Valuation of Intangible Assets under IAS/IFRS: Accounting Challenges and Perspectives

Abstract

In the age of the immaterial, intangible capital is a key factor in the development and success of competitive companies. It is a major strategic asset that must be optimally managed to maximize its benefits. Effective management of intangible assets depends to a large extent on their valuation and accounting. Indeed, measuring the value of these assets has become a necessity for managers concerned about the future of their company. The valuation of intangible capital provides the company with detailed and accurate information for analyzing past and future performance, and for anticipating future results.

This is the background to our study, which aims to shed light on the efforts made in the accounting valuation of intangible capital. We analyze the accounting treatment of intangible assets under IAS/IFRS, drawing on theoretical and empirical research carried out in recent years. This literature review is based on the analysis of scientific articles, case studies and research reports, which will enable us to demonstrate that IAS/IFRS have enriched the information relating to intangible assets.

We examine the transition to the IASB's international standards, emphasizing that they have changed the value of accounting data by insisting on conformity and faithful representation of the economic reality of companies. Our analysis highlights both the importance and the complexity of valuing intangible capital within companies of all sizes and in all sectors. Our results also show that the valuation of intangible assets is now essential, particularly in the context of mergers and acquisitions, while opening up new avenues of research in this field.

In the future, accounting standard-setting authorities will have to strike a balance between the relevance and reliability of financial information, while working towards the creation of a global framework for quality financial reporting.

Keywords: Intangible capital, goodwill, accounting recognition, accounting for intangible assets, international accounting standards.

JEL Classification : O34, M41

Paper type: Theoretical Research