A new survey reveals that there are significant variations between jurisdictions in Europe in the accounting treatment of intangibles by small and midsize enterprises (SMEs). While there is overall agreement on the treatment of purchased intangibles, it’s another story for internally generated intangibles, with some jurisdictions requiring capitalizing such costs. The report includes a nice country-by-country chart that shows the accounting treatment for various types of intangibles by entity size. “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,” the report says. Issued by the European Federation of Accountants and Auditors for SMEs, the report, “The Financial Reporting of Intangibles by SMEs in Europe,” is available if you click here
. Our thanks to Marianne Tissier
for alerting us to this report.
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