Year: 2000
Type: article
Abstract: The primary focus of this study is on the impact of the UK financial reporting standard for goodwill and intangible assets (FRS10) on information assets. It was anticipated that the identification of methods already in use under the terms of FRS10 for valuing information assets would be identified. It was anticipated that once UK companies have recognised information as an asset for valuation purposes this would bring information assets within the compass of financial appraisal.\nInterviews were conducted with accounting and information professionals as well as with representatives of their professional and regulatory bodies focusing on the valuation of information as an asset. Of the 24 organisations in which interviews were carried out, eight were FTSE 100 companies which were identified as being information-intensive organisations, thus likely to represent the state of the art with regard to the valuation of information assets. The main method of data gathering was by individual interview using a semi-structured approach.\nThe most surprising finding was that UK companies appear not to be using FRS10 to value their information assets. Moreover, many of those interviewed did not believe that information should be categorised as an asset or valued for inclusion on the balance sheet. One difficulty identified in using FRS10 to value information assets was that it specifically excludes internally-generated intangibles which do not have a 'readily ascertainable market value'. The information assets considered most important by interviewees were internally-generated. These were typically not valued for internal purposes, hence one reason why there is little impetus to include information assets on the balance sheet maybe because it could be unwise to report externally that which has not been addressed internally.
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1613814398