The association of identifiable intangible assets acquired and recognised in business acquisitions with postacquisition firm performance. (20th August 2014)

• Record Type: Journal Article
• Authors: Su, Wun Hong; Wells, Peter
• Is Part Of: Accounting and finance. Volume 55:Number 4(2015:Dec.)
• Page Start: 1171
• Page End: 1199
• Publication Date: 2014-08-20
• Subjects: Identifiable intangible assets -- IFRS 3 -- IAS 38; Accounting -- Periodicals; Finance -- Periodicals; 657.05
• DOI: 10.1111/acfi.12086
• Languages: English
• ISSNs: 0810-5391

Abstract

Abstract: This paper extends the literature evaluating accounting practices for identifiable intangible assets and considers whether the application of these accounting practices changed on transition to IFRS. It finds no evidence of identifiable intangible assets acquired and recognised in business acquisitions being associated with postacquisition firm performance or changes in postacquisition firm performance, either before or after transition to IFRS. This is inconsistent with the requirements of regulations such as IFRS 3 Business Combinations and IAS 38 Intangible Assets, and there is no empirical evidence supporting the present regulatory distinction between acquired and internally generated and revalued identifiable intangible assets.