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Ana Milijić – Innovation Center, University of Niš, University Square 2, 18000 Niš, Serbia

DOI: https://doi.org/10.31410/EMAN.2020.33


4th International Scientific Conference – EMAN 2020 – Economics and Management: How to Cope With Disrupted Times, Online/Virtual, September 3, 2020, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-30-1, ISSN 2683-4510

Abstract:

Rigidity of the financial reporting model in contemporary business conditions the era of the
„knowledge economy” influenced the creation of significant differences between the market and book
values of companies. Characteristic of enterprises in the „new” economy is the high share of knowledge
and other intellectual resources in the structure of total assets, which are at the same time the basic source
of competitiveness of enterprises. Given the changing habits of consumers who are inclined to buy products
on the market that identify a high degree of „embedded” knowledge, companies base their business
on investing in R&D and investing in various types of intellectual property and protecting them. Due to
certain limitations of financial reporting when identifying and measuring intellectual resources in an
enterprise, users of financial statements are unable to get a realistic picture of the value of assets and the
corresponding investments when it comes to certain types of intangible assets. Blurred financial reality
can lead to irrational decisions, stagnation in business and major financial crashes, which is often the
practice of large companies listed on the world stock market due to the overestimation / undervaluation of
their book value. The aim of this paper is to explain the treatment of intangible assets through international
accounting standards concerning the identification, recognition and measurement of intellectual resources
and intangible assets, to analyze their limitations and to point out possible directions for their further
development in order to provide reliable and credible reporting on assets and capital of economic entities.

Keywords:

Intangible asset, International accounting standards, Intellectual capital.

REFERENCES

IASB, International Accounting Standards IAS 38 – Intangible Assets
Krstic, B., Upravljanie intelektualnim kapitalom, Ekonomski fakutet Niš,Niš, 2014
Moore L., Graig L., Intellectual Capital in Enterprise Success, John Wiley & Sons, 2008
Nick Rea and Adrian Davis, “Intangible Assets: What are They Worth and How Should That
Value be Communicated?”, PricewaterhouseCoopers, London, www.buildingipvalue.
com/05_SF/348_353.htm
Primena kontnog okvira u skladu sa MRS/MSFI, Savez računovođa i revizora Srbije (SRRS),
Beograd, 2007.
SFAS 141 (Statement of Financial Accounting Standards No. 141 – Business Combinations)
SFAS 142 Statement of Financial Accounting Standards No. 142 – Goodwill and Other Intangible
Assets
Sveiby K.E., The New Organizational Wealth-Managing and Measuring Knowledge-Based Assets,
Berrett-Koehler Publishers, 1997
Zhang, M. „The Impact of Internally Generated Goodwill on Financial Performance of Firms”,
The Journal of Applied Business Research, Vol. 29 (6), 2013

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