Intangible Asset
ABSTRACT
The purpose of this study is to examine several issues when dealing with intangible assets. By means secondary research, relevant evidence from many sources was selected, evaluated and organized into three main points, which are research and development cost, brand valuation and the risk of intangible asset in financial statement in relation with market and book value. The evidence includes statistical data and expert opinion. The research results that intangible assets give a significant impact to the company if they are not measuring appropriately based on the accounting standards. Based on these findings, it is argued that intangible asset would affect company’s performance if there are misjudgments in the valuing of these assets.
Introduction
Financial statement has a significant role in businesses system in due to transparency of company’s financial position in the businesses environment. The purpose of financial report is to give important information about any changes in company’s performance that is useful for a wide range of users in making decision making in order to make investment in that particular company. According to FASB that is stated in Canibano, Garcia-Ayuso, & Sanchez (2000, p.102), financial statement should provide a useful information that will benefit to any potential investors and creditors to make further investment, credit and similar decision. Therefore, any event that will affect company’s performance either present or future should be presented in this annual report. During last 20 years, expansion in technology, economic system and people knowledge have brought many changes in businesses environment which increase the use of media due to more competition between companies and company’s feasibility in the future. Due all these changes as stated in Canibano, Garcia-Ayuso, & Sanchez (2000, p.102) the resource of wealth and future economic benefit is not from material production or tangible asset but from
The purpose of this study is to examine several issues when dealing with intangible assets. By means secondary research, relevant evidence from many sources was selected, evaluated and organized into three main points, which are research and development cost, brand valuation and the risk of intangible asset in financial statement in relation with market and book value. The evidence includes statistical data and expert opinion. The research results that intangible assets give a significant impact to the company if they are not measuring appropriately based on the accounting standards. Based on these findings, it is argued that intangible asset would affect company’s performance if there are misjudgments in the valuing of these assets.
Introduction
Financial statement has a significant role in businesses system in due to transparency of company’s financial position in the businesses environment. The purpose of financial report is to give important information about any changes in company’s performance that is useful for a wide range of users in making decision making in order to make investment in that particular company. According to FASB that is stated in Canibano, Garcia-Ayuso, & Sanchez (2000, p.102), financial statement should provide a useful information that will benefit to any potential investors and creditors to make further investment, credit and similar decision. Therefore, any event that will affect company’s performance either present or future should be presented in this annual report. During last 20 years, expansion in technology, economic system and people knowledge have brought many changes in businesses environment which increase the use of media due to more competition between companies and company’s feasibility in the future. Due all these changes as stated in Canibano, Garcia-Ayuso, & Sanchez (2000, p.102) the resource of wealth and future economic benefit is not from material production or tangible asset but from
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