Analysis of intangible assets reporting standards and automation in KSA within an Islamic context – a case study

Abstract

Purpose This paper aims to the significance of intangible assets in boosting financial credibility and accounting transparency in Saudi Arabia and other Islamic countries, aligning with Saudi Vision 2030. Moreover, it articulates the indispensable role of information and communication technology (ICT), including cutting-edge technologies such as artificial intelligence (AI) and blockchain, inefficaciously mitigating manual challenges while safeguarding the authenticity and reliability of financial information. Design/methodology/approach This study examines relevant literature on national and international standards to define the significance of intangible assets within conventional and Islamic Shari’ah principles in the Kingdom of Saudi Arabia (KSA). It delves into how automation technologies can improve accuracy and verifiability in reporting intangible assets while adhering to Islamic Shari’ah Compliance (ISC) principles, providing valuable insights into standardization and automation benefits. Findings The study highlights that ISC laws affect intangible asset reporting. Integrating conventional accounting principles with ISC is necessary to establish a unified international standard. Adopting ICT, AI and blockchain is crucial for automating and ensuring consistent, verifiable reporting of intangible assets. Research limitations/implications This case study highlights the importance of intangible assets in KSA, but its findings require validation through workshops with scholars, stakeholders and policymakers to ensure broader acceptance and applicability beyond the specific context. Practical implications This study provides guidance on using AI, blockchain and other ICT tools to ensure accurate financial reporting by validating and verifying intangible assets, benefiting stakeholders, policymakers, accountants, auditors and ISC professionals. Originality/value This study underscores the importance of reporting intangible assets according to Islamic principles in KSA, with relevance to other Islamic countries. Promoting International Financial Reporting Standards and Saudi Organization for Certified Public Accountants standards enhances accurate reporting and supports Saudi Vision 2030 goal of boosting global investment and trade.