Non-recognition of internally generated brands: implications for the usefulness of financial statements
Journal of Economic and Financial Sciences
| Field | Value | |
| Title | Non-recognition of internally generated brands: implications for the usefulness of financial statements | |
| Creator | Van Aardt Van Der Spuy, Pieter | |
| Description | International Accounting Standard 38 (IAS38) prohibits the recognition of internally generated brands as assets. This article explores the implications of this prohibition for the usefulness of financial statements, focusing on the implications for note-disclosure. A theoretical doctrinal research approach is taken in which the literature on intangible assets and current accounting standards is examined and evaluated. The article highlights the information content relevant to unrecognised brand assets that is not currently disclosed to users of financial statements. Furthermore, the article argues and explains how this situation may compromise the usefulness of financial statements. Practitioners compiling financial statements may find the conclusions and recommendations useful in improving voluntary note-disclosure when a reporting entity owns significant unrecognised brand assets. The International Accounting Standards Board (IASB) may find the article useful in reviewing IAS38’s mandatory note-disclosure requirements in order to improve the usefulness of financial statements. | |
| Publisher | AOSIS | |
| Date | 2015-12-27 | |
| Identifier | 10.4102/jef.v8i3.123 | |
| Source | Journal of Economic and Financial Sciences; Vol 8, No 3 (2015) 2312-2803 1995-7076 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jefjournal.org.za/index.php/jef/article/view/123/119
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