Significance of Brands for the Presentation of the Balance Sheet: The Case of European Companies
Author:
Univ. Prof. Liliana FELEAGĂ, Ph. D.; Univ. Prof. Niculae FELEAGĂ, Ph.D.; Luciana Maria RÂBU, Ph. D. Student
JEL:
M41, M49
DOI:
Keywords:
brands, IFRS, european companies, intangible assets, total assets
Abstract:
This research is trying to verify the hypothesis according to which the value of brands represents an important percentage within the intangible assets and the total assets of big companies. The sample comprises 45 companies included in the STOXX® Europe 600 Consumer Goods Index, from 12 countries. The data are collected from the annual reports of the selected companies. All annual reports are in accordance with International Financial Reporting Standards (IFRS). The results of the study show that the value of brands is an important percentage within intangible assets and total assets of the companies analyzed. Also, there has been seen a very limited disclosure on brands. These results are a sign that the regulating bodies should constrain companies to disclose more information related to the procured brands and to develop an accounting framework to allow recognition of all internally generated brands.\r\n