Abstract:
This paper reports on capitalisation
practices of Australian managers for a
large sample offirms in the 1993-97
period, and on accounting regulatory
issues in relation to intangibles
during and after this period.
The data show diversity in
capitalisation practices in 1993-97,
which we suggest is a consequence
of abstract conceptual bases for
capitalisation decisions under the
Australian regulatory framework.
The analysis indicates
the framework retains traditional
emphasis on conservatism and
reliable measurement while
providing managers with substantial
accounting discretion to capitalise
intangible assets. We conclude
there is an imperative for research
investigating capitalisation
decisions for intangibles' to guide
any further regulation.
