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Management incentives to recognise intangible assets
Author(s) -
Russell Mark
Publication year - 2017
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12154
Subject(s) - goodwill , intangible asset , opportunism , incentive , business , book value , accounting , asset (computer security) , international financial reporting standards , intangible good , finance , economics , market economy , microeconomics , computer security , earnings , computer science
The paper examines whether the introduction of the international financial reporting standards ( IFRS ) in Australia changed management incentives to recognise intangible assets. We examine post‐ IFRS changes in managerial opportunism and economic benefits associated with the recognition of intangible assets. We find evidence after IFRS of significant change in intangible asset recognition concurrent with share issues. We also find that the association between economic benefits and intangible assets changed following IFRS . Evidence is provided that the economic benefits associated with goodwill were enhanced by IFRS , whereas IIA and E&E asset information became less useful to financial report users.