Capitalisation of intangibles - A review of current practice and the regulatory framework

Australian Accounting Review

Volumn 11, Issue 24, 2001, Pages 22-38

  Wyatt, Anne ^a   Matolcsy, Zoltan ^b   Stokes, Donald ^b  

^a UNIVERSITY OF MELBOURNE   (Australia)

^b UNIVERSITY OF TECHNOLOGY SYDNEY   (Australia)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84956630674     PISSN: 10356908     EISSN: 18352561     Source Type: Journal    
DOI: 10.1111/j.1835-2561.2001.tb00185.x     Document Type: Letter

References (68)

1. Abrahams, T., and B. Sidhu., 1998, “The Role of R&D Capitalisation in Firm Valuation and Performance Measurement”, Australian Journal of Management, Vol 23, No. 2: 169-84.
2. Accounting Standards Board (United Kingdom), 1997, FRS 10 Goodwill and Intangible Assets.
3. Accounting Standards Review Board (New Zealand), 1999, ED 87 Accounting for Intangible Assets.
4. Anderson, D., and I. Zimmer., 1992, “Reactions to Regulation of Accounting for Goodwill”, Accounting and Finance, November: 27-50.
5. Australian Accounting Standards Board, 1987, AASB 1011 Accounting for Research and Development.
6. Australian Accounting Standards Board, 1989, AASB 1022 Accounting for the Extractive Industry.
7. Australian Accounting Standards Board, 1989, ED 49 Accounting for Identifiable Intangible Assets.
8. Australian Accounting Standards Board, 1990, SAC 1 Definition of the Reporting Entity.
9. Australian Accounting Standards Board, 1990, SAC 2 The Objective of General Purpose Financial Reporting.
10. Australian Accounting Standards Board, 1990, SAC 3 Qualitative Characteristics of Financial Information.
11. Australian Accounting Standards Board, 1991, AASB 1010 Accounting for the Revaluation of Non-Current Assets.
12. Australian Accounting Standards Board, 1995, Policy Statement 5 (POL 5) The Nature and Purpose of Statements of Accounting Concepts.
13. Australian Accounting Standards Board, 1995, SAC 4 Definition and Recognition of the Elements of Financial Statements.
14. Australian Accounting Standards Board, 1996, AASB 1013 Accounting for Goodwill.
15. Australian Accounting Standards Board, 1996, Policy Statement 6 (POL 6) International Harmonisation Policy.
16. Australian Accounting Standards Board, 1997, AASB 1021 Depreciation of Non-Current Assets.
17. Australian Accounting Standards Board, 1997, AASB 1036 Borrowing Costs.
18. Australian Accounting Standards Board, 1997, ED 74 Depreciation of Non-Current Assets.
19. Australian Accounting Standards Board, 1997, ED 84 Acquisition of Assets.
20. Australian Accounting Standards Board, 1998, ED 92 Revaluation of Non-Current Assets.
21. Australian Accounting Standards Board, 1999, AASB 1010 Recoverable Amount of Non-Current Assets.
22. Australian Accounting Standards Board, 1999, AASB 1015 Acquisition of Assets.
23. Australian Accounting Standards Board, 1999, AASB 1040 Statement of Financial Performance.
24. Australian Accounting Standards Board, 1999, AASB 1041 Accounting for the Revaluation of Non-Current Assets.
25. Australian Accounting Standards Board, 1999, Accounting Interpretation AI 1 Amortisation of Identifiable Intangible Assets.
26. Australian Accounting Standards Board, 1999, ED 99 Impairment of Assets.
27. Australian Accounting Standards Board, 2001, ED 101 Revaluation of Non-Current Assets: Proposed Amendments to AASB 1041/AAS 38.
28. Australian Securities and Investments Commission, 1998, Report on the Investigation into Burns Philp & Company Limited.
29. Australian Securities and Investments Commission, 1998, Report on the Investigation into Spedley Securities Company Limited.
30. Australian Securities and Investments Commission, 1999, “ASIC Review Identifies Intangible Asset Accounting Problems”, ASIC media release, 21 September.
31. Australian Securities Commission, 1992, Practice Note 21: Value of Non-Current Assets Under S 294(4) of the Corporations Law.
32. Bosch, H., 2000, “Investors Should be Assured They are Protected”, The Age, 17 January.
33. Clinch, G., 1995, Capital Markets Research and the Goodwill Debate, Australian Accounting Review, May: 22-30.
34. Cohen, W., and D. A. Levinthal., 1989, “Innovation and Learning: The Two Faces of R&D - Implications for the Analysis of R&D Investment”, Economic Journal, 99: 569-96.
35. Commonwealth Government, 1997, Corporate Law Economic Reform Program, http:www.treasury.gov.aupublicationsBills, ActsAndLegislationCorporateLawEconomicReformProgramindex.asp.
36. Deng, Z., and B. Lev., 1998, “Flash and Flush: The Valuation of Acquired R&D-In-Process”, Stern School of Business, New York University.
37. Department of Industry, Science & Technology (DIST), 1996, “Australian Business Innovation: A Strategic Analysis”, Measures of Science and Innovation 5, Australian Government Publishing Service, Canberra.
38. Financial Accounting Standards Board, 1984, Concepts Statement No. 5 Recognition and Measurement in Financial Statements of Business Enterprises.
39. Financial Accounting Standards Board, 1985, SFAS 86 Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed.
40. Financial Accounting Standards Board, 2001, Exposure Draft (revised) Business Combinations and Intangible Assets - Accounting for Goodwill.
41. Geroski, P. A., 1995, “Markets For Technology: Knowledge, Innovation And Appropriability”, Chapter 4 in Paul Stoneman (ed.), Handbook Of The Economics Of Innovation And Technological Change, Blackwell Publishers: 90-131.
42. Griliches, Z., 1994, “Explanations of Productivity Growth: Is the Glass Half-empty?", American Economic Review, 84, 1: 1-25.
43. Hall, B., 1998, “Innovation and Market Value”, Prepared for the NIESR Conference on Productivity and Competitiveness, London, February 5-6, forthcoming in a Cambridge University Press volume edited by Ray Barrell and Geoffrey Mason.
44. Hansen, P. A., and G. Serin., 1997, “Will Low Technology Products Disappear? The Hidden Innovation Processes in Low Technology Industries”, Technological Forecasting and Social Change, 55: 179-91.
45. Henderson, S., and G. Peirson., 1995, Issues in Financial Accounting, 7th edition, Longman Australia Pty Ltd.
46. Industry Research & Development Board (IRDB), Scoreboard 97 Business Expenditure on Research and Development, Coopers; Lybrand.
47. International Accounting Standards Committee, 1976, IAS 4 Depreciation Accounting.
48. International Accounting Standards Committee, 1995, E 50 Intangible Assets.
49. International Accounting Standards Committee, 1995, IAS 16 Plant, Property and Equipment.
50. International Accounting Standards Committee, 1997, E 60 Intangible Assets.
51. International Accounting Standards Committee, 1998, IAS 38 Accounting for Intangible Assets.
52. Ittner, C. D., and D. F. Larcker., 1998, “Are Non-Financial Measures Leading Indicators of Financial Performance? An Analysis of Customer Satisfaction”, Journal of Accounting Research, 36, Supplement: 1-46.
53. Kester, W. C., 1993, “Turning Growth Options into Real Assets”, Chapter 11 in R.Aggarwal (ed.), Capital Budgeting Under Uncertaintly, Prentice-Hall Inc., New Jersey 187-207.
54. Lev, B., 2001, “Intangibles, Management, Measurement and Reporting”, Brookings Institution, forthcoming.
55. Lev, B., and T. Sougiannis., 1996, “The Capitalisation, Amortization, and Value-Relevance of R&D”, Journal of Accounting and Economics, 21: 107-38.
56. McCahey, J., 1998, “ASIC Accounting Focus Promotes Investor Confidence”, ASIC media release, 21 August.
57. McCahey, J., 1999, Company Reporting: Improving, But More Care Needed, Australian CPA, August, http: www.cpaonline.com.au03_publications02_aust_cpa_magazine199908_aug3_2_8_05_co_reporting.asp.
58. Percy, M., 1998, “Financial Reporting Discretion and Voluntary Disclosure: Corporate Research and Development Expenditure in Australia”, unpublished PhD dissertation, University of Queensland.
59. Scott, W. S., 1997, Financial Accounting Theory, Prentice-Hall International Inc., New Jersey.
60. Stoneman, P., 1995, Handbook of the Economics Of Innovation and Technological Change, Basil Blackwell Ltd, Cambridge, Massachusetts.
61. Stoneman, P., and O. Toivanen., 1997, “Innovation and Market Value in the UK: Some Preliminary Results”, Warwick Business School.
62. Urgent Issues Group, 2001, Abstract 37 Accounting for Web Site Costs.
63. Webster, E., 1999, The Economics of Intangible Investment, Edward Elgar Publishing Limited, UK.
64. Wines, G., and C. Ferguson., 1993, “An Empirical Investigation of Accounting Methods for Goodwill and Identifiable Intangible Assets: 1985 to 1989", Abacus, 29, 1: 90-105.
65. Wyatt, A., 2001a, “Economics of R&D and Identifiable Intangibles: Links to Managers’ Implementation of Accounting Asset Recognition Rules”, working paper, University of Melbourne.
66. Wyatt, A., 2001b, “Expanding the Contemporary Financial Reporting Framework Beyond ‘Historic Cost’ and ‘Tangible Production Assets”', working paper, University of Melbourne.
67. Wyatt, A., 2001c, “Trade In Intangibles: The Great Divide Between Obscurity In Innovation Cycles And The Balance Sheet”, working paper, University of Melbourne.
68. Zimmer, I., 1986, “Accounting for Real Estate Developers”, Journal of Accounting and Economics, 8: 37-51.