- Join over 1.2 million students every month
- Accelerate your learning by 29%
- Unlimited access from just £6.99 per month
The importance of intangibles to organisations and the complexity of recording these in the financial accounts.
The first 200 words of this essay...
'The concepts and conventions of accounting provide very clear guidelines for the accounting of assets within the balance sheet'.
Knowledge is becoming the new engine of corporate development with fewer
companies relying heavily on tangible assets such as machinery and buildings to measure their value. Successful companies are more inclined to invest heavily in their employees and knowledge base, which prompts the question, How much are they really worth?. Intangible assets such as knowledge and patents are often over looked in company accounts whilst more forward thinking organisations have realised that these are an integral part of their business.
Historically the failure to include intangible assets in financial accounts has fuelled the confusion as to their precise description. Henderson and Peirson 2002 described intangible assets as 'rights rather than objects'. The International Accounting Standards (IAS) defines an intangible assets as an 'identifiable non-monetary asset without physical substance'. It would seem reasonable to expect a degree of inconsistency with regard to their treatment in financial accounts especially in light of the above definitions. The article from 'Accounting' magazine mentions the vast sums of money (£1m) spent by Consignia to change its name back to
Found what you're looking for?
- Start learning 29% faster today
- Over 150,000 essays available
- Just £6.99 a month
Not the one? We have 100's more
Accounting (view all)
- Capital budgeting: advantages and limitations
- Microsoft financial reporting strategy
- Critically evaluate the Business Model and the Information B...
- HEYWORTH LTD. The appraisal techniques of Accounting Rate of...
- Investment appraisal methods. Evidence suggests that, NPV...
""Simon. Politics and International Relations. University Student.
""Sabrina, Washington. IB English, History, Chemistry, Anthropology.