About the event
This research seminar addresses the ongoing debate surrounding the International Financial Reporting Standard (IFRS) for intangibles, highlighting concerns over inconsistent treatment between acquired and internally generated intangible assets, and the limited, non-mandatory disclosure of unrecognised intangibles. These issues hinder comparability and transparency, prompting calls for reform. The study focuses on UK-listed firms (2017–2022), analysing differences in the recognition and disclosure practices between acquisitive and non-acquisitive companies. Findings reveal that acquisitive firms report recognised intangibles averaging 32% of total assets, compared to just 9% in non-acquisitive firms. However, non-acquisitive firms compensate through more extensive disclosure, particularly for non-contractual, internally generated intangibles. The research also examines how these practices impact the value relevance of financial information, revealing that disclosures can reduce earnings relevance in acquisitive firms but enhance book value relevance in non-acquisitive ones. The results underscore the need for IFRS reform to improve consistency and investor insight.
About the speaker
Professor Salma Ibrahim, Professor and Departmental Research Director
Kingston University London
