‘Against a backdrop of the growing importance of intangibles, for regulators and legislators there is clearly scope for improving comparability between European company accounts by increasing the harmonization of the treatment of intangibles by SMEs,’ a new survey issued by the European Federation of Accountants and Auditors for SMEs reveals.
Business valuers in the UK will hear a great deal on this issue, particularly since, as reported in BVWire—UK, the European Financial Reporting Advisory Group (EFRAG) is conducting a research project on improved intangibles reporting.
‘The Financial Reporting of Intangibles by SMEs in Europe’ compares SME practices in the UK with those in Germany, Portugal, and elsewhere. Despite IFRS for SMEs, some countries required capitalization of development costs, depending on the entity size and type of intangible. The UK retains an added option for small and medium businesses for development costs, as do some of the other European countries.
Our thanks to Marianne Tissier of Valuology for alerting us to this report.
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