The paper "Accounting Standard and Regulation of Australia - Accounting for Intangible Assets" is a great example of a finance and accounting essay. This paper seeks to answer five given questions in relation to tangible assets. The questions include difficulties in accounting for intangible assets in the context of conflict of standards among different standard-setting bodies. The paper ends with a way on how to get out of the problems defined. 2. Questions and Answers: 2.1. Why is accounting for intangible assets problematic. The Australian Accounting Standards Board (AASB ) has not been able to settle the debate in producing an Australian consensus on accounting for identifiable intangible assets.
The AASB after issuing an exposure draft on accounting for intangible earlier has not yet made a decision until 1999 came and thus it needed to re-affirm its view that assets such as brand names, mastheads, licenses and trademarks have depreciable amounts that are required to be depreciated. An equally influential part of the Australian capital markets, the Australian Securities and Investments Commission (ASIC) has further contributed to the need to make a decision under pressure as it tools the position for companies to amortize such assets.
This however generated reactions that resulted in a submission from the Group of 1000 and others in May 2000, hence this time the AASB must really have the resolve to resolve the issues on intangible asset recognition for some kinds and since it wanted to know the US FASB position on the issue it will have to hasten its final position with the current proposals by the FASB to rather adopt non-amortization of goodwill and other intangibles with indefinite lives (Alfredson, 2001). 2.2.
The nature of intangible assets with reference to the conceptual framework projects, and the relevant empirical research. The nature of intangible assets with references to the conceptual framework projects and relevant empirical research may be appreciated in reference to conceptual by the fact they there are those that are purchased (externally acquired) and those that are internally generated. More conceptually, intangible assets are not like physical assets that may readily be evaluated as to their values yet research confirms the value of their capitalization or recognition.
Alfredson, K. (2001) Accounting for identifiable intangibles--an unfinished standard-setting task Australian Accounting Review; Jul 2001; 11, 2; Accounting & Tax Periodicals, pg. 12
Godfrey and Koh (2001) The relevance to firm valuation of capitalising intangible assets in total and by category; Australian Accounting Review; Jul 2001; 11, 2; Accounting & Tax Periodicals, pg. 39
Jenkins and Upton (2001) Internally generated intangible assets: Framing the discussion Australian Accounting Review; Jul 2001; 11, 2; Accounting & Tax Periodicals, pg. 4
Matolcsya and Wyatt (2006) Capitalized intangibles and financial analysts, Blackwell Publishing Ltd Oxford, UK
Wines and Ferguson (1993); An Empirical Investigation of Accounting Methods of Goodwill and Identifiable Intangible Assets: 1985 to 1989
Wyatt, et.al (2001) Capitalisation of Intangibles - A Review Of Current Practice and The Regulatory Framework, Australian Accounting Review; Jul 2001; 11, 2; Accounting & Tax Periodicals, pg. 22