country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

HI6025 Accounting For Intangibles For International Financial Reporting

tag 0 Download8 Pages 1,814 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT
  • Course Code: HI6025
  • University: Holmes Institute
  • Country: Australia

Questions:

You are required to prepare a report about your findings from the literature research, and discuss how it is useful for financial reporting in Australian companies. The report should cover the following:
 
a. An explanation of the reasons (at least 3) why your group has selected the two research articles relating to your topic.
b. An explanation of the purpose of the two studies and what research question(s) they set out to explore about the topic.
c. A discussion about the similarities and differences in the findings of the two studies.
d. For each of the two studies, provide two (2) major implications of their research findings that will be useful to inform each of the following external reporting stakeholders:
i) accountants in Australian companies;
ii) accounting regulators; and
iii) one specific external user of financial reports (needs to be identified in your answer)

 

Answer:

Introduction

The following report has covered the contemporary issues related to the accounting of intangibles. The first article that has been selected is “The accounting treatment of intangibles – A critical review of the literature” written by Daniel and Anis (2011) in Accounting Forum. This article has been selected by our group, as it has covered the importance of intangible assets and how they are being ignored by the accountants. The authors have mentioned that how intangible assets are the main value creators and still, it is not getting the deserved attention in the market. The authors have also discussed the consequences related to the lack of accounting recognition of the intangibles. The second article that has been selected by our group is “Adoption of International Financial Reporting Standards: Impact on the Value Relevance of Intangible Assets” written by Chalmers, et al. (2008) in Australian Accounting Review. The main purpose of selecting this article is that it has focused on examining the value relevance of intangibles, before and after the adoption of International Financial Reporting Standards (AIFRS) and the Australian Accounting Standards (AGAAP). Hence, these articles will help in identifying the importance of intangible assets, and the consequences of not considering them important by the accountants and thirdly, the difference in their value before and after the adoption of the international financial reporting standards. The following report will answer the research questions developed and the literature review conducted by the authors, to give a detailed analysis of the topic. 

Purpose of the two studies

The purpose of both the studies is to evaluate about the intangibles, its importance as well as the negative consequences when these intangibles are ignored in the financial statements. Along with this, the article also focuses on the change in the value of intangibles after the adoption of new accounting standards (Chalmers & Godfrey, 2008).It has been discussed that the investment in the intangible assets is giving competition to investment in tangible assets in many countries (OECD, 2006). This has been supported by Zeghal (2000) who says that the share of intangibles is increasing in the capital of an organization and is giving a new shape to the investment structure within the organizations (Hunter, et al., 2005). This is also being considered as one of the main source of value creation in the modern economy (Zeghal, 2000). The other article has focused on clarifying the position of the intangibles in two different accounting regimes. The article has focused on how the accounting of intangibles has become a controversial issue in the modern accounting standards. In order to find out the relevance of intangible in the Australian accounting world, the research questions that were set by the author includes the relationship development between the explanatory powers of intangible assets and shares on the basis of AIFRS measures and the AGAAP measures. From the results of the research questions, it has been found out that both the regimes provide information that is useful in the accounting of intangibles and also has incremental explanatory powers on both the intangibles as well as the shares. The results also reflected that the mean and median of identifiable intangible assets are higher after the adoption of the new measures of AIFRS and the AGAAP in the organization. The results reveal that the measures of AIFRS are not that strong as compared to the AGAAP measures, when it comes to the increment in the valuation of the intangibles in the accounting statements. With the help of the AGAAP measures, the values of the intangibles that are reflected are of great importance to the investors and other external stakeholders of the organization (Chalmers, et al., 2008).On the other hand, the other article reveals that the identification, measurement as well as the control of the intangibles in the accounting world has become difficult in the modern world. Though, it is true that they are the main value creators these days. The author has denied the fact that the financial information has lost any relevance because of the lack of recognition of intangible asset but has put emphasis on the fact that the information regarding the intangible assets should be revealed. The main reason behind this is that it will help in taking an informed decision by the owners or investors of the organization. It is believed that voluntary disclosure of the information pertaining to intangible assets is seen as a compensatory measure to save the loss of relevance of the accounting financial information. It has also been revealed that the market conditions can be improved with the disclosure of the intangibles information by the accountants (Zéghal & Maaloul, 2011).

 

Similarities

The main similarity between the two articles is that both the articles have thrown light on the increasing importance of the intangibles in organizations. Both the articles take stand on the fact that, it is important that the information related to intangibles should be revealed as it has the ability to improve the efficiency of an organization and the market as a whole. Another similarity between the two articles is that one article has thrown light on the need for improving the accounting standards in order to give relevance to the intangibles information. On the other hand, the other article talks about the impact of adoption of accounting standards on the intangibles. 

Differences

The difference between the two articles is that the first article deals about the importance of the accounting of intangibles and it also discusses about the negative consequences of ignoring the information related to intangibles in the financial statement of the organization. On the other hand, the other article has focused on the difference in the value creation of the intangibles before and after the adoption of the International Financial Reporting Standards and the Australian Accounting Standards. 

Implication to stakeholders

Accountants in Australian Companies

Article 1-The main implication of this article on the accountants of Australian companies is that, as the authors have emphasised on the need to reflect the intangible assets in the accounting information, the accountants may need to start reflecting this information in the financial statements of organizations. As a result the accountants will have to undertake the accounting treatment of intangibles depending upon the criteria mentioned.

Article 2 - The implication of this is related to the other two implications mentioned above. The accountants may need to adopt the measures released by the International Financial Reporting Standards as well as the Australian Accounting Standards. Another implication of this is that the accountants now need to reflect the intangibles as both the expenditure of the organization as well as in the form of assets in the final balance sheet of the organization (MCA, 2018). 

Accounting Regulators

Article 1 - The first and the foremost implication on the accounting regulators will be that a proper regulatory norms need to be set up in order to give recognition to intangible assets. Another implication is that these regulations need to be made mandatory and should be circulated to all the important accounting related regulators so that consistency is maintained.

Article 2 - The implication of this article on the accounting regulators is that the regulations adopted by the regulators should be developed in the manner that it is in accordance with the international standards dealing with the intangibles. Another implication is that in order to match with the international standards, there is a possibility that many new alterations may be required to be adopted by the regulators which may be a time consuming process (Wyatt & Abernethy, 2003).

Investors

Article 1 - the main implication on the investors will be that the value of the stock of the organization will increase in the market. This is so because the true picture of the financial position of the organization will be revealed. As a result, the investors will be attracted towards the organization. Another implication to the investors is that they will be able to analyse the risks and opportunities related to the organization and will be able to take decisions wisely (Skroupa, 2017).

Article 2-the implication of the adoption of international standards related to intangibles will help to develop the investors from every corner with the Australian companies in an easy manner as, a common standard will guide the accounting activities of the organizations. Another major implication is that the investors will have an idea about the technicalities of the companies which was hitherto very limited (Martins & Alves, 2010). 

Conclusion

In the end, it can be concluded that with the help of both the articles it can be inferred that the importance and the value creation of intangibles in organizations is increasing. But, with the increase in the value, the intangibles are not getting the required attention in the accounting world. As a result, the article has reflected the change in the value of the intangibles before and after the adoption of the international accounting standards. It has been mentioned that with the adoption of the accounting standards related to intangibles and the reflection of intangibles in the accounting information, a well-defined decision can be taken by the firm’s management and also will improve the efficiency of the market. The implication of both the articles on different stakeholders has been stated that will help to undertake the necessary preparations required for the successful adoption and reflection of intangible accounting standards. Both the articles have made their contribution towards reflecting how accounting of intangibles can give a different face to the financial statements of a company. 

 

References

Chalmers, K., Clinch, G. & Godfrey, J. M., 2008. Adoption of International Financial Reporting Standards:. Australian Accounting Review, 18(3), pp. 237- 247.

Chalmers, K. & Godfrey, J., 2008. Intangible assets: diversity of practices and potential impacts from AIFRS adoption. Australian Accounting Review, 16(40), pp. 60-71.

Hunter, L., Webster, E. & Wyatt, A., 2005. Measuring Intangible Capital: A Review of Current Practice. Australian Accounting Review, 15(36), pp. 4-21.

Martins, J. & Alves, S., 2010. The impact of intangible assets on financial and governance policies: A literature review. [Online]
Available at: https://www.ejmanager.com/mnstemps/127/2010-THE%20IMPACT%20OF%20INTANGIBLE%20ASSETS%20ON%20FINANCIAL%20AND%20GOVERNANCE%20POLICIES%20-%20A%20LITERATURE%20REVIEW.pdf
[Accessed 11 September 2018].

MCA, 2018. Accounting Standard (AS) 26. [Online]
Available at: https://www.mca.gov.in/Ministry/notification/pdf/AS_26.pdf
[Accessed 11 September 2018].

OECD, 2006. Creating value from intellectual assets. [Online]
Available at: https://www.oecd.org/science/inno/36701575.pdf
[Accessed 11 September 2018].

Skroupa, C. P., 2017. How Intangible Assets Are Affecting Company Value In The Stock Market. [Online]
Available at: https://www.forbes.com/sites/christopherskroupa/2017/11/01/how-intangible-assets-are-affecting-company-value-in-the-stock-market/#505d8ed22b8e
[Accessed 11 September 2018].

Wyatt, A. & Abernethy, M. A., 2003. Framework For Measurement and Reporting on Intangible Assets, Melbourne: Intellectual Property Research Institute of Australia.

Zeghal, D., 2000. New assets for the new economy. FMI Journal, 11(2), pp. 35-40.

Zéghal, D. & Maaloul, A., 2011. The accounting treatment of intangibles–A critical review of the literature. Accounting Forum, 35(4), pp. 262-274.

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2020). HI6025 Accounting For Intangibles For International Financial Reporting. Retrieved from https://myassignmenthelp.com/free-samples/hi6025-accounting-for-intangibles-for-international-financial-reporting.

"HI6025 Accounting For Intangibles For International Financial Reporting." My Assignment Help, 2020, https://myassignmenthelp.com/free-samples/hi6025-accounting-for-intangibles-for-international-financial-reporting.

My Assignment Help (2020) HI6025 Accounting For Intangibles For International Financial Reporting [Online]. Available from: https://myassignmenthelp.com/free-samples/hi6025-accounting-for-intangibles-for-international-financial-reporting
[Accessed 28 March 2020].

My Assignment Help. 'HI6025 Accounting For Intangibles For International Financial Reporting' (My Assignment Help, 2020) <https://myassignmenthelp.com/free-samples/hi6025-accounting-for-intangibles-for-international-financial-reporting> accessed 28 March 2020.

My Assignment Help. HI6025 Accounting For Intangibles For International Financial Reporting [Internet]. My Assignment Help. 2020 [cited 28 March 2020]. Available from: https://myassignmenthelp.com/free-samples/hi6025-accounting-for-intangibles-for-international-financial-reporting.


Seeking assignment assistance from MyAssignmenthelp.com can be one of the wisest decisions of your academic career. Most often, students are seen to be striving with the intricacies of Harvard referencing style. They are either unable to comprehend the guidelines of referencing style or unable to reference their papers accurately following the essay guidelines. To put an end to your struggle, avail our free Harvard citation generator today.  The tool cites references and essay formats as per the Harvard referencing style. If you think you could use some help with your referencing, go to our website https://myassignmenthelp.com/ today.

Latest Accounting Samples

BSBFIM501 Financial Management

Download : 0 | Pages : 5
  • Course Code: BSBFIM501
  • University: Victoria University
  • Country: Australia

Answer: Part A The three major types of commercial outlines has been described here-in-below: Company: The Company is a separate legal entity distinct from its owner. There are generally two types of company i.e. Private limited and public limited. Under, this structure the owners have a limited liability up until the face value of shares in case of shares is partly paid. The other advantages includes large pooling of resources and numerou...

Read More arrow

COAC216 Cost Accounting

Download : 0 | Pages : 7

Answer: Introduction  The aim of the report is to evaluate the roles of the managerial accounting in the business operations by making the use of the latest financial statements which can find from the annual report, company website and from other sources. The company that has been selected for the analysis is Hitachi. Hitachi is one of the well-known Japanese manufacturing conglomerate companies with the headquarters in Chiyoda, Tokyo, ...

Read More arrow

ABD703 Ethical And Professional Aspects Of Business And Management

Download : 0 | Pages : 26
  • Course Code: ABD703
  • University: Abacus Institute Of Studies
  • Country: New Zealand

Answer: Introduction In the era of growing and modernizing economy, it is important for everyone to be upgraded to technological and innovational changes that may provide each one get access to better technology and efficient product. The Product developed for the Venture fund is a Pro and an active product that will be an innovative product for the athletes. The product will offer with various kinds of advanced feature to the athletes and fi...

Read More arrow Tags: New Zealand Auckland Management University of Auckland 

ABD703 Ethical And Professional Aspects Of Business And Management

Download : 0 | Pages : 26
  • Course Code: ABD703
  • University: Abacus Institute Of Studies
  • Country: New Zealand

Answer: Introduction In the era of growing and modernizing economy, it is important for everyone to be upgraded to technological and innovational changes that may provide each one get access to better technology and efficient product. The Product developed for the Venture fund is a Pro and an active product that will be an innovative product for the athletes. The product will offer with various kinds of advanced feature to the athletes and fi...

Read More arrow Tags: New Zealand Auckland Management University of Auckland 

ABD703 Ethical And Professional Aspects Of Business And Management

Download : 0 | Pages : 26
  • Course Code: ABD703
  • University: Abacus Institute Of Studies
  • Country: New Zealand

Answer: Introduction In the era of growing and modernizing economy, it is important for everyone to be upgraded to technological and innovational changes that may provide each one get access to better technology and efficient product. The Product developed for the Venture fund is a Pro and an active product that will be an innovative product for the athletes. The product will offer with various kinds of advanced feature to the athletes and fi...

Read More arrow Tags: New Zealand Auckland Management University of Auckland 
Next
watch

Save Time & improve Grades

Just share your requirements and get customized solutions on time.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,234,343

Orders

4.9/5

Overall Rating

5,066

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1265 Order Completed

97% Response Time

James Cook

Masters in Management

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1692 Order Completed

98% Response Time

Alfred Dodd

PhD in Computer and Information Science with specialization in Database

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2830 Order Completed

97% Response Time

Leroy Bicknell

MBA in Marketing

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

453 Order Completed

98% Response Time

Howard Asuncion

LLM in Criminal Law

London, United Kingdom

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

It was great assignment and good work with the description and given before the due date.

flag

User Id: 187468 - 28 Mar 2020

Australia

student rating student rating student rating student rating student rating

HELLO, FOR ME EVERY THING WAS GREAT, BUT MY PROFESSOR GRADED ME 11.5 OUT OF 20. SAYING THAT THERE ARE SOME ERRORS REGARDING GRAMMAR AND PREPOSITIONS.

flag

User Id: 392966 - 27 Mar 2020

Australia

student rating student rating student rating student rating student rating

They did my homework 3 times and each question was not answered correctly. I do not recommend you, very bad service, in the end I had to do it and I could not send the professor a time.

flag

User Id: 392341 - 27 Mar 2020

Australia

student rating student rating student rating student rating student rating

Very professional, I am totally satisfied with the result it will not be my last order, and Thank you

flag

User Id: 389494 - 27 Mar 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?