Intangible Assets and Economic Crisis: a New „Strange Case of Dr. Jekyll and Mr. Hyde”

Author:Sergiu PETRICĂ, Ph.D. Student

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Keywords:intangible assets, goodwill, impairment, return on assets, going concern, professional judgement

Abstract:
One year and a half after the official debut of the financial crisis, professional managers in top industries and political decision makers still struggle to understand what were the roots of the current situation and, more important what measures should be taken to preserve their entities performance at acceptable levels. However a lesser number focus on the real opportunities surged during the crisis to enhance and secure in the future, post-distress times, the value of their organisations. \r\nIn this context the author identified a set of key elements of whose management should be the center of main organisations leaders’ agenda. These elements are: going concern, intangible assets valuation and creation, business processes re-engineering and innovation, long term enhanced cost control. Have these elements been properly captured at the financial statements presentation level and what consequences have risen in the auditors’ responsibility – are the main questions that the current article will try to answer. \r\nIn order to provide a set of answers this investigation was based on a study over a sample of most significant players in Information and Communication Technology business sectors at global level and observed the impact of economic and financial changes of the latest period over the application of the accounting policies and overall financial performance reflection in the key figures associated with the intangible assets recognition and management. \r\n\r\n

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