RECOGNITION OF INTANGIBLE ASSETS, FRAMING THE DEBATE

Abstract

For some organizations, the rapid pace of economic growth, the digital revolution, and the globalization of business meant creating or acquiring intangible assets. These assets have grown in significance for determining a company's global value and for promoting economic prosperity, while also serving as a catalyst for the creation of added value. In this way, drawing on specialized literature, the article's aim is to pinpoint and compile the primary problems that occur when an economic entity's market value surpasses its accounting value, Additionally, we want to draw attention to the primary connections that exist between intangible assets, market value, and entity performance. In this respect, only those studies that focused on the valuation of intangible assets in relation to various concepts (competitive advantage, firm value, firm performance, innovative processes, corporate governance, etc.) have been selected, all these studies being undertaken at the level of listed or unlisted entities at national level. This study shows that important internally generated intangible assets (goodwill, intellectual capital, brand etc.) are not well understood, identified, managed, or consistently reported within an entity in Romanian annual financial reports.

Keywords

• intangible assets
• company performance
• company's value
• accounting value
• internally generated intangible assets