Accounting for intangible investments

Wyatt, A. and Abernethy, M. (2008) Accounting for intangible investments. Australian Accounting Review, 18 2: 95-107. doi:10.1111/j.1835-2561.2008.0012.x

Author Wyatt, A.
Abernethy, M.
Title Accounting for intangible investments
Journal name Australian Accounting Review   Check publisher's open access policy
ISSN 1035-6908
Publication date 2008-06-01
Sub-type Article (original research)
DOI 10.1111/j.1835-2561.2008.0012.x
Open Access Status Not yet assessed
Volume 18
Issue 2
Start page 95
End page 107
Total pages 13
Editor Linda M. English
Place of publication Melbourne, Australia
Publisher Wiley-Blackwell Publishing Asia
Language eng
Subject 1501 Accounting, Auditing and Accountability
Abstract The traditional categorisation of expenditures evident in many firms’ charts of accounts and financial statements does not identify and measure expenditures on intangible investment separately from tangible investment and operating expenditures. This contrasts with the accounting for tangible investment, which separately accounts for all expenditures as assets unless the future benefits are consumed in a single accounting period. Further, in searching for better ways to account for intangibles, regulators and researchers have focused on the accounting choice problem relating to the existence and recognisability of intangible assets. In this paper, we argue that identifying and separately reporting the expenditures on intangible investment is the logical first step in accounting for intangible investments. Learning about the firm’s categories of value driving (and sometimes potentially value destroying) expenditures has important implications for understanding aspects of the value chain, performance measurement, valuation, corporate governance and the external audit.
Keyword Expenditures
Financial statements
Intangible investment
Q-Index Code C1
Q-Index Status Provisional Code

Document type: Journal Article
Sub-type: Article (original research)
Collections: Faculty of Business, Economics and Law -- Publications
Excellence in Research Australia (ERA) - Collection
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Citation counts: TR Web of Science Citation Count  Cited 2 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 5 times in Scopus Article | Citations
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Created: Thu, 07 Jan 2010, 01:43:24 EST by Ms Susana Macanawai on behalf of Faculty of Business, Economics & Law