International Journal of Engineering and Management Research (IJEMR)
Year : 2017, Volume : 7, Issue : 5
First page : ( 210) Last page : ( 214)
Print ISSN : 2394-6962. Online ISSN : 2250-0758.

Impairment of Intangible Assets-An Effort to Convergence

Dr Basu Amitava

Associate Professor of Commerce, B.B. College, Asansol, West Bengal, India

Online published on 8 December, 2017.

Abstract

Over the last few years, we have witnessed an increasing convergence in accounting practices around the world to provide high quality financial information that is comparable, consistent and transparent in order to serve the needs of financial users. As companies now become more knowledge based, intangible assets will comprise an increasing percentage of the value of businesses acquired. The value derived from intangible assets has increased significantly in today's knowledge based economy. In today's business world, importance has shifted from tangible to intangible. This highlights the significance of intangible assets and their importance in acquisition. In this back drop, this paper analyses the impact of transition from amortization to impairment of goodwill and the measures have taken by different accounting standard setting bodies with a view to promote convergence of accounting standard with a ultimate objective of developing a single set of high quality accounting standard that can be used by different countries throughout the world.

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Keywords

Intangible Assets, Amortization, Impairment, IFRS, Convergence.

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