A message coming across loud and clear from the ICAEW is the need for action on intangibles. Its latest thought leadership report states: “Reporting of intangibles is a key constraint on corporate reporting and raises questions about comparability and continued relevance. The inconsistent accounting treatment of intangibles needs to be looked at again. The IASB and other policy makers need to advance thinking and practice in this area, and sooner rather than later.” The report points out that previous attempts to move things forward in this area of standard-setting have not been very successful. It is a difficult and complex area where investor views vary, but the report, titled “Intangible Assets—The Achilles Heel of Financial Reporting,” is adamant that more ambition is needed. The ICAEW is The Institute of Chartered Accountants in England and Wales.
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