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• intangible expenses related to these assets, which are operating expenses even though they
have an intangible nature.
They go on to reach three conclusions:
Ø This approach will in practice mean that, contrary to the inventory-style approach, very
few intangible assets will be identified. A company may be able to develop one source of
revenue, or even several, but only of a limited range: trademarks, files, patents, customer
lists, specific knowhow, etc.
Ø There is no intangible expense which by nature should always be capitalized; the matter
should be considered case by case. R&D is one example. It should not necessarily be
recorded as an asset; it can be an expense in support of output, maybe new products or
Ø Identification of intangible output should result in identification of intangible input which
will be used to maintain or improve the value of the intangible output.
It may therefore be advisable for accounting bodies and professionals to take a closer look at
this new approach to intangibles, which is oriented towards th...
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