Ending the Accounting-for-Intangibles Status Quo. Issue 4 (8th August 2019)

• Record Type: Journal Article
• Authors: Lev, Baruch
• Is Part Of: European accounting review. Volume 28:Issue 4(2019)
• Page Start: 713
• Page End: 736
• Publication Date: 2019-08-08
• Subjects: Intangibles -- Accounting for -- Reporting of -- Accounting change -- Research agenda; Accounting -- Europe -- Periodicals; Accounting -- Periodicals; Comptabilité -- Europe -- Périodiques; Comptabilité -- Pays de l'Union européenne -- Périodiques; 657.094
• DOI: 10.1080/09638180.2018.1521614
• Languages: English
• ISSNs: 0963-8180

Abstract

Abstract: The surge of corporate intangible investments is the hallmark of developed economies, radically transforming the business models, strategies, and performance of business enterprises. Accounting standard-setters, however, by and large, are oblivious to this world-wide development. I establish in this study that this accounting resistance to change seriously harms investors and the economy-at-large, and accordingly I propose feasible remedial changes to the accounting system to adapt it to economic reality. I discuss implementation issues of the proposed change, and the reasons for the three-decade resistance of accounting standard-setters to change the accounting of intangibles. Finally, in order to facilitate the accounting change, I outline a wide-ranging, policy-oriented research agenda on intangibles and related issues.