Should All Intangible Assets Be Shown in the Balance Sheet Research Proposal

Should All Intangible Assets Be Shown in the Balance Sheet - investigate Proposal ExampleAccounting, as a profession, also grew in greatness as the complications regarding the nature of the stemma also grew simultaneously. The use of creative accounting by the firm have necessitated a large scale of measurement changes to take place within accounting literature to suggest more radical approaches to handling some(prenominal) creative accounting issues of importance. A major offshoot was that nonphysical assets grew in gross disproportion to tangible assets. Still, disrespect growing suspect irregularities in accounting of intangible assets that emerged from time to time, the world did not place straightlaced regulations in place one of these missing regulations included presenting clear and proper information of all intangible assets in the equalizer sheet. In the backdrop of Enron disaster, UK and US has initiated many changed in variant accounting practices such(prenomina l) as amendments made in IAS 38 however, there is unagitated lot to be done in terms of intangible asset disclosure in accounting statements as some of the firms are still engaged in practices of evading the inclusion of intangible assets into their balance sheet.... Statement of the ProblemIntangible assets are defined as assets with the quality of being identifiable as well as quantifiable apart from the goodwill. so most of the fiscal assets utilize by the firms, mostly with the intention of leveraging the business, are considered as intangible assets. However the use of intangible assets as one of the critical means of hiding some of the highest importance accounting information with the potential to affect the decision making of investors is on increase as companies, disdain tightening regulations and accounting standards is using them to conceal different facts. This has become even more weighty in the wake of the biggest corporate scandals like Enron and World Com both of which tried to conceal important facts through the coverage of accounting information in more creative way. The use of intangible assets was one of the most important mean used by these firms to hid information.This also creates very interesting ethical questions of the accounting practices being used by the firms. This research will attempt to discuss whether, the scope of the disclosure of the tangible assets in balance sheet should be increased to include all the tangible assets to be reported on the monetary statementsLiterature ReviewThe concept of intangible assets, in itself, is a very important and somewhat different qualities associated to them. (Berry, 2004, 15). Intangible assets hold a very different and somewhat blurred distinction between what typify of the intellectual capital of the firm i.e. in the form of its human resources, copyrights, patents etc however, on the other hand financial assets are also often