The Impact Of Intangible Assets In Australia

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Introduction According to Deegan (2014), the fact that new setting accounting standards will be occupied by real economic and social outcomes. Intangible Assets is always a big question because of the puzzling value estimates. It is hard to measure the correct value of intangible assets (IAs), this practice is generated to reduce the transparency. Australia is the first country to adopt IAS 38 from 2005 fiscal year. This adoption has a huge argument about the implementation and the main reason is to change some of prevailed accounting standards in Australia and accept internally generated intangibles. This report will highlight key findings in the adoption of IAS 38 in Australia and assess the impact of adoption in Europe. Report 1. The…show more content…
It links to Positive Accounting Theory that is connection with top priority of accounting in valuing the firm. 1.2. The changing recognition in Asset after adopting IAS 38 Intangibles Regarding the commitment to International Harmonization policy, AASB adopted International Financial Reporting Standards (IFRS) on January 1, 2005. The outcome is Australian International Financial Reporting Standards (AIFRS) accepts the de-recognition of all internally generated IAs. The investors in Australia expect to get information regarding to the IAs is provided by AASB 1047.The gap between actual and expected value has been decreased and more transparency because of the change in regime. There was no standard equality of AASB 138 before AIFRS, which provides information about asset without physical existence such as trademark, brand, and so on. AIFRS is used to adjust IAs have been recorded previously which are internally produced and revalued all previously assets are recorded follow by historical cost because asset cannot revalue unless it has a secondary market to base on before revaluing the asset. Many researchers argued AASB 138 will have a significant effect on firm and have to de-regulate internally generated IAs, as these assets have a large contribution in the valuation of the financial report of firms. There was no standard which is used to solve the problem of IAs before 2005 in Australia. They use AASB 1013 to represent the goodwill and AASB 1011 for research and
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