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inancial future. However, the users should be the one who take part in forecasting the financial future of the company. Moreover, managers do not need to gather information to manage the business. They just need to disclose the information that they know. Last but not least, manager can use flexible reporting.

 

In the modest proposal, the main objective of metrics for both old and new economy should be to capture and report business information that is not readily apparent from the financial statements. The approaches are in aim of having better metrics than those of in traditional so as to perceive value drivers in the new economy in terms of workforce, customers and ability to innovate.

 

Chapter 4: Intangibles Assets

This section examines the issues surrounding recognition and measurement of internally generated intangible assets such as research and development cost, computer software cost and so on. The discussion will be started from the definition of assets and intangible assets and follow by the structure of recognition criteria as well as three existing accounting standards that address intangible assets. It then continues to analyze the issue surrounding the recognition of intangible assets.

 

Both FASB and IASC similarly defines asset as a “future economic benefits as a result of a past transaction or event, and is controlled by the entity”. Assets can be divided into two parts which are noncurrent asset and current asset. The examples of noncurrent assets are properties, plants and equipment (PPE), building, machines and so on. While, cash on hands, bank and account receivables are the example of current assets. On top of that, FASB Exposure Draft also defines intangible asset as a noncurrent asset that lack of physical substance such as research and development cost, computer software cost, patent, goodwill, franchises and so on.

 

Besides that, there are four fundamental recognition criteria under Paragraph 63 of FASB Concepts Statement No. 5 to be followed to avoid any omission of recognition assets in financial statement. The first criterion is definition. As long as the item meets the definition of an asset, then it can be recognized in financial statement. Next, the second criterion is measurability. If the item has relevant attribute measurable with sufficient reliability, then it also can be recognized in the financial statement. The third criterion is relevance. If the information of an item is capable to make a difference in user decisions, then it can also be recognized in financial statement. Last but not least, the forth criterion is reliability. As long as the information could represent the faithful, verifiable and neutral, then it can be recognized in financial statement.

 

However, several questions about how to recognize intangible assets such as capitalizing or expensing it had been argued. Thus, three accounting standard have address on these questions. The 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。