Identifiable intangible asset disclosures, stock prices and future earnings

Wells, PA; Ritter, AC

Identifiable intangible asset disclosures, stock prices and future earnings

Wells, PA

Ritter, AC

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Publisher:: Blackwell Publishing Asia
Publication Type:: Journal Article
Citation:: Accounting and Finance, 2006, 46 (8), pp. 843 - 863
Issue Date:: 2006-01

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Field	Value	Language
dc.contributor.author	Wells, PA https://orcid.org/0000-0001-6822-4826	en_US
dc.contributor.author	Ritter, AC	en_US
dc.date.issued	2006-01	en_US
dc.identifier.citation	Accounting and Finance, 2006, 46 (8), pp. 843 - 863	en_US
dc.identifier.issn	0810-5391	en_US
dc.identifier.uri	http://hdl.handle.net/10453/5393
dc.description.abstract	As a consequence of regulatory reforms currently being initiated as part of international convergence, it is likely that the recognition and disclosure of identifiable intangible assets by Australian firms will cease. This study provides empirical evidence on how this will impact financial reports. First, evidence is provided of a positive association between stock prices and voluntarily recog- nized and disclosed identifiable intangible assets. Second, evidence is provided of a positive association between identifiable intangible assets and realized future period income. This provides insights into the nature of the information provided by intangible assets, and identifies a basis for the association between stock prices and identifiable intangible assets. This leads to the conclusion that identifiable intangible assets disclosures are value relevant, and that with the application of the restrictive recognition rules in AASB138 these disclosures in financial reports will be greatly diminished.	en_US
dc.publisher	Blackwell Publishing Asia	en_US
dc.relation.ispartof	Accounting and Finance	en_US
dc.subject.classification	Accounting	en_US
dc.title	Identifiable intangible asset disclosures, stock prices and future earnings	en_US
dc.type	Journal Article
utslib.citation.volume	8	en_US
utslib.citation.volume	46	en_US
utslib.for	150103 Financial Accounting	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access
pubs.consider-herdc	true	en_US
pubs.issue	8	en_US
pubs.volume	46	en_US

Abstract:

As a consequence of regulatory reforms currently being initiated as part of international convergence, it is likely that the recognition and disclosure of identifiable intangible assets by Australian firms will cease. This study provides empirical evidence on how this will impact financial reports. First, evidence is provided of a positive association between stock prices and voluntarily recog- nized and disclosed identifiable intangible assets. Second, evidence is provided of a positive association between identifiable intangible assets and realized future period income. This provides insights into the nature of the information provided by intangible assets, and identifies a basis for the association between stock prices and identifiable intangible assets. This leads to the conclusion that identifiable intangible assets disclosures are value relevant, and that with the application of the restrictive recognition rules in AASB138 these disclosures in financial reports will be greatly diminished.

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http://hdl.handle.net/10453/5393