New accounting approach values intangible assets for future economic growth.
The article discusses how companies invest in intangible assets like patents, software, and brand names. These assets can bring future economic benefits. The International Accounting Standards provide guidelines for recognizing and accounting for intangible assets in financial statements. Intangible assets must meet specific criteria to be recognized on the balance sheet. If an asset doesn't meet these criteria, its cost is treated as an expense. The main goal is to help companies accurately account for intangible assets and their potential value.