Accounting Paper

Introduction In recent decades, the global economy has undergone a rapid transformation, from an economy driven by traditional profound assets- plants, warehouses and the handle, to an economy driven by patents, software, intellectual property, and brands. These items deterioration into a category that has become hugely important in the human of pecuniary reporting, intangible assets. Increasingly, the value of a true is derived non from its tangible assets much(prenominal) as stock, property, plant and equipment but by its experience capital, its employees, even by its business processes. As Baruch Lev notes in 2001: Pfizers value comes from its disc all oery activities (drug development, patents, trademarks), and from an unusually effective mass meeting force (human capital, training), and not from its lab equipment or pill personal credit line facilities, Wal-Marts incredible competitiveness derives from unique organizational processes, such as those shifti ng inventory management to suppliers, rather than from bricks and mortar. As the new intangible economy has continued to grow, so has the practice that the current system of monetary reporting is incapable of providing the breeding its users require to assign fair value to a firm.

more(prenominal) research has been conducted analyzing the problems inherent in the current state of financial reporting and many solutions have been proposed. As this paper intends to display, the post of information provided to the users of financial reports regarding intangibles acquired in mergers and acquisitions has improv ed significantly over the last decade, howev! er little if any progress has been subscribe to as far as improving the accounting methodology regarding internally developed intangibles. This paper aims to analyze the weakness in the current system of financial reporting in telling to intangible assets, recount the efforts to improve these weaknesses, and finally to suggest entertain actions that could be taken to improve the quality of accounting. Weaknesses...If you want to draw out a full essay, order it on our website: OrderCustomPaper.com

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