Executive summary Recently, importance of intangible assets for a reporting entity has been increasing continuously. This report will discuss intangible assets with indefinite or infinite useful life and research and development expenditure in SEEK Ltd annual report 2014. This report will state the background of SEEK Ltd and the increasing importance of intangible assets. Furthermore, the disclosure of intangible assets and research and development expenditure will be revealed. Moreover, this report
handsome share of more than 40% towards the GDP and ensuring employment to millions. There are approximately 320,000 SME’s in Pakistan. This sector also provides opportunity to utilize vocational skills for both metropolitan and rural women. The importance of SME’s has increased manifolds due to their direct or indirect donation towards the value addition and exports for big industrial establishments. The strongest arguments favoring SME’s are that they provide higher resource distribution from societal
analysis does not change the coefficients significantly (column 3); we continue to observe a significant impact of different intangible assets on the market value of firms. The regression results in column (4) of Table 2 indicate that R&D intensity displays diminishing returns: as firms get older, they get less value out of their R&D investments. The interaction term (RDS/Assets * Age) is negative and significant at the 5% significance level. The addition of this interaction term improves the fit of
net assets, financial structure and capacity to adapt to changes, so it is becoming increasingly clear that balance statements play a significant role in defining the growth of a company, as the search for adding more value always leads to calculating and recognizing such assets. Increased business competition and adoption of new information technologies increase its importance since it is become the major driver of corporate value (Leo & Sweeting 2001). Many research show that approved assets are
as intangibles have become one of the crucial drivers for the economic performances of most companies. However measuring the value of an intangible asset with accuracy and treating it correctly for the preparation of financial statements has been found to be quite difficult. In fact, one of the most contested areas of accounting lies with the treatment of internally generated intangibles assets – Research and Development. In simple words, the basic difference between tangibles and intangibles is
be quantified but it can be categorized as a companies intangible assets. This means that over the years the market value that was related to tangible assets has decreased and there has been an increase in intangible assets. The percent of market value related to tangible assets in 1982 was about 62 percent, and the intangible assets were made up of about 38 percent. Then in 2000, we could see a significant transformation towards intangibles. There was only 15 percent of market value associated with
Reporting Standards (IFRS), which is known for being "principles-based" when compared to GAAP. Companies in the United States may also be affected by the IFRS as continued globalization of the marketplace occurs, and with it grows an increasing importance of financial disclosure and transparency. This paper will take a brief look at a few of the similarities and differences between GAAP and IFRS. Current Liabilities and Contingencies GAAP and IFRS define a liability in much
In addition it enables them to communicate more policy and future-oriented issues about the corporation. Globalization of capital markets increases the pressure for greater transparency and disclosure of additional information, because of the importance and the growing need to attract and retain foreign capital. A study by Adhikari and Tondkar shows that the size of equity markets is significant in determining the level of disclosure. Since the Indian capital market is very small, Infosys needs
Capital The term intellectual capital (IC) is synonymous with Intangible capital. IC collectively refers to all the resources and assets that defy conventional accounting measures, but which still determine the value and the competitiveness of an enterprise. IC is commonly divided into the areas of Human Capital, Structural Capital, Relationship/Relational Capital, and the Business Model. In our modern Information and Knowledge Economy, intangibles have progressively become the driving factors around which
capabilities that a firm possesses. Resources refer to ‘inputs to an organisation’s production or operating processes’, and they can either be tangible or intangible. In the business industry it is generally thought that intangible resources tend to be more valuable than tangible ones, the reason for this being that you cannot just buy intangible resources, they are hard to acquire and are built up over time, with time being an important aspect of strategic management. For example, a company such as