FRC consultation on improvements to the reporting of intangibles
Released 6 February 2019
The Financial Reporting Council (FRC) has published a consultation on possible improvements to the accounting for intangible assets.
There are frequent calls to reform the accounting for intangible assets, partly in response to the move to a knowledge-based economy. The consultation paper considers the case for radical change to the accounting for intangible assets and the likelihood of such change being made in the near future. It suggests that:
•relevant and useful information could be provided without the need to recognise more intangible assets in companies’ balance sheets;
•such information could cover a range of factors, broader than the definition of intangible assets in accounting standards, that are relevant to the generation of value;
•improvements could be made on a voluntary basis within current reporting frameworks (such as the strategic report); and
•participants in the reporting supply chain could collaborate to bring about improvements.
The deadline for responses to the consultation is 30 April 2019.
For more information, see Consultation into improvements to the reporting of intangibles launched