| Abstract [eng] |
The main purpose of this master thesis is to identify the necessary changes in accounting policies of intangible assets based on the analysis of current IFRS requirements and based on the analysis of unrecognized intangible assets impact on the market value of telecommunication companies. As the economy evolved from industrial to knowledge-based, the role of enterprise value creator shifted from tangible to intangible assets. However, accounting standards did not reflect this shift. As a result, there is widespread discussion about accounting requirements for intangible assets and the changes that need to be made. This thesis includes a literature review of the definition of intangible assets, their classification, valuation methods, recognition and measurement and disclosure requirements under IFRS. Furthermore, this work examines related empirical researches conducted by academics and determines the appropriate research method for the purpose of this thesis. Two regression models were selected for further analysis. The main purpose of the empirical research is to determine which components of unrecognized intangible assets affect the value of companies from the perspective of their share price and to what extent. The subject of this research - telecommunication companies listed on the London Stock Exchange over the period 2019-2021. The analysis showed that the first regression model, based on VAIC method, is not statistically significant. However, the second regression model – the modified Wang – proved to be statistically significant. This model proves that all the main components of intangible assets – human capital, relation capital and organizational capital – affect the market value of telecommunication companies. Therefore, their accounting treatment is important for the stakeholders of these companies. In addition, the further development of accounting for intangible assets was analyzed based on the actions, discussions and regulations of various organizations such as SEC, IFRS Board, EFRAG, European Commission, World Economic Forum. Based on the view of these organizations and the results of the empirical study conducted, proposals for changes in accounting for intangible assets were made. First, it is suggested to follow the approach of SEC - companies should provide disclosures on human capital in the management section of their financial statements. The content and scope of such disclosure should be based on the professional judgement of management and tailored to the needs of the particular company. In order for the accounting of relationship and organizational capital to evolve, IFRS requirements should be liberated. As per EFRAG suggestion, the accounting of internally generated intangible assets and intangible assets acquired through business combinations should be more closely aligned. This would allow more intangible assets to be recognized even if no business combination has taken place, while at the same time meeting the requirements for recognition of assets set out in IFRS. The author believes that the results of the study could provide useful insights to accounting organizations on the necessary changes in accounting policies for intangible assets and enable companies to understand the value of the intangible assets they hold. |
