Corporate Governance of UAE Financial Institutions: A Comparative Study between Conventional and Islamic Banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 6(5), pages 1-7.
    2. Flood, Mark D. & Lemieux, Victoria L. & Varga, Margaret & William Wong, B.L., 2016. "The application of visual analytics to financial stability monitoring," Journal of Financial Stability, Elsevier, vol. 27(C), pages 180-197.
    3. Molyneaux, Lynette & Wagner, Liam & Foster, John, 2016. "Rural electrification in India: Galilee Basin coal versus decentralised renewable energy micro grids," Renewable Energy, Elsevier, vol. 89(C), pages 422-436.
    4. repec:zbw:bofrdp:urn:nbn:fi:bof-201511261452 is not listed on IDEAS
    5. World Bank Group, 2015. "FYR Macedonia Public Expenditure Review," World Bank Publications - Reports 23808, The World Bank Group.
    6. Mahanta, Ratul & Chowdhury, Jayashree & Nath, Hiranya K., 2016. "Health costs of arsenic contamination of drinking water in Assam, India," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 30-42.
    7. García-Posada, Miguel & Marchetti, Marcos, 2016. "The bank lending channel of unconventional monetary policy: The impact of the VLTROs on credit supply in Spain," Economic Modelling, Elsevier, vol. 58(C), pages 427-441.
    8. Collins, Ross D. & Selin, Noelle E. & de Weck, Olivier L. & Clark, William C., 2017. "Using inclusive wealth for policy evaluation: Application to electricity infrastructure planning in oil-exporting countries," Ecological Economics, Elsevier, vol. 133(C), pages 23-34.
    9. Yang, Daojian & Qi, Ershi & Li, Yajiao, 2015. "Quick response and supply chain structure with strategic consumers," Omega, Elsevier, vol. 52(C), pages 1-14.
    10. Bird, Lori & Lew, Debra & Milligan, Michael & Carlini, E. Maria & Estanqueiro, Ana & Flynn, Damian & Gomez-Lazaro, Emilio & Holttinen, Hannele & Menemenlis, Nickie & Orths, Antje & Eriksen, Peter Børr, 2016. "Wind and solar energy curtailment: A review of international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 577-586.
    11. Saari, M. Yusof & Rahman, M. Affan Abdul & Hassan, Azman & Habibullah, Muzafar Shah, 2016. "Estimating the impact of minimum wages on poverty across ethnic groups in Malaysia," Economic Modelling, Elsevier, vol. 54(C), pages 490-502.
    12. Berghöfer, Britta & Lucey, Brian, 2014. "Fuel hedging, operational hedging and risk exposure — Evidence from the global airline industry," International Review of Financial Analysis, Elsevier, vol. 34(C), pages 124-139.
    13. David Talbot & Olivier Boiral, 2018. "GHG Reporting and Impression Management: An Assessment of Sustainability Reports from the Energy Sector," Journal of Business Ethics, Springer, vol. 147(2), pages 367-383, January.
    14. Marshall, Jonathan Paul, 2016. "Disordering fantasies of coal and technology: Carbon capture and storage in Australia," Energy Policy, Elsevier, vol. 99(C), pages 288-298.
    15. O'Kelly, Morton E., 2014. "Air freight hubs in the FedEx system: Analysis of fuel use," Journal of Air Transport Management, Elsevier, vol. 36(C), pages 1-12.
    16. Völker, Marc & Lienhoop, Nele, 2016. "Exploring group dynamics in deliberative choice experiments," Ecological Economics, Elsevier, vol. 123(C), pages 57-67.
    17. Fawsitt, Christopher G. & Bourke, Jane & Greene, Richard A. & McElroy, Brendan & Krucien, Nicolas & Murphy, Rosemary & Lutomski, Jennifer E., 2017. "What do women want? Valuing women’s preferences and estimating demand for alternative models of maternity care using a discrete choice experiment," Health Policy, Elsevier, vol. 121(11), pages 1154-1160.
    18. Novosel, T. & Ćosić, B. & Pukšec, T. & Krajačić, G. & Duić, N. & Mathiesen, B.V. & Lund, H. & Mustafa, M., 2015. "Integration of renewables and reverse osmosis desalination – Case study for the Jordanian energy system with a high share of wind and photovoltaics," Energy, Elsevier, vol. 92(P3), pages 270-278.
    19. repec:bof:bofrdp:urn:nbn:fi:bof-201511261452 is not listed on IDEAS
    20. Fisher, Anthony, 2014. "Climate Science and Climate Economics," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt746627gz, Department of Agricultural & Resource Economics, UC Berkeley.
    21. Augustine Mulolwa, 2016. "Land Governance Assessment," World Bank Publications - Reports 28503, The World Bank Group.
    22. Bucher, R. & Jeffrey, H. & Bryden, I.G. & Harrison, G.P., 2016. "Creation of investor confidence: The top-level drivers for reaching maturity in marine energy," Renewable Energy, Elsevier, vol. 88(C), pages 120-129.

    More about this item

    Keywords

    Development; Financial reporting; IFRS; Research;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlefa:v:2013:y:2013:i:3:id:104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.