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Internally Generated Intangible Assets: Framing the Discussion
Author(s) -
Jenkins Edmund,
Upton Wayne
Publication year - 2001
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2001.tb00183.x
Subject(s) - real economy , framing (construction) , business , value creation , finance , intersection (aeronautics) , accounting , knowledge economy , economics , economy , industrial organization , monetary economics , structural engineering , aerospace engineering , engineering
Two assertions dominate discussions about the intersection between the new economy and business and financial reporting. First, the economy of 2001 is fundamentally different from the economy of 1950 and before. Second, traditional financial statements do not capture — and may not be able to capture — the value drivers that dominate the new economy. Improved business and financial reporting of the “new economy” will require attention to recognition and measurement in financial statements, increased disclosure of non‐financial performance metrics, and expanded use of forward‐looking information. This paper 1 addresses the first of those areas — recognition and measurement of internally generated intangible assets.