The Accounting Treatment of Unaccounted Intangibles: Exploring the Trade Offs of Preparers, Users and Professionals

The reporting of unaccounted intangibles remains a complex and unresolved issue in financial accounting. Recent regulatory developments, including possible revisions to IAS 38 and new sustainability reporting requirements, have renewed interest in how such resources should be measured, reported and disclosed. Through a survey-based analysis this study firstly explores the contingency factors that affect the views of preparers, users, and professionals on the treatment of unaccounted intangibles as well as their costs-benefits considerations. Results show that professional role significantly shapes preferences. From a tradeoffs perspective, preparers generally adopt more conservative positions, consultants and auditors call for reform and users tend to rely on resources other than the financial statements. By examining all key stakeholder groups jointly, the study highlights important considerations for different regimes for accounting on intangibles. These findings offer timely and practical insights for standard setters aiming to improve the relevance of financial reporting.