IAS 38 reformer and IASB chair Andreas Barckow
The new chair of the international body that provides the basis for Australia’s accounting framework has singled out intangibles as a topic on which stakeholders of the International Accounting Standards Board seek action.
IASB chairm Andreas Barckow told the World Standard Setters Virtual Conference held on Monday that intangibles was one of those topics stakeholders desperately want resolved.
“I have spoken at many public events about intangibles, and the need to address the accounting in this area. So I agree with those that have raised this issue. Our Standard on intangibles, IAS 38, is more than 20 years old and has never been revisited other than for consequential changes resulting from other projects,” Barckow said.
“We all recognise the significance of intangibles, especially self-generated intangibles, has increased substantially over the last two decades.”
Barckow said that the shift towards service entities across the globe has meant that the issue of capturing the value of these entities needs greater attention from standard setters.
“Today many, if not most companies around the globe operate in the service sector. They attract a lot of attention in the capital markets and, in fact, some of the richest market valuations. However, we don’t capture well the basis of their value creation or consumption,” Barckow said.
“This is the key reason why, personally, I would like us to explore what we can do to increase transparency in this area. Obviously, this will have to be a decision taken by the full Board and only after due consideration of the entire feedback we receive, so stay tuned!”