Intangible Assets Comparative Study
“A Comparative study on National and International Accounting Standards
( with Reference to Intangible Assets)”
Ms. Ankita Jain
Associate Professor
LJ Institute of Management Studies Ahmedabad-382210 Gujarat, India
ABSTRACT
The aim of this study is to prepare the comparative analysis of accounting standards on Intangible assets namely AS-26 (India) and IAS-38 (International). The analysis has been done broadly on the following basis – accounting treatment of different types of goodwill, internally generated goodwill, internally generated intangible assets, how to subsequently recognize
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Introduction:
Accounting of Intangible assets is a complex and important subject in today’s information and knowledge based economy. For companies, these assets are becoming basic drivers for achieving competitive success. Accounting of Intangible assets is also important for their effective management as there is a famous saying ‘What gets measured gets managed’. With a view to report these assets in the financial statements, various regulatory bodies have issued accounting standards on intangible assets.
Accordingly this chapter is based on an in-depth study of major accounting standards dealing with intangible assets.
Introduction of Accounting Standards on Intangible Assets
An Accounting Standard can be defined as “A principle that guides and standardizes accounting practices”. The Generally Accepted Accounting Principles (GAAP) are a group of accounting standards that are widely accepted as appropriate to the field of accounting. Accounting standards are necessary so that financial statements are meaningful across a wide variety of businesses; otherwise, the accounting rules of different companies would make comparative analysis almost impossible. Over past decades for the purpose of accounting of intangible assets in the financial statements, several accounting standards have been issued by professional accounting bodies in different
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