Is there a problem with the financial reporting of intangible assets? As a recent International Accounting Standards Board (IASB) paper highlighted, supporters of a review of intangibles assets accounting make three principal criticisms.

One is that intangible assets are of increasing importance, yet there is limited recognition of these assets on company balance sheets. Secondly, there is inconsistency in the accounting treatment of acquired intangible assets and those that are internally generated. Last but not least, development costs are capitalised, in contrast with US GAAP, which require them to be expensed.