AASB Discussion Paper on Intangible Assets

The Australian Accounting Standards Board (AASB) recently published a discussion paper: Initial Accounting for Internally Generated Intangible Assets. The paper considers, mainly from a conceptual perspective, whether increased recognition of internally generated intangible assets is possible.

The debate surrounding increased recognition of internally generated intangible assets is an important one, particularly in light of the differences that currently exist between recognition and measurement of intangible assets acquired in a business combination and those generated internally. The paper presents a case for increased recognition of internally generated intangibles. It is important to debate this proposal, and to consider more generally whether recognising and measuring intangible assets in the financial statements is practical and results in decision-useful information.

The discussion paper, authored by the staff of the AASB, has been issued with the support and encouragement of National Standard Setters (NSS), a global group of national accounting standard-setters and related organisations, which is chaired by the ASB Chairman Ian Mackintosh. The NSS group , including the ASB, welcomes the AASB discussion paper as a contribution to this debate, but does not necessarily agree with all of the views expressed in the paper.

As the purpose of the paper is to encourage debate, the AASB is seeking comments on the conceptual and practical implications of the views expressed in its paper.