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Accounting Treatment of Intangible Assets - Analysis of Computer Programming Companies

Accounting Treatment of Intangible Assets - Analysis of Computer Programming Companies

Ana Rep
Copyright: © 2019 |Volume: 11 |Issue: 3 |Pages: 17
ISSN: 1941-627X|EISSN: 1941-6288|EISBN13: 9781522565222|DOI: 10.4018/IJESMA.2019070105
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MLA

Rep, Ana. "Accounting Treatment of Intangible Assets - Analysis of Computer Programming Companies." IJESMA vol.11, no.3 2019: pp.61-77. http://doi.org/10.4018/IJESMA.2019070105

APA

Rep, A. (2019). Accounting Treatment of Intangible Assets - Analysis of Computer Programming Companies. International Journal of E-Services and Mobile Applications (IJESMA), 11(3), 61-77. http://doi.org/10.4018/IJESMA.2019070105

Chicago

Rep, Ana. "Accounting Treatment of Intangible Assets - Analysis of Computer Programming Companies," International Journal of E-Services and Mobile Applications (IJESMA) 11, no.3: 61-77. http://doi.org/10.4018/IJESMA.2019070105

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Abstract

Information technology has a crucial role in all types of businesses and is a product of intellectual capital. Intellectual capital is not recognized as an asset of a company since there is no generally accepted model for measurement of human capital. Research was performed in order to investigate the awareness of financial statement preparers regarding the importance of using the professional judgement in the context of intangible assets. The content analysis method and the method of induction have been used. Nonetheless, an analysis of activity ratios has been done in order to gain an insight into the effectiveness of the company's assets. Empirical research conducted on a sample of computer programming companies has shown the lack of professional judgment in the context of accounting policies applied. Additionally, the value of intangible assets is underestimated. Computer programming companies should give greater emphasis to disclosures in the notes of financial statements since the non-financial disclosures are found to be at a low level.

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