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

Should All Intangible Assets Be Shown in the Balance Sheet - Research Proposal ExampleAccounting, as a profession, similarly grew in importance as the complications regarding the nature of the business also grew simultaneously. The use of creative accounting by the firm have necessitated a large surpass changes to take place within accounting literature to suggest more radical approaches to handling many creative accounting issues of importance. A major stolon was that intangible assets grew in gross disproportion to tangible assets. Still, notwithstanding growing suspect irregularities in accounting of intangible assets that emerged from time to time, the world did not place comely regulations in place whizz of these missing regulations included presenting clear and proper information of all intangible assets in the proportionateness sheet. In the backdrop of Enron disaster, UK and US has initiated many changed in incompatible accounting practices such as amendments made in IAS 38 however, there is still 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. thereof most of the monetary assets used 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, despite tightening regulations and accounting standards is using them to conceal different facts. This has become even more all important(p) in the wake of the biggest corporate scandals like Enron and World Com some(prenominal) of whi ch tried to conceal important facts through the reporting 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 talk about 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 financial 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 comprise 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