Connotations Regarding Accounting Recognition of Intangibles in the Company's Performance

Abstract

Abstract Nowadays the managers, investors and shareholders are seeking to identify the value sources of an economic entity in order to spot the most suitable destination for their investments. The context of the “new economy” concept stresses the importance of the intangibles assets that becomes greater and greater. Also, many international studies pointed out that performance and growth of the economic entities are driven by the intangibles assets owned, such as software, human capital, organizational structure, R&D investment. In spite of the increasing level of importance of these assets, many of them are not reported in the financial statements, are difficult trying to identify and also difficult to assess, but the endeavor should not be abandoned. This article is intended to show the way the intangibles assets are reported in financial statement of the Romanian economic entities and how they lead performance, growth and value for these companies.