What financial and non-financial information on intangibles is value relevant? A review of the evidence

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dc.contributor.author Wyatt, Anne en_US
dc.contributor.editor en_US
dc.date.accessioned 2010-05-28T09:54:08Z
dc.date.available 2010-05-28T09:54:08Z
dc.date.issued 2008 en_US
dc.identifier 2007003388 en_US
dc.identifier.citation Wyatt Anne 2008, 'What financial and non-financial information on intangibles is value relevant? A review of the evidence', Institute of Chartered Accountants in England and Wales, vol. 38, no. 3, pp. 217-256. en_US
dc.identifier.issn 0001-4788 en_US
dc.identifier.other C1 en_US
dc.identifier.uri http://hdl.handle.net/10453/10105
dc.description.abstract This paper evaluates what we have learned about the relevance and reliability of financial and non-financial information on intangibles from the value-relevance literature. Because value-relevance studies do not easily allow judgments about the reliability of information on intangibles, and this is an issue of central interest, this paper takes a rather wide look across a range of literatures to try to piece together some indirect evidence on both relevance and reliability. The evidence from a package of value-relevance and triangulation studies suggests research and development (R&D) is generally not reliably measured and may be less relevant in some contexts than others as well (e.g. established versus growth firms). Further purchased goodwill and some non-financial measures of brands and customer loyalty do not appear to be reliably measured. While a large number of financial and non-financial information is value-relevant, it is difficult to make categorical judgments about most other items, as differences in value-relevance could be due to different relevance or reliability, or both. Several rich areas for future research include designing direct tests of reliability, focusing on settings where intangibles are changing due to shocks, finding new economic benchmarks to test reliability, and studying the impact of accounting discretion and factors such as strategy and capabilities on value-relevance tests of information on intangibles. Two regulatory issues arising from this review paper are the gap in the reporting of separate line items of expenditures on intangibles; and the possibility that giving management discretion, with regulatory guidance, to report intangibles might facilitate more value-relevant information on intangibles. en_US
dc.language en_US
dc.publisher Institute of Chartered Accountants in England and Wales en_US
dc.relation.isbasedon en_US
dc.relation.isbasedon http://dx.doi.org/10.1080/00014788.2008.9663336 en_US
dc.title What financial and non-financial information on intangibles is value relevant? A review of the evidence en_US
dc.parent Accounting and Business Research en_US
dc.journal.volume 38 en_US
dc.journal.number 3 en_US
dc.publocation United Kingdom en_US
dc.identifier.startpage 217 en_US
dc.identifier.endpage 256 en_US
dc.cauo.name BUS.School of Accounting en_US
dc.conference Verified OK en_US
dc.for 150103 en_US
dc.personcode 100288 en_US
dc.percentage 100 en_US
dc.classification.name Financial Accounting en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords value-relevance, intangibles, accounting regulation en_US
dc.staffid en_US
dc.staffid 100288 en_US


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