“Remarks on the Measurement, Valuation and Reporting of  Intangible Assets”

Dinesh C. Dhoniya

Volume : I, Issue : II, July - 2012

“Remarks on the Measurement, Valuation and Reporting of Intangible Assets”

Dinesh C. Dhoniya

Abstract :

Intangible assets are both outsized and significant. The first approach is based on accounting for the investments in research and development (R&D), software, and development, and other intangibles. The second utilizes the wages and salaries paid to �creative workers,� those workers who make intangible assets. The third approach, which is quite inventive, examines the changes in operating margins of firms�the difference between sales and the cost of sales. As an exemption to the general rule regarding intangible assets, Financial Accounting Standards Board (FASB) Statement 86 mandates the capitalization of software development costs incurred from the point of �technological achievability.� The forces of the position are enormous and are fighting against meaningful vary, still today.